According to the new study, more than 1,200 dry dog foods are analyzed, pet owners are willing to pay high prices for dog food with specific health benefits, and their allergic benefit products are nearly 18% higher than the standard formula.
The study reveals how humanization of pets (treating them as family members rather than animals) can drive substantial price changes in the rapidly expanding pet food market, with price differences in pet food markets growing from $65.9 billion in 2012 to $123.6 billion in 2022.
A comprehensive analysis, published in the Journal of Agriculture and Applied Economics, examines pricing models for more than 60 brands to see which health claims justify higher costs and which may provide better value for budget-conscious pet parents.
Advanced health requirements
Researchers from the University of Arkansas and Kansas State University found that certain health attributes consistently command higher prices, while others are actually associated with discounts. This model reflects consumer demand and manufacturing complexity associated with specialized formulations.
“Trends such as premium and humanization have made pet owners more aware of the health and safety of pet foods to keep their pets healthy and happy,” the study notes. “Higherization refers to customers who require more premium and super products, while humanization involves owners who consider and view pets as members of the human family.”
Andrew Anderson, co-author and assistant professor at the University of Arkansas, explains this cultural shift: “Pets have changed from kennels to family members, so when it comes to pets’ diets, it’s an important way for bonds to show.”
Pet Health Price Hierarchy
The study reveals a clear pricing tier based on health claims, with some surprising findings about which conditions pet owners prioritize financially:
- Maximum premium: Allergy relief (17.82% premium), sensitive digestion (3.77% premium)
- Large discount: Dental care (-7.41%), Immune support (-2.66%)
- The most expensive average price: Allergy Relief ($3.89/lb), Weight Management ($3.52/lb)
- The most affordable: Dental Respiratory Care ($2.63/lb), Muscle Care ($2.72/lb)
The sharp contrast between allergic relief products and dental care formulas highlights the fact that professional health involves order discount pricing, while more general health features mainly compete in value.
Understand the market trends
The study analyzed Chewy.com’s data and examined 1,268 dry dog foods for an implicit pricing structure. The researchers chose dried dog food because it represents the world’s largest market segment, accounting for more than 46% of the dog food market.
Anderson of Kansas State University and co-author Lonnie Hobbs Jr.
“For example, sensitive digestive attributes are in 24% of products, but also account for a 3.7% premium,” Anderson explained. “When you consider demand, it’s an agent for high quantity and price, so to me it sounds a lot like a demand-driven attribute.”
Health crisis-driven demand
Premium pricing for health-focused pet food reflects a real focus on pet health. Recent research paints pictures of pet health in developed countries, providing context for why owners are increasingly seeking professional nutrition.
The 2022 survey by the Pet Obesity Association’s Preventive Association found that 59% of dogs were classified as overweight or obese, a 3% increase from 2018. Meanwhile, a comprehensive study of more than 22,000 dogs found that nearly 66% of dogs suffer from at least one health disorder, including dental, skin or intestinal problems.
These statistics help explain why digestive health, skin and coat care, and immune support are the three most common health-related characteristics in the pet food market, appearing in 52%, 41%, and 37%, respectively.
Supply and demand factors
The study reveals interesting insights on whether high prices reflect consumers’ willingness to pay or limited supply of professional ingredients. Products with a wide market and premium may indicate strong consumer demand, while rare and expensive products may reflect manufacturing restrictions.
For example, allergic relief products appear only in 2% of products, but the highest premium indicates supply-side restrictions. “It’s not certain, but in this case it might be more of a supply factor,” Anderson notes, explaining that specialized ingredients such as antihistamines increase production costs.
Conversely, despite potential health benefits, dental care products show significant discounts, with 9% of products appearing at a lower price. This suggests that dental characteristics have become commercialized, not advanced differentiators.
Strategic significance to the company
These findings provide valuable insights for pet food manufacturers considering product development strategies. This study proposes potential opportunities to combine multiple high-quality related attributes, especially allergic relief and sensitive digestive agents.
However, the price discounts associated with dental care (e.g., dental care) suggest that these features can be better positioned as complementary attributes rather than the main selling point.
The study also shows that larger packaging sizes always offer higher value per pound, while premium label products are priced at a 15.14% premium regardless of their specific health claims.
What does this mean for pet owners
For budget-conscious pet parents, this study provides practical guidance for navigating the increasingly complex pet food market. While products with dental care functions have health benefits, the value of dental care functions can be of excellent value, while allergic effects formulas require careful evaluation of whether professional ingredients prove their quality and reasonable price.
The study also highlights the importance of online shopping tools in comparing products. “Using the filters available on the online shopping platform, pet food buyers can compare faster by determining the desired price point and reading the product attributes of customer reviews,” Hobbs explained.
Anderson stressed that price differences do not necessarily reflect product quality: “Pet food buyers should note that higher prices associated with certain attributes may reflect factors beyond product quality, including production costs and marketing strategies.”
The future of pet food pricing
As the pet food industry continues to grow, understanding these price patterns is becoming increasingly important for both manufacturers and consumers. This study lays the foundation for future research to study consumers’ willingness to pay for specific attributes and optimal product features.
The methodology of the study (analyzing publicly available online product information) also demonstrates how big data approaches illuminate market dynamics in ways that traditional surveys may miss.
As pet ownership continues to rise, owners increasingly regard pets as family members, so the dedicated pet nutrition market seems to be expected to continue to grow. Understanding which health claims are indeed justified and justified with health claims that provide good value can help industry professionals and pet owners browse this ever-expanding landscape more effectively.
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