August 19, 2024 – Canadian pet owners have been navigating significant financial pressures over the past 18 months, leading to notable shifts in pet-related spending. According to a recent survey conducted by Packaged Facts in June 2024, 70 percent of Canadian pet owners report spending more on pet products than they used to, driven largely by inflation-related price hikes. However, nearly 40 percent of respondents have had to reduce their spending due to economic challenges exacerbated by the pandemic and ongoing price increases.
In 2023, Canadian retail sales of dog and cat food reached approximately US$3.9 billion, marking a two percent increase over 2022. This growth, however, was primarily due to rising prices rather than increased sales volume. Despite these financial strains, Canadian pet owners continue to prioritise their pets, valuing them as vital companions and family members. This heightened appreciation for pets’ roles in mental and physical well-being is driving a sustained willingness to invest in premium pet products and services.
“Pet owners are looking for products that will keep their pets happy and healthy,” notes Shannon Landry, Packaged Facts’ Pet Brand manager. “Many pet owners will go to great lengths to ensure their pets’ wellness, even if it means cutting back on purchases for themselves.”
The survey also reveals that 68 percent of Canadian dog and cat owners are willing to spend more on petfoods that offer additional health and wellness benefits. This aligns with ongoing ‘humanisation’ trends in the petfood industry, where consumers seek products resembling human food in quality and preparation. The fresh, gently-cooked petfood trend, which has gained significant traction in the US, is now making inroads in Canada. Freshpet, a pioneer in this category, is facing increased competition from smaller players like Tom&Sawyer. Retailers are also capitalising on this trend, as demonstrated by Pet Valu’s entry into the fresh petfood market with its Performatrin Culinary lie.
While Canadian pet owners are willing to spend on high-quality products, they are also becoming more value-conscious. Many are actively seeking out sales and participating in loyalty programs. Additionally, there is growing scrutiny over spending on veterinary and non-medical services, with the latter being the largest area where pet owners have reduced expenditures over the past year.
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