Whether you’re a cat person or a dog lover (or maybe even a hamster friend), one thing is certain:
America loves its pets.
According to the American Pet Products Association, in 2024, more than 94 million American households reported having at least one pet, up from 82 million in 2023. Pet ownership, in turn, contributes to pet food and product sales—sales that are projected to hit $157 billion this year, according to APPA. Nearly $90 billion of those sales ($88 billion) are for pet food, 37% of which is for dry dog food, specifically, according to NielsenIQ.
All of that adds up to a tremendous amount of potential for retailers, particularly grocers, to groom their pet aisles for success, according to FMI – The Food Industry Association. Here, Tom Duffy, senior advisor for industry relations for FMI, talks about the growing pet category at retail, dives into findings from FMI’s Nonfoods Category Insights: Pet Category report and shares insights and tips for how grocery retailers can support consumer demand and grow pet category sales.
If dry pet food is the No. 1 sales driver in the overall pet category, how can retailers differentiate themselves and their offerings in that category?
For food retailers, shoppers in the nonfoods category tell us they are seeking value, which these days has an expanded definition beyond just price and quality to include experience, relevance and convenience. For example, nearly half (47%) of nonfoods shoppers say sustainability is extremely or very important in their pet product purchases. Shoppers are also often seeking a specific pet food brand, and a limited assortment in your pet food department could send shoppers looking elsewhere.
How can they boost sales in other categories, such as wet food, treats and frozen offerings?
When it comes to other categories like wet pet food, treats and frozen offerings, retailers should play into the 79% of shoppers who plan their pet purchases ahead by showcasing their offerings in mailers, apps, websites, social media and in-store signage. To capitalize on shoppers making a special trip for pet food purchases, create destination zones in-store that offer convenience and entertainment. Retailers should also use cross-merchandising with complementary items, such as positioning treats near grooming supplies.
How can a strong omnichannel experience boost pet sales?
A strong omnichannel strategy is essential because 20% of shoppers are buying more pet products online, and 31% shop both online and in store equally. Shoppers’ top reasons for buying online include ease of access, providing the best value and high quality, affordability and a variety of choices. Retailers that offer seamless transitions between digital and physical channels, such as online ordering with in-store pickup or subscription services, can capture more share.
How can grocery retailers catch up with mass retailers in terms of pet category market share?
It’s true that mass food retailers currently dominate pet product purchases, but traditional grocery stores have an opportunity to shift that trend by expanding brand assortment, improving merchandising with signage, building a pet destination center, leveraging loyalty programs for personalized promotions and highlighting offerings through multiple digital and traditional communication channels.
With more pet owners saying they view their pet as a true “furbaby,” how is that trend impacting pet category sales?
It’s true that many consumers view their pets as part of the family, and that mindset is driving increased demand for premium, high-quality and sustainable products in the pet food category. In fact, 21% of those surveyed for FMI’s National Family Meals Movement barometer report indicated that in the context of family meals, their definition of family included their pets. Pet product shoppers have become increasingly selective, with 33% citing brand preference and 34% citing high quality as the most important. Because of this increase in attention to quality and specific brands, there has been growth in planned and special-trip purchases, indicating that pet products are not just add-ons but core shopping missions.
What other innovations and trends are you noting within the category that are impacting sales?
We’re seeing shoppers seeking more sustainable pet food products, and demand for online pet food purchases is growing, with 20% of shoppers buying more pet products online. In addition, pet care is increasingly seen as part of a holistic lifestyle, opening opportunities for bundling with health, wellness and home care items.
What are three simple tips for retailers when it comes to thoughtful merchandising and cross-category shopping?
First, I think these pet destination zones are a key merchandising strategy to help put your pet care offerings on shoppers’ radars. They also play with shoppers’ notion of value with experience, relevance and convenience. Another opportunity is to utilize end caps and signage throughout the store to highlight to shoppers your offerings and encourage basket building. Lastly, cross-merchandising with food and wellness is a great way to drive impulse purchases. My local ice cream shop offers a cooler filled with puppy pops, and I rarely leave the shop without one. If I can have a treat, my dog can too.
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