Fri. Dec 14th, 2018

Online Pet Food Category Report – Q1 2016

By Andrew Won

 

blue

Blue Buffalo overtook #1 in share – Specialty brands dominate the online market

 

Top 10 Brands by Sales $ – Q1 2016

1.       Blue Buffalo – 12.3%

2.       Wellness – 9.0%

3.       Hill’s – 7.5%

4.       Purina – 7.2%

5.       Royal Canin – 6.8%

6.       Taste of the Wild – 6.6%

7.       Natural Balance – 4.7%

8.       Orijen – 3.5%

9.       Merrick – 3.4%

10.   Fromm – 2.6%

 

In Q1 2016, Blue Buffalo was the #1 pet food brand sold online, moving up from #2 in Q1 2015. An interesting characteristic of the online pet food market is that consumers tend to favor specialty brands online, as 9 out of the top 10 brands produce specialty pet food. In Q1 2015, Wellness was the #1 selling brand, followed by Blue Buffalo and Taste of the Wild. In Q1 2016, Blue Buffalo has captured enough market share to become the #1 selling brand, with Hill’s and Purina also growing their share year-over-year.

 

Chewy.com is the leading e-commerce pet retailer

 

Top 10 Sites by Sales $ – Q1 2016

1.       Chewy.com – 40.5%

2.       Amazon.com – Direct – 23.5%

3.       Chewy.com – Subscription – 10.2%

4.       Amazon.com – Subscription – 7.6%

5.       Petfooddirect.com – 5.7%

6.       Amazon.com – Market – 3.6%

7.       Petco.com – 3.1%

8.       Petsmart.com – 2.2%

9.       Petflow.com – 1.7%

10.   Walmart.com – 0.7%

 

There are two retailers who account for approximately 80% of the pet food sales online in Q1 2016 – Chewy.com and Amazon. Chewy is #1 accounting for over 50% of the category sales in Q1 2016. Amazon is #2 with approximately 35% of the category sales with their Direct and Marketplace channels combined.

 

Subscription sales have nearly tripled year over year

 

Consumers have really embraced the subscription model when it comes to purchasing pet food online. Have you ever carried a 30-lb bag of pet food from the store? It’s a product that is much more convenient to have delivered to your doorstep. Subscription sales at Chewy and Amazon have nearly tripled from Q1 2015 to Q1 2016. Of the two sites, subscription sales now account for 22% of total sales, up from 15% last year.

 

Top 10 Converting Brands – Q1 2016

1.       Taste of the Wild – 11.4%

2.       Merrick – 10.5%

3.       Natural Balance – 10.4%

4.       Wellness – 10.0%

5.       Blue Buffalo – 7.4%

6.       Purina – 6.5%

7.       Royal Canin – 6.4%

8.       Hill’s – 6.1%

9.       Orijen – 5.8%

10.   Fromm – 5.5%

 

The top-converting pet food brand online in Q1 2016 is Taste of the Wild with an 11.4% conversion rate. Merrick came in 2nd with a 10.5% conversion rate, followed by Natural Balance, Wellness, and Blue Buffalo. Surprisingly, Taste of the Wild – the #6 selling brand – has a 1.5x higher conversion rate than the #1 selling brand Blue Buffalo. A high conversion rate suggests that people who view Taste of the Wild’s product have a high likelihood of purchasing the product. With this intelligence, Taste of the Wild can invest resources in generating more product views in order to achieve incremental sales.

 

Curious about what’s driving growth in the Pet Food category? What are the keys to being a winning brand and retailer in the online space? If you are interested in understanding online market share and sales drivers for your category, feel free to reach out.

Methodology

1010data utilizes a number of sources of consumer spending data representing millions of consumers to provide an accurate assessment of online and offline retail sales and market share. Our data enables clients to track consumer behavior using high-quality, granular datasets that are often difficult to source, cleanse, and consolidate.

 

New video podcasts

 

Some of our best podcasts from the last six years and selected new podcasts are being produced onto a video format to enable easy sharing and access, and will be posted very soon!

%d bloggers like this: