As more pet owners come to treat their pets as members of the family, new academic research has revealed how much more they are willing to pay for dog food carrying specific health and wellness claims.

The study, published in the Journal of Agricultural and Applied Economics, analyzed 1,268 dry dog food products listed on Chewy.com, a U.S.-based online pet supplies retailer, to determine which health-oriented product attributes are associated with higher prices—and which are not.

These findings are likely to offer valuable insights for pet food manufacturers developing new products.

The study points out that trends such as premiumization and humanization are making pet owners more conscious of the health and safety of their pets’ diets. This stems from their desire to keep their pets healthy and happy.

“Pets have shifted from being ‘outdoor guard dogs’ to ‘members of the family.’ One major way that bond is expressed is through pet food,” said Andrew Anderson, co-author of the study and assistant professor of agricultural economics at the University of Arkansas and the Arkansas Agricultural Experiment Station.

Against this backdrop, the pet food industry grew from USD 65.9 billion in 2012 to USD 123.6 billion in 2022, according to Statista figures cited in the study. The U.S. pet food market is the largest in the world, generating USD 53.04 billion in sales in 2022 and contributing significantly to global revenue.

Anderson added, “In response, the pet food industry has seen a growing number of products carrying the kinds of label claims commonly found in premium human foods.”

Premium Prices Driven by Specific Health Claims

Anderson and co-author Ronnie Hobbs, assistant professor at Kansas State University, focused their analysis on dry dog food because it holds the dominant share of the global market.

To avoid bias related to brand names, they used a pricing model that excluded brand effects. They then examined dry dog food products from 60 brands to identify how specific health-related claims influenced price.

The highest average prices per pound were found for products labeled with claims such as “allergy relief” (USD 3.89), “weight management” (USD 3.52), “sensitive skin” (USD 3.19), and “digestive care” (USD 3.19).

Although products marketed for allergy relief accounted for only 2% of all products analyzed, they were found to be priced 17% higher than comparable dog foods. According to Anderson, this may be due to the inclusion of additional ingredients such as antihistamines.

By contrast, products labeled with claims such as “dental and breath care” (USD 2.63), “muscle care” (USD 2.72), and “immune support” (USD 2.74) had the lowest average prices per pound.

“For example, the ‘sensitive digestion’ attribute appears in 24% of all products, yet it still carries a 3.7% price premium over the average,” Anderson said. “That combination of both high volume and high price can be seen as one indicator that the attribute is driven by consumer demand.

On the other hand, allergy relief appears in only 2% of products, yet it commands a 17% premium. While there is no definitive proof, supply-side factors are more likely to be driving that result in this case.”

“When both high volume and high prices are present, we can assume there is demand,” Anderson explained. “But when volume is low and price is high, that conclusion is less certain.”

Growing Interest in Health Is Boosting Purchase Intent

In the pet food market, health and wellness products are becoming increasingly important and are serving as key drivers of consumer purchasing behavior. Anderson and Hobbs cited recent studies in the United States and the United Kingdom showing that many dogs are either overweight or suffer from at least one health issue involving the teeth, skin, gut, or other conditions.

According to a 2022 survey by the Association for Pet Obesity Prevention, 59% of dogs in the United States were classified as overweight or obese. This represents a 3% increase from 2018.

A UK study, based on more than 22,000 dogs randomly selected from 784 veterinary clinics, found that approximately 66% of dogs had at least one health disorder.

Strategic Implications for Pet Food Manufacturers

Hobbs said that for marketers, the findings can serve as a useful way to assess demand by examining how frequently a particular health claim appears in products and the price range associated with it.

Manufacturers can also evaluate product development strategies that combine multiple premium-related attributes, Hobbs noted.

For example, the fact that both “allergy relief” and “sensitive digestion” showed notable price premiums suggests potential opportunities for specialized formulations targeting multiple health concerns.

Meanwhile, Anderson added that products associated with claims such as “dental care” may be better positioned as complementary benefits rather than as primary product features.

Reference: Study: Dog owners willing to pay more for food labeled with health claims