The DTC market is growing exponentially in the pet food industry

The rise of e-commerce platforms and the growing preference for personalized food options are some reasons why this market sector is growing, but they are not the only ones.

Current situation

In 2022, the global DTC pet food market was valued at $2.1 billion. Now, it is estimated that, by 2032, it will reach a CAGR of 25.1%, driven by both physical and online retailers, known as omnidirectional sales or channels.

The most recent data states that, from the hand of NielsenIQ Discover Omnisales, the United States pet industry accumulated $77.5 billion in 2022. 38% of sales came from exclusively online retailers, while 62% corresponded to sales only from physical stores. These numbers indicate that the portion of online sales continues to increase constantly, having already gained 1.8 points in 2022.

Why is the DTC sector increasing in pet food?
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DTC offerings provide direct access to both pet food and care products, often on a more targeted basis, improving the overall consumer experience. That is why this market is currently distinguished by the appearance of niche and premium brands.

Without a doubt, one of the key factors that allowed the development of this portion of the market are e-commerce platforms and digital marketing, which have grown exponentially since the start of the pandemic in 2020. Furthermore, the truth is that business owners of Pets are increasingly looking for convenient and hassle-free ways to purchase quality pet food.

Regions like Asia are a little further behind in development, compared to North America, for example. This portion of the American continent is currently the largest market for DTC pet food. This is because it has a solid online commerce infrastructure, as well as established brands that specialize in sales of this type.

4 keys to your growth

• Personalized nutrition

Most DTC-focused pet food brands are focusing on offering more than personalized nutrition options based on age and breed, such as specific meal plans.

Humanization is also leading to a change in consumption, which now focuses more on the willingness to pay for small lots. According to NielsenIQ, this will bring an increase in DTC fresh/frozen sales of up to 4 times their current value.

• Personalized attention

Personalized attention is one of the most important reasons why people choose this type of purchase. This not only means 1:1 care, but also includes drop-shipping, convenience pickup, and subscription models that alleviate the responsibility of reviewing when to replenish products. This convenience-oriented approach ensures a constant supply and simplifies the purchasing process, which is highly appealing to pet owners.

• Transparency and trust

Pet owners are increasingly seeking more transparency in the brands they choose for their pets. Companies are seeing this as an opportunity in DTC sales as a way to prioritize transparency and provide information to increase the loyalty of those who choose their products.

• Sustainability and environmental care

The direct-to-consumer model allows direct participation and feedback from customers, and, in terms of sustainability responsibility, this type of sales offers alternatives such as the return of recyclable packaging, a product replacement system in the same reusable packaging, and more options that encourage those most interested in the environment to choose it.

According to Nielsen research, responsible, ethical and local sourcing, and biodegradable packaging are the most influential factors when considering a sustainable brand. Additionally, DTC packaging must be durable enough to withstand the rigors of logistics and handling.

A way to be close

Generally speaking, it is not an exaggeration to say that the pet product market is becoming increasingly omnichannel. This opens the doors for brands to find new opportunities and connect with consumers in much more loyal and lasting ways. By merging digital and physical presence, brands can increase their reach across retailers with marketing and strategic partnerships that bring them closer to their goals.

Source: All Pet Food Magazine