Amazon continues disruption of pet food segment
May 9, 2018
by MEAT+POULTRY Staff
Search for similar articles by keyword: [Amazon
ROCKVILLE, Md. – Stakeholders of all sizes in the pet products segment are feeling the Amazon effect, and they are unlikely to feel relief any time soon, according to a report by market research firm Packaged Facts.
In its “Amazon Strategies and the Amazon Shopper” report, Packaged Facts expects sales of pet products through Amazon to continue to grow with the launch of the online retailer’s private-label Wag brand of dry dog food that is delivered via Prime. Amazon’s sales of pet products reached $2 billion, a 40 percent increase from 2016.
Amazon is the leading online pet product retailer, according to Packaged Facts. In its “US Pet Market Outlook, 2018-2019,” Amazon led the pack of websites for pet product purchases garnering 55 percent of those who purchased pet products online, followed by Chewy at 26 percent, PetSmart at 19 percent, Petco at 17 percent, and Walmart/Sam’s Club at 14 percent.
“Pet products are among the fastest-growing online retail categories and Amazon is leading the way,” said David Sprinkle, research director for Packaged Facts. “The scariest part for competitors is that recent news indicates the e-commerce juggernaut is still coming on strong and unabated in the US pet industry, reaffirming its commitment to pet products and now pet food.”
Amazon’s Wag joins the online retailer’s list of private-label brands in more than 70 markets available for purchase only by Amazon Prime members. The product slightly undercuts the price of similar meat-first, grain-free premium brands such as Blue Wilderness although it is priced to compete in the premium dog food segment, according to Packaged Facts.
“Competitors received a foretaste of Amazon’s growth strategy in the pet market not long after the company’s acquisition of Whole Foods,” Packaged Facts noted. “Following the acquisition, Amazon quickly began offering Whole Food’s Whole Paws pet food online.”