The Competitive Advantage Indie Pet Retailers Have in the Dog Treat and Chew Category – PetProductNews.com

Demand for dog treats and chews is surging, retailers reported. Consumers are focusing on natural and novel treat ingredients and innovative chew formats, shifting sales in favor of nimble pet specialty retailers that focus on customer engagement and service.
At All Natural Pet Supply, which has stores in Washington, sales of treats and chews are growing, reported manager Devon Muonio.
“Sales just keep going up. Treats and chews are doing especially well, considering that we are a smaller company. All three of our store locations have had at least a 10 percent increase in sales in the last six months,” Muonio said. “It’s not incredible growth, but it’s going up, not down, so that’s a good thing. … Treats and chews are huge repeat sales items for us. We also see a lot of repeat business for our bulk treats. The training treats are definitely add-on sales.”
Many retailers are focusing on building rapport with customers to help drive treat and chew sales, industry insiders reported, and manufacturers are working with retailers to help them succeed.
“When it comes to educating customers, merchandising treats and chews, and helping to drive repeat sales, I think the trust that’s built on the human connection is so critical for the customer relationship,” said Sam Chen, sales director for NPIC, a Plano, Texas-based pet treat manufacturer. “Pet retailers play such an important role in NPIC’s overall success and growth. … We listen to and value the feedback from the business owners, and we incorporate them when we make decisions about product designs and business plans.”
The treats and chews segment is seeing a continued shift away from rawhide items, retailers reported, as digestibility is a concern among pet owners.
“I’ve got a little bit of pressed rawhide, but I’m getting away from that,” said Tom Herron, owner of Fins Feathers Paws & Claws, a pet store in Harleysville, Pa. “I carry the Fieldcrest Farms’ Nothin’ to Hide rawhide alternatives. We’re definitely going that direction as opposed to the traditional rawhide products.”
Kirbay Preuss, general manager of Preuss Pets, a retailer in Lansing, Mich., noted that collagen-based products are increasingly popular as an alternative.
“Any of the collagen-based chews are doing very well,” Preuss said. “There’s a huge trend towards collagen as a replacement for rawhide, whether it’s collagen braided with a bully twist or it’s collagen instead of rawhide, it just seems like collagen’s the main thing we’re seeing.”
Pet owners are seeking treats and chews that are nutritious and healthy and that offer functional benefits, insiders reported.
“Customers are looking for a more natural, higher-end treat and chew,” Herron said. “My customers want healthy products. They’re looking for that higher-quality product that they can’t find at their local grocery store.”
Many retailers have seen consumers switch to products that offer certain health benefits to their pets, and to those that take their pets’ needs into consideration.
“Customers are absolutely more health conscious about what they give their pets,” Muonio said. “Especially with puppies, we get a lot of questions about what they can chew. We try to give them a softer chew in the beginning, and we always recommend offering frozen carrots because they are really good for dogs, especially as a teething chew.”
Enrichment is an important topic for pet owners, retailers reported, and many want treats and chews that are interactive.
“We’re focusing on the enrichment category a lot more,” Preuss said. “One of our top sellers is the Kong Wobbler because it’s super sturdy and tough. It’s great for training because dog owners can feed their dog meals out of it. It’s easy to wash, also. We also sell a lot of PetSafe products, from their slow feeders and a lot of snuffle mats and dispensing toys. Planet Dog has some good interactive toys. … With chews, people are focused on nutrition and health more than ever before.”
Elena Kalogeropoulos, CEO of Chasing Our Tails, a manufacturer in Minneota, Minn., is working to elevate the conversation around chews and treats to highlight just how important these products can be to a dog’s health.
“I really want to change things, and I think that’s what we do at Chasing,” said Elena Kalogeropoulos, CEO of Chasing Our Tails, a manufacturer in Minneota, Minn. “It’s not just about product innovation or chew innovation. We want to change the conversation. With pet parents home, pets are getting a lot more stimulation, and that has changed their eating and treating patterns. That’s where I’ve seen chews grow, because they address dental issues, pet boredom and activity. We’re trying to promote good health and good habits.”
Manufacturers are moving to support local independents so they can continue to offer high-quality treats that build customer loyalty and help them meet their business objectives.
“While our goal is to continue growing our sales and distribution, we also want to give our partners enough support so that the products we ship to our partners can flow through at the desired rate and everyone in the business ecosystem can enjoy the win,” Chen said. “That’s why we put a lot of effort and resources to support and equip our retail partners with necessary knowledge, so they can effectively inform and influence shoppers’ decisions that can, at the end of the day, benefit the pets.”
The dog treats and chews category is highly competitive, and manufacturers are sensitive to consumer needs and desires. To that end, manufacturers are focusing on providing products that are innovative, but also healthy.
NPIC launched its N-Bone Senior Dental Rings in March during Global Pet Expo in Orlando, Fla., said Sam Chen, sales director for the Plano, Texas-based company, and it plans to launch its N-Bone Adult Dental Rings at SuperZoo in Las Vegas this month.
“The mindset behind these two new products is taking the unique ring shape and the delicious flavors that puppies love and are already familiar with, and giving them different functions to support their needs at different life stages,” Chen said. “From the pet parents’ perspective, they can gain confidence from that familiarity without having to scout new treats, which we know is not an easy task. From the strategic point of view, these two products will also help us complete the life stage-driven product portfolio and fuel our growth moving forward.”
The company’s most popular product is its N-Bone Puppy Teething Rings, Chen added, and this line’s success inspired NPIC to expand its offerings in the chews segment.
“The reason so many puppies and puppy owners love them is that they are formulated and designed to meet the needs of puppies,” Chen said. “From the formulation standpoint, we make sure they are natural and are free of artificial flavors, colors and preservatives, while adding calcium and DHA to support the development of young puppies. In the meantime, we understand the behavioral needs of puppies who have a strong urge to chew, so we hand-crafted the twisted ring shape to help massage their gums while they chew.”
The original line is available in six flavors, including Chicken, Peanut Butter, Pumpkin, Blueberry & BBQ, Salmon and Grain-Free Chicken, Chen added.
In response to demand shifting away from rawhide treats, manufacturers are introducing collagen-based products to meet consumer need and offer functional and digestible treats and chews.
“In the last six months, Raw Dog Chews has launched three new U.S.-made corium collagen chews, which are 100 percent natural and [designed to be] some of the longest lasting chews on the market,” said Viral Surati, co-founder and president of Raw Dog Natural Chews, a manufacturer of treats and chews in Evansville, Ind. “They come in bone shapes, sticks and rings. Collagen chews are a healthier alternative to traditional rawhide that dogs can digest safely. Another recently introduced product is Easy Chew sticks, which are high-protein chews that help dogs to have a healthy, shiny coat.”
These new chews are designed for light and moderate chewers, Surati added, including puppies and older dogs, and provide a natural source of collagen to help support senior dogs’ joints, skin and nails, and also to help puppies during teething.
Training treats are also in demand, and customers are looking for animal-based chews as well.
“We go through a lot of training treats,” said Devon Muonio, manager at All Natural Pet Supply, which has stores in Washington. “Our bully sticks are pretty popular. We have braided sticks, regular sticks, we have circular ones, and we have the extra-large ones. Our beef cheek rolls are really popular. Rainier pig ears are super popular. We sell a lot of our raw frozen bones as well. We also have buffalo horns that are hollowed out and so you can put stuff in the middle of it, and then freeze it and give it to your dog. That’s always a good one. And of course antlers sell well. Of course, we don’t sell any rawhide chews.”
Yak-based products are increasingly sought after, retailers reported, as are all chews that are easy on dogs’ digestion.
“Yak milk chews are very popular,” said Kirbay Preuss, general manager of Preuss Pets, a retailer in Lansing, Mich. “Overall, the trend in the category is toward durable chews that are highly digestible.”
Customers are looking for chews and treats that offer a value proposition between quality and price point, retailers reported, though many pet owners are not price sensitive when it comes to making purchases in the category.
“I sell a 16-ounce pack of bully sticks for $77, and they’re still moving off the shelf,” said Tom Herron, owner of Fins Feathers Paws & Claws, a retailer in Harleysville, Pa. “I don’t see customers showing a lot of price sensitivity yet. However, if gas continues to go up, who knows? Customers only have a certain amount of dollars to spend, and if they’re putting all of their money in their gas tank, they won’t have anything to spend on pet supplies.”
Consumers are increasingly aware of what goes into their dogs’ treats and chews, and many are looking at ingredients and considering quality before making a purchase.
“The general trend in this category continues to be consumers who look for high-quality, healthy, all-natural, less-processed treats and chews,” said Viral Surati, co-founder and president of Raw Dog Natural Chews, a manufacturer of treats and chews in Evansville, Ind. “Customers are … carefully reading labels and lists of ingredients.”
Novel treats and chews are in demand, retailers reported, and customers associate treats and chews from independent pet retailers with quality.
“We are a very unique store in that we get people traveling hours to come see us,” said Kirbay Preuss, general manager of Preuss Pets, a retailer in Lansing, Mich. “They’re looking for unique products. Right now, I have some treats that are made out of alligator. I have some kangaroo, and customers do like looking for those novel proteins and items that they can’t find in other stores. … We’re focusing more on quality over quantity of products we carry, and as a business, it’s important to focus on our margins.”
Manufacturers are concentrated on offering high-quality products at competitive prices, industry insiders said, and many are keenly aware of consumer demand for premium ingredients in their chews and treats.
“Transparency in ingredients, and transparency about understanding where our food comes from, is key to the value and the integrity of what we do,” said Elena Kalogeropoulos, CEO of Chasing Our Tails, a manufacturer in Minneota, Minn. “We’re going back to the basics. We’re going back to the ABCs of food production. As a company, we’re trying to give the most respect and deference to what we’re doing, but for those companies that are using either 100 percent meat, as with body parts, or who are using a high-inclusion meat, like 100 to 99 percent meat, there will be pricing changes because we’re not using a lot of byproduct.”
While many consumers may not be deterred by rising costs when it comes to shopping for their pets, pet owners are likely to seek out products that are high-quality and functional, and that also offer the best value.
“We have been talking about pet humanization and premiumization for some time, and while I believe they remain strong, I also believe that the pet owners are shifting their focus to seeking value due to the major, global macroeconomic events that took place in the first quarter of 2022,” said Sam Chen, sales director for NPIC, a manufacturer of pet treats in Plano, Texas. “While we still need to ensure high quality and deliver meaningful functional benefits to pets and pet parents, it has become more important to provide products that reside on the right, balanced point among quality, benefits and affordability.”
Still, retailers and pet product manufacturers may need to navigate a dip in sales, as consumers spend more on traveling, dining and apparel as things open up following the height of the pandemic, Chen noted.
“Such changes certainly created a challenging environment for us as we are fighting to maintain the same or a higher share of a smaller pie, but NPIC has been fortunate to have established solid partnerships across the board to remain competitive and sustain growth,” Chen added.
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