Tailoring pet food to mimic human diets

Nestle Purina is making the most of the trend in pet food of feeding animals the same things that humans eat.
“We want to have products that appeal to the owner,” Chef Amanda Hassner said in a report. “It can’t look or smell horrible to the person.”
Accelerated by millennials, the humanization of companion animals is becoming more prominent. As a result, many of the top human food trends have found their way into the petfood market -- particularly those that focus on the health and wellness of our furry family members. Those include:

• Better health through nutrition. Pet owners are looking to eliminate certain ingredients from their pets’ diets, such as sugar, grains, dyes and preservatives.
• Nutrition for seniors, as pets and their owners are living longer lives.
• Weight management, as a large percentage of America’s pet population is overweight or obese.

According to Euromonitor International, millennials tend to humanize pets more than other generations and are more willing to spend more money on higher-quality food and human-grade products.
“Pet owners aren’t just looking to provide a home for their pets,” said Bob Vetere, president of the American Pet Products Association. “They are investing in their pets’ quality of life. Oftentimes they do this at their own expense, cutting personal expenses, but not those affecting their faithful companions.”

Humanization driving trends in pet food

American pet owners want the best for their pets, so much so that the pet food category is experiencing a trend in humanization evolving beyond flavors to ensuring nutritional benefits, ingredient quality and manufacturing standards are as high as human food.
Highlighting the impact this growth has had on American pet owners, new research from Mintel reveals that one-quarter of pet owners worry that the pet food they buy is making their pet obese.
Furthermore, 55% of all pet owners agree they worry about filler ingredients in pet food, including grains and meat byproducts. As pets are increasingly considered members of the family for many Americans, standards for pet food, including treats -- the fastest-growing segment in the pet food category -- are on the rise.
70% of households own a pet
Pet ownership is widespread in the US, with 70% of all households owning any type and any number of pets. The number of US households that dote after a single pet is 26%, dropping down to 19% of households owning two pets and 25% owning three or more. Among those who own pets, dogs are the most popular, with 73% of American pet owners owning a dog. As expected, cats are the second most popular pet, with 51% of all American pet owners owning a cat. America’s third most popular pet is fish with 17% ownership among total pet ownership. Pet ownership of small mammals, reptiles, amphibians, birds and other types of pets, lags behind with less than 10% ownership.
Owners of other pets, excluding dogs and cats, are more likely to own three or more pets, reflecting the ease of ownership for these smaller, often caged pets. Households with children have considerably higher rates of pet ownership than those that do not. In fact, 84% of households with children under the age of 18 own pets compared with 63% of those with no children under age 18 in the home.
Diet and nutrition are top concerns for pet owners 
Forty-five percent of American pet owners consider whether their pet would like the taste of the pet food they buy as the most important factor in their purchase decision. Second is overall price, which 42% of pet owners identify as an important factor. Products made in the US and natural product offerings are also top purchase considerations for consumers (36% and 32% respectively). While pet owners’ interest in taste reflects perceptions of pets as family members, a growing trend Mintel has identified in American pet owners, overall price will limit the capacity for consumers to upgrade to premium-priced products.
Regarding pet nutrition, American pet owners are as concerned with what is not in their pet’s food as what is. More than half (55%) of pet owners are concerned about the amount of filler ingredients in pet food, such as grains and meat by-products. Nearly as many (49%) feel that the best diet for their pet is a “wild” diet - allowing their pet to eat only what they would have eaten in the wild, such as all-meat diets without artificial ingredients. Interest in pet foods that resemble “wild” diets is highest among millennial pet owners, 56% of whom agree that such diets are best for their pets compared with 47% overall.
Pet owners also express interest in organic diets for their pets with 39% agreeing that organic pet food options are better than non-organic options. Millennials are more inclined (37%) to worry than older generations that the pet food they are buying is making their pet obese (compared with 25% overall). Furthermore, millennials are more inclined (34%) to prepare their pet’s food from scratch (compared to 23% overall).
“The perception that pets are members of the family will continue to define the humanization trend in 2015 and drive price increases in the pet food category in the future. Manufacturers should note that the pet food humanization trend translates into pet owners wanting the same quality and safety standards for pet food as for their own food,” said Amy Kraushaar, US category manager, food and drink and foodservice, at Mintel. “As far as nutrition is concerned, some pet owners express interest in foods that cater to pet-specific diets, such as what their pets would have eaten in the wild. This entails reformulating products to be without grains, artificial ingredients or meat by-products. Consumer interest in pet food that meets human criteria for food health, safety and nutrition will drive pricing, particularly in the wake of ongoing concerns related to pet food recalls. Pet foods with specific attributes that mirror human food trends, like gluten-free, organic and locally sourced, may attract less price-conscious pet owners.”
Pet owners are highly satisfied with the brands of pet food they purchase, with 55% of pet owners reporting they are completely satisfied with their current brand. Experimentation with new pet foods is uncommon among US pet owners, with just 28% saying they sometimes experiment with other pet food brands. As few as one-fifth of pet owners (22%) would be interested in buying variety packs -- which allow them the opportunity to test out new products before switching brands entirely -- but this may be driven by desire for new flavors versus wholly new products or brands, and only 20% have changed pet food brands in the past 12 months.
Treats communicate love from owners
Pet treats are closely associated with the affection pet owners feel for their pets, with 45% of pet owners reporting treats are their way of showing their pet they love them. Mintel research shows that treat-giving behavior as a demonstration of affection increases with pet owner age: 49% of owners age 55-64 see pet treats as a way to show love, compared with just 41% of owners age 18-24. Nearly half of dog owners (48%) give treats daily, compared with 28% of cat owners. Habitual dog treat usage may relate to the role treats play in dog training.
Interestingly, few pet owners rely on the same brand for both pet food and pet treats, as just 16% of American pet owners use the same brand of treats as food. Mintel research suggests that pet owners likely buy different brands of treats and food because they hold treats and food to different standards. While food has to provide nutrition as well as taste, pet treats only have to be enjoyed by pets. Accordingly, 22% of pet owners look for unique flavors and ingredients in their pet treats to appeal to their pets.
“Treats are the fastest growing segment in the pet food category. Because treats are used primarily to demonstrate pet owners’ emotional involvement with their pet, pet owners assess treats more for the flavors and indulgence they offer versus nutrition – which they rely on pet food to provide. Pet treats that leverage this alternate need have more potential to grow,” said Kraushaar.
Humanization leads to market growth
Total US sales of the pet food category were $21 billion in 2014, an increase of 0.4%. Mintel forecasts the pet food market will grow to $22.8 billion in 2019, an increase of 9% from 2014.
 “Sales growth in the pet food category in 2014 was limited by lagging rates of American pet ownership. Demographic factors similarly showed slowed growth; households with children, which are most likely to own pets, continued to decline as millennials delay marriage and childbirth. Flat wages undercut expectations that premiumization would drive growth. While pet owners continue to see pets as members of their family, the humanization trend in pet food will more likely involve pet owners looking to healthier pet foods without filler ingredients rather than trading up to premium-priced products,” said Kraushaar.

PetSmart launches Partners in Pethood campaign

PetSmart has launched its Partners in Pethood – pet parenthood – campaign, featuring actresses Anna Faris and Jennifer Coolidge.

“The idea of Partners in Pethood is based on a simple premise: 'Parents of Pets' are a lot like parents of children and they love their pets as much as parents love their kids,” said Phil Bowman, PetSmart executive vice president, customer experience. “Our experiences with pethood are told through different types of pet parents, from the new, concerned pet parents to the ‘cool’ pet parents. They might be a little eccentric, but they’re definitely entertaining and – we hope – endearing.”
The PetSmart Partners in Pethood story, created by advertising agency GSD&M, begins with a series of short films and ads that feature relatable pet parents in the throes of pethood – highlighting relatable antics such as the over-protective parent, new parents and the overly competitive mom. These stories are brought to life by the recognizable improv of GO Film director Christopher Guest, actor, director, writer, musician and composer. Guest is joined in two spots by Faris and Coolidge.
In the journey of pethood, PetSmart says it is the partner of choice because of its knowledgeable associates, wide range of services and stocking customers’ favorite brands – whether their kids have two legs or four, whether they have fur, scales or feathers.
“The PetSmart Partners in Pethood campaign is based on the fact that just like with kids, pet parents want the best for their pets. They don’t always know what they should be doing, but as their partner, we can help them through it all,” said David Lenhardt, PetSmart president and CEO. “At PetSmart, we’re every pet parent’s partner, and we’re here to share in the joy, here to help them find solutions and, ultimately, here to have fun with them during their journey through pethood.”
PetSmart’s new campaign launched on TV and through a fully integrated campaign featured in five 2-minute mini-films online and carried through print, digital and social media.

FreshPet sees more retailers carrying products, says CEO

Roughly 35,000 major US retailer stores are looking to stock FreshPet's fresh petfood, according to company CEO Richard Thompson, as FreshPet continues to benefit from the ongoing pet humanization trend.

"We're a very young company with a lot of runway in a very involved category," said Thompson. People are becoming more willing to spend on their pets, which is good news for specialty petfood manufacturers like FreshPet. In December 2014, the company announced revenue of US$22.5 million for the quarter, up 34.7% on a year-over-year basis.

Paw's Natural Pet Emporium owner eats petfood for nutrition awareness

Dorothy Hunter, owner of Washington-based Paw's Natural Pet Emporium, went on a "petfood diet" for 30 days in order to bring ingredient awareness to pet owners.

In a country where more than half the pets are overweight or obese, Hunter said it's important to pay attention to what pets are eating. A video of her discussing her experience on the show "The Doctors," including a discussion of pet obesity and the humanization of petfoods, can be found here.

Holistic petfood company Green Dog Food launches ultra luxury petfood line

Holistic petfood company Green Dog Food has launched a limited-edition, ultra-luxury dog food priced at £200 for a 2kg pack.

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Green Dog Gold is a superpremium complete natural food with a seafood-inspired recipe. Ingredients include swordfish, lobster, Beluga caviar, sea vegetable samphire, saffron, black Périgord truffle and wild brown rice. It also contains the company’s herbal premix formulation to help maintain intestinal and external hygiene while boosting the canine immune system.
 The limited-edition dry food is available direct from Green Dog Food ‘on request only’. It comes packaged in 2kg packs, priced £200, five times the cost of the most expensive complete dry dogfood currently on the market. Orders will take up to 12 weeks to prepare and deliver.
Green Dog Food MD Simon Booth said the idea for the ultra-luxury product came following requests from some of the brand’s more high-profile customers. “We count some of the UK’s most affluent dog owners among our customers, including MDs, CEOs, celebrities and other VIPs, and for them, money is no object when it comes to treating their prized pets," he said. “A number of customers have asked if we could create a special recipe incorporating some of the finest foods to be found, and happy to oblige, Green Dog Gold is the result.” 

Petfood brands turn focus on desire to make pets' meals at home

A growing market in the petfood industry revolves around a pet parent's desire to have a hand in making their pet's meals. Companies are launching premium-priced products that require humans to refrigerate, freeze, dice, heat and/or mix in additional ingredients such as meat and vegetables.

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"We're seeing it as a shift," said John Sturm, vice president of food and treats for Petco Animal Supplies Inc. "Just putting the bowl on the ground and walking away isn't the humanized experience that pet parents are looking for." Sturm said petfood ingredients became more of a focus for pet parents after a string of petfood recalls, including one in 2007 that involved chemically tainted wheat gluten and affected more than 150 brands. Some owners began cooking food themselves for their pets, but cost and time sent them back to pet store shelves. The idea, however, took hold in the petfood industry, leading some companies to create petfood brands that require partial preparation but still do much of the meal planning so owners don't have to.
Petfood retailers are also giving credence to the trend. Over the next 18 months, Whole Foods Market Inc. said it plans to expand its selection of organic and animal welfare-rated petfood. "We want people to know that the petfood they buy in our store would be something that they would be just as happy buying for themselves," said Dwight Richmond, global grocery purchasing coordinator at Whole Foods. And considering that more than 80% of pet owners consider their pets to be members of the family, paying attention to this trend seems like the prudent thing to do.

High-end dog beverages the latest trend in pet pampering

California-based Yappy Hour Vineyard's nonalcoholic meat gravy for pets, sold in wine bottles and keeping to a wine theme with names like "Bark-deaux" and "Char-dog-nay", highlight the latest trend in pet pampering.

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Adult-themed beverages for animals have been a growing trend in the pet product industry, according to reports. Bowser Beer, for example, launched in 2008; a microbrewery in Vancouver, B.C., Canada, sells "beer" for dogs; and a Japanese sake company sells a variety of nonalcoholic spirits for pets.
The co-owners of Yappy Hour Vineyards got the idea for the product while working on gift baskets for dogs, noticing that there were a lot of dog-themed wine products (glasses, cocktail napkins), but no actual "wine." They began testing various options and came up with a (alcohol-free) chicken broth-based drink that they say tastes like a chicken gravy that you'd put over mashed potatoes or rice.
The drink is made in a Food and Drug Administration-approved facility in Florida and retails for $19.99.

Petco launches new marketing campaign driven by pet humanization trend

Petco recently launched a US$10 million marketing campaign, as part of which the company changed its slogan to "The Power of Together" from "Where the Healthy Pets Go," in hopes of capitalizing on the trend of pet humanization.
"As a company, we were at a place where we really wanted to continue to evolve our brand beyond just products and services, to connect emotionally with our customers and their pets," said Elisabeth Charles, chief marketing officer for Petco Animal Supplies.
To attract consumers, the company expanded its selection of products, which now includes things like treats by the pound, grain-free petfood and veterinary care. Petco's expanded offerings for pets and focus on pet humanization is expected to earn the company more than US$4 billion in sales in 2014.
CEO Jim Myers said consumers' purchases are more-closely reflecting their own interests, which means a strong interest in natural, organic and other specialty foods. 
"Pet owners are very concerned these days with ingredient panels and ensuring that the best quality of items are in their foods," Myers said. "There's a lot more awareness of pet allergies and things that can help improve the skin and coat of your animal."
He said that consumers are more educated now on their pets' nutritional needs, so whereas they used to come in asking, "What's good?" he said, now they come into stores looking to learn about protein levels and grain types.
"I think it's just a natural progression, when we all want to do the very best for the people in our lives, and the animal is becoming part of the family and so is treated like another family member," Myers said.
Along with the new branding campaign, Petco is putting more focus on training its employees so they are knowledgeable to help customers who come in looking for these specialty petfoods.
"Even during tougher times, people are going to feed and clothe their animals," Myers said. "They may cut back on toys for a period of time, but people are very loyal to their pets."

Euromonitor offers new 'Other Pet Food in Thailand' report

The trend of pet humanization in Thailand has continued, despite people cutting spending on their pets due to the flood crisis and pet loss, according to Euromonitor International's Other Pet Food in Thailand report.
Spending on pets is expected to rebound to previous levels during the second quarter of 2012, the report says. The report also identifies leading petfood companies and brands and offers an analysis of the market for bird, fish and small mammal/reptile food. The report provides retail sales data from 2007-11 and forecasts to 2016. The report can be purchased online. 

Pet care sales report offered by Research and Markets

Research and Markets now offers the Pet Care 2012 Part 1: Continued Growth in an Age of Economic Gloom report, which found that despite continued economic uncertainty, pet humanization and premiumization have helped global pet care sales rebound relatively strongly in 2012 compared to 2011.
The report is the first in a two-part global briefing from Euromonitor International that provides an overview of pet care retail sales by region and highlights best and worst performing product categories. It also highlights emerging regions, identifies leading and emerging companies, provides pet ownership statistics and more. 

Rice industry may benefit from pet humanization trend

The pet humanization trend provides a huge growth market for the US rice industry as pet owners, even during recessionary times, are increasingly purchasing premium and ultra-premium petfoods for their animals, said Jim Heim, president of business development for Central Garden and Pet Inc., at the 113th USA Rice Millers' Association convention.
With US$1.8 billion in annual US consumer spending in the pet segment, including US$60 billion in sales of pet food and treats, Heim said that rice is an ideal pet food ingredient because it is nutritious and the least allergenic of all grains.
"The US rice industry has the potential for a 10 percent increase in revenue derived from this $1.8 billion dollar industry," Heim said. "The natural food pet category alone has grown more than 16 percent in the past 6 years."
Urging pet food companies to include more rice in their products, Heim said, "Rice makes up less than 1 percent of the ingredients in petfoods, but should constitute 10 to 15 percent."

Online human-animal bond resource launched at Global Pet Expo

The Human-Animal Bond Research Initiative recently launched HABRI Central at Global Pet Expo to serve as an online resource for data collection, research and collaboration for human-animal bond studies.    
Sponsored by the Human-Animal Bond Research Initiative Foundation in collaboration with the Purdue University College of Veterinary Medicine and Purdue Libraries, the HABRI Central resource provides researchers, pet industry professionals and pet owners with access to scholarly material, an online publishing platform for peer-reviewed content and a virtual collaborative community for those involved in studies of the human-animal bond. Examples of current database topics include how pets affect humans with autism, Alzheimer's, depression, coronary heart disease and post-traumatic stress disorder, as well as information on the benefits pets have on the health and well being of people. 

Survey finds American dog care spending unaffected by economy

In honor of National Dog Week from September 19-25, CouponCabin.com conducted an online survey that found nearly seven in 10 (68%) of US adult dog owners said that economic challenges do not affect their dog care spending.

CouponCabin.com’s survey found that more than one in five (21%) dog owners spend an average of US$100 or more per month on their dogs, for a total of more than US$1,200 per year. When asked what they thought was the most expensive aspect of owning a dog, 57% of pet owners said veterinary appointments, 16% said dog food and treats, 25% said prescriptions and medications, and 6% said boarding. The survey also found that 50% of married couples own dogs compared with 34% of single, never married, adults.
“The pet care industry has remained resilient during the past few years, but it’s still important for consumers to budget for their dog’s needs,” said Jackie Warrick, president and chief savings officer at CouponCabin.com. “Pets are often considered a family member, and just as you save money and budget for your family, you should do the same for your dog. Plan ahead to make sure you have money put away for emergencies. In addition, be proactive and save on your dog care expenses by using coupons, buying generic brands, and asking friends and family to walk or watch them.”

Pet food packaging conference scheduled for December

The Packaging Group Inc. announced that the conferences and courses of its Pet Food Pac-2011 will take place on December 6 and 7, in Monroe Township, New Jersey, USA.
Two courses will be held on December 6, covering shelf life extension and humanization of pet food packaging. On December 7, a number of speakers will cover the entire supply chain of pet food packaging, from flexible to rigid.
More program details will be available September 15. For detailed information on display tables, course and seminar content, and paper submissions, contact Stan Sacharow, of The Packaging Group, at +1.732.636.0885 or univpac@aol.com.

Euromonitor analyzes global pet specialty retail market in latest report

Euromonitor International offers a report that analyzes the global market for pet specialty retailers.
Pets are becoming more and more "humanized," which has pet owners seeking premium pet foods as well as specialty pet care products and pet care advice, according to Euromonitor. The pet specialty outlet is becoming increasingly competitive as retailers fight for consumer traffic and new companies enter the market. In its report, Euromonitor examines strategies of pet specialty retailers and breaks down the global pet care market by region, as well as by type of retailer.

IML packaging is becoming a popular trend for petfood manufacturers

Belgian printing company Verstraete says that the humanization of pets has led to success in IML packaging for pet food manufacturers.
IML, or "in mold labeling," is a technique in which a preprinted polypropylene label is placed in a mold that is shaped like the end product. The molten polypropylene is added to the mold, where it is fused to the label, and the packaging and label become one.
The US National Pet Owner Survey revealed that female animal owners, in particular, see themselves as the "mother" of their pets. With IML, Verstraete says packaging can have an impact on this kind of emotional purchasing. The quality of the photograph as well as the various look and feel possibilities offered by IML ensure that all product information is communicated to the consumer in an attractive way. The company says that petfood manufacturers may find IML packaging to be an effective way to distinguish themselves from competitors.

Increased luxury pet supply spending suggests over-humanizing of pets, vet claims

A rise in spending on luxury pet supplies suggests that animal owners may be over-humanizing their pets, claims veternarian Pete Wedderburn in a UK article.
Animal owners are increasingly paying more for pet supplies and premium dog foods, according to Wedderburn. He cited a study published in the October Grocer, which showed that the total petfood market reached annual sales volumes of £1.5 billion (US$2.1 billion).
"Petfood is being designed to closely resemble human food and owners, guardians and pet parents seem happy to pay the increased price," said Wedderburn.

Pet humanization trend leads to increase in UK petfood sales

Petfood sales rose by 6.7% to a £1.5 billion (US$2.1 billion) in the past year thanks to the trend of pet humanization, according to a U.K. Telegraph article.
A report by retail analysts Kantar Worldpanel attributes this trend to a 26.3% increase in the value of cat treat sales. The article says that sociological reasons are behind the growing pet humanization trend in the U.K., including an increase in single person households and loneliness from longer working hours, combined with a desire to be more attached to pets.
"We are seeing an increased desire not only to treat pets to the very best, but also to ensure what they feed them will meet their optimal nutritional requirements," said Ben Thompson of Mars Petcare.

Petfood sales expected to rise, according to Euromonitor report

Global petfood sales are forecast to rise 2.5%, according to a Financial Times article citing a Euromonitorreport.

The trend of pet humanization has consumers purchasing higher-premium products for pets they view as children, reported industry leaders Mars and Nestle in the article. The Euromonitor report expects Brazil to overtake Japan as the second-largest market in 2015. The "pet humanization" trend is most pronounced in America where sales in the petfood industry, which is triple the size of its baby food industry, are expected to grow by 1.5%. The report says Western Europe is following this trend too, with the Chinese petfood market growing close to 5%.