Baseline pet food confidence data
According to the survey conducted by Petfood Industry in late January/early February 2020. At that time, the novel coronavirus (not yet named COVID-19) was running rampant in China, with enough cases appearing in other countries that the World Health Organization (WHO) had declared the outbreak a public health emergency of international concern.
By the time we compiled and published our report from the first survey, WHO had declared COVID-19 a global pandemic, then spreading throughout Europe, the U.S. and many other regions, and resulting in severe economic downturns. Thus, the survey report seemed out of date, unfortunately – but did provide a good baseline for the future.
At that time, pet food professionals responding to the survey said they felt positive about current business conditions, with nearly 50% seeing those conditions as above average. These professionals reported optimism over continuing consumer demand, new product introductions, ingredients and technologies driving growth and expansion. In addition, almost 60% of respondents said they expected better business conditions in six months, and nearly 90% expected increased opportunities for growth and expansion. Global markets, e-commerce and additional distribution were the top reasons given for that optimism.
What’s the confidence level in the pet food market now?
Do people in the industry feel the same confidence and optimism now, after we’ve all been sheltering at home for at least two months and watching many economies continue to slide? And as pet food sales first soared, thanks to consumer panic buying, but then dropped in April and early May?
Another survey by Petfood Industry indicated that as of May 20, 51.5% of respondents reported that sales of their pet food and treat products had increased substantially (by double-digit percentages), with another 23% seeing single-digit percentage growth. Just 13.6% reported flat sales, and a combined 12.2% reported declining sales by single- or double-digit increases. Looking ahead, 42.4% of respondents said they expect their sales to continue to increase over the remainder of the year, with 35% expecting a leveling off and 23% expecting a decrease. One respondent did express concerns related to new product introductions and the state of pet retailing.
