ROCKVILLE, MD — Providing value to pet parents has come to the fore as a competitive strategy, a new report suggests.
Packaged Facts puts forth the argument in its recently releases US Pet Market Outlook, 2024-2025, stating that the pet industry is at an inflection point due to macroeconomic and industry-specific factors.
“The promise of money savings and added value is possibly the oldest promotional maneuver,” report analyst David Lummis said, “but with the economic trauma of the pandemic and its aftermaths still rippling through, there may be no better time to focus on value to attract shoppers and engender customer loyalty.”
More from the press release:
The National Retail Federation predicts slower consumer spending growth in 2024 due to tighter credit conditions, higher borrowing costs, a cooling labor market, and political uncertainty. While gas prices are down and inflation has been moderating, it now seems likely that inflation won’t further normalize until the calendar reads 2025. Last but certainly not least, in an industry for which dog spending accounts for two-thirds of sales, dog population growth is flat at best.
Packaged Facts January 2024 Survey of Pet Owners data show that nearly one-third of pet owners have had their ability to buy non-essentials negatively impacted by the economic environment, and three-fourths are on the lookout for lower prices, special offers, and sales.
At the same time, the health of their pets is too high a priority for pet parents to carelessly lower standards. Packaged Facts data cited in the report show that product quality (71%) tops the list of what’s “especially important” to shoppers in pet care spending choices, and that “good value for prices” (60%) edges out both convenience in shopping/buying (51%) and low-priced products (43%).
In the short term, the foremost opportunity for pet industry marketers, manufacturers, retailers, and service providers will be to help pet owners navigate challenging economic times by offering lower-priced products (including store brands), products and services designed to facilitate do-it-yourself pet care, pet insurance and other wellness plans designed to make vet and pet care more affordable, and flexible payment options that are easy on pet parents’ monthly budgets and consumer credit scores.
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