The dog food market may not seem like a dynamic field that has a lot of money invested in new technologies but there have been significant investments in new dog foods mainly to fill the demand for higher quality products for dogs. People are increasingly concerned with the health and well-being of their dogs and are spending more money to make sure that they receive the adequate food and nutrition that is available in higher quality foods.
Companies are investing in developing both higher quality and unique products that are attempting to capture the customers’ eye and earn a share of this growing market. As higher quality dog food costs more both for customers and to produce, the market share of these products have increased significantly and have led to record increases in sales, increasing by almost 45% in gross revenue in just the past six years.
Some of these product offerings are quite unique. Freshpet, which is a fledgling company that has just reached $100 million in annual sales and has yet to earn a profit though they are expecting to in 2016 has launched a dog food product that has no preservatives and therefore needs to be housed in a refrigerator. Since many pet food stores don’t have refrigerator space available they installed them in stores and incur the added cost of doing so to capture this premium dog food market.
The innovations are not limited to small start-up companies. Beneful, one of the giants of the dog food industry and owned by Nestle, has launched an ordering service where customers can design their own dog food blend and order it online through the Beneful website. This gives them control over what their dog eats and allows the dog owner to have a fully custom designed food.
Beyond these more novel product offerings, companies are also simply improving the mix of their dog foods and launching premium and organic dog foods. Beneful has acquired one of the leading organic dog food makers and many other companies have followed suit by introducing their own organic food blends. This has contributed to the higher quality dog food products in the market and has let both the dog food makes, and the dogs, flourish with higher quality food.