The U.S. pet market is cooling down, but this category is growing against the trend!

It is learned that according to foreign media reports, although the demand for pet products in the United States was affected by inflation in the first half of 2022, sales of pet food and health products remained strong.

U.S. sales of dog food and treats grew 12.2% in the 52 weeks ending July 23, according to NielsenIQ, while cat food and treat sales grew 14.6% during the same period.

Inflation has led to unprecedented increases in pet food prices. Compared to last year, dog food and treat prices have increased 14% this year, while cat food and treat prices have increased 15.5%.

Several pet retailers reported revenue growth in the second quarter as pet food sales continued to be strong:

• Chewy's net sales increased 12.8% year over year to $2.43 billion.
• Petco's net revenue increased 3.2% year over year to $1.48 billion, and the company posted its 15th consecutive quarter of comparable sales growth.
• In the new quarter ending July 31, 2022, Smucker's pet food sales increased 13% year-on-year.
• Purina PetCare's two brands, Fancy Feast and Purina ONE, both achieved double-digit growth.

Consumer spending priorities are uncertain due to inflation. Petco CEO Ron Coughlin noted that despite inflation, pet owners tend to buy higher-end products. But this is not true for all categories. According to data from research firm 84.51°, consumers are particularly interested in low-priced dog food and treats, which has led to a higher share of sales for private brands.

It’s worth noting that repeat customers are key to pet food retailers’ success amid economic uncertainty. In the second quarter, Chewy’s sales from membership subscriptions accounted for 73.1% of total net sales. Meanwhile, Petco’s sales from repeat customers grew 54%.

According to eMarket's forecast, U.S. pet product retail sales will reach nearly $70 billion in 2022, up 3.6% from last year. Although pet retailers' earnings may decrease, they will still maintain steady growth.

Editor ✎ Nicole/

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