Natural, Organic and Eco-Friendly Pet Products in the U.S., 2nd Edition

Table of Contents

Chapter 1: Executive Summary

• Scope and Methodology
  • Scope of Report: Pet Food and Pet Care
  • Report Methodology
  • Market Overview
    • “Ethical” and Environmental Issues
    • Market to Top $2.5 Billion by 2012
    • Table 1-1: U.S. Retail Sales of Natural Pet Products, 2003-2012 (in millions of dollars)
    • Food Is Larger and Faster Growth Classification
    • Strong Consumer Interest in Natural and Organic Products
    • Premium Pet Households on the Ups
    • Pet Humanization and Pampering
    • The Aging Pet Population
    • Internet Trends Good News for Natural Products
    • Going Green
    • Major Marketers Board the Natural Wagon
    • “Natural” Leads New Product Surge
    • Retailing Trends
    • Consumer Trends: 25 Million Natural Pet Households
    • Figure 1-1: Top Pet Owner Populations for Seeking Out Natural and Eco-Friendly Products, 2006 (U.S. dog-or cat-owning households in millions)
  • Pet Food
    • Retail Sales of Natural Pet Food Top $1 Billion in 2007
    • IRI-Tracked Sales Take Off
    • Table 1-2: IRI-Tracked Sales of Natural Pet Food, 2003-2007 (in millions of dollars)
    • Pet Food Recall Drives Consumers to Natural, Organic Foods
    • Emerging Standards for Organic Pet Food
    • Competitive Overview
    • New Product Trends
    • Figure 1-2: Number of New Natural and Organic Dog and Cat Food Products, 2000-2006
  • Per Care Products
    • Retail Sales of Natural Pet Care Products Post Double-Digit Annual Gains
    • Table 1-3: U.S. Retail Sales and Share of Natural Pet Care Products by Category, 2003 vs. 2007 (in millions of dollars)
    • Market Outlook
    • Competitive Trends
    • Natural Cat Litter Marketers
    • Multi-Category Natural Pet Care Marketers
    • Eco-Friendly and Other Ethical Appeals

Chapter 2: Market Overview

• Introduction
  • Two Product Classifications: Pet Food and Pet Care
  • “Ethical” and Environmental Issues
  • Sustainable Agriculture and Development
  • Humane Treatment of Animals
  • No Animal Testing/Cruelty-Free
  • No Genetic Modification or Cloned Animals
  • Fair Trade
  • Locally Grown and “Food Miles”
  • Eco-Friendly (“Green”)
• Market Outlook
  • Market to Top $2.5 Billion by 2012
  • Table 2-1: U.S. Retail Sales of Natural Pet Products, 2003-2012 (in millions of dollars)
  • Food Is Larger and Faster Growth Classification
  • Figure 2-1: U.S. Retail Sales of Natural Pet Products by Classification: Food vs. Pet Care, 2003-2012 (in millions of dollars)
  • Natural, Organic Products Perceived as Healthier, Safer
  • Strong Consumer Interest in Natural and Organic Products
  • The Holistic Vet Connection
  • Premium Pet Households on the Ups
  • Figure 2-2: Share of Total U.S Pet Market Expenditures by Under-$70K vs. $70K+ Income Brackets: 1995, 2000 and 2005 (percent)
  • Figure 2-3: $70K+ Income Household Share of U.S Pet Market Expenditures by Segment: 1995 vs. 2005 (percent)
  • Pet Humanization and Pampering
  • The Aging Pet Population
  • Internet Trends Good News for Natural Products
  • Figure 2-4: Percent of U.S. Adults Who Are “Doing More Internet Shopping Than Before”: Dog and Cat Owners vs. All U.S. Adults, 2006 (percent)
  • Table 2-2: Use/Influence of Internet: Dog- and Cat-Owning Adults vs. All U.S. Adults, 2006 (percent)
  • Table 2-3: Pet Food and Supply Purchasing Indices by Retail Channel: By Household Size, 2006 (U.S. pet-owning households)
  • Marketers, Retailers, Suppliers Doing Their Part
  • Going Green
• Marketing Trends
  • Major Marketers Board the Natural Wagon
  • Crossing Category Lines
  • “Natural” Leads New Product Surge
  • Figure 2-5: Number of New Natural and Organic Pet Products, 2000-2006
  • Fresh Is No. 1 “Natural-Related” Tag
  • Table 2-4: Number of New Pet Products by “Natural-Related” Package Tags, 2000-2007
  • Upscale Product Surge Coincides
  • Figure 2-6: Percentage of New Pet Products Tagged “Upscale”: Food and Non-Food, 2002 vs. 2006
  • Direct Marketing via the Internet
• Retailing Trends
  • Expansion into Mass-Market Outlets
  • The Independent Pet Specialty Store Push
  • Three Dog Bakery Gets Capital Boost
  • Natural Retailers Also Coming on Strong
  • Whole Foods Plus Wild Oats
  • Pet Product Specialists Tap in via Tailor-Made Lines
  • The E-tailing Contingent
  • Table 2-5: Third-Party E-tailers of Natural Pet Products, 2007
• Consumer Trends
  • The Simmons Survey System
  • 25 Million Natural Pet Households
  • Affluent, Metro Area Skews to Natural Product Consumers
  • Figure 2-7: Top Pet Owner Populations for Seeking Out Natural and Eco-Friendly Products, 2006 (U.S. dog-or cat-owning households in millions)
  • Income, Education Are Top Indicators for Natural Pet Products
  • Figure 2-8: Top Indicators for Purchasing Natural and Eco-Friendly Pet Products: Nutro Dog Food, Natural Balance Dog Food, or Purina Yesterday' s News Cat Litter, 2006 (U.S. dog- or cat-owning households)
  • Cats Owners Are Slightly More Eco-Friendly
  • Figure 2-9: Population of Pet Owners Who Seek Out Natural and Eco-Friendly Products: By Number of Dogs or Cats Owned, 2006 (U.S. dog- or cat-owning households in millions)
  • 59% of Pet Specialty Channel Shoppers Are Eco-Friendly
  • Figure 2-10: Propensity to Seek Out Natural and Eco-Friendly Products: By Pet Product Outlets Shopped, 2006 (percent of U.S. dog- or cat-owning households)
  • 9.1 Million Premium Pet Households Seek Natural Products
  • 4.3 Million Pet Households Shop at Whole Foods or Trader Joe' s
  • Eco-Friendly Dog Owners Are 30% More Likely to Use Senior-Formula Dry Dog Foods
  • Eco-Friendly Cat Owners Are 50% More Likely to Use Senior-Formula Canned Cat Foods
  • Niche Formats and Brands Have Pull Among Eco-Friendly Purchasers of Pet Supplies
  • Table 2-6: Pet Owner Demographics for Seeking Out Natural and Eco-Friendly Products, 2006 (U.S. dog- or cat-owning households)
  • Table 2-7: Indicators for Purchasing Natural and Eco-Friendly Pet Products: Nutro Dog Food, Natural Balance Dog Food, or Purina Yesterday' s News Cat Litter, 2006 (U.S. dog- or cat-owning households)
  • Table 2-8: Pet Owner Patterns for Seeking Out Natural and Eco-Friendly Products: By Number of Dogs or Cats Owned, 2006 (U.S. dog- or cat-owning households)
  • Table 2-9: Patterns Among Pet Specialty Outlet Shoppers for Seeking Out Natural and Eco-Friendly Products: By Number of Dogs or Cats Owned, 2006 (U.S. pet specialty product households)
  • Table 2-10: Patterns Among Specialty and Mass Outlet Pet Shoppers for Seeking Out Natural and Eco-Friendly Products: By Number of Dogs or Cats Owned, 2006 (U.S. pet specialty and mass pet product households)
  • Table 2-11: Patterns Among Mass Outlet Pet Shoppers for Seeking Out Natural and Eco-Friendly Products: By Number of Dogs or Cats Owned, 2006 (U.S. mass-market pet product households)
  • Table 2-12: Premium Pet Demographics for Seeking Out Natural and Eco-Friendly Products, 2006 (U.S. premium pet households)
  • Table 2-13: Demographics for Pet Owners Who Shop at Whole Foods or Trader Joe' s, 2006 (U.S. dog- or cat-owning households)
  • Table 2-14: Percent of Households Purchasing Dog Food/Treats by Type and Brand: Dog Owners Overall vs. Natural/Eco-Friendly Dog Owners, 2006 (U.S. dog-owning households)
  • Table 2-15: Percent of Households Purchasing Cat Food/Treats by Type and Brand: Cat Owners Overall vs. Natural/Eco-Friendly Cat Owners, 2006 (U.S. cat-owning households)
  • Table 2-16: Percent of Households Purchasing Cat Litter by Type and Brand and Pet Food Supplements: Pet Owners Overall vs. Natural/Eco-Friendly Pet Owners, 2006 (U.S. dog- or cat-owning households)

Chapter 3: Pet Food

• Introduction
  • Market Definition
  • Defining Natural
  • What “Natural” Isn' t
  • Defining Organic
  • Pet Food Task Force Formed to Clarify Standards
  • Organic Standards as of September 2007
  • Third Party Accreditation
  • Sustainability and Other Ethical Issues
  • Natural vs. Organic
  • Related Terms
  • “Healthy” vs. “Unhealthy” Ingredients
• Market Size and Growth
  • Retail Sales of Natural Pet Food Top $1 Billion in 2007
  • Table 3-1: U.S. Retail Sales of Natural Pet Food, 2003-2007 (in millions of dollars)
  • IRI-Tracked Sales Take Off
  • Table 3-2: IRI-Tracked Sales of Natural Pet Food, 2003-2007 (in millions of dollars)
  • IRI-Tracked Sales of Dog Food vs. Cat Food
  • Table 3-3: IRI-Tracked Sales of Natural Pet Food: Dog Foods vs. Cat Food, 2005-2007 (in millions of dollars)
  • Organic Pet Food Also Coming on Strong
  • Table 3-4: U.S. Retail Sales of Organic Pet Food, 2003-2007 (in millions of dollars)
• Market Outlook
  • Pet Food Recall Drives Consumers to Natural, Organic Foods
  • Figure 3-1: Effect of Pet Food Recall on Pet Food Sales in Pet Specialty Stores, May 2007 (percent)
  • Emerging Standards for Organic Pet Food
  • A Rapid Influx of Marketers and Brands
  • Other Positive Factors
  • Potential Market Drawbacks
  • Consumers Unclear About Natural and Organic Definitions
  • Other Potential Limiters for Organics
  • Looking Ahead
  • Table 3-5: Projected U.S. Retail Sales of Natural Pet Food, 2007-2012 (in millions of dollars)
  • Table 3-6: Projected U.S. Retail Sales of Organic Pet Food, 2007-2012 (in millions of dollars)
• Competitive Trends
  • Marketer Overview
  • Positioning on Safety
  • Positioning on Ethical
  • Pet Specialty Marketer and Brand Rankings
  • Company Profile: Castor & Pollux
  • Company Snapshot: Del Monte (Nature' s Recipe)
  • Company Profile: Evanger' s
  • Company Snapshot: Hill' s Pet Nutrition (Science Diet Nature' s Best)
  • Company Snapshot: Natura Pet Products
  • Company Profile: Natural Balance
  • Company Snapshot: Newman' s Own
  • Company Snapshot: Old Mother Hubbard
  • Mass-Market Marketer and Brand Rankings
  • Nestlé Purina and Mars Weigh in
  • Natural Treats Marketers Doing Well
  • Marketing Snapshot: Nestlé Purina
  • Marketing Snapshot: Mars/Nutro
  • Marketing Snapshot: Iams/Procter & Gamble
  • Table 3-7: IRI-Tracked Sales of Natural Dog Food: By Marketer and Brand, 2002-2006 (in millions of dollars)
  • Table 3-8: Quarterly IRI-Tracked Sales of Natural Dog Food by Marketer and Brand: 52 Weeks Ending July 1, 2007 (in millions of dollars)
  • Table 3-9: IRI-Tracked Sales and Market Shares of Natural Dog Food by Marketer and Brand: 52 Weeks Ending July 16, 2006 vs. July 15, 2007 (in millions of dollars)
  • Table 3-10: IRI-Tracked Sales of Natural Cat Food: By Marketer and Brand, 2002-2006 (in millions of dollars)
  • Table 3-11: Quarterly IRI-Tracked Sales of Natural Cat Food by Marketer and Brand: 52 Weeks Ending July 1, 2007 (in millions of dollars)
  • Table 3-12: IRI-Tracked Sales and Market Shares of Natural Cat Food by Marketer and Brand: 52 Weeks Ending July 16, 2006 vs. July 15, 2007 (in millions of dollars)
• Marketing Trends
  • New Product Trends
  • Figure 3-2: Number of New Natural and Organic Dog and Cat Food Products, 2000-2006
  • Table 3-13: Number of New Dog and Cat Food Products by Natural, Organic or “Natural-Related” Package Tags, 2000-2007
  • Human-Grade Ingredients
  • 100% US-Sourced Ingredients
  • Locally Sourced Ingredients
  • Natural Plus Gourmet
  • Human-Style Snack and Holiday Appeals
  • Condition-Specific Claims Based on Natural Ingredients
  • The Raw/Frozen Niche
  • Refrigerated Pet Food and New Forms of Fresh
  • Advertising and Promotion Trends
  • Table 3-14: Marketers and Brands of Natural Pet Food, 2007

Chapter 4: Pet Care Products

• Introduction
  • Scope of Coverage
  • Natural and Alternative Litter
  • Natural Pet Health Products
  • Natural Pet Grooming Products
  • Natural Pest-Control Products
  • Natural Pet Supplements
  • Other Natural Pet Care Products
• Market Trends
  • Retail Sales of Natural Pet Care Products Post Double-Digit Annual Gains
  • Table 4-1: U.S. Retail Sales of Natural Pet Care Products, 2003-2007 (in millions of dollars)
  • Market Composition
  • Table 4-2: U.S. Retail Sales and Share of Natural Pet Care Products by Category, 2003 vs. 2007 (in millions of dollars)
  • Natural Cat Litter Sales Reach $170 Million in 2007
  • Table 4-3: U.S. Retail Sales of Natural Cat Litter, 2003-2007 (in millions of dollars)
  • Table 4-4: IRI-Tracked Sales of Natural Cat Litter vs. Total Cat Litter, 2003-2007 (in millions of dollars)
  • Market Outlook
  • The Safety Factor
  • Cat Litter Prospects
  • Pet Health Line Extensions
  • Company Entries and Exits
  • Retail Sales to Top $450 Million in 2012
  • Table 4-5: Projected U.S. Retail Sales of Natural Pet Care Products, 2007-2012 (in millions of dollars)
• Competitive Trends
  • Marketer Classifications
  • Eco-Friendly and Other Ethical Appeals
  • Natural Cat Litter Marketers
  • Feline Pine Leads in Mass-Market Outlets
  • Table 4-6: Share of IRI-Tracked Sales of Natural Cat Litter by Marketer and Brand, 2002-2007 (in millions of dollars)
  • Table 4-7: IRI-Tracked Sales of Natural Cat Litter by Marketer and Brand, 2002-2007 (in millions of dollars)
  • Company Profile: Pet Care Systems (Swheat Scoop)
  • Multi-Category Natural Pet Care Marketers
  • NCH Corp. Extends Simple Solution Line into Natural
  • Company Profile: Worldwise, Inc.
  • Table 4-8: IRI-Tracked Sales of Worldwise Natural Pet Care Products, 2002-2007 (in millions of dollars)
  • Category Specialists
  • Mainstream Pet Product Marketers Crossing Over
  • Marketing Snapshot: Hartz Mountain
  • Marketing Snapshot: 8 in 1/Spectrum Brands
  • Marketing Snapshot: Sergeant' s Pet Care
  • Human Product Marketers Also Crossing Over
  • Channel Exclusivity
  • The Veterinary Connection
• Marketing Trends
  • New Product Trends
  • Figure 4-1: Number of New Natural and Organic Pet Care Products, 2000-2006
  • Table 4-9: Number of New Pet Care Products by Natural, Organic or “Natural-Related” Package Tags, 2000-2007
  • Trends in Natural Cat Litter
  • Product Positioning
  • Eco-Friendliness
  • Clay- and Silica-Free = Safer
  • Small Animal Litter a Growth Area
  • Going Scoopable
  • Citrus Scents
  • Eco-Friendly Litter Boxes and Accessories
  • Trends in Other Natural Pet Care Products
  • Spa/Gift/Travel Appeals
  • Waterless Baths
  • Botanical Pest Controls
  • Supplements and Functional Claims
  • “Cosmetics” Appeals
  • Going Organic
  • Consumer Advertising and Promotion
  • Trade Advertising and Promotion
  • Table 4-10: Selected Marketers and Brands of Natural Pet Care Products, 2007

Appendix: Examples of Advertising