Study: Modest Growth in Pet Supplement Sector
Growth of pet supplement and nutraceutical treat sales in the U.S. stalled in 2010, but the category is expected to gradually pick back up in the next five years, according to a report released today by market research publisher Packaged Facts.
“As the economy improves, so should all things pet, but that recovery continues to appear modest,” said David Lummis, senior pet market analyst for Packaged Facts. “Spending on supplements will increase, but restraint will likely continue to characterize how pet owners shop and what they buy during 2011 and even 2012, making value appeals based on pet health, safety, professionalism, practicality, and yes, pricing, more important than ever.”
From 2006 to 2010, sales of pet supplements and nutraceutical treats grew at a compound annual growth rate of about 4 percent, to reach $1.2 billion in 2010, according to the report.
Following zero overall growth in 2010, Packaged Facts forecasts U.S. retail sales of pet supplements and nutraceutical treats to begin to pick back up in 2011, with the annual sales gains regaining steam through 2015. By this account, the annual percentage increases will rise from 2.4 percent in 2011 to 6.5 percent in 2015, lifting sales to approximately $1.6 billion in 2015, according to the report.
Packaged Facts anticipates growth to be considerably faster on the small animal side, which includes dogs, cats, birds, small mammals and herps, than on the equine side, with the compound annual growth rates coming in at 7.4 percent and 2.2 percent, respectively. As a result, small animal is expected to account for 58 percent of the market by 2015, up from 52 percent in 2010.