![]() The best way to make more money in pet food is by making it expensive, rather than growing volumes Per Packaged Facts, pet ownership increased in six-figure households with no children from 2019 to 2021. Data from Euromonitor suggests that pet ownership grew in households with incomes of $101,000 or more and fell in households with incomes below that. It’s not just that more Americans have a pet. The pet population is expected to grow at a 2.4% compound annual growth rate from 2022 to 2025, per Euromonitor. (Meanwhile, cats have only seen a 6% bump over the same time period.) That’s a 27% uptick for dogs from the 2015-2016 survey. Around 69 million households own a dog, according to the American Pet Products Association’s 2021-2022 national survey. pet population has soared in recent years. There are more pets than ever - and their ‘parents’ are increasingly rich However, there are additional costs and complexities associated with running a reefer truck. Reefer truck rates (in blue) tend to be higher than van truck rate (in green). That’s still a lot of lost cash - especially if it’s fancy dog food. The vast majority of temperature-controlled trucking carriers, though, say they lose 5% or fewer of their shipments per year as a result of “temperature excursions,” according to a 2022 FreightWaves survey. Minor deviations in temperature can put shipments at risk. That can be a win for trucking companies as temperature-controlled loads tend to be higher margin for carriers. Premium pet food is more likely to be refrigerated or frozen. ![]() “They want to be able to feed their pets something knowing that it’s not chicken-flavored mystery meat.” “Consumers really want to see clean ingredients,” Euromonitor research associate Melanie Torres Cabrera told FreightWaves. Ketonatural’s first three ingredients are chicken, pea protein and ground green peas. Gravy Train’s first three ingredients are corn, soybean meal and a scrumptious concoction called meat and bone meal. The latter costs 10 times more per pound than the former. Compare the nutrition labels of two very different types of dry dog food: Gravy Train Beefy Classic and Ketonatural Chicken. But, generally it means higher content of protein and fiber. Here’s why premium pet food has become a rainmaker for CPG giants. General Mills reported that pet food reached $593 million in sales last year. 2 category, with $19.2 billion in sales in 2022. And even Silgan Holdings, the largest manufacturer of metal food cans in the U.S., counts pet food customers as half of its volume. And for all three companies, their pet food businesses typically earn profit margins above the company average. Nestlé, the world’s largest consumer packaged goods company, is experiencing its most rapid growth in its pet food (Purina PetCare) business, as are Colgate-Palmolive and General Mills. pet industry expenditure reached $123.6 billion, around 40% of which was food and treats. It’s indeed superb for the packaged-food giants that sell top-notch pet food, which has become a cash cow following the pandemic’s spree of pet adoptions. In 2021, the American Pet Products Association estimated that the U.S. ![]() “Part of the recession resilience of is that people don’t like to sacrifice the quality that they’re providing to their children - furry or not.” “People are more willing to down trade for themselves than they are to down trade for their children,” Hunter Williams, partner at consulting firm Oliver Wyman, told FreightWaves. But retailers have noted one shockingly recession-proof category: pricey pet food. As historic inflation slams the U.S., consumers are flocking to bad beer and Walmart-brand cream cheese.
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