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Canadian Pet Market Outlook, 2014
January 2014
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Shannon Brown
Shannon Brown is a veteran market analyst for Packaged Facts with expertise in myriad
consumer packaged goods markets and a regular contributor of market insight to major
business media. Ms. Brown has written dozens of published reports on CPG markets,
including the U.S. pet market. Her recent titles include Pet Food in the U.S., 10th Edition
(July 2013), How Cause Marketing Helps Pet Retailers Connect (March 2013), Oral Care
Products in the U.S., 8th
Edition (February 2013), Ethnic Hair, Skin and Cosmetics Products
in the U.S., 8th
Edition (June 2012), Cosmeceuticals in the U.S., 6th Edition (April 2012), Fats
and Salad/Cooking Oils in the U.S. Market (October 2011), and Snack Foods in the U.S., 4th
Edition (June 2011).
David Lummis
David Lummis is the senior pet market analyst for Packaged Facts and a regular contributor
of articles and market insight to major business media. He is the author of Pet Product News
International’s monthly “Market Outlook” column and Petfood Industry’s quarterly “Market
Report” column. Mr. Lummis has written dozens of published reports on pet-related markets
including Pet Supplements and Nutraceutical Treats in the U.S., 4th Edition (February 2013),
Natural, Organic and Eco-Friendly Pet Products in the U.S., 4th Edition (November 2012),
Pet Supplies and Pet Care Products in the U.S., 8th Edition (August 2012), Pet Market
Outlook 2012-2013 (April 2012), Pet Product Retail Channel and Consumer Shopping
Trends in the U.S. (February 2012), Pet Medications in the U.S., 2nd Edition (October 2011),
and Pet Market Outlook 2011-2012 (April 2011).
About the Author
About the Editor
CANADIAN PET MARKET OUTLOOK, 2014
January 2014
Canadian Pet Market Outlook, 2014 has been prepared by Packaged Facts. We serve consumer product and service companies and allied businesses in the United States and internationally with a complete line of research publications. Packaged Facts market intelligence reports are designed to aid the executive decision-maker by providing essential data and concise analysis with a focus on marketplace trends, consumer insights, and emerging opportunities.
Vice President of Publishing Don Montuori Research Director and Publisher David Sprinkle Author Shannon Brown Editor David Lummis Marigny Research Group, Inc. Publication Date January 2014
LA5083184
All rights reserved. No part of this report may be reproduced without permission of the publisher.
Copyright © 2014 Packaged Facts
Canadian Pet Market Outlook, 2014 Table of Contents
January 2014 © Packaged Facts i
Table of Contents
Canadian Pet Market Outlook, 2014
Chapter 1: Executive Summary .................................................. 1
Introduction ............................................................................................... 1
Scope and Methodology.................................................................................. 1
Report Methodology ........................................................................................ 1
Market Trends ............................................................................................ 3
Pet Industry Advances .................................................................................... 3
Table 1-1: Total Canadian Retail Sales of Pet Products and Services, 2008-2013 (in millions of dollars) ............................................................... 4
Market Share by Category and Animal Type .................................................. 4
Pet Owners Still Spending Despite Slow Economy ....................................... 4
Table 1-2: Level of Agreement with Statements Regarding Attitudes Toward Spending on Pet Products, 2013 (percent of Canadian pet owners) ..................................................................................................... 5
Trends in Pet Acquisitions: Shelters in Favor ............................................... 5
The Aging Pet Population ............................................................................... 6
Overweight and Obese Pets Keep Costs Up .................................................. 6
Veterinary Costs Drive Canadians South ....................................................... 6
Industry Trends ......................................................................................... 8
Market Structure .............................................................................................. 8
M&A and Investment Activity: Pet Health and Natural Products Star .......... 9
Premiumization ................................................................................................ 9
Humanization ................................................................................................. 10
Globalization .................................................................................................. 10
Retail Trends ........................................................................................... 11
Pet Shoppers Say Let’s Make a Deal ............................................................ 11
Figure 1-1: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,” 2013 (percent of Canadian pet product shoppers) ......................................................... 12
Industry Mainstay: The Premium Shopper .................................................. 12
Pet Owners Shop at Supermarkets, Supercenters for Pet Supplies .......... 12
Pet Ownership Trends ............................................................................ 14
57% of Canadian Households Own Pets ...................................................... 14
Figure 1-2: Canadian Ownership Levels for Selected Dog- or Cat-Owning Classifications, 2013 (percent) ............................................. 14
Single Pet Ownership Higher Than Multiple ................................................ 15
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ii © Packaged Facts January 2014
More $100K+ Pet Households ....................................................................... 15
Dog and Cat Ownership Rates by Age ......................................................... 15
Impact of Boomers and Graying Population ............................................... 16
Role of Gen Xers and Gen Ys ....................................................................... 16
Chapter 2: Highlights .................................................................. 17
Chapter 2: Market Trends ........................................................... 18
Market Performance ............................................................................... 18
Pet Industry Advances .................................................................................. 18
Table 2-1: Total Canadian Retail Sales of Pet Products and Services, 2008-2013 (in millions of dollars) ............................................................. 19
Table 2-2: Canadian Pet Market Retail Sales by Category: 2012 vs. 2013 (in millions of dollars and percent) .................................... 19
Table 2-3: Total Canadian Retail Sales of Pet Products and Services, 2013-2018 (in millions of dollars) ............................................................. 19
Market Share by Category and Animal Type ............................................... 20
Figure 2-1: Percentage Share of Canadian Pet Market Retail Sales by Category: 2013 ................................................................................... 20
Table 2-4: Share of Canadian Pet Market Sales by Category and Animal Type: Dog, Cat, Other, 2013 (percent) ....................................... 20
Market Drivers ......................................................................................... 21
Consumers Cautiously Optimistic about Economic Future ....................... 21
Pet Owners Still Spending Despite Slow Economy .................................... 22
Table 2-5: Canadian Household Final Consumption Expenditure, by Commodity Type: 2008-2012 (dollars in billions) ................................ 22
Table 2-6: Canadian Household Final Consumption Expenditure Percent Change, by Commodity Type: 2008-2012 (percent) ................... 23
Table 2-7: Level of Agreement with Statements Regarding Attitudes Toward Spending on Pet Products, 2013 (percent of Canadian pet owners) ............................................................................................. 24
Price Sensitivity May Affect Premium Purchases ......................................... 24 Table 2-8: Level of Agreement with Statement: “If natural/organic
products were more affordable where I shop, I would buy them more often,” 2013 (percent of Canadian pet owners) .............................. 25
Most Pet Owners Are Not Big Spenders ...................................................... 25 Table 2-9: Amount Spent on Pet Products in Last 30 Days,
March 2013 (percent of Canadian pet owners) ........................................ 25 Table 2-10: Pet Product Purchasing by Price Level: Food vs.
Nonfood, 2013 (percent of pet owners) ................................................... 26
Trends in Pet Acquisitions: Shelters in Favor ............................................. 26
Table 2-11: Level of Agreement with Statement: “People should adopt pets from shelters and not purchase them from shops/breeders,” 2013 (percent of Canadian pet owners) ....................... 27
PetSmart Charities Spurs Pet Adoption ....................................................... 27 Pethealth Inc. (TSX:PTZ) Releases Second Annual PetPoint Report .......... 28
Canadian Pet Market Outlook, 2014 Table of Contents
January 2014 © Packaged Facts iii
The Shift to Smaller Dogs ............................................................................. 28
Table 2-12: Size of Dogs, 2013 (percent of Canadian dog owners) ............. 29
The Aging Pet Population ............................................................................. 29
Table 2-13: Age of Dogs and Cats, 2013 (percent of Canadian pet owners) ................................................................................................... 29
Overweight and Obese Pets Keep Costs Up ................................................ 30
Table 2-14: Level of Agreement with Statement: “I have an overweight pet,” 2013 (percent of Canadian pet owners)......................... 31
Figure 2-2: Share Of Dog Owners Who Walk Their Pets, 2013 (percent of Canadian dog owners) .......................................................... 31
Pets Are Family—The Kind You Pamper ...................................................... 33
Table 2-15: Level of Agreement with Statement: “I enjoy purchasing pet products that pamper my pet,” 2013 (percent of Canadian pet owners) ................................................................................................... 33
Pets as Family Trend Bolsters Pet Health/Wellness Spending ..................... 33 Figure 2-3: Share Of Pet Owners Purchasing Health/Wellness-Related
Foods And Treats, 2013 (percent of Canadian pet owners) ..................... 34
Veterinary Costs Drive Canadians South ..................................................... 34
Figure 2-4: Growth in Canadian Veterinary Expenditures vs. Growth in Canadian Pet Expenditures Overall, 1997 vs. 2009 (dollars per household) .............................................................................................. 35
Figure 2-5: Share of Canadian Dog and Cat Owners Using Veterinary Services in Past 12 Months, 2013 (percent) ............................................ 36
Figure 2-6: Share of Canadian Pet Owners Who Carry Pet Health Insurance (percent) ................................................................................. 36
Pet-Positive Media Exposure ........................................................................ 37
Illustration 2-1: NatGeo Leader of the Pack Web Page ................................ 38
Industry Emphasizes Pets’ Human Health Enhancement ........................... 38
Illustration 2-2: HABRI Central Home Page.................................................. 40 Figure 2-7: Level of Agreement with Statement: “My pet has
a positive impact on my health”, Physical vs. Mental, 2013 (percent of Canadian pet owners) ........................................................... 41
Cause Marketing ............................................................................................ 42
Pet Food Regulation and Oversight ............................................................. 42
Chapter 3: Highlights.................................................................. 45
Chapter 3: Industry Trends ........................................................ 46
Introduction ............................................................................................. 46
M&A and Investment Activity ........................................................................ 47
Merrick Acquires Castor & Pollux ................................................................. 47 VCA Antech Acquires Associate Veterinary Clinics ...................................... 48 CanAm Pet Treats Acquires Darford Pet Treats ........................................... 48 Perrigo Acquires Sergeant’s ........................................................................ 49 Radio Systems Corporation Gets Into Pet Waste Management ................... 49
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iv © Packaged Facts January 2014
Del Monte Foods and Natural Balance Pet Foods Merge ............................ 50 Nestlé Purina Acquires Petfinder ................................................................. 50 Pethealth Acquires PurinaCare Pet Insurance ............................................. 51 Pfizer Spins Off Animal Health Division ....................................................... 51
Cross-Market Trends .............................................................................. 52
Consolidation ............................................................................................... 52 Premiumization ............................................................................................ 52 Humanization ............................................................................................... 53 Illustration 3-1: Burt’s Bees New Line of Pet Care Products ......................... 53 Globalization ................................................................................................ 54
The Veterinary Channel ................................................................................. 55
Sales Opportunity: Therapeutic Foods ........................................................ 55 Pet Insurance Expansion Benefits Veterinary Services ................................ 56
Non-Medical Pet Services ............................................................................. 57
Pet Superstores Advance ............................................................................ 57 Figure 3-1: PetSmart Services Sales by Type and Cumulative
Rate of Growth, 2006-2012 (percent and dollars) .................................... 58 Other Stores Beef Up Services Offerings ..................................................... 58 Table 3-1: PetSmart Global Sales of Pet Services, 2001-2012
(in millions of dollars) .............................................................................. 59 Illustration 3-2: Petland’s Pet Spa Website Banner Ad ................................. 59
Franchises Help Grow the Industry .............................................................. 60
Pet Products ........................................................................................... 61
Continued Interest in Premium, Natural Products ...................................... 61
Table 3-2: Select New Pet Product Releases in Canada, 2012-2013 (by marketer and brand) ........................................................ 62
Figure 3-2: Level of Agreement with Statement: “Natural/organic brand pet products are often better than standard national brand products,” 2013 (percent of pet owners) ........................................ 66
Hill’s Science Diet Goes Natural .................................................................. 67 Illustration 3-3: Hill’s Science Diet Ideal Balance (early name
and packaging) ..................................................................................... 68 Illustration 3-4: Hill’s Science Diet Ideal Balance (revamped
name and packaging) .............................................................................. 69 Illustration 3-5: Science Diet’s Better Life Comparison ................................. 71
Pet Health on Everybody’s Agenda .............................................................. 71
Cross-Channel Migration Puts Squeeze on Pet Specialty .......................... 71
Human-Style and Human-Grade Pet Food ................................................... 73
Illustration 3-6: Brew Buddies Malted Barley Dog Treats ............................. 74 Illustration 3-7: Weruva Website Banner Ad................................................. 75
Grain-Free Gains Ground .............................................................................. 75
Illustration 3-8: Loblaws’ President’s Choice Nutrition First-Premiere........... 76 Illustration 3-9: Horizon Pulsar Grain-Free Food .......................................... 77
Canadian Pet Market Outlook, 2014 Table of Contents
January 2014 © Packaged Facts v
Raw Pet Food Hits the Mainstream............................................................... 77
Illustration 3-10: Brad’s Raw for Paws Dog Treats ....................................... 78 Freeze-Dried and Dehydrated ...................................................................... 79 Illustration 3-11: Nutrisca Freeze Dried Dinner Bites .................................... 81 Refrigerated Pet Food Propels Forward ....................................................... 81 Illustration 3-12: Freshpet Pet Food and Treats Brand Lines
(Website Screenshot) .............................................................................. 82
Specialized Diets Continue to Proliferate..................................................... 83
Illustration 3-13: Hill’s Prescription Diet Metabolic Pet Food Line ................. 84 Illustration 3-14: Wellness Small Breed Senior Recipe and Petite Treats ..... 85
Nonfood Pet Supplies .................................................................................... 85
Nonfood/Food Cross-Over ........................................................................... 85 Illustration 3-15: Better Than! Gnawin’ Forever Treat/Toy ............................ 86
That Pet Has Style.......................................................................................... 86
Illustration 3-16: Fou Fou Dog “Poochy Pouch” ............................................ 87 Illustration 3-17: Catswall’s Multi-Cat Raised Feeder ................................... 88 Illustration 3-18: Bow Wow Couture’s Mod Dog in Navy Collar/Bow Tie ....... 88
Travel Products .............................................................................................. 89
Illustration 3-19: Kurgo’s Auto Grass Keeps Fido Off Center Console ......... 89 Illustration 3-20: H2Fido’s Portable Pooch Hydrator—Super Weiner Style ... 90
Chapter 4: Highlights.................................................................. 91
Chapter 4: Retail Trends ............................................................ 92
Pet Shoppers Say Let’s Make a Deal ............................................................ 92
Figure 4-1: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,” 2013 (percent of Canadian pet product shoppers)............................................ 93
Figure 4-2: Level of Agreement with Statement: “I shop for pet products at a variety of stores,” 2013 (percent of Canadian pet product shoppers) ............................................................................. 93
Industry Mainstay: The Premium Shopper .................................................. 94
Figure 4-3: Level of Agreement with Statement: “I am willing to spend extra to ensure the wellness of my pet,” 2013 (percent of Canadian pet product shoppers) ......................................................... 94
Pet Owners Shop at Supermarkets, Supercenters for Pet Supplies .......... 95
Table 4-1: Canadian Channel Choices for Pet Product Shopping in Last Three Months: Pet Food, Other Pet Supplies and Pet Medications, 2013 (percent of Canadian pet product buyers) .................. 96
Private Label Shows Strength and Weakness ............................................. 96
Figure 4-4: Usage Frequency vs. Opinion of Store Brand Products, 2013 (percent of Canadian pet product shoppers) ................................... 97
Table of Contents Canadian Pet Market Outlook, 2014
vi © Packaged Facts January 2014
Mass-Market Trends ...................................................................................... 98
Supermarkets Draw Largest Portion of Pet Product Shoppers ..................... 98 Walmart Claims Lion’s Share of Pet Supplies Sales… ................................. 98 …And Launches Pet Insurance in Canada .................................................. 99 Target Takes on Walmart ............................................................................ 99 Costco Expands its Reach ......................................................................... 100 Illustration 4-1: Costco Website Pet Supplies Ad ....................................... 101 Pet Supercenters Make Strides ................................................................. 101 Table 4-2: Top Canadian Pet Superstore Chains, 2013 ............................. 102 Global Pet Foods ....................................................................................... 102 Illustration 4-2: Global Pet Foods’ Brand Selection .................................... 103 Canadian Pet Retailer Global Pet Foods Crosses U.S. Border .................. 104 Pet Valu ..................................................................................................... 104 Illustration 4-3: The New Look of Pet Valu ................................................. 105 PetSmart ................................................................................................... 105 Illustration 4-4: PetSmart-Exclusive Top Paw Muppet Bandana................. 106 Mondou ..................................................................................................... 106
Online Shopping .......................................................................................... 107
Pet Shoppers Not Fully Embracing Online Shopping ................................. 107 Figure 4-5: Level of Agreement with Statement: “I am buying
pet products online more than I used to,” 2013 (percent of Canadian pet product shoppers) ........................................................... 107
Figure 4-6: Time Frame for Most Recent Online Purchase of Pet Products, March 2013 (percent of Canadian online pet product shoppers) ................................................................................. 108
Up and Comers ............................................................................................ 109
Veterinarians ............................................................................................. 109 Natural Supermarkets ................................................................................ 110 Dollar Stores .............................................................................................. 110 Drugstores/Convenience Stores ................................................................ 111 Illustration 4-5: Walgreens’ Pet Shoppe Store Brand Pet Collars
and Leashes ........................................................................................ 112 Agricultural/Feed-Seed Stores ................................................................... 112 Home Improvement Stores ........................................................................ 112
Chapter 5: Highlights ................................................................ 113
Chapter 5: Pet Ownership Trends ........................................... 114
Methodology ......................................................................................... 114
57% of Canadian Households Own Pets .................................................... 114
Figure 5-1: Canadian Ownership Levels for Selected Dog- or Cat-Owning Classifications, 2013 (percent)........................................... 115
Single Pet Ownership Higher Than Multiple .............................................. 116
Table 5-1: Canadian Ownership Levels for Dogs and Cats by Number of Pets, 2013 (percent) ............................................................ 116
Canadian Pet Market Outlook, 2014 Table of Contents
January 2014 © Packaged Facts vii
More $100K+ Pet Households ..................................................................... 116
Figure 5-2: Canadian Pet Market Consumer Base: Households Earning $100,000 or More vs. Households Earning Under $100,000, 2013 (share of ownership) ................................................... 117
Table 5-2: Canadian Pet Market Consumer Base: Pet Ownership by Household Income, 2013 (percentage of pet owners) ....................... 117
Dog and Cat Ownership Rates by Age ....................................................... 118
Table 5-3: Canadian Pet Ownership Rates by Age Bracket, 2013 (percent) ................................................................................................ 119
Senior Growth Rate Outpaces Population at Large................................... 119
Figure 5-3: Observed and Projected Population Increases: Canada vs. Select Developed and Developing Countries (percent) .................... 120
Figure 5-4: Canadian Population 65 and Over, Historical and Projected, 1971-2061 (percent of population) ........................................ 121
Impact of Boomers and Graying Population .............................................. 121
Role of Gen Xers and Gen Ys...................................................................... 122
Table 5-4: Indexes for Selected Canadian Pet-Owning Classifications: By Generational Cohort, 2013 ............................................................... 122
Households With Kids ................................................................................. 122
Figure 5-6: Reported and Projected Fertility Rates of Select Countries, 1950-2050 (children per woman) ........................................................... 123
Figure 5-7: Canadian Pet Ownership Rates by Household Composition, 2013 (percent) ....................................................................................... 124
Table 5-5: Canadian Pet Ownership Rates by Age of Children, 2013 ........ 125 Table 5-6: Canadian Pet Ownership Rates by Age of Children, 2013
(index) ................................................................................................... 125
Half of Pet Owners Live in Urban Areas ..................................................... 125
Table 5-7: Share of Canadian Pet-Owning Population by Location of Residence, 2013 (percent) ................................................................ 125
Table 5-8: Canadian Pet Ownership Rates by Location of Residence, 2013 (index) .......................................................................................... 126
Pet Ownership Across Ethnic Groups ....................................................... 126
Table 5-9: Canadian Pet Ownership Consumer Base: White vs. Minorities, 2013 (index of pet-owning households) .......................... 126
Table 5-10: Canadian Pet Ownership by Ethnic Origin, 2013 (percent of pet-owning households)....................................................... 127
Table 5-11: Growth of Visible Minorities in the Canadian Population, 2006-2011 (number and percent) .......................................................... 127
Figure 5-8: Immigrant’s Share of Canadian Population Growth: Recorded and Forecast, 1992-2055 ...................................................... 128
Table 5-12: Demographic Snapshot of the Canadian Population, 2011 (number and percent) ................................................................... 129
Table 5-13: Select Indexes for Pet Ownership, 2013 (Canadian Households) .......................................................................................... 130
Table of Contents Canadian Pet Market Outlook, 2014
viii © Packaged Facts January 2014
Pet Owner Psychographics ........................................................................ 132
Health-Related Sentiments and Practices .................................................. 132 Figure 5-9: Pet Ownership Influence on Health, 2013 (percent of
Canadian pet owners) ........................................................................... 132 Table 5-14: Health-Related Psychographic Indicators by Type of
Pet Owned, 2013 (percent of Canadian pet owners) ............................. 133 Table 5-15: Health-Related Psychographic Indicators, by Pet
Ownership: 2013 (index of Canadian pet owners) ................................. 134 Shopping-Related Sentiments and Practices ............................................. 135 Figure 5-10: Attitudes Towards Spending on Pet Products:
2013 (percent of Canadian pet owners) ................................................ 135 Table 5-16: Shopping-Related Psychographic Indicators, by Pet
Ownership, 2013 (percent of Canadian pet owners) .............................. 136 Table 5-17: Shopping-Related Psychographic Indicators, by Pet
Ownership: 2013 (index of Canadian pet owners) ................................. 136 Food Labeling and Ingredients Sentiments and Practices.......................... 136 Figure 5-11: Attitudes Towards Natural/Organic Pet Products:
2013 (percent of Canadian pet owners) ................................................ 137 Table 5-18: Food Labeling and Ingredient-Related Psychographic
Indicators, by Pet Ownership, 2013 (percent of Canadian pet owners) ................................................................................................. 138
Table 5-19: Food Labeling and Ingredient-Related Psychographic Indicators, by Pet Ownership, 2013 (index of Canadian pet owners) ................................................................................................. 139
Technology-Related Sentiments and Practices .......................................... 140 Figure 5-12: Internet Browsing and Shopping Behavior (percent
of Canadian pet owners) ....................................................................... 140 Table 5-20: Technology-Related Psychographic Indicators, by Pet
Ownership: 2013 (percent of Canadian pet owners) .............................. 141 Table 5-21: Technology-Related Psychographic Indicators, by Pet
Ownership: 2013 (percent of Canadian pet owners) .............................. 141
Purchasing Patterns .................................................................................... 142
Pet Food Purchasing Patterns ................................................................... 142 Treat Purchasing Patterns ......................................................................... 142 Cat Litter Purchasing Patterns ................................................................... 143 Flea/Tick Control and Heartworm Prevention Purchasing Patterns ............ 144 Figure 5-13: Canadian Pet Food Purchasing Patterns (percent of
dog and cat owners) .............................................................................. 145 Table 5-22: Dog Food Purchasing Patterns by Demographic Indicator,
2013 (percent of Canadian dog owners) ............................................... 146 Table 5-23: Dog Food Purchasing Patterns by Demographic Indicator,
2013 (percent of Canadian dog owners) ............................................... 148 Table 5-24: Cat Food Purchasing Patterns by Demographic Indicator,
2013 (percent of Canadian cat owners) ................................................. 150 Table 5-25: Cat Food Purchasing Patterns by Demographic Indicator,
2013 (percent of Canadian cat owners) ................................................. 152
Canadian Pet Market Outlook, 2014 Table of Contents
January 2014 © Packaged Facts ix
Figure 5-14: Treat Purchasing Trends, 2013 (percent of Canadian dog and cat owners) ..................................................................................... 154
Table 5-26: Dog Treat Purchasing Patterns by Demographic Indicator, 2013 (percent of Canadian dog owners) ................................................ 155
Table 5-27: Dog Treat Purchasing Patterns by Demographic Indicator, 2013 (index of Canadian dog owners) ................................................... 157
Table 5-28: Cat Treat Purchasing Patterns by Demographic Indicator, 2013 (percent of Canadian cat owners) ................................................. 159
Table 5-29: Cat Treat Purchasing Patterns by Demographic Indicator, 2013 (percent of Canadian cat owners) ................................................. 161
Figure 5-15: Cat Litter Purchasing Trends, 2013 (percent of Canadian cat owners)............................................................................................ 163
Table 5-30: Cat Litter Purchasing Patterns by Demographic Indicator, 2013 (percent of Canadian cat owners) ................................................. 164
Table 5-31: Cat Litter Purchasing Patterns by Demographic Indicator, 2013 (percent of Canadian cat owners) ................................................. 166
Figure 5-16: Flea and Tick Control Purchasing Patterns, 2013 (percent of Canadian dog and cat owners) .......................................................... 168
Figure 5-17: Heartworm Prevention Purchasing Patterns, 2013 (percent of Canadian dog and cat owners) .......................................................... 168
Canadian Pet Market Outlook, 2014 Chapter 1: Executive Summary
January 2014 © Packaged Facts 1
Chapter 1: Executive Summary
Introduction
Scope and Methodology
his report analyzes Canadian pet market retail sales and trends during the 2013-2014
forecast period, overall and for these four categories: veterinary services, pet food,
nonfood pet supplies, and non-medical pet services. It examines the most important
developments shaping the market and their implications, including external and internal
market drivers, industry trends (mergers and acquisitions, marketing, new product
development, etc.), retail channel trends, and trends in pet ownership.
Report Methodology
The information contained in this report was obtained from primary and secondary research.
Primary research includes national online consumer polls of Canadian adult pet owners (age
18+) conducted by Packaged Facts in March 2013, to measure purchasing patterns and
attitudes with regard to pet products and services. With a sample size of approximately 500,
these surveys are based on national online research panels that are census representative on
the primary demographic measures of age, gender, geographic region, race/ethnicity, and
household income.
Our primary research also includes interviews with pet market experts; participation in pet
industry events including the American Pet Products Association’s Global Pet Expos (2004-
2013) and Petfood Industry/Watt Publishing’s Petfood Forums (2004-2013); on-site
examination of retail and service provider venues; and Internet canvassing including blogs.
Secondary research includes information- and data-gathering from consumer business and
trade publications including Pet Age, Pet Business, Pet Product News International, Petfood
Industry, and Veterinary Practice News; company profiles in trade and consumer
publications; and information culled from Packaged Facts’ extensive pet market research
database and report collection.
Our estimates of market size and company performance are based on reported revenues of pet
product manufacturers, retailers, and pet services providers; consultation with industry
T
Chapter 1: Executive Summary Canadian Pet Market Outlook, 2014
2 © Packaged Facts January 2014
experts at the Pet Industry Joint Advisory Council of Canada (PIJAC Canada); surveys of
independent and chain pet store retailers; government data including information collected by
Statistics Canada; and figures from other market research sources. Our analysis of pet
ownership trends primarily relies on cross-tabulations of data collected via Packaged Facts
proprietary survey.
Canadian Pet Market Outlook, 2014 Chapter 1: Executive Summary
January 2014 © Packaged Facts 3
Market Trends
Pet Industry Advances
he Canadian pet industry continues to chug along, growing at a slightly better rate in
2012 than it did in 2011. Although the pet market is a mature one, pet owners still
have plenty of pet expenses that will only grow as the pet population expands. Total
Canadian sales of pet products and services rose 4.0% in 2012, and sales are forecast to be up
4.4% in 2013. During 2012, Canadian pet industry sales totaled $6.3 billion, up from $6.06
billion in 2011, and 2013 sales are expected to reach nearly $6.6 billion. Sales of veterinary
services are expected to rise 2.3% to $2.25 billion, and sales of pet food should reach $2
billion after a 5.3% increase. Pet supplies’ expected 5.5% increase will bring the category to
$1.4 billion, and pet services’ 6.5% increase will result in sales of nearly $1 billion.
As discussed later in this report, although the veterinary category accounts for one of the
largest shares of pet market sales, the rise in expenditures can be at least partially traced to
inflated veterinary costs, rather than an increase in the number of pet owners using veterinary
services. In fact, approximately 40% of pet owners do not take their pets for annual visits, and
many Canadians are looking south of the border for their veterinary needs. In the pet food
category, much of the growth is coming from outside the core mass market, which has lost
shoppers at both ends of the product pricing spectrum, with bargain-seeking shoppers
migrating into lower-priced channels like The Real Canadian Superstore, Lowblaws,
Walmart, dollar stores and wholesale clubs, and many other shoppers looking for premium
and superpremium products. Compared with pet food, most nonfood pet supplies are more
discretionary and less brand dependent, so this category has suffered in recent years, although
it shows signs of rebounding. For their part, non-medical pet services continue to expand—
geographically, in terms of the needs they are meeting, and upwards price-wise.
Looking ahead, all four pet market categories are expected to register equal or slightly
improved performance in 2014. Considering the market as a whole, sales will rise to $8.3
billion by 2018, with annual increases between 4.5% and 5%. [Table 1-1]
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Chapter 1: Executive Summary Canadian Pet Market Outlook, 2014
4 © Packaged Facts January 2014
Table 1-1 Total Canadian Retail Sales of Pet Products and Services, 2008-2013 (in millions of dollars)
Year Sales % Change
2013 ......................................... $6,580 4.4%
2012 ......................................... 6,300 4.0
2011 ......................................... 6,060 4.5
2010 ......................................... 5,800 4.2
2009 ......................................... 5,560 3.8
2008 ......................................... 5,360 3.8
Source: Packaged Facts
Market Share by Category and Animal Type
As of 2013, veterinary services—the most directly health-related category—leads in market
share, at 34% of pet industry sales, followed by pet food at 30%, nonfood pet supplies at
21%, and non-medical pet services at 15%. By animal type, dogs dominate, at 66% of
overall market sales, with cats at 30% and other pets at 4%. Because cats are professionally
groomed, boarded and trained far less often than dogs, the canine share is highest in the non-
medical pet services category, at 90%.
Pet Owners Still Spending Despite Slow Economy
Thankfully, consumers’ diminished economic fortunes have not translated into reduced pet
market spending. Based on Statistics Canada (StatCan) tracking of household final
consumption expenditure (a measure of the market value of all goods and services purchased
by households), overall household spending on both pets/pet food and veterinary/other pet
services outpaced that of many other categories, including housing, and food and beverages,
as well as household spending overall. Between 2008 and 2012, spending on pets and pet
food grew by a CAGR of 4.3% and spending on veterinary/other pet services by 3.5%,
compared with an overall CAGR of 2.6%. Growth in pets and pet food was highest in 2009,
and growth in veterinary/other pet services was greatest in 2008.
Packaged Facts’ own consumer survey also reveals that pet owners aren’t scrimping when it
comes to their companion animals. When asked if they were spending less on pet products
due to the economy, only 26% agreed, and only 8% strongly agreed. However, this
Canadian Pet Market Outlook, 2014 Chapter 1: Executive Summary
January 2014 © Packaged Facts 5
continued spending does not correlate to a belief that pet products are affordable. In response
to the statement, “Many pet products are becoming too expensive,” nearly two-thirds (63%)
agreed, and only 9% disagreed. The expense of pets has driven many pet owners to look for
ways to conserve on products. Among survey respondents, 68% indicated that they seek out
lower prices, special offers and sales. [Table 1-2]
Table 1-2 Level of Agreement with Statements Regarding Attitudes Toward Spending on Pet Products, 2013 (percent of Canadian pet owners)
Statement Strong Agree
Agree No
Opinion Disagree
Strong Disagree
I am spending less on pet products these days because of the economy ..................
8% 18% 31% 24% 18%
Many pet products are becoming too expensive ................................................
28 35 28 5 4
I look out for lower prices, special offers, and sales on pet products .........................
27 41 22 6 5
I am willing to spend extra to ensure the wellness of my pet ....................................
30 39 19 6 6
Source: Packaged Facts Survey, March 2013
Trends in Pet Acquisitions: Shelters in Favor
Growth in the pet population depends on the availability pets, which may be obtained from
many sources. But the tide of public opinion is moving away from pets purchased in stores or
from breeders, and toward those obtained from shelters and other animal welfare
organizations. As of November 2013, the Best Friends Animal Society listed 39 jurisdictions
in North America with some form of retail pet sales ban, with 8 of them passing the laws
since January 2013 (bestfriends.org). Six Canadian cities appear on the list, including
Richmond, BC; Toronto, Ontario; and Rosemont-La Petite-Patrie, Quebec. Legitimate
breeders, too, are facing increasing opposition due to bad publicity over the “puppy mill”
type operations run by unscrupulous breeders, a trend reflected in declining CKC
registrations. While there are plenty of above-board breeders, these are nevertheless signs of
the times for the pet industry. With the industry having worked long and hard to elevate pets
to child-like status in order to help justify the sale of higher-priced products, it’s no wonder
public opinion and legal rulings continue to shift in favor of regulating or eliminating any
activity harboring potential for companion animal mistreatment. In Packaged Facts’ March
Chapter 1: Executive Summary Canadian Pet Market Outlook, 2014
6 © Packaged Facts January 2014
2013 survey, three-quarters (73%) of pet owners agree that “People should adopt pets from
shelters and not purchase them from shops/breeders,” with 37% in strong agreement.
The Aging Pet Population
Like the human population, the pet population is graying—a potent driver of increased pet
market spending in many areas. As of March 2013, 36% of dog owners have a dog age 7 or
older, while 47% of cat owners have a cat in that oldest age bracket, according to Packaged
Facts’ latest survey. Additional consumer survey data bear out the fact that the nation’s pet
population is getting older. In a 2011 report, Agriculture and Agri-Foods Canada’s
Internation Market Bureau revealed that the average age of cats in Canada was 5.7 years and
the average age of dogs was 5.9, with both numbers forecast to rise in coming years.
Overweight and Obese Pets Keep Costs Up
As in the U.S., overweight and obese pets are a growing problem in Canada, going hand in
hand with the obesity epidemic among humans. Canada’s Pet Wellness Report, based on a
study conducted in 2011 through a partnership between the Canadian Veterinary Medical
Association (CVMA) and Hill’s Pet Nutrition, confirms the magnitude of the problem.
Surveys of Canadian pet owners and veterinarians, conducted for the CVMA and Hill’s by
Ipsos Reid, revealed that according to veterinarians, overfeeding is the most common mistake
pet owners make in feeding their dogs or cats. Weight control/management was cited most
often by veterinarians as one of the most important things pet owners can do to increase the
length of their pet’s life, yet fewer than 2 in 10 pet owners were found to feed their pet(s) the
amount recommended on the pet food package. Pet owners surveyed admitted they are nearly
twice as likely to buy a pet food based on what their pet likes to eat (60%) vs. what will
actually meet their health needs (33%). Veterinarians also pointed out that pet owners are
more likely to use price as the key factor in choosing a pet food (19%) than the food’s ability
to meet their pet’s health (14%) or life stage (age) needs (8%). The combination of pet
preference and cost contributes to poor food selection, which can contribute to weight gain.
Veterinary Costs Drive Canadians South
The cost of maintaining a pet is not limited to pet food and cat litter. As noted earlier, one of
the main categories driving sales in the overall pet market is veterinary. Although emergency
and sick visits factor into these costs, the vast majority of pet owners’ expenses on veterinary
Canadian Pet Market Outlook, 2014 Chapter 1: Executive Summary
January 2014 © Packaged Facts 7
care revolve around routine visits and preventative care. However, pet owners are beginning
to question the need for these expenses. For example, despite guidelines that recommend
vaccinating dogs every three years, many veterinarians continue to push annual vaccinations,
a trend that drives up the cost of routine visits (cbc.ca, October 4, 2013).
In an effort to spare themselves some of the associated costs, some Canadian pet owners are
seeking veterinary care for their pets south of the border. Especially for pet owners living
close to the border, the U.S. presents an opportunity to save substantially. Radio Canada
International reports in a recent story that Canadian pet owners can save upwards of $100 on
simple vaccinations by traveling south. For more complex procedures, the savings can be
even greater (rcinet.ca, July 26, 2013). Although some veterinarians are claiming the prices
are lower because the quality of care is lower, many pet owners return satisfied with both the
service and costs at U.S. clinics. As one pet owner noted, “The services are probably equal,
it’s just the vet fees are really expensive in Canada. They have excellent service here, I can’t
complain” (Watertowndailytimes.com, August 7, 2013). Some U.S. clinics are reporting that
as much as one third of their clientele are made up of Canadian pet owners, and that the
numbers grow each year.
Chapter 1: Executive Summary Canadian Pet Market Outlook, 2014
8 © Packaged Facts January 2014
Industry Trends
Market Structure
he Canadian pet market comprises both products and services. Products further
divide into pet food and nonfood pet supplies. Services further segment into
veterinary services and non-medical services (grooming, boarding, training, etc.).
Since the mid-1990s, however, this market structure has been gradually shifting in
ways that will continue to redefine the pet industry through 2014 and beyond, including
additional cross-over and partnering between retailers, product makers, and service providers
and shelters, and with increasing overlap between marketers of food and nonfood products.
Thousands of companies compete in pet services, ranging from massive national players like
retail pet care services provider PetSmart and veterinary hospital operator VCA Antech,
which just expanded its reach in Canada through the 2012 purchase of Associate Veterinary
Clinics, to the individual dog groomer or trainer operating in a local market. The products
side of the global pet market encompasses over 2,500 companies and counting. As of May
2013, the Pet Industry Advisory Council of Canada (PIJAC Canada) had over 500 members,
including pet product manufacturers, importers, manufacturers’ representatives and livestock
suppliers.
The types of firms competing in the pet market are varied, reflecting their sheer numbers and
the wide assortment of products and services offered. Although most of the largest players are
public, the majority of market participants are privately held. Some market segments are
dominated by one or two companies, but the market is so vast and diverse that most areas are
still fragmented among numerous companies large and small.
Broadly speaking, the competitive structure of the pet products market has not changed in
quite a few years. On the pet food side, Nestlé Purina and Mars control a little over half of the
business, with Del Monte (whose pet business is now owned by KKR and other investors—
see below), Iams (Procter & Gamble), Hill’s (Colgate-Palmolive) and Lowblaws collectively
garnering approximately one-quarter of sales. In nonfood supplies, overall market leaders,
most fielding broad lines covering multiple categories and animal types, include Central
Garden & Pet, Hartz Mountain, Rolf C. Hagen, Coastal Pet Products, Petmate (Doskocil),
Sergeant’s Pet Care (recently acquired—see below), and Van Ness.
T
Canadian Pet Market Outlook, 2014 Chapter 1: Executive Summary
January 2014 © Packaged Facts 9
As this partial list suggests, the nonfood side of the business is more fragmented than the pet
food side, with the top four or five companies together accounting for less than half of overall
market sales. In addition, the largest category—flea/tick care products—is controlled by the
animal health divisions of global pharmaceutical companies, with Merial (Frontline) and
Bayer Corp. (Advantage and K9 Advantix) leading the pack, although retail players Central
Garden & Pet/Farnam, Hartz, and Sergeant’s are also big in flea/tick products.
M&A and Investment Activity: Pet Health and Natural Products Star
Much of the recent M&A activity taking place in the past few years has not directly involved
Canadian-owned companies, but there have been several acquisitions that impact the
Canadian pet market just the same. Many of the key players in the global pet market pursued
acquisition opportunities between 2011 and 2013. In June 2012, for example, Iams parent
Procter & Gamble finalized its acquisition of natural/holistic pet food maker Natura Pet
Products, and in November 2012, Del Monte agreed to be bought for $4 billion in cash by a
group of investors including Kohlberg Kravis & Roberts (KKR). Both Del Monte and P&G
are among the pet food industry’s top five players, so the repercussions of the deals will
likely be felt for many years.
2011 saw the sale of Doskocil Manufacturing Co., Inc. (dba Petmate) to Wind Point Partners,
a move that has since led to an acquisition spree of sorts for Petmate. Other deals of note in
2011 included Cargill acquiring global animal nutrition company Provimi for $2.1 billion,
and Japanese firms Unicharm taking a 51% stake in Hartz, a subsidiary of Sumitomo Corp.
While many of the deals taking place in 2012 and 2013 were smaller, several significant deals
stood out, especially as related to pet health.
Premiumization
In recent years, most of the dollar growth in the Canadian pet market has come from higher-
ticket sales of products and services as opposed to volume gains. Fueling this trend is a steady
stream of superpremium products and services, with natural and organic products especially
important on the products side, and expensive high-tech medical therapies, new prescription
pet medications, and luxury services especially important on the services side.
Chapter 1: Executive Summary Canadian Pet Market Outlook, 2014
10 © Packaged Facts January 2014
Humanization
Overlapping with premiumization and in force for several years now, the humanization trend
has multiple facets. First, it’s a natural expression of the “pets as family” trend, whereby pet
owners treat their pets like children and are highly receptive to products similar to the ones
they use for themselves. Not coincidentally, many of the services and products entering the
market today are directly reminiscent of human fare, no doubt appealing to the pet owner as
much as the pet. Examples include veterinary procedures like chemotherapy, MRIs, and hip
replacements; pet supplements like glucosamine and omega 3s; human-grade pet foods
containing superfruits or touted as gluten free; designer pet supplies, including Burberry
apparel and Simmons Beautyrest pet beds; and luxury services including boarding options
more like hotel rooms. Newman’s Own Organics CEO Peter Meehan explained that this is
why his company began selling pet food 12 years ago, “This whole industry has grown up
around anthropomorphic behavior of humans—we take trends and things that we’re doing
and we apply them to animals” (Bloomberg Businessweek, April 2013).
Globalization
As U.S. pet companies continue to look abroad northward for growth, and other foreign
companies increasingly make inroads into Canada, the Canadian pet market is becoming even
more global. Pet companies established in Canada are avidly mining less developed parts of
the world for growth, especially the BRIC nations (Brazil, Russia, India and China). And the
U.S. pet insurance business now encompasses two major players crossing over from
Canada—Pethealth and Trupanion (formerly Vetinsurance in Canada).
Canadian pet retailers have also been expanding into the U.S. market of late. Pet Valu, the
third largest pet specialty store in North America, according to Pet Business, has made a
major push into the U.S. market. The retailer, which operates close to 500 stores in the two
countries, has grown its U.S. footprint to 94 stores as of February 2013, adding 35 stores
since March 2012. The company, which focuses on smaller formats, has locations in
Connecticut, Maryland, New Jersey, Pennsylvania and Virginia, and just signed leases on
three locations in Long Island, New York (two in former Blockbuster stores, another in a
former Sleepy’s store). Another Canadian retailer, Global Pet Foods, entered the U.S. market
with two stores in Connecticut in 2011, although U.S. expansion seems to have halted since
then.
Canadian Pet Market Outlook, 2014 Chapter 1: Executive Summary
January 2014 © Packaged Facts 11
Retail Trends
Pet Shoppers Say Let’s Make a Deal
s in the U.S., retailing pet products in Canada has never been more competitive.
Four trends have conspired to intensify the competitive landscape for pet product
retailers: 1) expansion of pet superstores such as PetSmart and Pet Valu; 2) growth
of mass merchandisers in pet retail, such as Walmart; 3) the Internet; 4) the sluggish
economy. All of these factors have created shoppers who demand value in the products they
buy, chart out shopping trips beforehand, and switch channels to make ends meet.
Packaged Facts’ March 2013 survey shows that today’s pet product shoppers are looking for
deals. Among those who buy pet products, over two-thirds (68%) agree they look out for
lower prices, special offers, and sales on pet products, while 22% have no opinion on the
matter. One of the main ways in which pet owners are deal-seeking is by shopping around.
Well over half (54%) of pet product buyers agree they shop for pet products at a variety of
stores, with almost 20% indicating a strong level of agreement. What this means for retailers
is that customer loyalty may very well be a thing of the past, and that to attract new
consumers to the aisles, low prices are a must. [Figure 1-1]
A
Chapter 1: Executive Summary Canadian Pet Market Outlook, 2014
12 © Packaged Facts January 2014
Figure 1-1 Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,” 2013 (percent of Canadian pet product shoppers)
Source: Packaged Facts survey, March 2013
Industry Mainstay: The Premium Shopper
Premium products have become a fact of life in the pet market, and premium product
shoppers are one of the main drivers of pet product sales. Pet owners’ dedication to their pets’
health contributes to this trend, as many pet owners are willing to do whatever it takes to keep
their pets healthy. This phenomenon is a driving force behind the success of premium
products. In the pet food market, a premium product is often equated with a healthier product,
something hard to cut back on even in tough times. The March 2013 Packaged Facts survey
found that a resounding 69% of pet owners would be willing to spend extra to ensure the
wellness of their pet. As discussed in Chapter 2 of this report, one of the factors that may be
influencing pet owners’ decision to purchase higher quality products even if it means higher
prices is the growing tendency for pet owners to consider their pets “part of the family,” a
belief held by 84% of the pet-owning population.
Pet Owners Shop at Supermarkets, Supercenters for Pet Supplies
According to Packaged Facts’ March 2013 survey, purchasing rates shift noticeably when
considering channels through which pet product buyers made a purchase in the last three
27%
41%
22%
6% 5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Strongly Agree Somewhat Agree No Opinion Somewhat Disagree Strongly Disagree
Canadian Pet Market Outlook, 2014 Chapter 1: Executive Summary
January 2014 © Packaged Facts 13
months across three categories: pet food, pet medications, and other pet supplies. By this
measure, supermarkets come out on top in pet food, attracting 42% of pet product buyers,
followed by Walmart at 37% and PetSmart at 25%. In addition, five other channels attract at
least 10% of pet product buyers as pet food shoppers: pet chains other than PetSmart,
supercenters other than Walmart, independent pet stores, veterinary offices and wholesale
clubs. Walmart leads in other pet supplies, at 35%, followed by PetSmart at 29% and
supermarkets at 23%. In pet medications, not surprisingly, veterinarians are No. 1, at 60%,
followed by Walmart at 10% and PetSmart at 9%.
Chapter 1: Executive Summary Canadian Pet Market Outlook, 2014
14 © Packaged Facts January 2014
Pet Ownership Trends
57% of Canadian Households Own Pets
or marketers across the entire pet industry spectrum, pet ownership is of utmost
importance. A strong base of pet owners is essential to driving sales of both products
and services. In 2013, the percentage of Canadian households that own pets
(including dogs, cats and other household pets) was at 57%, according to Packaged Facts
consumer survey data, a percentage equating to over 7.5 million households.
The survey revealed that cats are more popular pets than dogs, and both were more popular
than the “other” pet classification: in 2013, 37% of Canadian households owned one or more
cats, 32% owned dogs, and 9% owned other types of pets, including fish, birds, small
mammals, and herptiles. In addition, 16% of survey respondents indicated that they lived in a
household with both dogs and cats (either single or multiples of each type), 4% owned at least
one cat and one other pet, and 3% owned at least one dog and one other pet. [Figure 1-2]
Figure 1-2 Canadian Ownership Levels for Selected Dog- or Cat-Owning Classifications, 2013 (percent)
Note: Percentages reflect ownership of one or more pet.
Source: Packaged Facts Consumer Survey, March 2013
Likely hindering ownership of companion animals other than dogs and cats is the lower-level
marketing focus, a function of smaller animals’ relatively low return on shelf space compared
with the higher-priced and faster-moving canine and feline products. Additionally, animals
other than dogs and cats may be less resistant to economic cutbacks since the human/animal
3%
4%
9%
16%
32%
37%
57%
0% 10% 20% 30% 40% 50% 60%
Dog and Other
Cat and Other
Other
Dog and Cat
Dog
Cat
Any
F
Canadian Pet Market Outlook, 2014 Chapter 1: Executive Summary
January 2014 © Packaged Facts 15
bond is arguably less of a factor, especially with regards to the adults who ultimately make
the product purchasing decisions. That said, smaller animals of all types—birds, small
mammals, herptiles, fish—are frequently the pet market entry point for kids, something the
pet industry has begun to encourage more heavily in recent years.
Single Pet Ownership Higher Than Multiple
A greater percentage of Canadian households own just one dog or cat than own multiples.
Over three-quarters (77%) of survey respondents live in households with one dog and 61%
with one cat, compared with 14% who own two dogs and 26% who own two cats. The
percentages drop even further as the number of pets increases.
More $100K+ Pet Households
Higher-income households are a crucial component of the pet market, with households
earning $100K or more annually accounting for a greater percentage of pet owners than their
numbers would suggest. According to Packaged Facts consumer survey data, the percentage
of households earning over $100K annually accounted for only 21% of the population, but
accounted for 25% of pet owners in general, 29% of dog owners, 22% of cat owners and 26%
of other pet owners.
Dog and Cat Ownership Rates by Age
According to the Packaged Facts survey, approximately 57% of Canadian households owned
pets as of 2013. By age, however, the 45-54 age group was well ahead of the average, with a
pet ownership level of 75%. This group also ranked highest in ownership levels in both the
dog and cat classification, and came in second (along with those age 25-34) in the other
classification. The 18-24 age group is at the top for other pet ownership, at 15%, although this
group ranked third in overall pet ownership and fifth in cat ownership.
At 39%, the age 65+ group had the lowest percentage of pet ownership, and was also in last
place across all classifications. Nearly half of the age group represented primarily by
Boomers, the 55-64 age group, owned pets in 2013, at 48% for overall ownership levels, and
had a higher level of cat ownership than those age 18-24.
Chapter 1: Executive Summary Canadian Pet Market Outlook, 2014
16 © Packaged Facts January 2014
Impact of Boomers and Graying Population
In both the U.S. and Canada, Baby Boomers have traditionally been rule breakers, and pet
product marketers are counting on this group to buck the historical trend toward reduced pet
ownership among seniors. For one thing, the all-important empty-nest stage, during which
many parents fill their nests with companion animals as the kids take wing, is occurring later
for the Boomer women and Boomer parents who delayed child-bearing and child-rearing.
Aging Boomers have already begun to redefine the pet market, as evidenced in the
groundswell of humanized and premium-priced health products that reflect their
preoccupation with their own physical well-being and comfort.
Even if aging Boomers only partially buck the trend toward reduced pet ownership, those
who remain or become pet owners will be highly receptive to premium pet products making
the same kinds of “benefits claims” they look for in the products they purchase for
themselves. So far, the news is good. According to Packaged Facts survey results, Boomer
households are 10% more likely than average to own a pet, at an index of 110, the highest
index of any generational cohort. They are also 20% more likely to own dogs, and 19% more
likely to own pets from the other classification.
Role of Gen Xers and Gen Ys
Taken together, the members of the Gen Y and Gen X cohorts in Canada number
approximately 12 million in 2013, a number that translates to over 7 million pet owners as of
2013. Pet ownership among Gen Xers is more prevalent than it is among Gen Y adults, with
Gen X survey respondents being 8% more likely than average to own a pet, compared with
Gen Y at only 1% more likely. The Gen Y respondents were more likely to own a pet from
the “other” classification, however, at an index of 158, making them 58% more likely than
average.