The pet food industry as described by IBIS World is an industry in which "Major players compete on price, quality, ingredients and nutrients" (Pet Food Production in the US: Market Research Report, 2015). In this pure competition industry, there are dominant companies such as Mars, Inc. and Nestlé Purina sharing a 24 billion dollar market (Pet Food Production in the US: Market Research Report, 2015).
Research indicates that “pet food is now one of the fastest growing products in world trade” with “import/export global flow of pet food increased dramatically reaching 2.5, 3.7 and over 5 million tonnes in 1995, 2000, and 2005, respectively” (De Silva & Turchini, 2008). “U.S. sales of pet food in 2013 totaled an estimated $21 billion, up 24% since 2008” (Byron, 2014). Recent
The target market will be consumers between the ages of 35 and 64 in the United States. According to the Bureau of Labor Statistics, income after taxes for the target market is an average of $70,181 with an increase in overall “average expenditures per consumer unit in 2014 [at] $53,495, a 4.7-percent increase from 2013 levels” (Consumer Expenditure Survey - Annual Calendar Year Tables - Age of reference person, 2014). These economic trends lead to the possibility of higher rates in pet ownership and a greater ability for consumer households to purchase quality pet food.
Socio-cultural Trends Impact Consumer Preferences and Sales Trends in the Pet Food Industry
With approximately “83% of consumers [households] consider their pets a part of their family” (Byron, 2014). This growing sentiment of “humanization” is creating opportunities for the industry to sell pet food differently. With a “majority of pe...
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...ini, 2008). One of the sectors facing the largest impact is the seafood industry. Fish products are prevalent in pet food products as well as human diets. Given such a high demand on the seafood industry,
researchers are suggesting a more “judicious” approach in utilizing “limited biological raw materials” such as fish products (De Silva & Turchini, 2008). The challenges unique to the pet food industry is that, “pet food professionals need not only consider the total amount of protein to target, but also the quality, bioavailability, and ingredient source as well” when designing their formulas (Swanson, Carter, Yount, Aretz, & Buff, 2013). Research also indicates a need to further study the impact of the pet food industry on the fish market so that any prevalent issues are brought to the light, discussed and resolved instead of ignored (De Silva & Turchini, 2008).
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