Showing posts with label market trends. Show all posts
Showing posts with label market trends. Show all posts

06 July 2016

BUSINESS - Ellen DeGeneres Launches Pet Product Line

(Business Wire)
With pet industry spending coming in at a record $60.28 billion in the United States last year, it’s not surprising that Ellen DeGeneres - a pet lover and design icon - is entering the market.

Partnering exclusively with PetSmart, the ED pet lifestyle line will include pet apparel, beds, bowls, collars, leashes, harnesses, toys and pet carriers, as well as shampoo and other at-home grooming supplies.

“We are thrilled about this collaboration with the ED brand and Ellen, who shares our view that pets make us better people. She is passionate about pets, a tremendously creative design talent and people relate to her and love Ellen’s view on life. She is extremely relevant, especially among millennials, an important demographic that is moving into pet parenthood at a significant rate,” said Ted Passig, EVP of Buying and Sourcing for PetSmart.

The collection is expected in all 1,450 stores early next year with seasonal updates.

When announcing the record pet industry spending numbers, Bob Vetere, president and CEO of the American Pet Products Association (APPA), stated, “The pet humanization trend is alive and well and continues to drive growth at the premium end of the market. As millennials prepare to take the reins from the baby boomer generation as the primary demographic of pet owners, they stand to further develop this trend.”

Ellen’s foray into the pet industry seems to support Vetere’s prediction of continued growth and development.

05 April 2016

BUSINESS - Top Insights from 2015 Global Consumer Trends Survey

Euromonitor International reaches out to internet-connected consumers from across the globe with their Global Consumer Trends Survey, then translates the results into comprehensive analysis and actionable opportunities.

While their full report includes key survey findings across all major consumer lifestyle areas, here are six key insights from the survey.

Millennials and Generation Z are leading the shift from computers to mobile. With the rapid proliferation of mobile devices such as smartphones and tablets, today’s internet-connected consumers have access to whatever they want, wherever they go. Smartphones, in particular, have changed the way consumers interact with the world.

The key to swaying customer opinion is to first convince friends and family. Survey respondents selected friends and family recommendations as their top marketing influence, while independent consumer reviews came in second.

Informed eaters will pay more for healthy packaged food. The consumers with a long ingredient watch-list express a much greater willingness to pay extra for the packaged food features they deem important.

Trust in “Green” labels is growing, but skepticism remains high. Consumers remain largely ambivalent towards ethical and environmental language and claims.

Many consumers struggle to link some health priorities with everyday habits. Sticking with good habits can be easier said than done.

The ability to make time for what matters most is critical for today’s ever-busy consumer. Instead of focusing on saving time, marketers should emphasize the importance of making time, highlighting how a product or service frees up time for the things that matter most.


Euromonitor International is a leading independent provider of strategic market research. They create data and analysis on thousands of products and services around the world.

25 March 2016

BUSINESS - Eco-friendly Pet Toys Growing in Popularity

The plush, purple dog toy crackles every time the dog bites into it. And the sound, that one may presume the dog perceives as the slaying of the fuzzy monster, makes the toy a favourite.

Inside, was an old water bottle put to use for a pooch – a wonderful way to recycle.

As it happens, eco-friendly toys, albeit still a niche portion of the pet toy market, are increasing in popularity and variety.

Cycle Dog's Fuzzy Flyer
Take a look online and there is everything from dog toys made of old blue jeans, bits of fire hose, bamboo, recycled canvas, organic cotton and beds owners can stuff with old clothes, blankets or towels.

It speaks to a fondness for products which are environmentally-friendly and manufacturers and retailers appear more than ready to offer some interesting items which fit that criteria.

Lanette Fidrych, president of Cycle Dog, didn't want to retire his bicycle wheels.

“As an avid bike rider, many miles also many flat tubes,” Fidrych told Pet Business. “Being an environmentally conscious individual, I did not want to throw my old tubes in the trash, knowing they would take thousands of years to decompose.”

Instead, he got creative, transforming tubes into dog collars for his pooch.

His plan proved popular and in addition to the collars, Cycle Dog is creating “entertaining, long-lasting pet toys,” which “promote reuse and recycling,” like Fuzzy Flyers which rely on reclaimed bike inner-tube rubber to create flying discs which are durable and easy on a dog's mouth.

And the products are good for buyers who want to be good to the environment – the brand's Ecolast Rubber Toys, for instance, has collected more than 100,000 tubes donated from bike shops and cyclists, otherwise destined for the dump this year, and turned them into toys.

Other companies, like Jax & Bones, use non-toxic vegetable dye and cotton rope in some toys making the items compost-ready and biodegradable when the dog is done.

And for those who fear going green means flaky and inferior, many manufacturers assure their toys are environmentally-friendly, safe for pets and just as tough as non-environmentally friendly stuff.

West Paw Design, for instance, makes many of its toy's from eco-friendly hemp fabric or even remnants of fabric from staffers' own beds to cut down on waste when manufacturing dog toys or beds.

Its IntelliLoft filler is made from recycled bottles and is non-toxic and certified dog-safe.

More importantly, perhaps, the creative and conscientious approach has diverted 9.7 million plastic bottles from landfills.

Across the pond, the Eco Dog Company boasts products which are ethically-made and green and even offers dog shampoo tested on humans not animals.

“None of our products are made in sweat shops,” its website states. “Indeed, some of our toys are made by skilled artisans in Nepal. Many of these women are widows and sole providers for their families.”

The U.K-based company, like many in the Eco-friendly dog toy business, strives for zero waste and uses recycled packaging.

Dogs do not have a monopoly on the market and there are plenty of products available for cat owners looking for eco-friendly fare, such as organic catnip grown without synthetic herbicides, pesticides and fertilizers.

So-called greenwashing – making exaggerated claims of a company's sustainable toy creation – means buyers must be savvy and dig a little deeper into whether a product is truly eco-friendly and not just an imposter trying to cash in with misleading assertions about their goods, cautions Amanda O'Brien, Planet Dog’s marketing director.

By Nadia Moharib
Nadia Moharib is an animal lover who has adopted everything from birds to hamsters, salamanders, rabbits, fish and felines. She has written about all-things-pets for years and was a long-time editor of a pet magazine in a daily newspaper which featured a Q & A column, Ask Whit, penned by her pooch (ghost written, of course.) The serial dog owner lives in Calgary, Alberta and most days can be found at a dog park picking up after her rescue pooch, Scoots.

13 March 2015

Pet Industry Spending at All-Time High

The American Pet Products Association (APPA), announced that overall spending in the pet industry for 2014 exceeded $58 billion. The spending figures are part of APPA's annual comprehensive report that covers pet spending in the segments: food, supplies/over-the-counter medications, veterinary care, live animal purchase and other services. 

Pet services, which includes grooming, boarding, walking, training, daycare and event spa services for pets saw the largest growth with veterinary care spending coming in as the second largest growth. But the food category is the leading source of dollars spent within the industry as pet owners become increasingly aware of the quality and source of food given to their animal companions. 

Get the full report at www.americanpetproducts.org

17 November 2014

IDC Releases Retail IT Predictions For 2015

Retailers must continually implement new technologies designed to provide the best experience for both shoppers and company employees if they wish to stay on top of the game, says a IDC Retail Insights

The Global market intelligence firm released its Top 10 Decision Imperatives for 2015 and beyond, earlier this month. Each imperative includes four parts and correspond with predictions for the several years as outlined by Greg Girard, Program Director at IDC Retail Insights.

Imperatives include: 

  • A continued shift toward "third platform" technologies - IT platforms build on mobile devices, cloud services and social networks. 
  • Investments in 'omnichannel' integration technologies - omnichannel shoppers are expected to spend 30% more than the single-channel shopper. 
  • Improved ROI on loyalty promotions due to the unification of multiple sales channels. 
  • Increasing mobile payment initiatives to enhance existing ecommerce, loyalty and store MPOS investments. 
  • On-demand socially networked delivery services will perform 90% of all intra-day direct-to-conumer deliveries. 

The firm left retailers with a guidance summary to take into business model preparations for the coming years: 

  • Invest in customer-centric information; 
  • Equip associates with training and tools that facilitate differentiating experience; 
  • Look for technologies built for visibility, speed, automation and anticipatory needs; and 
  • Adopt more sustainable infrastructure and applications. 



23 April 2014

Eli Lilly and Co. to buy Novartis animal health assets

Following a strategic review of assets, Novartis announced yesterday it is selling its animal health unit to Eli Lilly and Co. for $5.4 billion. The transaction will strengthen and diversify Lilly's own animal Health business, Elanco. Upon completion of the acquisition, Elanco will be the second largest animal health company in terms of global revenue. 

Lilly Chairman, President and CEO, John C. Lechleiter, said the acquisition of Novartis Animal Health validates Lilly's commitment to Elanco as a key component of Lilly's business going forward. 

"Animal health continues to represent an attractive growth opportunity for Lilly. We intend to keep Elanco and to take advantage of the substantial synergies between our animal health and human health businesses," said Lechleiter. "Global trends suggest continued sustained demand for animal health products in the years ahead... we intend to create value for our shareholders through a larger commercial footprint, and improving efficiencies and lowering costs." 

Lilly said it plans to fund the deal with about $3.4 billion of cash on hand and borrow $2 billion. 

Separately, Novartis said it agreed to buy Britain's GlaxoSmithKline PLC (GSK) oncology products for $14.5 billion in milestone payment. Both moves are part of Novartis' effort to unload smaller business units and focus on areas where the company can lead the market. 


26 March 2014

Pet Spending soars in Canada

Canadian pet owners are spending more money on luxury for their pets than ever before, according to a recent report published by Packaged Facts

The report shows many Canadians overlooking the high cost of premium retail products, which have fuelled much of the growth in the Canadian pet market, when it comes for their furry friends. Packaged Facts' proprietary survey of Canadian pet owners shows that the vast majority of pet owners are wiling to spend more on products that support the health and happiness of their pets. Another trend continuing to gain steam is the market emphasis on natural products as evidenced by companies ranging from Purina to Hill's Science Diet to Walmart focusing on natural products. 

For more information, visit PACKAGED FACTS.

Graphic source



11 March 2014

Executive interviews uncover the future of pet retail

Consumer trends in the pet care industry have seen significant growth in the past 20 years and pet-related consumer spending continues to trends upwards. 

But with the landscape changing at such a constant and rapid pace, organizations and businesses need to be able to answer important questions about demographics, growth, trends and technology. 

Pet Business Magazine sat down with several prominent industry executives to discuss how they see key issues playing out leading up to 2020, with an eye on what the future holds. 



09 January 2014

Pet food industry crystal ball

The pet industry has shown lucrative numbers in recent years but not all companies and products are thriving. Petfood Industry editor-in-chief Debbie Phillips-Donaldson had a peek in her 'crystal ball' in an attempt to predict the trends and risks that may affect the pet food industry in 2014. 

Her opinion editorial shares some insight on current issues faced by the industry and questions the likelihood of these issues changing the face of that industry for the coming year. 


12 October 2013

Korea sees sharp increase in pet spending

South Korea reported a 20.9% increase on pet spending in August 2013 over the same month last year. Data collected from the Credit Finance Association showed spending at pet shops and veterinary clinics amassed an ₩83.1 billion ($77.7 million US) purchase totals. 

The demand for pet-related insurance programs also gathered ground this year, implying the growing presence of pet-related instruments in the country's financial sector. Two reporting insurance companies  announced policy increases of more than 400 subscribers in the past year. 

Market watchers said the rising amount of pet-related transactions with plastic cards came as more cardholders adopted companion animals amid the increasing number of one-member households in South Korea. 




24 March 2013

Pet Health driving pet supply market

Earlier this month, Packaged Facts reported an increase in health care related pet products are the key to growth in pet supply sales.

"We are certainly seeing more health-related and preventative health products on the market that help pets maintain healthy lifestyles," said Bob Vetere, president of the American Pet Products Association (APPA). 

Vitamin enriched dental chews are driving growth in the pet products category, according to a recent report from Mintel. Mintel expects chews, toys, grooming products made with natural ingredients and other supplies that contribute to the health and well-being of dogs and cats to drive sales in the pet supplies sector. 

According to the report, pet supplies saw a 2% increase, bringing sales to $11.1 billion. The market research firm projects that this year, pet supplies will grow 4% over 2012 sales. 



16 March 2013

VCA Antech weathers the storm

Despite reports the companion animal industry is 'recession proof', VCA Antech saw sales revenues per hospital (those open more than a year) decline for 10 consecutive quarters from 2009 to 2011, according to a research report by investment firm William Blair and Co. 

An analysis of the company's financial history in the LA Times earlier this month reported that VCA's earnings plummeted to $50.7 million in 2012, it's fourth consecutive year of decline after peaking at $137 million in 2008. 

"If our pets are sick, we'll spend the money," said Robert L. Antin, the company's co-founder and CEO. "If they're well and it's a bad economic time, they may say, 'we  don't need to see the vet.' So the economy has hurt us, just like it's hurt everybody else." 

VCA Antech has grown through a series of acquisitions, helping to boost revenue even as visits to existing hospitals fell. The pet hospital firm nearly doubled in size from 2006 to 2012. 

Antin told the LA Times the company's acquisitions have left it well-postioned to thrive as the economy recovers and pet owners' discretionary income increases.  Reports show a slight increase in sales per hospital (those open for more than a year) for the past six quarters. 



About VCA Antech
VCA Antech owns or manages more than 600 veterinary hospitals in the US and Canada, with more than 3,000 veterinarians on staff. It also owns a network of diagnostic laboratories and sells radiography and ultrasound imaging equipment to veterinarians. 

07 March 2013

APPA reports pet spending increase in 2012

Americans continue to spend money on their pets year after year. Pet spending surpassed $53 billion in the United States in 2012, according to the American Pet Products Association. 

Total spending increased from $50.96 billion in 2011 to $53.33 billion in 2012 and the APPA projects a steady 4.1% growth rate through 2013. Pet food topped the expenditure chart in 2012 at $20.64 billion (3.9% increase over 2011) though pet services experienced the largest percentage growth last year, rising 9.7% over 2011

As pet owners continue to pamper pets, their spending in services alone was $4.16 billion. This includes grooming, boarding, pet hotels, pet sitting, day care and other services. Of all categories, it is projected that pet services will see the largest solid growth once again in 2013 at 9.1%. 

"We are noticing several trends contributing to the growth of the industry," said Bob Vetere, APPA president and CEO. "These trends include the positive impact of pet ownership on human health, which we expect to continue to fuel the pet industry sales for years to come."




20 February 2013

Companion Animal Industry in Numbers

A recent article published in AM New York stated that "not even the brutal economy... stopped people from spending tons of money on their pets."

Here is a mash up of Industry Numbers: 

$53 Billion
Annual Pet industry expenditures  According to American Pet Products Association (APPA), this number rose every year through the 'Great Recession'. 

$41.2 Billion
How much pet industry expenditures rose in the last five years, almost a 30% increase. 

$4.1 Billion
The amount spent on Natural pet products in 2012

$2.3 Billion
The estimated value of the Chinese Companion Animal industry in 2012. A 20% increase over expenditures in 2010. 

46 Million
How many American households own a dog.

38.5 Million
How many American households own a cat.

$2,500
The amount people spend on their dogs each year, according to the American Kennel Club. 

$655
The average amount dog owners spend each year on health care, according to an APPA survey.

$248
The amount spent on a routine checkups. 

$274
The annual amount spent on kennel boarding.

$254
The annual amount spent on pet food for each pet. 


25 January 2013

Franchising Success

According to a PetBusiness magazine editorial, franchising may just be the way to go when it comes to retail in the companion animal industry.

Commanding 50% of the market, Pet Valu, is one of Canada's leading specialty retailers for pet food and supplies. It's franchise owner/operator model elevated it to success even during the economic downturn when it numbered third on the Top 25 to experience significant growth, adding 59 new stores  including a push to expand its reach into U.S. markets.

InfoStream has reported steady gains in the companion animal markets over the past few years and many articles have suggested the industry might be 'recession proof'. 

The Markham, Ont. based Pet Valu employs more than 800 with system sales of approximately $350 million (CAD) at 365 franchised locations across Canada and 70 corporately-owned stores in the U.S. 

Pet Valu vice president of merchandising and marketing, Julie Johnston, told Pet Business Magazine the chain intends to ramp up the franchising opportunities.  

"When you have an owner in the store, it's their livelihood, their passion," she said. "They put everything they have into it, and that makes a big difference.