Pet Markets Trending Up
With pet ownership hitting a record high in the US, Target has launched a new private label pet food range, Kindfull. Private label development is a recognised strength for the retailer. The new brand complements Target’s Boots & Barkley private label range of clothing and accessories for pets. Over the last three years, it has launched over 30 new private label brands, mainly in clothing, home furnishing and consumables. Target has identified private label development as a significant opportunity to drive differentiation, deliver unique experiences and build shopper loyalty. In addition to supporting the ‘Expect More’ element of its brand promise, they also help it to deliver on the ‘Pay Less’ value element. This launch comes as pet ownership hits a record high in the US.
Pets were viewed as a key source of comfort during the pandemic, especially as more people spent more time at home. The American Pet Products Association (APPA) estimates that the pet products industry grew by 5.8% to $103.6bn last year, significantly above the historical run rate of 3-4% growth. Spending on pet food and treats increased 9.7% to $42bn. This reflects a higher level of pet ownership in the US, rising from 67% to 70% of households last year. This should help to sustain category growth over the next few years. Reflecting the launch of Kindfull, the APPA’s National Pet Owners Survey revealed that 50% of respondents prefer pet food and other pet products that consider humanisation, premiumisation and sustainability. These trends have been driving category growth and product development over the last few years. (Retail Analysis 11/8)