(June 2024)
For many consumers these days, not only does every dollar count, but it also seems that every dollar is stretched ever thinner. So while pet owners want to feed the very best to their dogs and cats, it is getting harder for some to meet that standard on a tight budget. The onus is now on pet food manufacturers and pet specialty retailers to provide a variety of price points in the food aisle, while not scrimping on quality.
Wade Nilson, chief commercial officer of Alphia, a private-label pet food manufacturer, said that the demand for quality ingredients and health-focused products is steady, but budget-friendly choices in particular are becoming more attractive. A variety of economic factors are impacting pet owners’ purchasing habits, and the industry needs to take note.
Pet Product News recently discussed the state of the food market with Nilson to find out more about what retailers and manufacturers need to know regarding evolving pet owner shopping patterns.
Pet Product News: Tell us a little bit about Alphia, the products it manufactures and its contributions to the pet food market.
Wade Nilson: Alphia is a full-service private-label pet food manufacturer. Our mission and vision are clear: We are devoted to nourishing and protecting pets by leading the industry with innovative capabilities that produce safe quality food. We strive to ensure pets receive the highest-quality nutrition and their needs are always met.
We have a coast-to-coast manufacturing network, including seven facilities, two ingredient-milling locations, and four warehousing and logistic centers, and we produce over a billion pounds of pet food and treats annually, including dog and cat kibble, baked treats and jerky treats. Specializing in the highest-quality ingredients, we source more than 2,000 ingredients to ensure we meet the requirements of our customers. Our expert R&D (research and development) and packaging teams work with our customers to partner from concept to shelf.
PPN: The humanization of pets in the past couple of decades undeniably set the stage for the premiumization of many pet product categories, particularly food. Now that we are moving into a “post-COVID” era while being plagued with various economical challenges—particularly, inflation—are consumers continuing to seek and purchase premium and super-premium products at the same rate as the early COVID days and prior? Or are pet owners seeking less-expensive food options?
Nilson: We’ve seen a noticeable shift in consumer behavior because of the various economic challenges, particularly inflation. As a result, some pet owners have been prompted to explore more budget-friendly pet food options. Nevertheless, the underlying demand for quality ingredients and health-focused products remains strong, indicating that pet owners are unwilling to compromise on the nutritional value and overall well-being of their pets. At Alphia, we share this commitment wholeheartedly and are dedicated to nourishing and safeguarding pets by making the safest, highest-quality food in the industry.
PPN: Aside from the economy, what other factors are impacting pet owner spending patterns in the food category?
Nilson: Pet owners are savvier than ever before when it comes to understanding ingredients and reading nutrition labels. We’re seeing a consumer preference for products with strict safety standards. Additionally, humanization is still very much on trend, which means that pet owners are more likely to seek out specific products that reflect the owner’s own dietary choices such as vegan, gluten free, etc.
PPN: In what other ways are these factors impacting pet owners’ food purchases?
Nilson: These factors impact the choices that pet owners make to ensure the products they choose meet their pet’s nutritional needs and align with their personal values and lifestyle choices. Consumers are on the hunt for brands that strike the balance between product quality and affordability. For manufacturers like Alphia, that means we need to prioritize innovation and double down on the health and safety standards that set our service apart.
PPN: How are these consumer spending trends shaping the pet food market?
Nilson: Manufacturers can’t become complacent—they need to adapt and evolve their offerings to stay competitive and keep up with consumers’ changing preferences. The goal is to provide a plethora of affordable, high-quality options while catering to diverse dietary needs.
PPN: What are a couple of key points that pet food manufacturers need to understand in order to best serve their brands and their retail partners, as well as the end user, the pet owner?
Nilson: For pet food manufacturers, it’s about focusing on a blend of quality, affordability and alignment with consumer values. Transparency in labeling, sourcing sustainable ingredients and providing a diverse array of products are some key factors to meeting consumer expectations. At Alphia, we value long-term relationships with our partners; this allows us to serve as an advisor to help our customers navigate industry shifts and bring innovative ideas to market.
PPN: What advice do you have for pet specialty retailers about how to meet the ever-evolving needs of their shoppers?
Nilson: Have an open mind to bringing in new types of ingredients and brands. Consumers expect a wide range of options at various price points so they can find the perfect product for their pets.