In the pet market, “premium” products are becoming increasingly popular. This premiumization of products have been a trend for over 10 years according to a Packaged Facts’ report. While the pet market has not been experiencing large growth in terms of money spent the gains it has seen are primarily due to the availability of high priced, high quality products according to Packaged Facts Research Director, David Sprinkle.
Sprinkle said, “Absent any other galvanizing factors toward increased pet ownership, ongoing premiumization is crucial if pet market dollar sales are to continue to rise." So what makes a product “premium”? Premium products contain special nutraceutical ingredients, use “human-quality” ingredients, and follow human food trends such as the use of superfruits, ancestral grains, and exotic proteins.
Nutraceutical treats are becoming more popular and this trend has been linked to the “graying” of the pet population. Many treats contain supplements that claim to improve pet health and minimize discomfort.
Naturally, premium products cost more than standard brands. According to Packaged Facts, standard brands often have a 20% markup while premium brands average 30% markup, and super premium foods can reach 40% markup. Consumers are often willing to spend more money for premium products because they claim to offer multiple benefits (for example, treats that help health conditions).
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