It is estimated that dog and cat ownership in the US has increased by at least 25 million since the start of the pandemic. Some sources highlight that the total number of pets reached 169.5 million in 2022, most of them by Millennials
Stifel forecast that American pet food manufacturer Freshpet is likely to gain a “significantly higher proportion” of new users relative to their overall market share. In the next five years, the market research firm believes that the company could increase its household penetration and buying rate.
“We see the development of new brands, concepts, and categories as continuing to support growth and premiumization of the category – fresh food, frozen food, supplements, direct to the consumer”, explained Stifel.
The largest pet food brands in the US continue to win the greatest market share. According to the research, General Mills, Nestlé, and Mars generated the majority of the growth over the past several years.
Stifel believes that Purina is the best option for investors, maintaining its buy ratings. “We believe its premium multiple is justified by its superior positioning, management, and execution, which should help it to grow ahead of peers and restore margin faster once inflationary pressure eases,”
