Due to a generational shift, sales of fresh pet food that claims to be health conscious are rapidly increasing.
DENVER, April 1, 2024 (Globe Newswire) — Younger pet owners in the United States are choosing frozen or refrigerated products with health claims and properties similar to those of the foods they buy themselves, and choosing fresh Driving growth in the pet food category. Millennials and their Gen Z peers are beginning to take over as pet owners, and are now just as likely to own pets as older generations. Dry food still makes up a large portion of the market, but a younger generation of pet owners are gravitating toward fresher, healthier, or more natural products.
Sales growth in the pet food category segment indicates consumers' willingness to pay a premium for pet foods that are perceived to provide specific health benefits. Since 2021, dollar sales of fresh dog food and cat food have increased by 86% and 54%, respectively. Over the past two years, fresh dog food sales have increased 47% and fresh cat food sales have increased 20%, outpacing the overall category.
Brands in the pet food category can further leverage wellness-oriented attributes that resonate with younger consumers, expanding into areas such as weight management, healthy aging and calmness, according to a new report from Corbank's Knowledge Exchange. It hides its sexuality. Continued growth in the fresh pet food sector is expected to bring in new market entrants, potentially creating opportunities for new ingredient suppliers.
“Today's pet owners value their pets as much, if not more, than themselves,” said Billy Roberts, senior food and beverage economist at Corbank. “As human health trends increasingly influence pet nutrition innovation, new products are emerging to support pet overall health, whether in the form of foods, treats, or supplements for pet physical and behavioral health.” Methods will continue to emerge.”
U.S. consumer spending on pet food has steadily increased in recent years. Dollar sales in 2023 increased by nearly 12%, and average annual spending on pet food increased by 54% since 2011. While we have seen some volume declines over the past year due to price inflation, category growth should stabilize as inflation eases, particularly in segments focused on animal health and welfare.
According to consumer research firm Mintel, more than half of U.S. pet food buyers perceive freshly prepared foods to be healthier, and 79% would pay more for healthier pet food products. I realized that he thought it was okay. His two top trends currently stimulating the U.S. pet food and treat market are humanization and health/wellness. This has led to a proliferation of products that boast a variety of functional benefits, including dental health, weight management, and life stage-specific benefits.
Roberts said the market potential for pet food and pet-related products shows signs of further expansion beyond the significant growth of recent years. And that's especially true for fresh pet food as younger generations advance in their careers and income levels.
“Consumers generally equate fresh foods, especially refrigerated products, with natural and, in turn, healthier foods, and this leap in logic is driving growth in the foods people buy for their pets. likely to continue to do so,” Roberts said.
Humanization is already driving many innovations in pet food and treats, but this trend may only be in its infancy. Consumers are spending more time and money on their pets, making the human-animal bond more reminiscent of the bond between parent and child.
Read the report, “Looking for Health, Young Pet 'Parents' Accelerate Pet Food Growth Trends”.
About Corbank
CoBank is a cooperative bank serving critical industries in rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and local power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to its affiliated agricultural credit associations, which serve more than 77,000 farmers, ranchers and other rural borrowers in 23 states.
CorBank is a member of the Farm Credit System, a national network of banks and retail finance associations established to support the borrowing needs of America's agriculture, rural infrastructure, and rural communities. Headquartered outside of Denver, Colorado, CorBank serves customers in regional banking centers across the United States and also has an international representative office in Singapore.
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