SPINS Pet Trends 2020 - What's Driving Today's Pet Parents

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SPINS Pet Trends 2020 - What's Driving Today's Pet Parents
SPINS Pet Trends 2020
What’s Driving Today’s Pet Parents
SPINS Pet Trends 2020 - What's Driving Today's Pet Parents
2 SPINS Pet Trends 2020

We Love Pets.
No matter how hectic the world may be,            one.1 During this time, American pet owners
or even in the midst of a global pandemic,        have incrementally increased their year-over-
pets will always be a consistent and positive     year spend, resulting in 450% growth. Each
source of companionship in our lives.             year, pet parents are spending $49 billion
Whether you have a dog, cat, fish, bird, or       on pet care, which includes food, treats,
reptile, you love your pets like they’re part     and supplies.2
of the family. And judging by today’s trends,
                                                  In other words, pet owners are investing
pet owners are taking this mentality to the
                                                  in their 4-legged (and 2-legged and
store aisles.
                                                  gilled) friends.
Over the last 25 years, the pet industry has
grown steadily, evolving from a simple but
sizeable industry into a complex, booming

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SPINS Pet Trends 2020 - What's Driving Today's Pet Parents
SPINS Pet Trends 2020       3

Who Are Today’s Natural                                                             similarly to how they may pamper
Pet Owners?                                                                         themselves: reading the labels
                                                                                    on foods, choosing high quality
Pet owners are synonymously
                                                                                    ingredients, and even treating them
known as pet parents or pet mothers
                                                                                    to luxuries like high-end clothing
and fathers, in turn, making their
                                                                                    and spa days. By now you probably
dogs and cats their ‘fur babies.’
                                        nearly                                      know that it’s no trend—it’s today’s
Whatever you call yourself (and your
                                                                                    default style, and you can thank the
pets), just know that you’re in good
company. According to data from
IRI All Outlet Panel that is enhanced
                                        7-in-10                                     changing demographics for that.

                                                                                    The Millennial Shift
with SPINS Product Attribution,         households have purchased pet
nearly 7-in-10 households have          food and treats in the past year.           Millennials aren’t the first pet owners
purchased pet food and treats in                                                    to view their pets as part of the
the past year.                                                                      family—they just happen to have the

In fact, today’s pet parents are
making multiple trips to the store.
                                        30%                                         numbers and social savvy to bring
                                                                                    this mentality to the mainstream.
                                                                                    Today, 1 in 3 pet owners is a
In the past year, 61% of households     of natural, specialty, and
                                        wellness pet shopper                        millennial, and between 2007 and
bought pet food and treats at                                                       2015, millennials accounted for
least twice:                            households have bought
                                        pet food and treats at least                43% of pet owner growth.3
• 35% of households bought              twice in the past year.                     Research from Packaged Facts
  dog food                                                                          also finds:
                                        Source: IRI All Outlet Panel, enhanced
• 28% of households bought              with SPINS Product Attribution
  cat food                                                                          • 55% of millennial pet owners
                                                                                      vs 30% of older pet owners
• 28% of households bought
                                                                                      are open to trying holistic and
  dog treats
                                                                                      natural-branded nutritional pet
Looking specifically at natural,        Millennials accounted for                     supplements prior to conventional
specialty, and wellness pet                                                           pet medication
shoppers, 30% of households have
bought pet food and treats at least
                                        43%                                         • 69% of millennial pet owners
                                                                                      vs 44% of older pet owners are
twice in the past year:                 of pet owner growth                           likely to consider foods with
                                        between 2007 to 2015.                         natural ingredients over mass-
• 13% of households have bought
  dog food                                                                            produced foods
                                                                  69%
• 13% of households have bought                                                     • 75% of millennial dog owners
                                         55%                                          and 64% of millennial cat
  dog treats                                                             44%
                                                                                      owners identify fear of pet food
• 6.7% of households have bought                 30%
                                                                                      contamination or product safety as
  cat food
                                                                                      a key consideration in the foods
A popular Twitter account that simply                                                 they buy
spotlights cute dogs shifted the        Open to trying        Likely to             So you might not be surprised that
way we talk about these loveable        holistic and          consider
                                                                                    today’s pet owners (or pet parents)
creatures and how we imagine            natural-branded       foods with
                                        nutritional pet       naturally-made        bring the same scrutiny to labels and
what they’re thinking. It might
                                        supplements           ingredients           concern for quality to the pet store
seem small, but it’s the perfect
                                                                                    that they take to the grocery aisle.
embodiment of how we care for our         Millennial pet owners
pets. For several years, experts in       Older pet owners
the industry have been talking about
the humanization of pets, a trend       Source: Packaged Facts
that reflects millennials’ increasing
tendency to pamper their animals

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SPINS Pet Trends 2020 - What's Driving Today's Pet Parents
4    SPINS Pet Trends 2020

                                                                                         engaged year-round. Seasonal and
                                                                                         personal events affect pet parents’
PETS GET THE BEST FROM THEIR OWNERS
                                                                                         buying patterns, whether that means
                                                                                         grabbing a dog coat in the winter or
                                                                                         a new cat toy to celebrate a holiday.

                                                                                         The COVID Bump
                                                                                         The effects of COVID-19 caused
     have purchased
                                                                                         many Americans to stay at home
clothing or costumes
                                                                                         for an extended period of time,
        give gift/treat                                                                  whether it be due to shelter in
         at Christmas                                                                    place orders or work from home
                                                                                         recommendations. Soon after
        give gift/treat
          for birthday
                                                                                         this increased time at home, pet
                                                                                         shelters saw a surprising and
     give gift/treat for                                                                 uplifting trend: a rise in adoptions
           Halloween                                                                     and fostering. Suddenly homebound
                                                                                         for the foreseeable future, workers
    Source: FINN CADY                                                                    decided they could now devote
                                                                                         their time and energy to take on a
                                                                                         new family member and shelters
                                                                                         saw historic increases that cleared
                                                                                         their cages. The wave of adoptions
Pets Deserve the Best                             Pets Get the Best
                                                                                         hasn’t yet had a long-term effect
That concern for better foods                     We’re not just buying high-quality     on sales thanks to COVID. Because
and medications is indicative of a                treats and foods for our fluffiest     pet owners (new and existing
growing desire to give pets the                   family members. They have birthday     alike) stockpiled kibble during the
best life possible. Research firm                 reminders on our calendars and         start of lockdown in March, they
FINN CADY finds that pet owners                   a spot on holiday shopping lists.      didn’t return to the stores quite as
view food as a major component in                 According to research from             frequently afterward, causing sales to
their pets’ well-being:4                          FINN CADY,                             gradually level off. However, there’s
• Approximately 60% of dog and                    • More than 40% of dog owners          still an opportunity to reach these
  cat owners are very or somewhat                   and 25% of cat owners have           customers—particularly the first-time
  concerned about their pet’s                       purchased clothing or costumes       pet owners—who are looking for
  nutrition                                         for their pets. Dog owners are       education, exploring new foods and
                                                    more likely to buy both clothing     treats, and bringing their own lifestyle
• Approximately 8 in 10 dog and
                                                    and costumes.                        habits into the pet parenting styles.
  cat owners strongly or somewhat
  agree that what their pet eats                  • More than ½ of dog and cat
  impacts his or her health                         owners give their pets a gift or
                                                    treat at Christmas
• More than 8 in 10 dog and cat
  owners strongly or somewhat                     • Half of dog owners and                   Approximately
                                                    approximately ⅓ of cat owners

                                                                                             80%
  agree that what their pet eats
  affects his or her lifespan                       celebrate a pet’s birthday with a
                                                    treat or gift
• Nearly 8 in 10 dog and cat owners
  strongly or somewhat agree that                 • Nearly ¼ of dog and cat owners           of dog and cat owners
  what their pet eats affects his or                give their pets a gift or treat to       strongly or somewhat
  her happiness                                     celebrate Halloween                      agree that what their pet
                                                  Brands and retailers can think about       eats impacts its health.
                                                  how they are communicating with
                                                                                              Source: FINN CADY
                                                  and attracting pet owners beyond
                                                  the kibble and cat nip to keep them

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SPINS Pet Trends 2020 - What's Driving Today's Pet Parents
SPINS Pet Trends 2020 5

What These Trends Tell You
                                                                                                                   TREND 1
Changing demographics certainly drive much of today’s pet
trends, but that’s not the only factor. Today’s pet owners don’t view                                      The Rise of Natural and Organic

their dogs, cats, lizards, fish, and any other animal as simply pets.
More than ever before, pets aren’t just part of the family—they’re                                                 TREND 2
possibly more spoiled than anyone in the household. The trends
                                                                                                           Customizing the Pet Diet
we explore in this report all have a common theme: providing pets
with a great quality of life. For some shoppers, that means reading
the ingredients labels. For others it’s about dietary needs. For                                                   TREND 3
everyone, it’s about making an informed choice.                                                            The Struggle to Achieve
                                                                                                           Sustainability Inside and Out
Some trends are newer to the scene and others have been
lurking for years and are finally considered mainstream. No matter
what, they tell you that the days of transactional relationships
                                                                                                                   TREND 4
with customers are over. Succeeding in the pet business means
                                                                                                           Enriching the Neighborhood
showing customers that you not only understand animals but that
                                                                                                           Store Experience
you care about them as if they were your own.

                                         somewhat concerned about their                                 Those views are playing out in
     TREND 1                             pet’s nutrition. Meanwhile, Packaged                           real time at the checkout line.
                                         Facts finds that 69% of millennial                             Natural’s strength is apparent when
The Rise of Natural                      pet owners and 44% of owners over                              comparing growth rates between
and Organic                              35 are more likely to consider                                 common natural and conventional
                                         products with naturally-made                                   products over the past year.
NATURAL’S UPWARD
                                         ingredients versus conventional,
TRAJECTORY
                                         mass-produced foods.                                           CBD: A Pet’s Best Friend
Perhaps no trend reflects pet
owners’ love for their pets more                                                                        CBD’s explosive growth can likely
than the rising popularity of natural     Growth Rates Between Common                                   be attributed to pet owners not
products. While the pandemic has          Natural and Conventional Products                             only wanting to help their pets stay
disrupted shopping habits this year,      In the Past Year                                              healthy, but also wanting to give
shoppers are exploring natural                                                                          them a good quality of life. Although
                                            89%                                Natural                  CBD and hemp seed oil’s health
products and causing retailers and
                                                                               Conventional             benefits for animals are still being
brands to take notice. Neighborhood
pet specialty stores understand                                                                         researched (and the FDA has yet to
                                                     36%
the effect this trend is having on                                                                      approve any CBD products for pets),
                                                                     17%      14%
business, as 70% of their dollar sales          4%             7%       2%                5%            pet owners have begun to make
come from natural, specialty, and                                                   -6%        -2%      this functional ingredient a regular
wellness products.                                                                                      part of their pets’ daily routines.
                                                                                            cat
                                                                                          food
                                               cat
                                            treats

                                                     medication /
                                                         first aid

                                                                       dog
                                                                     treats

                                                                               dog
                                                                              food

                                                                                                        SPINS research finds that the top
The reason is simple: Pet owners                                                                        reasons pet owners rely on CBD oil
care about what they’re putting in                                                                      and treats are for calming their pets’
their pet’s food bowl. FINN CADY                                                                        nerves and joint relief. Additionally,
finds that nearly 2 in 3 dog and cat      Source: SPINS Natural Enhanced
                                                                                                        a recent study from Colorado State
                                          Channel and MultiOutlet Channel NPI
owners believe natural pet foods                                                                        University found that CBD oil did
                                          (powered by IRI) for the 52-week period
are best, and approximately 60%           ending July 12, 2020.)                                        appear to have a correlation on
of dog and cat owners are very or
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SPINS Pet Trends 2020 - What's Driving Today's Pet Parents
6   SPINS Pet Trends 2020

                                                                                           shifts. When shoppers head to the
    HOW POPULAR IS CBD WITH PET OWNERS?                                                    pet store, they aren’t just grabbing
                                                                                           the biggest bag of kibble they can
                                                                                           find. They’re doing research before
                                                                                           they arrive and reading labels before
    1 in 4 dog owners            1 in 4 cat owners                                         they head to the checkout line. (This
    have fed their dog a         have fed their cat a                                      might become even more popular in
    CBD/hemp seed oil            CBD/hemp seed oil                                         light of pets getting a little too many
    product                      product                                                   treats during the pandemic and
                                                                                           putting on a few extra pounds.)7

                                                                                           When they’re reading labels for
                                                                                           their pets, shoppers often look for
    2 in 3 would                 Nearly 3 in 4 would                                       the same attributes that they look
    do it again                  do it again                                               for in their own food. Pet owners
    Source: FINN CADY
                                                                                           are interested in high protein foods,
                                                                                           natural ingredients, and minimal or
                                                                                           no preservatives or artificial flavors.
reducing seizures in dogs, although               grows and the industry innovates,        That mindset is evident in sales
they are still unsure of its specific             expect CBD’s product lineup to           trends for dog and cat food, where
limitations.5                                     expand with treats and edibles           attributes are attracting shoppers
                                                  as well.                                 and influencing what lands in their
That versatility is a large reason
                                                                                           baskets. Natural, specialty, and
why CBD pet product dollar growth
                                                                                           wellness-positioned products drive
has been in the triple digits year                     TREND 2                             twice the growth of conventional
over year, and by 2022 its sales
                                                                                           products.
are expected to hit $125 million.6
                                                  Customizing the Pet Diet
Today, SPINS data finds that 68% of                                                        SPINS finds that attributes are driving
dollar growth in CBD is coming from               ALL ABOUT THE ATTRIBUTES                 growth throughout the market. When
the subcategory of treats and 32%                                                          looking at dollar growth:
                                                  Humans are no strangers to evolving
of dollar growth is in vitamins and               diets; some are trends that come         • For cat food, approximately 75%
supplements, a sign that pet owners               and go quickly, while others become        comes from natural-positioned
want convenient ways to integrate it              part of our daily lifestyles. Today’s      and grain-free labeled
into their pets’ diets. As the demand             pet diets are undergoing similar

                                                                                          ATTRIBUTES DRIVING GROWTH

                                                                                          Product                                Dollar
                                                                                          Type            Attributes             Growth

                                                                                                          • natural-positioned
                                                                                          Cat Food        • grain-free labeled    75%
                                                                                                          • raw-positioned
                                                                                                          • natural-positioned    67%
                                                                                          Cat Treats
                                                                                                          • grain-free labeled
                                                                                          Vitamins and                            60%
                                                                                                       • CBD
                                                                                          Supplements
                                                                                                          • natural-positioned
                                                                                          Dog Food        • raw positioned        35%
                                                                                                          • frozen
                                                                                                          • grain-free
                                                                                          Dog Treats      • gluten-free           31%
                                                                                                          • raw-positioned

                                                                                          Source: SPINS

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SPINS Pet Trends 2020 - What's Driving Today's Pet Parents
SPINS Pet Trends 2020       7

“Ultimately every pet
  owner wants their
  furry friend to have the
  longest, healthiest,
  and most comfortable
  life possible.”

  • For cat treats, 67% comes from          Many of the pioneering brands                 of ingredients in their pets’ diets.
    natural-positioned, grain-free          that set the standard for natural             Limited ingredient diets favor foods
    labeled, and raw-positioned             and organic began with a clean-               that have a single source of protein
  • For vitamins and supplements,           ingredients mindset. To them, clean           rather than a combination of various
    nearly 60% comes from CBD               has always been synonymous with               proteins or meat byproducts. These
                                            natural and organic. These brands             foods might contain byproducts, but
  • For dog food, approximately 35%
                                            should emphasize this messaging               all of the protein sources are from
    comes from natural-positioned,
                                            on their packaging and in their               the same animal. Although limited
    raw-positioned, and frozen
                                            marketing strategies to attract               ingredient diets are not new, they
  • For dog treats, 31% comes from          customers who might not realize they          have become a common choice for
    grain-free, gluten-free, and            are already offering this latest trend.       pet owners who suspect their pets
    raw-positioned                          This move might also help natural             have an allergy or food sensitivity.
                                            and organic brands stay competitive           Limited ingredient diets are one
  PETS ARE EATING CLEAN, TOO                as conventional retailers ban artificial      way to strategically eliminate what
  “Clean eating” does not have a strict     ingredients from their shelves and            ingredients your pet agrees with and
  definition, but most shoppers use         conventional brands roll out their            what may cause a sensitivity.
  this term when they’re focusing on        own natural and clean products.
  whole (unprocessed) foods, avoiding                                                     GRAIN-FREE: YAY OR NAY
  artificial ingredients, and limiting or   LIMITED INGREDIENT                            With consumers focusing on protein
  eliminating added salts and sugars.       CONTINUES TO RISE                             content, grain-free diets have gained
  It’s a large umbrella term that can       While some pet owners are focused             traction and some controversy, similar
  include a variety of additional           on eliminating artificial ingredients         to human diets such as paleo, keto,
  attributes and categories within it,      or ingredients they deem as lesser            and Whole30. Because dog food
  such as natural, organic, and             quality like by-products, others are          often contains a high percentage of
  plant-based.                              simply trying to narrow the number            carbohydrates and low protein or

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8   SPINS Pet Trends 2020

                                                                                              ingredients in dog diets, which
                                                                                              means including ingredients that
                                                                                              haven’t historically been associated
                                                                                              with dog diets but are known to
                                                                                              offer a specific health benefit. For
                                                                                              example, a splash of goat milk in
                                                                                              a bowl of kibble is not uncommon
                                                                                              these days because it’s easily
                                                                                              digestible and can prevent or
                                                                                              help with kidney stones, diabetes,
                                                                                              GI issues, and more.11 You might
                                                                                              even find that your customers are
                                                                                              looking for fruits and vegetables—
                                                                                              either in the ingredients list or as a
                                                                                              supplement—since many of them
                                                                                              provide the same benefits for dogs
                                                                                              that they do for humans. Ultimately
                                                                                              every pet owner wants their furry
                                                                                              friend to have the longest, healthiest,
                                                                                              and most comfortable life possible.

mixed protein sources, pet owners                 pets dealing with diabetes or
                                                                                                   TREND 3
are gravitating toward grain-free                 obesity. Two years later, the FDA
choices. Similar to limited ingredient            and researchers agreed that the             The Struggle to Achieve
diets, grain-free is easily digestible            connection, if one exists, is more          Sustainability Inside and Out
for dogs and high in protein, which               complex than simply grain-free
                                                                                              WHAT DO CONSUMERS WANT?
can help dogs stay fuller longer, shed            diets. Dilated cardiomyopathy could
less, and have shinier coats.8 They               be a combination of many factors,           When consumers are reading labels,
often contain starchy alternatives                such as breed, overall health, and          they’re not just thinking about
like peas, sweet potatoes, and lentils            diet. As the Journal of Animal              what their pets are eating. They
that are often viewed as “better-for-             Science concluded, “Therefore, it           care about where that food was
you” carbohydrates. And like limited              is impossible to draw any definitive        sourced from and what it means for
                                                                                              the environment. Sustainability has
ingredient diets, grain-free diets have           conclusions, in these cases, linking
                                                                                              been a growing focus for consumers
the potential to reduce food allergies            specific diets or specific ingredients
                                                                                              across the retail space, and that
or sensitivities.                                 to [dilated cardiomyopathy].”10
                                                                                              includes pet parents. FINN CADY
When it was revealed that                         With no definitive answer just yet,         finds that sustainability is a top
dogs diagnosed with dilated                       research will continue and some             factor for customers purchasing
cardiomyopathy (DCM) were on a                    dog owners will remain wary of              cat food and millennials are more
grain-free diet, some medical experts             grain. Although there is no proven          likely than other demographics to
wondered if there was a connection.               link between the two matters,
In 2018, the FDA began investigating              expect to see more packaging
possible connections between the                  messaging about ancient grains                     GEN Z                MILLENNIALS
ailment and various dog breeds and                or high protein content.
their diets.9 The publicity had an
adverse effect on sales, and brands               FUNCTIONAL INGREDIENTS                             73%                    68%
hurried to emphasize the presence                 FOR A LONGER LIFE
of certain grain in their products.               For discerning pet owners, food
Ancient grains became more popular                                                                73% of Gen Z and 68% of
                                                  isn’t just a daily ritual for their dogs.
as they were known for containing                                                                 millennials are willing
                                                  It’s an opportunity to help these               to spend more for
low or no gluten, having high fiber               4-legged friends live a little longer           sustainable products.
and protein content, and having a                 and stay healthier. That’s evident in
low glycemic index that benefits                                                                  Source: First Insight
                                                  the growing popularity of functional

Copyright @2020 SPINS LLC. All Rights Reserved.
SPINS Pet Trends 2020       9

value sustainable proteins. A study                                                  byproducts use more or even all of
from First Insight finds that 73% of                                                 the animal, producing less waste,
Gen Z and 68% of millennials are            “Almost all the top                     which is a chief concern for many
willing to spend more for sustainable         100 FMCG companies                     sustainability-centric shoppers. Keep
products. Today’s shoppers want to            (in terms of revenue)                  an eye on which trend wins out or if
make eco-friendly purchases that                                                     both coexist with different audiences.
                                              have made bold
will leave a small carbon footprint on                                               For now, pet owners are caught
the environment- but that can often           declarations and
                                                                                     weighing which choice appeals
get complicated.12                            commitments to drive                   most to their values and pet brands
When talking about sustainable food           sustainability over the                and retailers have to decide which
for humans, a common talking point            coming years.”                         message resonates with consumers.
is how much waste goes into raising           – Source: McKinsey
cattle and producing beef. The                                                       SUSTAINABILITY ISN’T JUST
conversation also includes broader                                                   ABOUT THE INGREDIENTS
topics like working conditions,                                                      Sustainability is about more than just
pollution from the supply chain, and     would not be approved for human             the ingredients in the product itself.
the treatment of animals. Many of        consumption but are perfectly fine          According to the EPA, approximately
those concerns are the same for          for pets to eat.13 In fact, byproducts      80 million tons (or a third) of all
pet owners.                              are popular in limited ingredient           municipal solid waste comes from
                                         diets because they come from                containers and packaging, with
Many pet brands are already              the same animal as the rest of the          nearly half of that recycled. Public
making headway into producing            protein. However, they can have             awareness over the past several
sustainable foods to meet growing        negative connotations to consumers          years has led to a move away from
public interest. Based on SPINS          who shop with a more human-grade            single-use plastics and other less
data, many pet food brands include       mentality and avoid ingredients that        environmentally friendly options,
and promote their sustainable            they consider to be of lower quality.       resulting in shifting consumer habits
ingredients: For example, The            The sustainability debate gets more         and even local ordinances, such as
Honest Kitchen’s cat food products       interesting because foods with              bans on plastic straws and single-
are protein-rich and sourced from
                                                                                     use shopping bags.14
grass-fed beef and sustainable
fisheries. The company promotes                                                      This shift is already hitting the pet
its commitment to “environmental,                                                    industry, but it’s far from solved
financial, social and ethical                                                        and the space for innovation and
sustainability.” In dog food and                                                     eventual outreach to consumers
treats, Taste of the Wild highlights                                                 is great. Trade publication Petfood
its sustainably raised salmon with                                                   Industry points out that the trouble
a greater focus on high-quality                                                      with pet food sustainable packaging
protein sources. Brands like these                                                   is that the most popularly used type
are showing that sustainability-                                                     is not readily recyclable in most
centric messaging is resonating                                                      neighborhood recycling programs.15
with shoppers and could be a                                                         McKinsey notes that shifting public
differentiator in crowded markets.                                                   opinion has also forced the hand
                                                                                     of many fast-moving consumer
Trends like sustainability and
                                                                                     goods (FMCG) brands: “Almost all
clean diets can conflict when it
                                                                                     the top 100 FMCG companies (in
comes to the use of byproducts.
                                                                                     terms of revenue) have made bold
Controversially, by-products are
                                                                                     declarations and commitments
the most commonly used animal
                                                                                     to drive sustainability over the
ingredient. They are the parts of
                                                                                     coming years.”16 Even zero-waste
the animal that are often discarded
                                                                                     grocery stores are popping up
because they are not from muscle
                                                                                     throughout the country with the aim
tissue. The Association of American
                                                                                     of eliminating all plastic and food
Feed Control Officials explains that
                                                                                     packaging from grocery outlets.
these lesser-used parts of the animal

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10   SPINS Pet Trends 2020

Already we’ve seen non-food pet
products tap into this trend. Brands
like Cocokitty and Bark Potty
implement sustainability and waste
reduction into their philosophies.
Cocokitty is an organic,
biodegradable, compostable, plant-
based kitty litter from coconut pith.
Coconut pith is already a waste
product and can be reused as a
natural garden fertilizer. For canine
owners, Bark Potty is an all-natural,
disposable pee pad made of real
bark, and a single Bark Potty pad
replaces up to 60 pee pads. As                       “Local pet stores are a more
brands continue to do their part                       personable destination than a digital
to minimize waste, expect more
consumers to read packaging                            retailer or non-specialty store.”
labels for sustainably sourced food
ingredients and recyclable or
eco-friendly packaging.
                                                  Prior to COVID-19, Packaged Facts          INDEPENDENT IS A
                                                  projected that 23% of the pet market       DIFFERENTIATOR
      TREND 4
                                                  will be from online sales. Last year,      As we mentioned earlier, natural
                                                  estimated online revenue for pet           and organic is growing more quickly
Enriching the Neighborhood                        products was $11 billion. For the          than conventional in several areas,
Store Experience                                  neighborhood pet store, this might         and evolving trends are creating
                                                  feel daunting, especially against          a less transactional shopping
WHERE ARE PET
                                                  some of the eCommerce Goliaths             experience for consumers. This
OWNERS SHOPPING?
                                                  out there. This year’s quick rise in       is where independent retailers
For pet owners, and every other                   eCommerce came from the effects            are providing unique value to
consumer, convenience is crucial,                 of the pandemic and is becoming a          customers. Local pet stores are a
however, convenience does not                     mainstay for today’s shoppers, but         more personable destination than a
have a straight forward definition                that doesn’t mean it’s the only way to     digital retailer or non-specialty store,
and can mean something different                  succeed in 2020. It’s just part of an      with the staff to answer questions,
for each person. Maybe that means                 overall omnichannel approach that          stay on top of emerging trends, and
online ordering and home delivery.                reaches customers in the digital and       suggest new products that might
It could mean curbside pickup.                    brick and mortar spaces.                   not be carried anywhere else yet.
Maybe it means a knowledgeable
                                                  As shoppers consolidated their             Shoppers will continue to go online
staff who can make sense of the
                                                  trips to the store during this year’s      and grab items at the grocery store,
conflicting information that’s found
                                                  pandemic lockdown, they also               but they’re not forming relationships
online. Or, it might be a combination
                                                  shifted to online purchasing. In April     with those outlets.
of all of the above. According to
Packaged Facts, online shopping for               and May, according to data from            Independent retailers have the
pet owners is growing quickly year                IRI All Outlet Panel, enhanced with        opportunity to connect with
over year. In 2012, 6% of pet owners              SPINS Product Attribution, internet        consumers who see convenience
strongly agreed that they were                    shopping reached its high, earning         as having a knowledgeable staff to
buying more pet products online                   just above 20% of share of wallet,         answer questions and recommend
than they used to; in just another                clearly taking traffic from pet outlets.   products. Staying on top of the
6 years it was nearly a quarter of                Internet purchases have subsided in        trends and filling the shelves with
shoppers.17 In other words, pet                   recent weeks but remain well ahead         in-demand, high quality products
owners are shopping everywhere.                   of pre-pandemic levels, while the          can go a long way for the
                                                  volume has not fully returned to pet       independent retailer.
                                                  outlets either.

Copyright @2020 SPINS LLC. All Rights Reserved.
SPINS Pet Trends 2020               11

How to Focus On Quality and Succeed                                               SOURCES
                                                                                  1.   Statista: “Pet Industry Expenditure in the United
Now that you have a better view of how the industry has changed and                    States From 1994 to 2020”, statista.com/
where it’s going, you can build your strategy to succeed and grow. With                statistics/253976/pet-food-industry-expenditure-
                                                                                       in-the-us
customers who care about providing the best quality of life to their
                                                                                  2. IRI, SPINS, and Statista. iriworldwide.com
pets, you have several ways to appeal to their interests, whether you’re
an emerging brand, a market leader, or a retailer. The key to success             3. Packaged Facts: “1 in 3 U.S. Pet Owners
                                                                                     Millennials: What It Means for the Pet Food
is bringing a personal connection to the customer experience and                     Market.” packagedfacts.com/Content/
differentiating yourself.                                                            Blog/2017/02/07/1-in-3-US-Pet-Owners-
                                                                                     Millennials-What-it-Means-for-the-Pet-Food-
                                                                                     Market

                                                                                  4. FINN CADY: Summer 2020 Survey. finncady.com
           EMPHASIZE ATTRIBUTES
                                                                                  5. Science Daily: “CBD Clinical Trial
           Shoppers are reading labels, doing research, and keeping up               Results on Seizure Frequency in Dogs
                                                                                     ‘Encouraging.’” sciencedaily.com/
           with the trendiest options on the market. If you have products            releases/2019/05/190521101450.htm
           with CBD, sustainable foods (and packaging), or natural and            6. New Frontier Data: “Hemp-derived Pet Supplies
           organic treats, highlight those qualities. Don’t risk customers           in the Growing CBD Market.” newfrontierdata.
                                                                                     com/cannabis-insights/hemp-derived-pet-
           overlooking what you have to offer. Get these attributes front            supplies-growing-cbd-market/?sscid=a1k3_iogba
           and center so you can attract customers who know what
                                                                                  7. Pet Business: “Have Pets Gained Weight During
           they want.                                                                Quarantine?” petbusiness.com/Have-Pets-
                                                                                     Gained-Weight-During-Quarantine

                                                                                  8. Canine Journal: “Is Grain-Free Dog Food Safe?”
                                                                                     caninejournal.com/grain-free-dog-food
           ESTABLISH A RELATIONSHIP                                               9. Petfood Industry: “Diet, Genetics Play Roles in
                                                                                     Canine DCM; Mysteries Remain.” petfoodindustry.
           Neighborhood retailers have the best opportunity to talk to               com/articles/9362-diet-genetics-play-roles-in-
           pet parents 1-on-1 and be the educational resource they’re                canine-dcm-mysteries-remain
           looking for. By offering new-to-the-market products they can’t         10. Journal of Animal Science: “Review of Canine
           yet find anywhere else, you also show that you’re on top of                Dilated Cardiomyopathy in the Wake of Diet-
                                                                                      Associated Concerns.” academic.oup.com/jas/
           the latest innovations. Show these customers you can provide               article/98/6/skaa155/5857674
           guidance—especially in these highly stressful times—and that           11. Dogs Naturally: “Goat Milk For Dogs.”
           you have their pet’s best interest in mind.                                dogsnaturallymagazine.com/goat-milk-for-dogs

                                                                                  12. First Insight: “The State of Consumer Spending:
                                                                                      Gen Z Shoppers Demand Sustainable Retail.”
                                                                                      firstinsight.com/white-papers-posts/gen-z-
                                                                                      shoppers-demand-sustainability
           GET WELL-VERSED IN SUSTAINABILITY                                      13. Association of American Feed Control Officials:
                                                                                      “What Is in Pet Food.” aafco.org/Consumers/
           From ingredients to packaging to non-food products,                        What-is-in-Pet-Food
           sustainability is on the rise and still has room for innovation.       14. EPA: “Facts and Figures about Materials, Waste
           Be prepared for consumers to seek out products that show                   and Recycling.” epa.gov/facts-and-figures-about-
                                                                                      materials-waste-and-recycling/containers-and-
           responsibility across all aspects of production, from raising the
                                                                                      packaging-product-specific-data#C&POverview
           livestock to sourcing the ingredients to packaging the product.
                                                                                  15. Petfood Industry: “The Complexities
           As more retailers and brands pop up to meet the growing                    of Sustainable Pet Food Packaging.”
           demand, it’s not a trend you can afford to fall behind on.                 petfoodindustry.com/blogs/9-trending-pet-food/
                                                                                      post/8620-the-complexities-of-sustainable-pet-
                                                                                      food-packaging

                                                                                  16. McKinsey: “The Drive Toward Sustainability in
                                                                                      Packaging—Beyond the Quick Wins.”
           LEAN INTO OMNICHANNEL                                                      mckinsey.com/industries/paper-forest-products-
                                                                                      and-packaging/our-insights/the-drive-toward-
           Consumers like quick and efficient experiences that alleviate              sustainability-in-packaging-beyond-the-quick-
           any stress from their busy lives. Find the right eComm partner             wins

           to help you create a strong omnichannel presence, whether              17. Packaged Facts: “In Omnichannel Market,
                                                                                      Pet Product Online Sales Reach $11 Billion.”
           that means online ordering and delivery, curbside pickup, or               packagedfacts.com/about/release.asp?id=4476
           a strong online presence to augment your brick and mortar
           presence. When you can bring together traditional retail with
           eCommerce, you can become your shopper’s go-to resource
           and build that personal connection, too.

                                                                               Copyright @2020 SPINS LLC. All Rights Reserved.
“The pandemic has created a unique opportunity and a captive
  audience for both pet brands and retailers to experience expedited
  growth as people acquired all available pets from shelters and
  stores—a trend that is expected to continue for the foreseeable
  future. Now more than ever, having the right data and expert
  insights, like those available through the SPINS Neighborhood Pet
  Channel, at their fingertips will help businesses make decisions
  that will position them for success in the future.”
 – TONY OLSON, OWNER AND CEO OF SPINS

         Email growth@spins.com to get in touch with a pet
       industry expert and visit spins.com/pet to learn more.
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