The Current Economic Landscape of the Pet Food Industry: The Consumer Story

Tuesday, December 8 · 10:00 AM EST

This presentation examines the U.S. pet market which has grown from $91 billion in retail sales in 2018 to $157 billion in 2025, with pet food and treats making up the largest segment at $67.8 billion and exports reaching $2.44 billion. Drawing on national surveys of more than 1,000 U.S. pet owners, the presentation shows that most owners see their pets as family and rely most on their pet and veterinarian when choosing food. Ingredients and safety drive purchase decisions, and current purchases center on high-protein, digestive-health, and Made in USA claims. Sustainability ranks low as a top attribute but still carries measurable value, with animal welfare claims such as certified animal welfare ($1.34/lb) earning higher willingness to pay than environmental claims. The central message is that firms should not simply add attributes but deliver attributes that consumers understand, value, trust, and will pay for.

Dr. Lonnie Hobbs, Jr. is an Assistant Professor of Agricultural Economics at Kansas State University and a researcher specializing in pet food economics, consumer demand, and agribusiness strategy. His work focuses on understanding how evolving consumer values, particularly around sustainability, premiumization, ingredient sourcing, and product claims, shape purchasing behavior and market positioning in the global pet food industry. Dr. Hobbs also conducts applied research on product demand, willingness to pay, protein sourcing strategies, and supply chain innovation, with recent projects examining consumer perceptions of functional ingredients and sustainability. His research integrates advanced demand modeling with practical industry insights to help firms navigate shifting market dynamics and competitive pressures. Dr. Hobbs teaches courses in food and agribusiness marketing and commodity futures at Kansas State University and holds a B.S. in Agribusiness from Prairie View A&M University and both an M.S. and Ph.D. in Agricultural Economics from Kansas State University.