The pet is a great industry, but also a tad ridiculous, said Michael Johnson, principal of consumer strategy, BSM Partners, during the opening session of the American Feed Industry Association’s (AFIA) Pet Food Conference at the International Production and Processing Expo in Atlanta on January 28.
“There are about 87 million pet parents in the U.S.,” said Johnson. “But keep in mind, pet consumers are not smart. About 50% of Americans read below a sixth grade level. Never assume people understand things like you do. Their fact-checking research often involves social media which is flooded with misinformation.”
With over 20 years of experience in marketing, strategic planning and consumer and market research, Johnson is a consumer insights and trends thought leader in the pet specialty industry, regularly consulting retailers, veterinarians, distributors and manufacturers on the dynamics of the pet industry and how to best develop and position their products, brands, programs and services to connect with consumers.
Johnson said he studies pet food consumers all day and knows what makes them tick. He calls himself a marketing realist. He noted pet consumers want the best for their furry companions, so make it easy for them to understand your product.
Pet parents are not all the same
U.S. consumers buy a lot of pet food — $150 billion worth in 2024. The industry has seen continuous growth for over 30 years. “Pet is kicking butt in the U.S.,” said Johnson.
While 2024 was a tough year for the pet industry, he noted the market is still strong and pet population is still growing. Two-thirds of U.S. households (87+ million) own pets. Nearly half own a dog and one in three own a cat.
When it comes to marketing, one of the biggest mistakes you can make is assuming pet parents are all the same thus marketing to them in the same way. Despite their differences, consumers want better safety, nutrition, value and more ease when it comes to their pet food and treats.
“Help them understand the safety, nutrition and value they want,” he explained. “Overly-complicated ingredient marketing doesn’t make it easy for them to decide on a product. It could make consumers trust less.”
Consumers don’t understand “traceable supply chain” or “regenerative agriculture” – nor do they understand they value behind it, he said. “You have to understand your pet parent, but don’t treat them collectively as a single consumer,” said Johnson. “Understand them and take care of them. It’s a relationship.”
Know YOUR consumer
There are 87+ million pet parents in the market, but you can’t realistically think you can capture them all, noted Johnson. Instead focus on YOUR core customer and what makes them tick. Then market to those needs and wants.
Johnson pointed out some of today’s market trends that could play into your customer’s desires for a product.
- Brand. The pet industry is a “me too” industry. “If a trend catches on, everyone jumps on that bandwagon,” said Johnson. “Your brand is your personality, what you stand for – your brand will carry you across the finish line. Consumers must understand your brand. There are numerous types of products available to buy, but what keeps consumers coming back is that relationship you develop and your brand carries.”
- Personalization. Pet parents don’t want to be placed under a single umbrella, and personalization helps make consumers feel like they have more control, and therefore more trust and safety in the pet nutrition they select. “Instead of marketing to the mass pet parent, you’re marketing to the one consumer – they feel better taken care of,” said Johnson.
- Retail. Make pet shopping exciting. “Pet product shopping is boring,” said Johnson. “It’s our fourth biggest spend, but because it’s not exciting, pet subscription sales are through the roof. Chewy does $2 billion per quarter — 80% are subscription. Convenience is king. It’s not bad, but it’s not good. We need to help consumers learn and discover. How can we make it more entertaining?”
- Sustainability. More and more pet consumers in the U.S. are concerned with sustainability, but the average consumer doesn’t understand what it is and what the value is. Which leads to some brands using “greenwashing,” or as Johnson described it “the dark side of sustainability.” Pretending to be sustainable when you’re not will erode trust not only in your product but the entire pet food industry.
- Technology. AI is not the future. It’s the present. “If you’re not using it, you’re already falling behind,” said Johnson. “AI has a lot of features and capabilities that can assist you in defining your consumer and building that relationship.”
Johnson said the next five years will see consumers wanting more affordability; more truth, less marketing; greater transparency; greater ethics; more innovation; better education on products; greater focus on health benefits; and more sustainable options.
“There are 87 million pet parents – how are you taking care of them?” Johnson asked. “How are you making it easier? How are you innovating and educating? You can’t get them all, so focus in on the ones you want.”