Consumers are turning more and more to natural pet food and other organic products. By 2006, 98% of the US buying public reported purchasing a natural product, and 60% reported buying organic, says Information Resources Inc. (IRI). Those consumers who are also pet owners seem to be extending their purchasing habits to their pets’ dietary needs.

According to Packaged Facts, sales of natural petfood in the US reached US$1 billion in 2007. This figure represents 6% of total US petfood sales and a whopping 50% total growth, or a compound annual growth rate (CAGR) of 25%, since 2003. Packaged Facts projects the segment to grow another 16% CAGR by 2012, increasing to more than US$2 billion.

In its report Natural, Organic and Eco-Friendly Pet Products in the US, released in October 2007, Packaged Facts says US sales of organic pet food have also increased at booming rates: 55% over 2006 and 48% CAGR since 2003. While still less than .5% of the total US petfood market, 2007 organic sales ended up at US$67 million, according to data from the Organic Trade Association. Packaged Facts projects that number to increase another 23% CAGR by 2012 to US$188 million.

Dog Food Recalls

Besides growing consumer interest, Packaged Facts attributes these sales increases to other factors including:

* Continuing fallout from the 2007 US petfood recalls;
* Large petfood companies introducing natural dog food in addition to ones from specialty marketers;
* The number and type of retail outlets carrying natural and organic products is expanding.

“Heightened consumer concerns over petfood safety stemming from the recalls in spring 2007 will keep consumer interest in natural and organic pet food high in the months and years ahead,” predicts David Lummis, senior pet market analyst with Packaged Facts. “Looking across the hundreds of products directly involved in the recall, it cannot be chalked up to coincidence that almost all organic and high-grade natural petfoods were spared.” He says the few natural products that were recalled fell victim to cross contamination rather than actually containing tainted ingredients, though he acknowledges exceptions such as Nutro products.

Though some petfood manufacturers point to a lack of scientific proof that natural and organic products are indeed healthier or safer, Lummis emphasizes that many natural pet foods and virtually all organic ones contain higher-quality pet food ingredients and are produced in more closely monitored environments. In many cases, this is simply because the companies and production batches are much smaller, he adds.

According to Packaged Facts, other product categories benefiting from the recall fallout include raw/frozen, refrigerated, homemade, 100% US sourced and locally grownmany of which also bear pet food labeling and marketing claims of natural or organic.

Sales of natural pet food in the US reached US$1 billion in 2007.

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