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U.S. Pet Market Outlook 2010-2011: Tapping into Post-Recession Pet Parent
Spending
March 1, 2010
As the U.S. economy moves out of recession and into recovery, the purse strings of
many pet parents will loosen, but shoppers will continue to demand greater value in the
pet products and services they purchase as well as from the channels they shop. U.S.
Pet Market Outlook 2010-2011: Tapping into Post-Recession Pet Parent Spending
provides essential insights into the U.S. pet market overall as well as each of its four
core categories: veterinary services, pet food, non-food pet supplies, and non-medical
pet services (grooming, boarding, training, etc.). Benefiting from many current trends
and “future factors,” the market will rise from $53 billion in 2009 to over $70 billion in
2014, the report forecasts, with strong demand for products and services that both
enhance pet health and pamper lifting many boats as pent-up pet parent demand
begins to kick in during 2010.
Continuing the market tracking and forecasting of the previous edition of Packaged
Facts’ annual report (see U.S. Pet Market Outlook 2009-2010: Surviving and Thriving in
Challenging Economic Times, the 2010-2011 edition projects sales, market growth
drivers, and competitive and marketing opportunities. In a new focus discussion, it
details retail channel trends including the increasingly aggressive competitive
differentiation between pet specialty and mass-market suppliers and retailers, cross-
channel shopping vs. shopper loyalty, and the growing role of non-traditional channels
including Internet. The report also includes expanded discussions of the market’s
competitive structure and of new product and media trends, with analysis and
illustrations of numerous products and advertising campaigns.
Additional chapters detail the market’s ongoing strong prospects, including a
human/animal bond that is stronger than ever as a result of the recession; analysis of
the competitive situation including opportunities for cross-pollination across product and
service segments; and consumer demographic and mindset trends representing
changes, challenges and calls to action in meeting the needs of today’s more
demanding pet parent population. Other trends examined include what the report calls
“a broad-base societal shift toward greater acceptance of ‘pets as family’,” an increased
focus on the human/animal health connection; “bang for the buck” value appeals
balancing price, function and indulgence; “ethical” (organic/natural, sustainable,

2. humane, etc.) appeals and cause marketing; the shift toward non-traditional media
including social networking; and recent and possible mergers, acquisitions and spin-
offs.
Table of Contents
Chapter 1: Market Performance
Introduction
Scope of Report
Report Methodology
Market Performance
Impact of Economic Recession and Recovery
Table 1-1: U.S. Pet Market Retail Sales by Category: 2009- 2011 (in billions of
dollars and percent change over previous year)
Signs of Economic Recovery
Market Climate Favorable to Mass Retailers, Brands
Table 1-2: IRI-Tracked Sales of Pet Products: Total and by Food and Non-Food
Category and Segment, 2009 vs. 2008 (in millions of dollars, units and pounds)
Strong Market Underpinnings Bode Well for Rebound
Table 1-3: Level of Pet Owner Agreement with Statement: “I Am Spending Less
on Pet Products Because of the Economy,” February 2010
Table 1-4: Percent of Pet Owners Who Anticipate Spending Less on Pet
Food/Supplies or Pet Services in Next 12 Months, February 2009
Table 1-5: Pet Owner Patterns: By Change in Financial Situation Compared With
12 Months Ago, 2009 (percent of U.S. pet-owning households)
Table 1-6: Pet Owner Population: By Change in Financial Situation Compared
With 12 Months Ago, 2009 (number of U.S. pet-owning households in millions)
Table 1-7: Pet Owner Indexes: By Change in Financial Situation Compared With
12 Months Ago, 2009 (U.S. petowning households)
Human/Animal Bond Strengthens During Recession

3. Figure 1-1: “Consider My Pet(s) Part of the Family,” 2009 (percent of Pet,
Dog/Cat, Dog and Cat Owners) Product Premiumization and Premium
Demographics
Table 1-8: Change in Pet Market Consumer Base by Purchase of Selected
Premium Pet Products: Flea/Tick Care, Treats, Heartworm Control Products,
Scoopable Litter, 2005 vs. 2009 (number and percent of U.S. dog- or cat-owning
households)
Pet Insurance: The Right Place at the Right Time
Impact of Pet Aging, Overweight
Table 1-9: Percentage and Number of Overweight and Obese Dogs and Cats:
2007 vs. 2008
Pet Market Momentum
Table 1-10: Number of New Pet Product Introductions: Reports and SKUs, 2005-
2009 (percent)
Future Factors
A Societal Shift
Illustration 1-1: Electrolux Appliance TV Commercial—”Pet Birthday Party”
Illustration 1-2: Kenmore Washer TV Commercial with Dog
Illustration 1-3: Screen Shot of Glenn Close and Pet from Hit TV Series Damages
Additional Human Company Cross-Over
Human-Animal Correlation an Untapped Goldmine
Market Forecast: A $72 Billion+ Market by 2014
Table 1-11: Projected U.S. Retail Sales of Pet Products and Services, 2009-2014
(in millions of dollars)
Table 1-12: U.S. Pet Market Compound Annual Growth Rates by Category:
2005-2009 vs. 2009-2014 (percent)
Table 1-13: Percentage Share of U.S. Pet Market Retail Sales by Category:
2005, 2009 and 2014
Chapter 2: Marketing Trends
Competitive Overview
Overview

4. Pet Services Industry “Corporatization” Continues
VCA Antech, PetSmart/Banfield and Petco Continue as Leading Market
Consolidators
Figure 2-1: PetSmart and Petco: Share of Pet Grooming, Boarding and Training
Sales: 2000, 2004, 2008 and 2012 (percent)
The Independent Pet Specialty Services Push
Franchising Altering Pet Services Terrain
Pet Products Market Structure and Competitive Shifts
M&A Activity Continues During Recession
Table 2-1: Timeline of U.S. Pet Product Market Mergers, Acquisitions and Sales:
2001-2009
Marketing Trends
Pet Parent Priorities Post-Recession
Figure 2-2: Important Factors in Product Selection: Percentage of Shoppers
Rating Factor as “Important” or “Very Important”
Illustration 2-1: TV Spot for Multiple Purina Cat Food Lines
Illustration 2-2: Internet Banners for Petco’s 2010 President’s Day Sale
Wellness Is Primary Theme in New Product Introductions
Table 2-2: Top 25 Marketing Claims by Number of New Pet Product Reports:
2005, 2007 and 2009 (number and percentage of all product launches)
Wellness Plus “Human-Style”
Table 2-3: Selected Health & Medical Psychographics: Adults Overall vs. Pet
Owners by Type of Pet, 2009 (percent and index)
Illustration 2-3: TV Spot for Purina Fancy Feast Appetizers
Illustration 2-4: Print Ad for Mars Cesar Sunrise “Breakfast Food”
The Senior, Weight Management, and Special Needs Thrust
Table 2-4: U.S. Retail Sales of Senior, Weight Management, and Special Needs
Pet Products: 2004, 2008 and 2013 (in millions of dollars)
Illustration 2-5: Print Ad for Kong Senior Toys and Treats
The Natural and Organic Thrust

5. Illustration 2-6: Humane Society’s Humane Choice Organic Pet Food
Table 2-5: Percent of Pet Owners Who Purchased Natural/Organic Pet Products
in Last 3 Months: Dog Owners vs. Cat Owners, February 2009 (percent of U.S.
dog or cat owners)
Table 2-6: Percent of Pet Owners Who Would Buy More Natural/Organic Pet
Products If They Were More Available or More Affordable, 2009 (percent of U.S.
dog or cat owners)
Specialty and Functional Food Formulas
Figure 2-3: Percent of Pet Owners Who Purchased Specialty Formula Dog or Cat
Food in Last 3 Months: Dog Owners vs. Cat Owners, February 2009 (U.S. dog or
cat owners)
Illustration 2-7: Iams Premium Protection Functional Pet Food Line
Illustration 2-8: Pedigree+ Functional Pet Food Line
Pet Supplements and Nutraceutical Treats
Illustration 2-9: Dogswell Shape Up Brand Extension from Treats to Food
Illustration 2-10: Print Ad for Nestlé Purina’ FortiFlora Probiotic Supplement
Illustration 2-11: Print Ad for Merrick’s Elements Vision, Joints & Breath
Supplement
Pet Medications
Focus on Product Safety
Celebrity Kick
Cause-Related Marketing
Illustration 2-12: TV Spot for PetSmart Charities “Second Chance for Love
Adoption” Valentine’s Day Weekend Event
Good for the Planet, Good PR: Pet Marketers Embracing Sustainable Initiatives
Table 2-7: Selected “Green” Shopping Psychographics: Adults Overall vs. Pet
Owners by Type of Pet, 2009 (percent and index)
Multiservice = Convenience = Value in Pet Services
Figure 2-4: Types of Services Pet Care Facilities Have Added in Past 5 Years,
2009 (percent)
Luxury Services Expected to Rebound

6. At-Home Pet Services Predicted to Soar
Pet Sitting
Mobile Grooming
Illustration 2-13: Petco Mobile Grooming Van
Mobile Veterinary Care
Veterinary Specialization
Geriatric Care
Specialized Care for Overweight Pets
Hospice Care
Canine Rehabilitation
Holistic/Alternative Care
Bereavement Services
Media Trends
Pet Market Advertising Expenditures
Table 2-8: Media Breakout of U.S. Advertising Expenditures on Pet Products,
2004-2008 (percent)
Human/Animal Bond More Important Than Ever
Illustration 2-14: TV Spot for Multiple Purina Cat Food Lines
Value-Focused Advertising
Illustration 2-15: TV Spot for Walmart Pet Brands
Illustration 2-16: TV Spot for PetSmart’s 20% Off Sale and Brands
Non-Traditional Media and Internet Advertising
Table 2-9a: Level of Pet Owner Agreement with Statement: “I Use the Internet to
Help Find and Choose Pet Products,” February 2010 (percent)
Table 2-9b: Level of Pet Owner Agreement with Statement: “I Buy Pet Products
Online,” February 2010 (percent)
Table 2-10: Selected Internet-Related Psychographics: Adults Overall vs. Pet
Owners by Type of Pet, 2009 (percent and index)

7. Table 2-11: Selected Media & Marketing Psychographics: Adults Overall vs. Pet
Owners by Type of Pet, 2009 (percent and index)
Social Networking Becoming a Pet Market Craze
Pet Retailers Also Turning to Blogs, Social Networking, Mobile Commerce
Chapter 3: Retail Channel Trends
Shopper Deal-Seeking, Retailer Promotions in Full Force
Figure 3-1: Deal-Seeking Behavior: Percentage of Shoppers Participating in
Activity, 2008 vs. 2009
Table 3-1: Level of Pet Owner Agreement with Statement: “I Shop for Pet
Products at a Variety of Stores to Find the Best Prices, Special Offers and
Sales,” February 2010 (number and percent of pet owners)
Economic Concerns Intensify Cross-Channel Competition
Table 3-2: Pet Product Purchasing Patterns Among Dog or Cat Owners by Retail
Channel: By Change in Financial Situation Compared With 12 Months Ago, 2009
(percent of U.S. dog- or cat-owning households)
Table 3-3: Pet Product Purchasing Indexes Among Dog or Cat Owners by Retail
Channel: By Change in Financial Situation Compared With 12 Months Ago, 2009
(U.S. dog- or catowning households)
Pet Superstores vs. Discount Stores
Independents and Supermarkets Continue to Slide
Table 3-4: Pet Product Purchasing Patterns Among Dog or Cat Owners: By
Retail Channel, 2007-2009 (percent and millions of number of U.S. dog- or cat-
owning households)
Channel Loyalty Trends
Table 3-5: Retail Channel Loyalty in Pet Product Purchasing Among Dog or Cat
Owners, 2007-2009 (percent and in millions of number of U.S. dog- or cat-
owning households)
Table 3-6: Overview of Retail Channel Loyalty in Pet Product Purchasing Among
Dog or Cat Owners, 2004 vs. 2009 (percent and in millions of number of U.S.
dog- or cat-owning households)
Figure 3-2: Percent of Pet Product Customers Who Shop Across Channels: By
Major Retail Sector, 2004 vs. 2009 (U.S. dog- or cat-owning households)
Walmart Strengthens Pet Market Push

8. Figure 3-3: Share of U.S. Pet Product Sales: Walmart vs. PetSmart/Petco and
Other, 2005 vs. 2009 (percent)
Table 3-7a: Level of Pet Owner Agreement with Statement: “When I Want to Buy
Specialty Brand Pet Products, I Usually Shop in Pet Superstores or Pet Stores”,
February 2010 (percent of pet owners)
Table 3-7b: Level of Pet Owner Agreement with Statement: “I Usually Shop for
Pet Products in Pet Superstores or Pet Stores Because They Carry the Specialty
Brands I Like,” February 2010 (percent of pet owners)
Down Economy Gives Store Brands a Boost
Table 3-8: IRI-Tracked Private-Label Sales of Pet Products: Total and by Food
and Non-Food Category and Segment, 2009 vs. 2008 (in millions of dollars)
Table 3-9: Private-Label Share of IRI-Tracked Sales of Pet Products: Total and
by Food and Non-Food Category and Segment, 2009 vs. 2008 (percent)
PetSmart and Petco Continue to Shape Pet Market Landscape
Table 3-10: PetSmart and Petco Sales and Number of Stores: 2001-2009
(cumulative, in units and millions of dollars)
Martha Stewart Line to Debut as PetSmart Exclusive in Mid 2010
Petco Launches “Unleashed” Store Format, Staff Training Program, and
Consumer Educational Campaign
Illustration 3-1: Petco Pet Food Label Evaluation Tips
Retailer Exclusivity
Illustration 3-2: Humane Choice Organic Pet Food Retail Display
Independent Pet Stores: An Evolving Breed
Non-Traditional Channels, Internet Going Strong
Illustration 3-3: Orvis Dog Bed Selector Website Banner
Chapter 4: Pet Ownership Trends
Number of Dog and Cat Households Trending Upward
Figure 4-1: Household Penetration Rates for Selected Dog- or Cat-Owning
Classifications: 2003 vs. 2009 (percent of U.S. dog- or cat-owning households)
Table 4-1: Change in Pet Market Consumer Base: Number of Dog or Cat
Owners, 2005 vs. 2009 (U.S. dog- or cat-owning households)
Higher-Income Households Playing a Growing Role

9. Table 4-2: Change in Pet Market Consumer Base: Household Income $60K or
More vs. Household Income Under $60K, 2005 vs. 2009 (U.S. dog- or cat-
owning households)
Figure 4-2: Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K
Income Households, 1998-2008 (percent)
Figure 4-3: $70K+ Household Share of U.S. Pet Market Expenditures: By
Category, 1998 vs. 2008 (percent)
Figure 4-4: Average Household Spending on Pet Products and Services by
$70K+ Households, 1998 vs. 2008 (in dollars) 17 Million “Premium Pet”
Households
The Boomer Factor
Figure 4-5: Dog or Cat Ownership Rates by Age Bracket: 2003 vs. 2009 (percent
of U.S. households)
Table 4-3a: Household Penetration Rates for Selected Pet- Owning
Classifications by Generational Cohort: Gen Y Adults vs. Gen X Adults, 2009
(percent and number)
Table 4-3b: Household Penetration Rates for Selected Pet- Owning
Classifications by Generational Cohort: Boomers vs. Seniors, 2009 (percent and
number)
Table 4-4: Indexes for Selected Pet-Owning Classifications: By Generational
Cohort, 2009 (U.S. households)
Table 4-5: Number and Share of Total U.S. Population Growth for Selected Age
Brackets: 2010, 2015 and 2020 (in thousands of number and percent)
Role of Gen Ys and Gen Xers
No-Kid Pet Household Clout
Table 4-6: Change in Pet Market Consumer Base: Households with Kids vs.
Households Without Kids, 2005 vs. 2009 (U.S. dog- or cat-owning households)
Table 4-7: Childless Dog or Cat Owners by Household Composition: Dog/Cat
Ownership Rates and Share of Total Dog/Cat Owners: 2003, 2006 and 2009
(percent)
Pet Ownership Trends by Minority Group
Table 4-8: Dog and Cat Ownership Trends by Race/Ethnicity, 2005-2009
(percent and number of U.S. dog- or cat-owning households)

10. Table 4-9: Change in Pet Market Consumer Base: White Non- Hispanics vs.
Minorities, 2005 vs. 2009 (number and percent of U.S. dog- or cat-owning
households)
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