Pets are increasingly front and center in our lives, and the sheer variety of pet products flooding the market is testament to how much we love to pamper them. Over the past few years, as most other retail categories experienced downturns, pet care witnessed dramatic growth due to a surge in new pet ownership. More than 23 million American households added pets to their homes (nearly 1 in 5) over the course of the pandemic, a number that included the First Family! And with Europeans now raising more pets than children, pet spending has become as much a priority as it would be for any family member. Proud pet parents’ are increasingly splurging on high-grade foods and designer apparel for their domesticated loved ones, inspiring entirely new product categories and prompting retailers to pivot towards these indulgent shoppers. In this rapidly expanding and innovating pet product universe, the task ahead for brands and marketers is knowing where to meet shoppers on their journey, and how to keep them coming back.
More people have been buying pet food and supplies online than ever before, but pet owners choose to employ a combination of in-store and online shopping, as well as curbside pickup options.
In the US, in-store-only purchases of products continue to represent the largest share, but online is a major part of the category’s success.
Increasing Number of Pet Food Niches: PetFoodIndustry.com reports that sales for "non-traditional pet food formats" are growing faster than traditional pet food, as owners look for better, healthier options. Some of the fastest-growing niche pet food categories include raw food, plant-based and freeze-dried dog food, which are more vitamin-dense and nutritional.
Explosive Growth in Pet Supplements: The pet supplements industry is predicted to see significant growth with supplements that are more effective, better tasting, and that cure more health issues. Common supplement categories include dog vitamins, cat fish oil and dog probiotics, but perhaps the fastest-growing pet supplement category is CBD.
Increased Use of Pet Tech: Pet technology, such as electronic tracking devices and pet monitoring systems, is increasing, along with dedicated pet apps that allow pet owners to keep track of their pets' health habits, nutritional intake, and playtime. There has also been a boom in the purchase of products like DNA testing kits and wearable tracking technology that allows pet owners to gain knowledge about their pet’s unique needs and get in front of potential health risks.
Pet Insurance Is Rapidly Growing: Pet health issues, as with the human kind, are not cheap. An unexpected veterinarian visit could cost pet owners between $800 and $1,500 USD. And with pets increasingly treated like family members, people are becoming more open to $2,000 MRI scans or $10,000 cancer treatments. Such pricey interventions can stretch household budgets to the breaking point. US pet spending and ownership statistics show that a mere 2.48% of all pets within the country are covered by insurance, with dogs representing 81.7%. But with pet insurance set to boom, this percentage is on track to exceed its past growth. From 2016 to 2021, the pet insurance market grew by a remarkable 28.3% - with no signs of slowing.
Set Up Enhanced Lead Capture: One of the most fundamental aspects of data collection is lead capture, which can be used to let visitors indicate what kind of pet they have (dog, cat, bird, etc.), and their age, for example, which can improve relevance in subsequent email or SMS campaigns. Capturing zip code data can subsequently be used to send geo-targeted offers to subscribers and drive foot traffic to retail locations or installations.
Use Quizzes and Product Finder Tools: Sometimes the sheer number of choices can be overwhelming to a customer if they’re unsure of what is the best solution for their pets’ needs - A great tool here for product education (and a chance to collect zero-party data) – is to use a product finder quiz or an exit offer. Using a quiz as an exit offer can provide more value than a discount code since these shoppers are looking for education and information.
Mine Omnichannel Customer Data to measure performance and compare sales and demographics across channels and shopper types. The insights can help a brand grow alongside pet owners. This includes staying in-step with what they are searching for online, in person, and even on the phone. Pet parents have questions and many of these customers will want to speak with a human being to assure them of product information. Telephone calls are a vital part of the sales process, regardless of whether the person on the line is inquiring or complaining. If you aren't tracking phone calls, you're missing an entire leg of your customer's journey.
Tap Influencers To Expand Reach: From Grumpy Cat to Tucker the golden retriever, there’s a booming industry of Insta-famous pets whose owners have built significant followings and that brands can tap for their audiences. Not to mention their human counterparts as well!
Reshare User Generated Content: According to a 2022 survey by pet insurer ManyPets, one-third of pet owners have made a social media page just for their pets. Also, a majority of these pet owners admitted to spending more time on their pets' profile pages than on their own, with One-in-four respondents saying that they hoped to turn their pets into social media stars (ala Grumpy Cat). Pet brands can make these pet-parents’ nascent dreams come true by sharing their posts, and with it, broadening their own organic reach. By adding branded hashtags, and platform-specific promotions, brands can work to convert visitors into users.
Offer Discounts and Promotions for Socially Shared Reviews: People are drawn to products that other people like and endorse, making reviews one of the most powerful assets a brand can deploy. Encourage social sharing of product reviews via special offers, sweepstakes entries, reward points or discounts. Read this to see other sales promotion examples.
Create Special Content and Fun Activations for Pet-themed Occasions: Pets bring us joy, and the kind of content that becomes socially viral is often the kind that surprises and delights (and amuses) us - and makes our pets the star!
Utilize Livestreams and Social Commerce: By 2025, Accenture estimates social commerce to more than double to a $1.2 trillion market worldwide. Now, brands are embracing these tools to deliver a personalized customer experience on whatever platform customers prefer. Live shopping, for example, is a powerful way for brands to educate, engage with, and sell to customers in an interactive livestream event featuring brand representatives or influencers. The audience can comment live, ask questions, and even make purchases from links in the livestream.
Spending on pets has not only increased by 11% over the course of the pandemic, it's also considered to be “increasingly inelastic.” For pet owners, as with all consumers, inflation shock has been a very real concern over the past year. However, pet shoppers seem to be sticking to how they shop and care for their pets. Research has shown that even when animal owners cut other parts of their budgets, their pet care routine often remains. A Samsung survey of 6,500 pet parents reveals that owners in Europe would rather sacrifice socializing (40%) and economize on necessities such as utilities (27%) than cut on spending for their pets . 6 out of 10 US pet parents do not plan to trade down to lower their costs in 2023, and while that’s good news for the industry, it’s also clear that brands can step up and help pet owners find more ways to save money - while still feeling as though they’re caring for their pets the way they always have . By investing in data-driven, customer centric initiatives that demonstrate an allyship and understanding of where pet-parents are in their care journeys and what they need, brands can differentiate themselves to their customer bases. In an increasingly competitive pet care universe, the brands that create emotional ties with pet-parents and keep them coming back, will be able to weather economic storms. And since average pet lifespans cycle between 12-15 years, keeping pet-parents loyal is the ultimate holy grail (or the high-end kibble!) for brands and marketers.