Adios rusty, hola rufo!-Final

“Adiós Rusty. Meet Rufo!”
Growth in the Pet Industry Comes with an Upscale Latino Treat
2014 © Santiago Solutions Group, Inc. www.SantiagoSolutionsGroup.com

Growth In The $50 Billion Pet Industry Is
Increasingly Coming With A Latino Upscale Treat
SSG analysis reveals that contrary to the myth that
Hispanics are less likely to make pets full members of
their families, Upscale Latinos are increasing pet
ownership dramatically while other segments are nearly
flat or declining.
The pet consumer shift has implications for pet food
manufactures, specialty stores, mass discounters, toys,
animal hospitals, grooming spas, and other high-end
services, etc.
Source: SSG Analyses of GfK-MRI 2010 & 2013 double base Survey of the American Consumer Base: Total
US 18+ Household Income $50,000-$99,999
2

Latinos Drive the Pet
Ownership Market Growth
Upscalesegmentdrives
thecategory.
UpscaleLatinosGenerate
asmanynewpetowners
asWNHUpscales
Source: SSG Analyses of GfK-MRI 2010 & 2013 double base Survey of the American Consumer; Pet Ownership
– Number in Household: Any Pet- Any
Base: Total US 18+ Household Income $50,000-$99,999 3
37.9 M
38.7 M
5.4 M
4.6 M
+ 2%
+ 17%
13.4 M
2.9 M
2.3 M
+ 0%
+ 26%
Upscale Mass Market
WNH 2013
WNH 2010
HISP 2013
HISP 2010

4
US 18+ Household Income $50,000-100,000
Upscale Latino Dog
Ownership Growing 5x the
yearly pace of Total Market
WNH
Upscale
Upscale
Latino 5x
1x 1x
Total
Upscale
Market

10
-12
8
2
9
-7
8
5
UpscaleDogOwnersAsLikelyto
beWNHorLatino;>Total
MarketUpscales
5
WNH HISP WNH HISP
100 Index =
US Upscale
Incidence
Purchasersof PackagedDryDogAre
AsLikelytobeUpscaleLatinosasTotal
MarketUpscales
Dogs Are Scoring with Upscale
Latino Homes

4
-1
2
11
Mass Discount Store Pet
Purchases
2
33
4
Specialty Store Pet
Purchases
Latino Upscales Have Highest Incidence of Pet
Products Purchases in Both Specialty & Mass/Disct
Stores
Source: Source: SSG Analysis of Scarborough USA+ 2007 R2/ 2013 R2; Pet Supplies: Stores shopped/ used
services past 12 months; Base: Household Income $50,000-99,999
6
WNH HISP WNH HISP
100 Index
US Upscale
Avg.

Upscale Latino Pet Owners Routine Vet
Visits Have Reached Parity with Upscale
Total Market
Source: SSG Analyses of GfK-MRI 2010 & 2013 double
base Survey of the American Consumer Base: Total US
18+ Household Income $50,000-100,000 7
11
-18
9
2
Annual Vet Visits
WNH HISP
100 Index
US Total
Upscale Avg.

Families w/ Children Most Likely to
Own Pets Across All Segments
8
6
-12
24
2
Single
Married w/ Kids
WNH HISP
100 Index
US Total
Upscale Avg.
Pet Ownership – Number in Household: Any

Upscale Gen Xer Driving Pet Ownership
Incidence
9
Upscale Latino GenXers are
20% more likely than Upscale
Latino Millennial to own a pet.
Upscale WNH GenXers are 5%
more likely than Upscale WNH
Millennial to own a pet.

10
*AHAA Upscale 2.0, Coauthored By Nielsen
Why Act Now?
Upscale Latinos make up 29% of all Latinos, and 37% of all
Latino buying power
Change in Pet ownership incidence suggests that the
bulk of these consumers are first-time pet owners that
may be new entrants into the American “pet culture”
A more In-Culture approach may help bond with Latino
buyers as the growth of pet ownership in Upscale Latino
segment calls for a Latino-friendly approach
“across all luxury segments, about 60% of Latino Upscales have
strong ties to the Latino Culture; 30-40% voice a strong cultural
duality”*

11
*US Pet Ownership Statistical Breakdown - KC DOG BLOG (Analysis of Mintel Report). (2012, November
12). 'KC DOG BLOG'. Retrieved July 24, 2014, from http://btoellner.typepad.com/kcdogblog/2012/11/us-
pet-ownership-statistical-breakdown.html
There is an opportunity for specialty stores and
supercenters to partner with grooming services or vet
clinics on premises promoting loyalty
Pet food retailers can increase brand connectivity with
Upscale Latino’s booming love of pets by offering
training classes, New Pet Owner Workshops, etc.
Pet food manufacturers should seize the moment by
becoming trusted advisors, educating this new wave of
Upscale Latino pet owners on wellness for their pets
Dogs’ New Latino Life…

Sources
1. SSG Analysis of GfK-MRI 2010/ 2013 Double Base Survey of
the American Consumer; Base: Household Income $50,000-
$99,999.
2. SSG Analysis of Scarborough USA+ 2007 R2/ 2013 R2; Pet
Supplies: Stores shopped/ used services past 12 months;
Base: Household Income $50,000-$99,999.
3. "US Pet Ownership Statistical Breakdown - KC DOG
BLOG." Mintel, 12 Nov. 2012. Web. 24 July 2014.
<http://btoellner.typepad.com/kcdogblog/2012/11/us-pet-
ownership-statistical-breakdown.html>.
4. “Upscale Latinos 2.0: A Renewed Outlook for High-End
Marketers”. AHAA, co-authored by Nielson. May 2014.
<http://www.ahaa.org/default.asp?contentID=27>.
12

About
Santiago Solutions Group
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data is just the base to reduce your
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Leveraging client-side
experience and consulting, we arm
you with intelligence, ownable
insights to purchase, strategic
pathways aligned with the highest
impact priorities, and
effective Total Market roadmaps
inclusive of customer journeys.
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