Global economics is on more stable footing than might be expected (GDPs up, inflation down), but that doesn’t mean further challenges aren’t on the horizon. As a result, consumers can be expected to continue to keep track of their spending in 2025, and one of the final areas pet owners have to cut costs is where their own furry friends are involved.
“As more pet parents embrace proactive pet care and premium offerings, some are finding other places to trade down,” said Jorge Martínez, president, Pet Nutrition, at food processing and commodities trading corporation ADM. “Cost-conscious shoppers may be shifting to private label products, but that doesn’t mean they’re sacrificing quality.”
If pet owners are still willing to spend under the right conditions, what are they looking at to ensure they’re getting their money’s worth?
“The current inflationary environment has created a growing tension between quality and cost,” said Dr. Francesca Susca, global category manager for Pet at Lallemand Animal Nutrition, a producer of yeasts and bacteria for the livestock and pet industries. “As pet food prices rise, owners face difficult choices between maintaining their pets’ nutritional standards and managing household budgets. This economic pressure threatens to force compromises in pet nutrition, particularly affecting premium and superpremium segments.”
Sustainability: Pet owners more discerning, but some will still spend
Sustainability is a complicated topic right now, rife with varying definitions, accusations of greenwashing and business decisions caught between financial practicality and what consumers say they want. Still, it’s on the minds of enough pet owners to make it a continuing conversation in the pet space.
“Pet parents increasingly are looking for products that are responsibly sourced, locally produced and with transparency in the supply chain,” said Marcial Guevara, global senior technical product manager for Pet at biosolutions company Novonesis. “Ingredients derived through biotechnological processes, like enzymes that improve digestibility and reduce waste, will align with this sustainability push.”
To some, the push for sustainability is just the latest in a stacking of trends that has been happening for some time now.
“Quality has always been a prerequisite for pet diets consistently over the years, but the definition has fluctuated depending on the consumer,” said Kate Wadman, customer marketing manager for Scoular, a corporation dedicated to the buying, selling, storage, handling and processing of grain, feed and food ingredients. “In 2025, I anticipate this will culminate in ‘holistic quality’ expectations that will include demand for clean label ingredients, palatability and flavor for the animal, and sustainability for the environment.”
A lot of what sustainability turns out to be will involve more education of both the industry and the consumers.
“Better defining and educating consumers on sustainability [will be an opportunity in 2025],” said Nick Braden, vice president of pet nutrition for Wilbur-Ellis Nutrition. “Pet food is inherently sustainable by utilizing upcycled ingredients. As we continue to improve the quality of things like rendered proteins through superior antioxidant solutions, those ingredients can be celebrated versus discouraged in pet food formulations to support sustainability and cost-effective diets.”
Transparency: Pet owners are paying attention
Part of the overall conversation around how pet owners are spending their money involves transparency — the idea that consumers want to know more about the product they’re buying and the company behind it.
“A … trend we’re watching is the heightened consumer priority on transparency and trust,” said Martínez. “Modern pet parents are choosing products they believe are good for their pets and for the planet. Globally, 42% of pet owners say they want to purchase pet food with sustainably sourced ingredients (source: FMCG Gurus, The Humanization of Pets, 2023). A key industry strategy is to focus on ingredient sourcing and production processes that minimize environmental impact and promote sustainable practices.”
Communication with pet owners will be vital if transparency is your goal.
“Regardless of which channel a pet food business starts in, growth rests in creating authenticity, authority and awareness with customers,” said Ryan Budlong, managing director, Consumer Group at global investment bank Harris Williams. “For instance, endorsement in the independent pet specialty channel can go a long way in gaining consumer confidence in a food item’s nutritional and functional benefits. At the same time, DTC (direct-to-consumer) brands can drive customer acquisition and loyalty through their digital marketing and experience expertise, with some finding success by providing online pet health content, resources and tools.”
It helps if you can meet pet owners where they’re at, which is why the omnichannel approach will continue to be a conversation in 2025.
“In 2025, e-commerce will continue to have a significant prominence in pet retail, so it is critical that pet retailers have an omni-channel offering available,” said Taylor Harnois, general manager of eTailPet, an all-in-one, cloud-based point of sale platform created specifically for independent pet retail businesses. “In that vein, a store’s online presence must replicate its in-store experience as much as possible. Consumers who have built a personal connection with the physical store will want to have that experience replicated online. Additionally, with 77% of small businesses in the U.S. using social media for essential functions like sales, marketing and customer service, pet retailers must put a heavy emphasis on these channels as a way to further engage their current and potential customers.”
Convenience: Worth the extra dollars
Related to omnichannel options is the convenience factor, which customers have shown they’re willing to pay a bit more for in all segments of pet.
“Convenience remains a top priority for pet parents, driven by busy lifestyles and the need for easy-to-serve, nutritionally balanced pet food options,” said Chad Wethal, global marketing manager for Pet at Cargill, a company providing food, ingredients, agricultural solutions and industrial products to various industries. “As a result, we expect to see an increase in ready-to-eat meals, single-serve packaging, subscription-based delivery services, and innovative formats like lickable snacks, squeezable treats and novel packaging formats that support freshness and quality.”
Subscription services were a recurring theme among pet industry experts who discussed convenience as a trend.
“Subscription services for pet care, including food, treats, supplements, grooming supplies and toys, will continue to grow in popularity as they become more customizable to meet pets’ specific needs,” said Heather Scott, chief marketing officer at pet supplement company Vetnique. “Pet parents can now select and receive products on a regular basis, ensuring their pets’ health and happiness are always a priority.”
How will the pet industry speak to pet owners in 2025?
It’s going to take an amalgamation of trends and communication strategies to succeed in 2025, according to the industry.
“The biggest challenges for the pet food space are delivering on the consumer expectations of holding multiple attributes to the functionality of the products, while maintaining high palatability in terms of both mouthfeel and taste, and maintaining a clean label — bonus if you can also tap into sustainability, delivering the utmost for the consumers’ dollar,” said Wadman.
At the end of the day, it’ll be all hands on deck to get pet owners what they want and need.
“Keeping up with the rapidly evolving needs of consumers may persist as both an opportunity and challenge,” said Wethal. “Modern consumers are more informed and demanding than ever, expecting high-quality, innovative products that cater to their pets’ specific needs. They want transparency about ingredients, sustainability in packaging and products that address specific health concerns like allergies or digestive issues. To stay ahead, we need to be agile, continuously innovate and really listen to what our customers want, ensuring we meet their expectations with precision and care.
“Petflation is likely to stick around, with pet food prices continuing to rise faster than overall inflation,” said Wethal. “These ongoing price hikes, fueled by rising ingredient costs and supply chain issues, will continue to influence how much consumers are willing to spend on pet products. To navigate this tough economic landscape, pet food manufacturers will need to get creative in managing costs and focus on delivering value-driven products that meet consumer needs.”