We love our pets. We truly do. They’re furry and soft and show their love for their people (except for cats). But the costs to keep them healthy is increasing. Between veterinarian bills, food, insurance, toys and more, the costs just seem to build. One of the largest recurring costs is food. Over the last three years, pet food prices have increased more than 23%. That’s a big part of the monthly consumer budget and spending.
Last year, Americans spent more than $64 billion on pet food alone! And this year’s spending is expected to grow by another 4%. More than 40% of pet owners also want their pets to eat healthy.
As a result of the price increases, more consumers are searching for bargain brands instead of big brand labels when shopping for pet food. Savvy companies such as Post Consumer Brands and General Mills have purchased different pet food companies over the years to gain products at different price points.
According to research by CashNetUSA, the most expensive country for feeding dogs is Japan at $2,056 annually, while in the U.S. feeding a dog is roughly $865/year (still pretty expensive).
In the U.S., the average dog owner will spend more than $28,800 over the pet’s lifetime. The most expensive state for pet costs is California (at $35,452/lifetime) versus Oklahoma as the least expensive (at $24,855). No wonder consumers are searching for lower-cost options!
According to a survey of 1,000 dog owners nationwide, 91% of people have experienced some degree of financial stress related to the cost of pet care. Roughly 66% of people state they have cut back on personal spending in response the increased costs.
How much do you spend on food for your fur baby?
Group Activities and Discussion Questions:
- Poll students: Who has a pet? How much do they spend on pet food each month?
- Show the chart of global expenses for feeding a dog: https://www.petfoodindustry.com/pet-food-market/news/15662748/study-reveals-the-cost-to-feed-your-dog-in-every-country
- Show the chart of dog expenses in each U.S. state: https://www.marketwatch.com/guides/pet-insurance/cost-of-owning-a-dog-study/
- Show results from survey of 1,000 dog owners: https://www.usatoday.com/money/blueprint/pet-insurance/cost-of-pet-ownership-2023/
- Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
- Review pet food brands. What products are competitors?
- Divide students into teams and have each team develop a positioning map for one of the pet food brands.
- Next, for their team’s brand, have each team select three different tactics. For each tactic, explain why it was selected and how it will be used.
Source: Cleaver, L. (24 January 2024). Study reveals the cost to feed your dog in every country. PetfoodIndustry.com; Gollub, H. and Lobb, J. (21 February 2024). Survey: 91% of dog owners have experiences financial stress over the cost of pet ownership. USA Today; Johnson, B. (23 May 2024). Costs keep rising to feed the fur babies. Minneapolis Star Tribune; Wallace A. (22 March 2023). Price hikes are double whammy for pet owners who are crushed by inflation. CNN Business.
