Estimation question

How much does the US spend on dog food every year?

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What this question tests

Estimation skill: decomposing a market-sizing question using population, pet ownership rates, and spend assumptions.

How to approach it

  1. Clarify scope: total annual spend on dog food across the US, not all pet food.
  2. Estimate the number of dogs in the US, using an assumed figure like 90 million dogs based on general population knowledge.
  3. Estimate average annual food spend per dog, e.g. assume 300 dollars per year for a mix of budget and premium food.
  4. Multiply the two figures to get a total, and round to a clean estimate.
  5. Sanity-check the result against a rough sense of the pet industry's known size.

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