In simple terms, elasticity of demand refers to how sensitive consumers are to changes in price. If a small price increase causes a big drop in sales, demand is considered elastic. If sales remain steady despite a price change, demand is inelastic.
In the premium pet food segment, demand tends to be less elastic—meaning that pet owners are often willing to pay more for food they trust, especially when it’s tied to their pet’s health and well-being. This is why slight price increases don’t always result in fewer sales, and discounting doesn’t always lead to a large spike in volume.
Understanding elasticity helps businesses make smarter pricing decisions that reflect how customers actually behave—not just what the numbers suggest.