Category Archives: Pet-Food Industry

Premium Dog Sales Leading to Increase in Market Participants

The market size for dog foods have been increasing in recent years due, most noticeably, to an increase in the demand for premium dog foods. Premium dog foods are generally identified as being healthier for dogs and these products range from foods that are more organic in their composition, have lower amounts of preservatives and additives included in them, and offer a better range of choices for their pets. Brands like Purina are offering a variety of products in this marketplace to capture sales. Some brands are offering varieties of dog foods that have a composition that includes raw chicken and meat and seeks to appeal to dog’s more natural state. The sellers of this paleo diet oriented dog food indicated that this is what dogs ate while they evolved and these foods are healthier and better for them than other more processed foods. Other brands, like Beneful are simply trying to add more organic foods to their dog foods and have acquired Merrick Pet Care, one of the first organic companies selling organic food to dogs, in order to do so. Finally, brands like Freshpet are trying to capture the marketplace by offering preservative free dog foods and have expanded drastically now with over $100 million in sales on Amazon. While they have yet to turn a profit, the increase in sales is dramatic given the higher cost and logistical problems that are associated with the Freshpet food offering. Since Freshpet doesn’t use preservatives in their food it needs to be refrigerated which leads to additional logistical issues and distribution problems for the brand. The fact that Freshpet is able to expand their sales in this environment is amazing. Beyond these product offerings, brands like Beneful have new services to distribute their products to customers such as their newly designed and developed website which lets customers order small batches of dog food that they specially design for the health needs of their dog. This allows dog owners to control not only the ingredients in the dog food, but also the quantity of food the dog gets more closely and can monitor its health better as a result.