The ability of online retailers to undercut premium pet foods with their own brands threatens the profitability of pet food premiumization.

Private label pet foods from Amazon and Chewy threaten established brands by leveraging their online sales platform to boost visibility, wrote Gartner L2 analysts in the report “Digital IQ Index: Pet Care U.S. 2018.”  As more pet owners look to purchase pet food over the internet, online retailers increasingly have opportunities to boost exposure of their own brands by featuring those dog and cat foods in sponsored advertisements, on homepage displays and through other means. The ability of online retailers to undercut premium pet foods with their own brands threatens the profitability of pet food premiumization, which currently drives pet food sales value growth while volume growth stagnates. Read more.

Wall, Tim. “Amazon, Chewy Private Label Pet Foods Threaten Profits.” PetfoodIndustry.com, PetfoodIndustry.com, 15 Oct. 2018, http://www.petfoodindustry.com/articles/7564-amazon-chewy-private-label-pet-foods-threaten-profits.