Feeding Demand: How Challenger Pet Brands Can Lead the Way in Sustainable Pet Products
Spring/Summer 2025
The U.S. pet industry reached a staggering $152 billion in 2024, and consumer spending shows no signs of slowing down. As pet owners increasingly treat their pets like family, and feed them accordingly, the demand for natural, raw, and sustainable pet food has surged— particularly among younger, health-conscious demographics.
This shift is creating a unique opportunity for challenger pet brands: agile, mission-driven companies that are reshaping the pet food landscape by focusing on holistic diets, local sourcing, and animal health-conscious practices. This white paper explores the consumer trends driving this movement, the strategic advantages challenger brands hold, and the critical role of full-funnel digital marketing in building long-term brand equity.
Industry Landscape
A Booming Market, A Shifting Mindset
In 2024, U.S. households spent more than ever on their pets. The number of pet-owning households grew from 82 million in 2023 to over 94 million in 2024, and spending is expected to grow despite economic uncertainty.
Alongside this boom, pet owners—especially millennials—are reevaluating the nutritional quality and environmental impact of the food they buy. This generation is leading the demand for:
- Raw diets
- Locally sourced ingredients
- Transparent labels
- Sustainable packaging
As a result, natural and organic pet food sales are rising rapidly. The global organic pet food market alone is expected to grow from $23.6 billion in 2023 to $41.6 billion by 2032 (Market.US, 2024).
Consumer Trend Analysis
Why Natural Is Winning
Today’s pet parents prioritize health and safety. A growing number are turning away from dry kibble due to concerns about:
- Over-processed ingredients
- Fillers and additives
- Potential long-term health risks
These concerns were amplified by incidents such as lawsuits and safety issues involving major brands (e.g., salmonella outbreaks and reported links to cancer). In response, many are choosing raw or minimally processed diets modeled after what pets would eat in the wild.
Challenger brands that lead with ingredient transparency, ethical sourcing, and nutritional integrity are winning over these discerning consumers. As AdWeek noted, the narrative around natural pet food is a compelling one for marketers aiming to capture the attention of discerning pet owners. These trends present a major opportunity for challenger brands to stand out with holistic, health-focused pet products that differ from the standard big brand offerings.
Strategic Opportunity for Challenger Brands
Challenger brands—by nature more flexible and values-driven—are uniquely positioned to meet this evolving demand. Their advantages include:
- Speed to market with innovative formulas
- Authenticity that resonates with purpose-driven shoppers
- Smaller-scale sourcing that supports local economies
- Adaptability to market feedback
In a crowded field, product differentiation through natural and sustainable offerings is not just a value add—it’s a competitive necessity.
The Role of Full-Funnel Marketing
Why Digital Strategy is Non-Negotiable:
Over 50% of pet owners now shop for pet products online, making digital visibility essential. Yet visibility alone isn’t enough. Challenger brands must build trust and convert curiosity into loyalty—this is where full-funnel marketing becomes critical.
Top of Funnel: Awareness
- Social media storytelling
- Influencer partnerships
- Educational video and blog content
Mid-Funnel: Consideration
- Customer reviews and testimonials
- Ingredient transparency tools
- Product comparison guides
Bottom-Funnel & Retention
- Email nurturing and loyalty programs
- Subscription models
- Retargeting with programmatic ads
Programmatic advertising enables precision targeting and real-time optimization, while social platforms foster two-way conversations with pet owners that drive community and retention.
In a world where consumers are overwhelmed by choices, a cohesive funnel strategy ensures brands are building not just audiences—but loyal brand advocates.
The Path Forward
As the pet industry continues to evolve, natural, raw, and sustainable products will become the standard, not the exception. The future of pet food will be shaped by brands that think holistically, balancing innovation with transparency and growth with responsibility. Challenger pet brands are at the forefront of this transformation.
