Inflation has hounded the pet care category since 2022, but recent months show a rebound in dollar sales and volume at pet stores, driven by e-commerce, value brands, and increased promotional support.
What does this mean for pet retailers going forward? Pet owners are interested in high-quality products for less money, presenting opportunities for private brand rollouts. Additionally, strategic promotions and social media engagement can help stores keep stock moving for high-end national or boutique brands.
Analyzing 2024 sales and unit volume performance compared to the year before, NielsenIQ (NIQ) data highlights mostly stagnant results, such as:
- Pet food sales grew 1.1 percent and unit volume increased by half a percent.
- Pet care dollar sales increased by 0.1 percent, with units holding steady.
- Pet supplies sales decreased by more than 5 percent in dollar sales and 6.7 percent in volume.
However, as pet retailers battle back against inflation and survey areas of growth, opportunities — and challenges — remain. Notable areas to consider include private label expansion, social commerce and a return of the Bird Flu.
Innovation in Private Brand Pet Supplies
Major pet retailers tend to thrive on private brand rollouts for their higher profit margins, and NIQ data discovered that conventional pet retailers were up nearly 2 percent in sales of private labels in 2024, compared to the year prior. Conversely, specialty pet retailers saw a dip in sales of their owned brand products.
However, private label has a role in the specialty pet store arena, as private labels represent a larger percentage of the independent retailer market (18 percent compared to 16 percent at larger conventional pet chains). The reality is that consumers trust independent pet retailers so they seek private brands at their local stores. Also interesting, pet supplies, which saw a significant drop in year-over-year sales, are products that perform well in the private label category. Store brand products make up 32 percent of the pet supplies category. Comparatively, private label pet food is only 9 percent of the pet food category.
For specialty retailers, a rise in the development of more innovative private brand pet supplies items could spark new business for the retailers.
Social Commerce and E-Commerce is Exploding
Another area of interest for all pet chains: TikTok.
According to NIQ results, pet sales exploded on TikTok in 2024, especially in the supplies category where pet owners found inspiration in water bowls, scoopers, toys and more. In fact, sales of supplies on TikTok reached $158 million in 2024, up 93 percent from the year before.
Pet stores rely on building relationships with their local consumer base, so having a social media presence could benefit that engagement. Partnering with brands selling on TikTok can potentially drive further connections to beef up sales and traffic.
At the same time, pet owners are seeking to shop online more than before. U.S. online sales grew nearly 9 percent in 2024 in the pet care categories, representing 40 percent or $84 billion. By comparison, brick-and-mortar stores saw a nearly 2 percent dip in pet care products.
Bird Flu Returns: A Challenge to Consider
While pet retailers look to gain better footing in the market, a new challenge is on the horizon with the return of the Bird Flu. As of April 2024, the U.S. has seen 70 reported cases of the 2025 H5N1 Avian Influenza, a variant of the same 2021 Bird Flu strain that impacted the pet industry years ago.
All 50 states, as well as 659 other countries, have reported cases, and dairy herds and poultry farms are the leading targets. The threat against the farms directly impacts the pet food supply chain from direct-to-consumer products to ingredients used in other items.
NIQ data shows that chicken is the leading protein used in pet foods by flavor, representing nearly 40% of the dollar share of other proteins used. For context, beef comes in second, representing 13 percent of the dollar share in pet food and treats products.
As of late February 2025, NIQ reported that sales of poultry pet food products were down by $75 million compared to the year prior, showing the Bird Flu’s impact on Q1 2025.
More than 70 percent of dog and cat pet owners purchase chicken-based products for their pets, so the market is sizable. Beef, lamb, salmon, turkey, and multi-flavored products will grow, as shoppers seek a replacement for chicken products. Indie pet retailers should prepare to seek opportunities in those new flavors.
Pet Retailers Look to Rebound
The unpredictable nature of US-driven tariffs and continued economic uncertainty will challenge pet retailers. Still, the organizations can power more sales and move more products by following recent trends.
Private brand pet supplies, new non-chicken flavored protein products and a lively social commerce presence are areas to consider. Retailers hold a powerful, intimate connection with their shoppers. Following the data — and continued innovation — can boost business through a tough time.
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