Tapping into new trends

We have to wonder whether anything can be too good for pets in the US. GfK POS data representing over 11 000 US pet retail outlets, from superstores to neighbourhood shops, shows a remarkable rise in dog and cat food sales over just the past few years. Even though poundage volume dropped slightly, down by about 1 per cent since 2011, dollar sales jumped 16 per cent in the same time frame - largely driven by premium offerings. It is also clear who is pampered most in this premium pet world; dogs are the paws-down winners.Year-by-year figures for food sales (wet, dry, and treats) show dog products jumping 7.2 per cent in sales - exactly double the increase for cats (3.6 per cent). The disparity in dry food growth was especially dramatic; dogs rang up a 6.7 per cent sales increase, compared to just 2 per cent for cats.Embracing the natural optionIf we had to sum up the US market's steady growth in one word, it would be natural. Natural brands generate the majority of sales within the dog dry (69 per cent) and dog wet (71 per cent) segments by a factor of roughly two to one, compared to "non-natural" SKUs. And natural dog treats account for 56 per cent of the dollars in that category.As pet owners have embraced these natural options, we have also seen a host of relatively new brands become forces to reckon with: Blue Buffalo, Nature's Variety, and Nulo, to name a few. More than half of the top five dry and wet dog food brands, in terms of sales, focus on natural offerings.Somehow, US cat owners have not got the natural message to nearly the same degree. Natural cat food SKUs represented less than half (47 per cent) of dry sales in 2013, and about one-third (38 per cent) of wet sales. The situation in treats is even more extreme - just 16 per cent of 2013 dollars were generated by natural products. While natural cat food items may never equal those for dogs in sales, we still see them as an untapped opportunity for manufacturers with the right marketing approach.Premium, natural products have driven up the average price per pound for pet food by 24 per cent since 2011 (7.5 per cent since Q4 2013). Even non-natural products have become more premium, with a 17 per cent price increase. Though not technically "natural," some of these items are grain-free or treat specific pet conditions - so they are still riding the same "pampered pet" trend.