Freshpet Continues to Expand the Fresh Pet Food Category, but We Expect Competition to Strengthen

With its fresh products, Freshpet is well positioned to capitalize on continued growing pet ownership along with humanization trends by expanding its store footprint and growing its sales-per-store. It primarily focuses on the $37 billion US dog food market (2023 estimate according to Euromonitor) through company-owned and -maintained refrigerators in 27,500 grocery, mass and club, pet specialty, and natural stores. The company estimates a market opportunity of at least 30,000 stores, though we forecast at least 36,000 by the end of our 10-year forecast period given the 46,000 supermarkets in the US alone, not including pet specialty stores.