SIC 2047 Dog and Cat Food

Contenidos

• NAICS CODE(S).
• INDUSTRY SNAPSHOT.
• ORGANIZATION AND STRUCTURE.
• Regulation of the Pet Food Industry.
• Sales Outlets/Product Distribution.
• BACKGROUND AND DEVELOPMENT.
• CURRENT CONDITIONS.
• INDUSTRY LEADERS.
• AMERICA AND THE WORLD.
• FURTHER READING.

SIC 2047

This industry consists of establishments primarily engaged in manufacturing dog and cat food from cereal, meat, and other ingredients. These preparations may be canned, frozen, or dry. Establishments manufacturing feed for animals other than dogs and cats are classified in SIC 2048: Prepared Feeds and Feed Ingredients for Animals and Fowls, Except Dogs and Cats.

NAICS CODE(S)

311111

Dog and Cat Food Manufacturing

INDUSTRY SNAPSHOT

Retail sales of pet food exceeded $13 billion in 2004, in a total pet industry worth more than $34 billion. A survey done by the NPD Group in 2002 indicated that a vast majority of U.S. households had at least one dog or cat as a pet. Researcher William A. Knudson reported in 2003 in The Pet Food Market that there were more than 350 million pets, representing 62 percent of all U.S. households in 2004. Next to freshwater fish in aquarium tanks, dogs and cats are by far the most common pets.

U.S. demographics help explain Americans' fascination with, and pampering of, the family cat or dog. It has long been the case that family households with children represented the largest sector of dog or cat owners. Indeed, 84 percent of U.S. pet owners acknowledge that they regard their pet as a member of the family. According to the Mintel Information Group, 83 percent of pet owners refer to themselves as "mommy" or "daddy" to their pets, and nearly 60 percent celebrate their pet's birthday. A majority of households without children, as well as a modest majority of the singles population, also had at least one dog or cat as a pet.

Enhanced status as family member for a pet is commensurate with care, affection, and attention. "More and more people consider and treat pets like children, and increases in spending reflect that trend," Bob Vetere, managing director of the American Pet Products Manufacturers Association, stated in a 2004 USA Today article. The article also noted that the pet industry doubled in size between 1994 and 2004. This is palpable in the growth of high-end, diverse, and healthier pet foods.

ORGANIZATION AND STRUCTURE

The dog and cat food segment of the pet food industry is comprised primarily of two types of firms. One is the large, general manufacturer producing a variety of dog and cat foods along with other types of feed and/or food for humans in other divisions or subsidiaries. The other type is the specialty firm that exclusively produces pet food, which is usually health-related or specialized in some way. Traditionally, the general firms sell their product in grocery stores while the specialty firms sell their products through veterinary offices or specialty stores.

The pet food industry is subject to federal and state regulation. In 1958 the manufacturers of pet food formed the Pet Food Institute (PFI), a national trade association. PFI acts as a spokesman for the industry before the various regulatory agencies and bodies, sponsors research, represents the U.S. industry in international meetings, and works on uniform standards for pet food. PFI worked with the...