Furry Family Members: The humanization of the pet care industry

Pet ownership around the world peaked during the pandemic years.

The United States is the top country in the world for both dog and cat ownership. There are approximately 70 million domestic dogs and 74 million domestic cats in the United States.

In fact, more than half of all families in the United States have at least 1 dog or 1 cat in their household.

According to market research, the global pet care e-commerce market is expected to reach a value of $87.43 billion by 2027, growing at a compound annual growth rate (CAGR)?of 12.49% from 2020 to 2027. And it is assumed that nearly one-third of global pet care sales will be made through e-commerce by 2026, meaning brands and retailers must innovate now to prepare for this influx of online shoppers.

Pets or children? ?

The phrase "pet parent" is quickly becoming commonplace in the pet-owning community and has been picked up by many pet care brands within brand messaging and advertising.

In the U.K., 1 in 3 pet owners say they consider themselves to be parents to their pets, and in America, a recent survey from Rover.com revealed that 94% of U.S. pet owners view their pets as part of the family.?

According to a 2022 poll, 70% of Gen Z young adults prefer to adopt a pet rather than have children.

So, with people viewing their pets as extra children or even child replacements, are they treating them more like human children than dogs and cats?

Viewing their pets as family members appears to have increased the premiums owners are willing to pay to care for their pets. NIQ data indicates that the average value of a U.S. pet buyer in 2022 increased by 10.7% for a total of $680. The average spend is up, and it is clear that pet owners are prepared to spend more on the well-being of their pet children.?

Millennials tend to be the most financially supportive, with an average monthly budget of $216 and total spending of around $198 to ensure the health and well-being of their furry companions.

As well as the money shoppers are willing to spend, viewing their pets as children has seen a growth in the humanization of pets and their search attributes.?

Humanization appears to have been infiltrating the pet care industry over the past several years, with growth in searches for "human grade" and the?emergence of pet-food brands that are "tested by humans," indicating that pet parents are increasingly seeking out products and attributes that replicate the human diet and overall wellness experience.?

Pet Humanization

NIQ Brandbank powered by Label Insight investigated trending attributes in the pet category between March 2022 and February 2023, which revealed a surprising number of human-like trends. Pet parents appear to be looking for products that replicate those they are adding to their shopping baskets for themselves, increasingly searching for keywords that consider health and wellness, sustainability, and other lifestyle preferences that they apply to their own shopping baskets.?

A trend among many pet parents is interest in healthier, more holistic products and?closer to what the rest of the family may be eating. Within the cat food and dog food category, searches for “human grade” increased from 22,911 to 28,075 within the last year. This mirrors the searches for “holistic” within the all-pet?food category, with an increase of 3,911 within the previous year, bringing the total searches to 58,433.?

The humanization of pets goes further than pet owners viewing their pets as children. Pets are no longer the property of their owners but are household members, meaning their needs are starting to look a little more human.?

Increasingly, the needs of pets have begun to replicate those of their owners. This takes many forms, including the diets that pet owners choose to place their pets on, for example, choosing a vegan or vegetarian diet. There is also an emergence of awareness around pet intolerances and allergies, and pet parents are increasingly seeking out attributes like "wheat-free" and "grain-free."?

Additionally, we are seeing that pet owners are more aware and more engaged with the health and general well-being of their pets and are turning to their food and supplements as preventative measures to maintain better wellness standards for their pets. Pet food increasingly needs to be functional, relieving pet stress and curing ailments like smelly breath and flatulence;?pet food must perform more functions than ever before. As the demand grows, there are more spaces and gaps across the industry for new brands and retailers to innovate and fill.?

The humanization of pets has also meant that shoppers increasingly opt for premium pet care products. Basic and boring are not?good enough for beloved children, and the majority of younger pet owners care more about what their pets are consuming than ever before.

What does all this mean for brands and retailers in the pet industry?

The biggest impact of the humanization of pets is the influx of personalization across the pet category. Much as humans expect personalized shopping experiences that cater to their specific needs, we are seeing them transfer this expectation to shopping for their pets.

Personalization in pet care is all about appealing to the shopper’s care and love for their fur babies.?

Across the Direct to Consumer space, there are many cases where brands use quizzes to find out more about the pet owners' specific needs. While this is less accessible on a product description page, there are other steps brands and retailers can take to replicate the experience to make it personalized.?

Starting out, a key and valuable part of the shopper experience is the ability to search and discover brands that meet their specific needs. Faceted search and filtering, as well as attribute labeling, are central to ensure a shopper can search for items that meet their needs. If a dog owner is looking for a gluten-free product, then having a gluten-free filter within the pet care category eases their shopping experience and makes products more easily discoverable.?

Another easy way brands and retailers can communicate specific attributes to shoppers who are looking for answers quickly is via attribute iconography. These visual icons are quick indicators for shoppers that products fall into the categories and specific needs they are looking for.?

Industry leaders like Target and Asda have begun to apply wellness icons across their websites and have even added specific pet-centric attribute icons to improve the pet shopping experience. These include things like "clean," "natural," and "organic" that appeal to shopper lifestyle choices but can also include attributes like "grain-free," "no artificial flavors," and more that resonate with shoppers or,?in this case, their pet’s dietary requirements.?

Consistent and effective iconography is at the early stages of implementation across the industry. It?provides the perfect opportunity for retailers and brands looking to improve the digital shopping experience and win the trust and loyalty of pet shoppers.?

The humanization of pet care provides immense opportunity for brands and retailers who stay on top of trends and innovate online experiences to meet shopper expectations. Personalized shopping experiences are the future of eCommerce and NIQ Brandbank is here to help companies on their journey to being the best on the digital shelf.

Find out more about about the key trends shaping the pet care industry in our full report in collaboration with Fountain Partnership here: