Article Credit: Tony Uphoff Nov 11, 2019
67% of U.S. households own at least one pet, says the American Pet Products Association and that figure is growing annually. Considering pet owners spend an average of $1200 a year on their furry friends, it’s no surprise the pet product industry is worth an estimated $75 billion – and growing.
On the Thomasnet.com platform, sourcing for pet toys is up 59% year-over-year and 45% over its last quarter average, and sourcing for leashes is up 44% both year-over-year and over last quarter.
Taking a closer look, pet litter is up 39% year-over-year and 71% over last quarter. While not discussed often, the pet litter market is actually one of the fastest-growing segments of the pet industry and is valued at more than $2 billion. But because of the product’s weight, it’s particularly challenging to ship – a logistics problem further complicated by the rise in pet-related e-commerce purchases. Big-name pet brands are investing heavily to develop new logistical solutions and expand their production networks.
In other pet sourcing trends, pet food is up 21% year-over-year and 70% over its last quarter average. As consumers redirect their food spending toward more health-conscious options, they’re taking the same approach with their pets by purchasing new, clean-label products. Since the pet food market is worth over $25 billion, national pet food manufacturers are watching this shift closely.
In this week’s sourcing spotlight, we’re looking at an underappreciated but widely used tool – the humble shopping cart. While online grocery shopping options have been getting a lot of attention lately, they actually only account for less than 5% of the $743 billion U.S. grocery market. In fact, brick and mortar grocery stores are in the midst of a resurgence – new grocery store openings are up 30% according to a new report from JLL Retail. Sourcing for shopping carts is up 67% year over year and 39% over last quarter as brands equip their new stores for incoming customers.