Pet Obesity Causes and Product Differentiation Opportunities in the Pet Food Industry

Abstract

Growth in pet obesity levels and demand for health and wellness focused pet food creates opportunities for pet food companies to capitalize on the rising profit potential through product differentiation. Lessons from the human food industry indicate that the weight management segment of the market tends to grow fast and is characterized by high product differentiation and premiumization. Despite the recent rise in pet health and obesity studies, literature translating findings to actionable management and marketing insights in the pet food context is significantly underdeveloped. This paper bridges the agribusiness management and pet food economics literature by generating insights for informing product innovation, design, and marketing strategies of pet food companies aimed at promoting healthy weight in pets. Econometric analysis of cross-sectional data from a survey of 1173 dog owners suggests that opportunities exist for potential pet food differentiation through physical changes, perceptual changes, and associated service changes in the pet food market related to handling pet obesity. Findings highlight the potential of low-calorie and breed-specific product formulation, pre-package product design, and consumer education through conventional and digital media. The management implications and actionable insights are discussed to inform product development and marketing strategies in the context of the fast-growing pet food market.