ATLANTA — Coming off a few significantly strong years as a result of COVID, the pet food industry has now stabilized to normal levels, creating shifts in demand and sales. Michael Johnson, principal of consumer strategy at BSM Partners, shared this during the American Feed Industry Association’s (AFIA) 2025 Pet Food Conference on Jan. 28, detailing how the market has changed and how pet food processors can better meet evolving consumer trends.

“We had a few really, artificially inflated years between 2020 and 2022 that kind of made us a little ‘fat off the hog,’ if you will,” Johnson said. “Then we’ve slowed down over the last couple of years as we come back to reality… The average consumer today doesn’t know if the economy is good or if it’s not good. All they know is what they’re comfortable spending on, and what they’ve learned over the last couple of years is they can really adjust their spending when they have to. And we’ve seen a lot of that in pet and that’s why the market has been a little bit different than it has been. 

“That said, the market is still very, very strong,” he added. “The dynamics of the marketplace are great. The pet population is still growing, people still want to own pets, and people still want to spend on pets, so this market will continue to be strong.”

According to Johnson, nearly two-thirds (87 million) of US households own a pet, and consumer spending on pets has risen, following housing, food and gas. 

Michael Johnson, principal of consumer strategy at BSM Partners, presenting during the AFIA 2025 Pet Food Conference. 

| Source: Sosland Publishing Co.

To stay successful in this strong market, companies must overcome several hurdles including high competition and market saturation, lack of consumer awareness and education, continued supply chain disruptions, a tough labor market, consumer concerns about animal welfare and sustainability, and the critical impact of recalls, which have evolved from impacting individual brands to damaging the entire industry. Processors will continue to battle these challenges, well into the future. 

Trust comes with understanding

Trust is critical for today’s consumers as they become increasingly concerned about how their pet’s products are made and what ingredients the formulas contain. According to data shared by Johnson from BSM Aperture, 93% of consumers believe pet product companies should be more transparent regarding their supply chain and production methods. Additionally, when it comes down to ingredients, 77% of consumers want to know what the ingredients in their pets’ products are and 73% want to know where the ingredients come from. 

When it comes to marketing and advertising, majority of consumers are concerned about misleading advertising in pet products. According to BSM Aperture, 79% of consumers occasionally or often feel pet product advertising is misleading and 82% believe there should be more regulations in the pet food industry to ensure labels are honest and accurate. 

Speaking of regulations, consumers are also concerned about the safety and nutritional value of their pets’ food. Seventy-six percent of consumers believe there should be more regulations in the pet food industry to ensure product quality and safety, and 75% believe there should be more regulations to ensure products are nutritious, according to BSM Aperture. 

“Pets are extremely important in [consumers’] lives, but they don’t understand everything that the people in the marketplace are doing,” Johnson explained. “You know far more about what you’re doing in the world of pet than the consumer knows about what you’re doing in the world of pet. So, what are you doing to make them feel good about it? We can do a lot better, and we have to do a lot better.”

Through its marketing efforts, Johnson revealed the industry is failing at educating consumers as only a fraction understand certain product claims:

• 49% understand what “traceable supply chain” means
• 43% understand “regenerative agriculture”
• 40% understand “biologically appropriate”
• 39% understand “ancestral diet”
• 38% understand “upcycled ingredients” 
• 37% understand “fermented ingredients” 
• 36% understand “microbiome” 
• 32% understand “bioavailability”

And even less understand what specific ingredients are and why they’re important to pets:

• 35% understand novel proteins 
• 35% short-chain fatty acids 
• 34% L-carnitine 
• 34% post-biotics 
• 32% taurine 
• 30% hydrolyzed proteins 
• 29% DHA/EPA
• 25% Beta-glucans

“Consumers are not smart, not at all. I don’t say that as a denigrator, that’s just how it goes,” Johnson said. “… How are we helping them better understand things? Yes, we only want to do the absolute best thing for pets and that requires different ingredients and novel ingredients and other formulations — but how do we dumb it down? How do we help them understand the value they’re getting? How do we help them understand the safety they’re getting? 

“We are at a point of complexity in pet marketing that consumers can’t grasp,” he added. “A study by the USDA said most consumers do not understand differences in marketing and label claims… They have to get it, they have to trust it, they have to believe it before they pick it up.”

Future demands

As most in the industry know, trends in the human space often make their way into the pet space, from functional nutrition to health-monitoring technology (think smart watches turned smart collars). In line with this, Johnson shared several human trends that the industry should keep tabs on, including the rising interest in self-care, mental health and in-home testing.

Additionally, human food trends like farm-to-table, food as medicine, home-cooking, plant-based foods, alternative proteins, fermented or gut-focused foods and others are expected to continue making their way through the pet food industry, especially as today’s pet owners continue to prioritize their pets’ health and wellbeing — and, at times, putting it above their own. 

Pulling out the figurative crystal ball, Johnson provided a brief look into the next five years of consumer trends in the industry. When asked “How would you like to see the pet industry change in the next five years?” consumers desired better affordability, greater transparency and ethics, more innovation, and more truth and less marketing. 

Clearly, marketing and advertising have gained widespread distrust and scrutiny from consumers, as evidenced by its overt complexity. When asked, “What changes would you like to see in the way pet products are marketed and sold?” consumers want more honest advertising, better product education, a greater focus on health benefits, and more sustainable options. 

Actions to take

With all these insights in mind, Johnson highlighted what the pet food industry can do to keep their paw in the market. But first, he shared the importance for brands to understand their consumer, not just overall pet parents. 

“In the industry, we call these people blanket ‘pet parents,’ which is the lamest, laziest piece of marketing,” he explained. “… If you are not innovating to a specific consumer, you’re missing the target, and you may be wasting a whole lot of money. So, know your consumer and know what your consumer actually values.”

With this in mind, companies seeking to stay competitive in the market should focus on increasing product safety, nutrition, value and ease; innovating with consumer needs top of mind; educating consumers and making marketing more truthful and clearer; embracing transparency, sustainability and ethics; and fully leveraging technology to its fullest extent. 

Additionally, Johnson highlighted the critical importance of branding. With such a highly saturated market, consumers have unlimited choices and will easily switch brands as they choose depending upon price, convenience, accessibility and other factors.  

“The pet industry is a very me-too industry,” he shared. “If a trend catches on, everybody jumps on that train; whatever is hot we all want a piece of it… There’s nothing that another company in pet cannot take from you, except who you are… Brand is kind of your defense against that. Brand is the meaning, brand is I know you and what you stand for, and you stand for the same things that are important to me. So, you may be more expensive, may be harder to get or more confusing in your marketing, but I know you, I trust you. 

“Your brand will carry you across the finish line, make sure the consumers understand what you stand for,” Johnson added. “Make sure that consumers understand that brand because they have numerous opportunities to buy different pet products in this marketplace.”

Read more of our coverage from the 2025 Pet Food Conference.