- The Woof
- Posts
- Crocodile Chips for Dogs?
Crocodile Chips for Dogs?
This company has turned ag waste into treats
Collin Armstrong
March 19, 2025
In partnership with
Protect your pet starting at $10 a month
Would you rather pay $2000 or $200 for your pet’s lifesaving surgery? Pet insurance can help prevent tough decisions by helping you pay for covered veterinary procedures.
With up to 90% reimbursement, both your furry pal and your wallet will thank you.
View Money’s Best Pet Insurance list to compare plans.
Issue #168
March 19th, 2025
Quick Hits:
Sustainability, affordability + optimal nutrition are shaping pet owner choices when it comes to feeding their cats & dogs at the moment.
A live look at the economic headwinds we’re facing
The dog treat space is undergoing a quiet micro revolution.
Pet owners are becoming more selective, prioritizing natural nutrition while remaining conscious of their budgets. This means less time spent researching new supplement/treat brands, what weird ingredients are in their products, and how effective it will be for their pets.
New Ingredient list: duck foot
vs…
Traditional ingredient list:
Pork, Barley, Rice, Ground Wheat, Oat Meal, Soybean Meal, Glycerin, Sugar, Corn Gluten Meal, Ground Yellow Corn, Wheat Flour, Water, Soy Flour, Bacon, Soy Protein Concentrate, Wheat Gluten, Salt, Phosphoric Acid, Bacon Fat (Preserved With BHA And Citric Acid), Natural Flavor, Sorbic Acid (A Preservative), Natural Smoke Flavor, Calcium Propionate (A Preservative), Added Color, Malted Barley Flour.
(ingredient list of Beggin Strips)
For those in the pet space (specifically food/supplement) seeking a resilient and impactful niche, single-ingredient dog treats made from up-cycled agricultural byproducts present a compelling opportunity.
One small business leading the way is Ground Floor Dog Treats, based in Townsville, Australia.
Founded by Linda and Paul Welsh over a decade ago, the company has evolved from selling homemade dog biscuits at local markets to a thriving little enterprise with a storefront in Townsville Shopping Centre.
Their commitment to sustainability and transparency has positioned them as a trusted local source for dog treats, offering a unique and diverse offering that other pet entrepreneurs can learn from.
Sustainability & Agriculture: Repurposing Waste into High-Quality Nutrition
Every year, vast amounts of animal byproducts go unused in the agricultural industry.
What many consider waste; cow tracheas, shark cartilage (I believe they recently stopped carrying this due to ethical concerns), emu necks - are actually rich sources of essential nutrients.
Ground Floor Dog Treats has built a successful business by repurposing these overlooked cuts into affordable, single-ingredient treats. This model not only reduces waste but also offers an all-natural alternative to the usual highly processed dog snacks.
Kangaroo liver, is a prime example of this approach. Packed with protein, it supports dogs that have sensitive stomachs and allergies to more common meat sources (poultry, beef, etc.), making it an ideal treat and supplement for dogs with limited options.
Also, many of these treats are chewy by nature or have properties that lend itself well to stripping plaque off of your dog’s teeth.
By tapping into an existing supply chain and utilizing parts that would otherwise be discarded, the business ensures consistent product availability at a competitive price when comparing to traditional pet treats.
This model aligns with the growing demand for sustainable pet products.
A recent NielsenIQ survey found that 55% of global consumers are willing to pay more for products from environmentally responsible brands, while 63% of pet owners are actively seeking sustainable options (mintel 2024 report).
Businesses that can merge affordability with eco-conscious values are well-positioned for long-term success.
Price Sensitivity & Market Trends: Balancing Budget & Wellness
The economic landscape has made price sensitivity a major factor in pet purchasing decisions.
According to the American Pet Products Association (APPA), 2023 saw a shift in spending habits - while overall pet expenditures grew, more owners opted for cost-effective, functional pet products.
Despite inflation, the demand for high-quality nutrition remains strong, with 74% of pet owners prioritizing natural ingredients over price alone.
Single-ingredient treats fit perfectly into this trend.
Unlike premium pet supplements or high-end gourmet treats, products like dried cow tracheas or emu necks provide the same functional benefits without all of the added cost of ingredient sourcing, recipe building, and in some cases getting a vet’s stamp of approval.
This affordability makes them particularly appealing to cost-conscious pet owners who refuse to compromise on their dog’s health.
Ground Floor Dog Treats’ pricing strategy is a key factor in their success.
Most of their single-bag products are priced under $10 USD (although they only sell in Australia), making them an accessible choice for everyday pet owners.
This affordability, combined with a compelling sustainability angle, has helped them cultivate a loyal customer base despite economic fluctuations.
Why This Model is Resilient in Tough Times
Pet businesses that rely on trending wellness products or novelty supplements often face challenges when economic downturns hit.
However, businesses built around agricultural byproducts operate within a more stable supply chain. Livestock production remains constant, ensuring a steady supply of raw materials that can be repurposed into pet treats (Think: this is the origins of a true “Farmers Dog”).
By focusing on minimally processed, functional treats, Ground Floor Dog Treats has insulated itself from the volatility that affects other segments of the pet industry.
This model is inherently resilient because it doesn’t rely on fleeting consumer trends, it taps into a fundamental need for affordable, high-quality pet nutrition.
The Appeal of Minimal Processing & Transparency
Pet parents are increasingly skeptical of highly processed pet foods.
Long ingredient lists with unpronounceable additives are losing favor, as 69% of pet owners now prefer treats with simple, recognizable ingredients.
Single-ingredient treats offer unmatched transparency - customers know exactly what they’re feeding their dogs.
(BK Pets are a big proponent of single ingredient treats and toppers, like King Lou’s chicken feet)
Ground Floor Dog Treats capitalizes on this consumer preference by keeping things simple.
Their products are naturally dehydrated with no artificial preservatives, colors, or fillers. This aligns with the broader industry shift toward clean-label pet products, a segment expected to grow significantly in the coming years.
Affordability & Accessibility: A Scalable Opportunity
One of the biggest advantages of this business model is its scalability. Because agricultural byproducts are widely available and relatively low-cost, entrepreneurs can enter the market without significant overhead.
Additionally, these treats have broad appeal across different demographics. From eco-conscious millennials to senior pet owners looking for affordable joint support solutions.
Ground Floor Dog Treats’ ability to expand from a market stall to a retail storefront demonstrates the potential for growth. Their success story highlights how a simple yet strategic approach, turning waste into wellness - can resonate with modern pet owners.
A Market Ripe for New Players
For pet entrepreneurs looking for a sustainable, recession-resistant business idea, the single-ingredient treat market offers a golden opportunity.
Companies like Ground Floor Dog Treats have proven that repurposing agricultural byproducts into nutritious, affordable treats is not just good for the environment - it’s good for business.
Whether through direct-to-consumer online sales, local farmer’s markets, or partnerships with pet retailers, the demand for sustainable, single-ingredient treats is only expected to grow.
For those residing in ag country (i.e. Texas, Midwest & California) you’re standing in the golden meat pit (gross, but you get the point).
PAWS right there!!! Don’t forget to subscribe 👇👇
WINNER 🏆️ : BITCOIN
Weekly DoggyDex Performance - March 10th, 2025
Proudly introducing the DoggyDex™, an index comprised of 10 publicly traded companies whose primary focus is the dog/pet industry.
List of tickers used can be found below.
The yellow line-plot in the chart represents these companies above (DoggyDex™) and their combined performance against both the S&P 500 and Bitcoin on a weekly basis.
Pawformance is measured by % gains & losses.
$CHWY - Chewy: E-commerce platform for pet supplies
$IDXX - Idexx Labs: Vet point of care instruments and vet software
$FRPT - Fresh Pet: Pet food company
$ELAN - Elanco: Manufactures pet disease prevention products
$PETS - PetMeds: Online pet pharmacy
$ZTS - Zoetis: World's largest producer of meds and vaccines for pets and livestock
$TRUP - Trupanion: Pet insurance company
$WOOF - Petco Health & Wellness co.: Pet health & wellness company
$BARK - BarkBox: Subscription service providing dog products, services, and experiences
$PET - Wag! Group Co.: Tech platform that allows pet owners to connect with industry professionals for services such as walking, training, etc.
First, we need to understand the scale of the adoption market: nearly 4 million dogs enter shelters each year. However, almost a third are euthanized!
This presents a significant opportunity for businesses that can help facilitate adoption and support pet owners after adoption.
Focus on affordable solutions – the infographic highlights that basic dog care costs only $400-$700 per year (this number is a bit suspect), which helps make pet ownership accessible to more people.
Secondly, recognizing the importance of breed-specific interests.
Over half of Petfinder users search for specific breeds, meaning there's a demand for products and services tailored to popular breeds like Labs, Pit Bulls, and Chihuahuas.
Perhaps even more important many people are looking for specific traits in their adopted dogs; brands should consider partnering with local shelters to offer training and behavior modification services to make adopted dogs more appealing to potential owners.
Also, better-behaved dogs tend to not make round-trips back to the shelter.
You reached the end, you deserve a treat 🍖
Be part of the pack - For more news, links, and entertainment follow us on social media (links below) and fur - ward this to your best human friend.
See you Friday!