The Takeaway: A Q&A With Eric Samuels on the Pet Consumables Sector

Let’s start with a lay of the land. How would you characterize the pet consumables operating environment today?

After a difficult couple of years through the inflation and post-inflation period, the operating environment in pet consumables remains challenged from a volume standpoint. At a high level, in the dry dog food category, which serves as a good barometer for the broader pet consumables industry, pet specialty-channel volumes are down about 6% year-to-date in 2025.⁽¹⁾ There are several reasons for this.

First, pet ownership is returning to normal levels after COVID-19-era highs. Dog ownership declined from 42% of U.S. households in 2018 to 38% in 2024,⁽²⁾ with the steepest declines in recent years. That normalization is contributing to softer volumes, although we expect that trend to stabilize over time.

Second, product format shift is accelerating as the humanization trend continues. Super-premium alternative formats, such as fresh, are more expensive than traditional kibble and continue to grow. At the same time, lower-cost alternatives to kibble are gaining share, including air-dried, dehydrated, and kibble with inclusions. In addition, there have been multiple high-profile launches of nontraditional kibble-type offerings made through cold pressing or roasting, rather than high-heat extrusion, that aim to deliver higher nutrient retention at relatively affordable price points.

We believe the future of premium pet food lies in these alternative formats. They are slightly higher priced than traditional kibble yet offer a better-for-you, often human-grade, higher-quality ingredient experience in an ambient format that consumers can use and afford. The addressable base for the highest-end fresh products may be capped. We expect the pricing sweet spot between traditional kibble and fresh to deliver the most growth.

While dog food volumes remain under pressure, the cat food segment tells a different story. We are seeing stronger growth in the cat food segment, supported by rising ownership in contrast to dogs. Cat-owning households increased from 23% in 2018 to 24% in 2024.⁽²⁾ Cat parents are increasingly seeking brands specifically designed for cats, rather than dog-first brands with a cat line extension. They are also asking for more innovative and health-focused products built specifically for feline needs, which is evident in the number of new cat items launched in recent years and in the fact that cat owner spending is growing faster than dog owner spending. As a result, wet cat food’s year-to-date volume in the pet specialty channel for 2025 is up 6%.⁽²⁾

Due to these dynamics, we are seeing strong growth for cat-focused brands. We advised Whitebridge Pet Brands on their transaction with General Mills in late 2024. The largest part of the Whitebridge portfolio is Tiki Cat, a leading, fast-growing cat food brand that caters to cat parents through innovation, product assortment, and marketing messaging. Everything about Tiki Cat is geared toward cat parents rather than treating cats as secondary to dogs.

Outside of food, where are the opportunities in pet consumables?

In terms of growth, one of the most significant opportunities is the pet supplement space, which is closely tied to the humanization of pets trend. Around 80% of humans use supplements, but less than 20% of pets currently receive supplements.⁽³⁾

The same purchaser makes decisions for both themselves and their pets. As people focus more on proactive and reactive care, science-backed offerings that improve pet health are gaining traction. We expect this market to continue to grow, especially in e-commerce. For example, pet supplements on Chewy and Amazon, the primary channels for these products today, have seen a 14% increase in sales over the past year.⁽⁴⁾

Most supplement subcategories are experiencing growth, but the strongest momentum is in proactive wellness products and companies. Probiotic supplements are a good example. They are not tied to a specific condition but represent a proactive step toward maintaining pet health. Multivitamins, hip and joint supplements, and urinary tract supplements are all growing as people take care of their animals, but the fastest growth tends to be on the proactive wellness side. We expect to see many attractive opportunities in that part of the market.

How is sponsor interest in the sector?

Sponsor interest in acquiring growing, profitable pet platforms remains strong. For investors considering macro trends, people are having fewer children and more pets, and treating those pets like family. As a result, the pet market is expected to grow at a faster rate than the broader consumer market. Consumer-focused sponsors recognize this trend and are actively looking for platforms.

The pullback from COVID-19 demand, inflation, margin pressure, supply chain constraints, and ongoing volume challenges have pressured even strong platforms. There is a scarcity of assets that combine profitability, durable growth, and sponsor-ready characteristics. When such platforms come to market, processes are highly competitive, and sponsor interest remains high. The challenge is that it has been a difficult couple of years operationally, so many potential targets’ income statements do not support their valuation expectations.

What is driving strategic interest in the sector?

The large global branded pet players are very focused on incrementality when evaluating M&A. If they are evaluating a brand, they ask whether it reaches a different pet parent segment. That can come through a different product format, a different species focus, or a different route to market. In other words, they want brands that are incremental to what their existing portfolio can achieve.

The “buy for market share” approach is no longer the strategy for these large players. They are much more discerning today. Step one is whether the opportunity is incremental to existing capabilities. Step two is whether it brings in new pet parents. From there, the brand quality needs to be verified, the financials must pass internal hurdles, and the product value proposition must resonate. For businesses that meet these criteria, strong strategic outcomes are still available in the sector.

You recently attended a big trade show for these types of products. Was there anything on attendees’ minds? Any interesting trends or themes?

Most participants acknowledged that the operating environment remains challenging, and there was a sense of shared recognition of these dynamics. For larger pet companies, core portfolios have faced headwinds, driving a significant internal focus.

The launch of fresh offerings by global companies, such as General Mills with Blue Buffalo, demonstrates conviction in that category, and industry participants are closely monitoring this development. On the alternative format front, the market historically viewed air-dried and freeze-dried as similar, but brands are now differentiating these formats and clarifying their value propositions. Several recent launches in the air-dried space were evident at the show. Innovation and differentiation remain the category’s organizing themes.

So, what’s The Takeaway?

I would say that, despite a still-challenging operating environment and driving volume declines in portions of the pet consumables market, growth opportunities still exist for companies with the right product portfolios and market positioning. The “humanization of pets“ trend will continue, having an impact on both the pet food and supplements segments. Sponsors are still very interested in pet consumables businesses with the right platform attributes, while larger industry players are focused on acquiring brands that bring them incremental pet parents.

Sources: (1) Nielsen, (2) Pet Food Processing, (3) LEK Consulting, (4) Stackline.