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6 ways urbanization influences global pet food industry

In 2007, more than half of Earth’s human population lived in urban areas for the first time. Urbanization continues, with more than a billion more people now living in cities and suburbs than in rural areas, according to United Nations Population Division figures presented by Our World in Data. People brought their desire for pets with them as they moved to cities, but changed some of their companion animal ownership preferences. For example, pet owners worldwide have trended towards smaller dogs and cats that work better with smaller living spaces in urban environments. This in turn influences the pet foods and treats that owners buy. In October 2022, market analysis group TGM Research surveyed 15,000 of Earth’s 8.1 billion people in 40 nations about pet ownership. Although regional differences emerged, six trends emerged as effects of human urbanization on pet keeping.

Urbanization and pet ownership

Social Trends and Pet Humanization

“In urban areas, trends like pet humanization can take hold more rapidly,” Thuyen Vu, chief marketing officer, told Petfood Industry in an email. “According to our report, a significant 59% of consumers globally now recognize their pets as part of the family, while 22% consider them as friends, and 16%

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Refocused pet food portfolio paving the way for Smucker’s growth

ORRVILLE, OHIO — The JM Smucker Company shared its financial results for the third quarter of its 2024 fiscal year ended Jan. 31, detailing a significant drop in sales for its pet food division. However, the company’s Meow Mix and Milk-Bone brands both witnessed double-digit growth over the quarter, demonstrating Smucker’s success toward reshaping its pet food portfolio.

For its US Retail Pet Foods segment, Q3 2024 net sales significantly dropped 39% to $465.20 million. Comparable net sales, which excludes Smucker’s divestiture of several pet foods brands, increased $79.10 million (20%). The company attributed this to an increase in volume/mix driven by Meow Mix, co-manufacturing sales related to the divestiture, and growth in Milk-Bone.

Segment profit increased by $500,000, maintaining relatively flat at $109.50 million due to higher net price realization, favorable volume/mix, lower costs from the divested brands, and increased distribution costs.

“Our pet segment results this quarter continue to highlight the benefits of focusing on brands and categories where we have a leading market share position and divesting brands where we did not,” said Mark Smucker, chair of the board, president and chief executive officer. “Profit margin improved significantly versus the previous year, driven by product mix, and

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Hill’s Pet Nutrition reports net sales up, operating profit down

Hill’s Pet Nutritiona division of Colgate-Palmolive, recently released its financial results for the fourth quarter (Q4) ended December 31.

Net sales for Hill’s Pet Nutrition totaled $1.11 billion, up 5% from $1.06 billion in the fourth quarter of fiscal 2022, the company reported. Operating profit was $231 million for the segment, down slightly from $233 million in fiscal 2022 in Q4.

Organic sales for the fiscal year demonstrated a robust growth of 10.5%, with pricing increasing by 11%.

Reported volume was down 4% reflecting the impact of lower private label volume, said the company. Organic sales exhibited a growth of 4.5%, with pricing rising by 8.5%. Organic volume, however, experienced a 4% decline during the quarter. The decrease in volume was attributed to lower private-label pet food volumes.

Hill’s Pet Nutrition’s operating profit represented 20.7% of net sales in the fourth quarter, down 130 basis points year-over-year.

The company noted the decrease in operating profit as a percentage of net sales was primarily due to significantly higher raw and packaging material costs, increased advertising investment and startup costs associated with a new manufacturing plant, partially offset by higher pricing and cost savings from the company’s funding-the-growth initiatives, noted the

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Meal delivery service launches ButcherBox For Pets

ButcherBox, a direct-to-consumer meat and seafood brand, has announced its move into the pet space through their ButcherBox For Pets line of dry food, treats, and hip and joint supplements for dogs.

Mike Salguero, founder and CEO of ButcherBox said the ButcherBox For Pets line was developed within the clinical vet environment with the same high-quality standards as ButcherBox by sourcing humanely raised, sustainably sourced beef and chicken that is never given antibiotics or added hormones.

“What we’ve learned in this process, is that most food or meat companies do not want to put their branding on the label of the pet food, or treats, they are selling,” said Salguero. “We are proud of the work we’ve put into sourcing high-quality, humanely raised meat for this line of products and we want consumers to know that by seeing our brand front and center on the package means they can trust where and how it was sourced.”

While ButcherBox For Pets treats and hip and joint supplements have been available exclusively to ButcherBox customers for the last year, with sales for those products reaching $750,000, this rollout marks the complete line as well as a new way to purchase on the

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