Impact of Humanization of the Pet Care Industry

Pets are our family, friend, and regular companion. For some, they are conditioning before having children; then they are alternate for children for some and they are companions for those with mental health issues or physical debilities, they are companions. This fondness has resulted in the humanization of our pets and hence new challenges for pet care manufacturers, food, medicine, or otherwise.  

• Driving Trends – Demand for Variety  

Change in demand for a variety of pet foods & medicines is increasing. Consumers are looking for Natural, Grain-Free, Hormone Free, Super Foods, Flavored, Locally Made, and the list is growing.   

• Premiumization

Consumers are driven towards visually appealing, Premium rated products for their pets. High-end products are in greater demand than ever before. Keeping such customers satisfied will be an ongoing challenge.   

• Nutrition & Dietary Concerns   

Humanizing the pets has caused consumers to show equal care & concern for the nutritional value of the food as they would show for their kids. Consumers are concerned about pet obesity and thus looking for low-calorie food. They are now reading Labels with more interest looking for healthier options.  

What does this mean for pet food manufacturers?

They are pressed to introduce new recipes, new variations, and new sourcing techniques constantly & swiftly.    

• Customer Service  

Like we have questions before buying food for our children, consumers have questions, seek suggestions before buying pet food. Exceptional ability to respond to such queries is the factor that decides between the victor and the vanquished. Investing in advanced AI-based technology platforms, presence in social media, forums proactively educating consumers makes the difference.   

• Product Recalls  

Due to outspoken industry advocates and it is critical to adopt a high level of food safety including recall policies. It is imperative that producers have necessary systems in place for forward and backward traceability to handle recalls and bring transparency.   

• Regulatory Compliance   

Production facilities are overseen by the FDA and must follow HACCP principles. Allergens and pathogens that are harmful to pets, and thus are regulated by the FDA. Maintaining the highest standards at production facilities is a must to ensure human safety for the workers in the production line. The regulatory landscape continues to evolve, and the pet food companies must keep pace with newer processes to be compliant.  

• Environment Concerns  

Pet food production demands high energy and CO2 emissions costs are also high. Hence, consumers prefer products that are with a low carbon footprint. Producers with non-local sourcing, who are stuck with old, inefficient technology backbones will suffer losses as they eat into profit margins.      

• eCommerce Growth  

E-commerce is the clear winner in terms of driving sales during the public health crisis as experienced during the recent Covid-19 pandemic. Consumers are increasingly purchasing pet food via online channels. Online buyers look for offers, competitive pricing, ease of purchase, ease of returns, swift redressal of their issues, and a variety of payment options. Producers cannot ignore selling via popular channels such as Amazon & Chewy. As a result, this situation is putting enormous pressure on the IT systems of producers as they will have to be swift in responding to pricing changes and the ability to sell via multiple online channels.    

• Driving Investment  

As per APPA estimates, Pet Industry is projected to be $90bn in 2020 and is poised to grow more. Such growth is hence, a challenge and opportunity for businesses. As a result, this has triggered massive investments in this and allied industries such as animal hospitals, animal day-care centers, and veterinary labs.    

Conclusion  

Due to the humanization of the industry, consumer preferences and buying behavior is changing. Hence they are opting for companies that are compassionate about their products and offer gourmet choices. Pet lovers are buying from pet lovers regardless of the size of the company and regardless of the price of the product. This offers abundant opportunities for small and medium businesses to experience unprecedented growth. As a result, only such companies that can handle the expansion and tackle the dynamic challenges can survive. We recommend that they work with like-minded small size vendors with the proven expertise of equivalent compassion and enthusiasm to serve their needs. Most importantly, we recommend that they work with technology vendors that focus on solving foresaid challenges rather than generic vendors.