Natural and organic pet products are a top growth segment in the U.S. pet market and continue to edge into the mainstream channels, according to a report released today by Packaged Facts.

“Natural, Organic and Eco-Friendly Pet Products in the U.S., 3rd Edition,” focuses on natural and organic pet food and nonfood sales, consumer trends and market competitors.

The report revealed that natural pet product sales grew by double-digits from 2006 through 2008 while expanding from a pet food base into nonfood pet supplies. Although growth slowed in 2009, Packaged Facts expects the slowdown to be temporary, with sales regaining steam in 2010 and edging back into the double digits in 2011 to reach nearly $2.3 billion.

Pet owners surveyed by Packaged Facts indicated that affordability is a bigger issue than availability when it comes to purchasing natural and organic pet products. About half of pet owners said they would buy more natural and organic pet products if such products were more affordable. Thirty-nine percent said they would do so if the products were more widely available, according to the report.

Although pet specialty remains the stronghold for natural pet products, the inroads made by mass marketers in recent years are reflected in shifting channel shares. During 2005, the mass market accounted for 7 percent of natural pet product sales, but by the end of 2009, that figure had more than tripled to 25 percent, according to the report.

“In the vast U.S. pet market, formulating and positioning products along natural, organic and holistic lines is a way for traditional marketers to pique pet owners’ interest and convert them to more expensive fare,” said Don Montuori, publisher of Packaged Facts. “The top five U.S. marketers of pet food (i.e., Del Monte, Hill’s Science Diet, Nestlé Purina, Mars and Iams) are now heavily invested in the natural segment via new product introductions, evidence of the major market shift that has occurred since 2005.”

By embracing the natural and organic trend, mainstream marketers can carve out a niche or strengthen their foothold in pet specialty stores, natural supermarkets and online, Packaged Facts reported. This especially holds true in mature categories, such as food and litter, where many traditional formats and brands have slipped into commodity status, Montuori said.

For more information on “Natural, Organic and Eco-Friendly Pet Products in the U.S., 3rd Edition,” or to purchase the report, click here. <HOME>