The ongoing shift to premium pet food

Sales of dog food, which continues to be the leading sales category in pet food and treats, increased by 2 per cent in 2018 compared with the year before, according to Nielsen. Wet dog food experienced the strongest growth with a 4.7 per cent increase, while dry dog food stag­nated. Demand for natural dog food products continued to rise with a 43 per cent sales increase, while sales of products containing no artificial colourings grew by 27 per cent compared with 2017. 

Americans spent almost 33 bn dollars on pet food and treats last year. Compared with the previous year, this represents an increase of 5 per cent or 1.5 bn dollars in sales. 
Although volume growth has been slow for the pet sector, pet food and treats are still driving growth. Nielsen found a 68 per cent increase in dollar sales of dog food with raw food claims in 2017, and for the year ending March 2018 probiotics experienced a 139 per cent sales increase. Non-GMO pet food grew by 29 per cent. 
Also known as dog food sau­­ces or dog food gravies, dog food toppers have become more and more popular, because they make the dog's kibbles a lot tastier and flavourful while also increasing the nutritional value of the meal. This segment represents a 21 per cent growth to 84 mio dollars in annual sales for speciality pet product retailers from last year. Nielsen stressed that bone broth and stews have also contributed to this growth. 

Mainstream retail remains the largest sales channel for pet food and treats, totalling sales of 16 bn dollars, up by nearly two per cent from a year ago. Pet superstores and neighbourhood stores increased their sales in 2018 by 0.7 per cent to 8 bn dollars. Pet superstores declined slightly, according to Nielsen, whereas neighbourhood pet shops, independent stores and regional chains continued to experience sales and volume growth. Experts point out that these speciality retailers find ways to resonate with pet owners and benefit from their specific features, comprehensive customer advice and unique services. Pet superstores, on the other side, are coming under increasing pressure from online competitors like Amazon, which has already launched private labels in dog food, and Chewy.com. 

In fact, online retail was the winner last…