The pet care industry is growing at a fast rate, some even say it is the new goldmine for the next century, and with revenue up to $225 billion, this is perhaps the biggest money-making sector of the entire industry.
With the industry expected to experience a 5.8 percent CAGR by 2023, the sales of pet care products and trends influencing the pet care industry will make North America the largest shareholder in the industry with sales blowing through the roof to the tune of $281 billion by 2023 according to Edge by Ascential a market research firm.
Global Market Insight – The Pet Care Industry
The global pet care market was projected to hit a milestone when the industry churned out revenue of $110 billion in 2017. However, economic analysts are predicting another tremendous breakthrough for the industry with a revenue target of $269.9 billion by 2025 – research by Global Market Insight Inc.
The Global Pet Care Market by Region
While numerous trends are triggering this explosion in the pet care industry, one of the most noticeable drivers is the increasing ownership of live pets among the older generation, millennial, and Generation Z.
Pet ownership in these two groups is on the rise as most young adults in this category use pet to bridge the gap between human affection and the love from a pet that is unconditional. Even with that, the humanization of pets in households around the world is another factor that is changing the face of the industry as pet parents demand newer, better and efficient ways to manage their pets while giving them the best life has to offer.
The US Pet Care Market Chart
The global pet care industry, although the industry is noticing booming emerging markets outside North American, the United States remains the biggest pet care market in the world.
The Player – The Pet Care Industry
The global pet care industry cannot be talked about without mentioning the players that are making things happen. These companies are restructuring the market shares, trends, and changing the pet care products as demanded by their owners.
Another factor that is driving sales in the pet care industry is the capitalization on the humanization of pets by pet companies and the need to beat the competition to produce products better than their competition.
We have seen companies like Petco starting pet kitchen stores where pet parents can purchase customized meals prepared by specialized chefs for their pets, Walmart increasing the number of vet clinics to cater for more pets and conditions affecting pets.
Companies like Purina are taking pet lifestyle to a whole new level, and we should also acknowledge the newcomers in the industry as Pioneer Women pet treats, and even sales of luxury pet care item are all taking the industry by storm.
Why the pet care industry is doing so well?
Whether you own a cat, dog, fish, horse, a reptile or bird; more than 80 million of homes in the US own one or two of the same or different pets in their possession. And with that, the pets have to be cared for – they need a place to sleep, food to eat, go to the vet, need personal grooming, need caring for in your absence and need a social life online or offline. This is the reason why the pet care industry is a goldmine, but as more pet become humanized, pets are now receiving the same treatment and living in the same condition as humans.
However, these are not the only reasons driving the pet care industry, several trends, economic conditions, medical research and breeding patterns, technology, improved food, pet e-commerce, ingredients sourcing, and food preparation, and a shift in pet ownership are positive trends affecting the pet care market.
Trends driving the pet care industry
Humanization of pets has garnered lots of attention as pet become more like humans and get human treatment all over the world. In the US, a pet now has insurance, healthcare certification and even passes to enter places that didn’t allow pets.
Whether we like it or not, humanization is the most significant trend and base platform for all other trends that are driving this sector of the economy. Over the years, the relationship pet and owner has shifted from companionship to an emotional connection between the two.
How has humanization impacted on the pet care industry?
As pet owners continue to treat their dogs and cats (which are the most popular pets) as humans, the opportunity to commercial products that will enable them to enjoy each other will drive sales in the market.
Aside from dog food that tastes like human food, pets now have their own beers, foods, have weddings, go on dates, go for spa treatment like a human and own social media accounts and do some humankind of jobs like modeling.
Companies that capitalize on satisfying customers and embody such views and needs are bound to make good money but also generate revenue for the industry.
Factors causing humanization are
As the world become overly populated, humans now look for smaller accommodation spaces that allow them to manage their lives efficiently, this living condition is driving people to seek out smaller pets that can conveniently fit into their lifestyle.
From cashmere pet sweaters to diamond crusted pet collars, the pet care industry has seen it all, while some people frown at this, humanization is the cause of the booming revenue we see in the pet luxury market. Furthermore, a shift in pet size; where pet lovers prefer smaller pets than larger pets they can comfortably spend on.
In conclusion, pet humanization is the main reason why other trends in the pet care industry are been acknowledge, and the reason for the sales and expenditure in the industry.
Pets are filling the human void
While this holds true for millennials, whose love for pets have pushed aside the need for human commitment and relationship to the sides, the statement is also a fact for baby boomers and Gen-X who choose pet companionship for human beings.
Though it sounds funny, these two categories have been known to splurge on the pets, pampering them and spending more than they would for a human being. Millennials, buy a pet for fun (small animals in particular) to hype their social statuses or just to spoil them with luxurious stuff and services. Believe it or not, these are the real spender in the pet care industry.
Premiumization is the result of humanization and a trend that has a positive impact on the pet care industry.
Pet premiumization is basically upgrading pet products and services to suit the needs and specifications of their parents.
This trend has touched every sector of the industry from food, medicine, vet care, grooming, and services provided as the demand to fulfill the client’s requests for their pets takes center stage.
Premiumization is why per parents now request human-grade foods, organic and natural source ingredients for preparing pet food, fresh pet food without chemicals and preservatives, transparent labels and detailed processes, and a more holistic food option for pets.
The pet food industry is worth over $87 billion and with an expected growth of 5.4 percent forecast for 2019 – 2024 has already shifted focus from the regular dried meat or mix to human type foods.
Pet owners around the world are demanding to know what ingredients go into making their pet’s food and how it sourced and processed. This has changed how pet foods are produced and given rise to newer brands giving pet parents what their demands.
In fact, pet owners want pet foods that can address the growing health issues like obesity, arthritis, and other health concern associated with humanization.
.Consumers want `clean label foods`, food tagged as natural or organic, a detail on the ingredients and others such as GMO-free, no preservative, no artificial color, flavors or addictive, no artificial sweeteners. This has caused smaller food industry in the market with plant-based pet foods or pet food using other protein sources than meat such as insects.
As pet humanization continues, there is the increasing worry of a pet suffering similar health conditions that humans suffer from like obesity, high blood pressure, heart and breathing problems, kidney failure and infection, arthritis and osteoarthritis and many others.
Although these diseases are not new, the increasing awareness of pet parents acknowledging these conditions has triggered the pet care industry to make supplements and medicines that can be used to combat the problems such as weight lose pet food, pet fitness trackers, pet monitor apps and every monitor system to keep tabs on their pets.
Furthermore, brands like GoPet are producing pet treadmills and wearable health technology as pet parents delve into preventive healthcare to help their pets overcome the condition or disease.
Pet Care E-commerce
You would normally walk to the store to buy your pet food years ago, with the online marketing and advertising, pet companies are depending on e-commerce to reach customers who are willing to pay the extra charge for their pets.
Furthermore, e-commerce moguls like Amazon have taken to promoting their own brands directly to pet parents eliminating the middleman and removing the extra cost for pet food incurred by the pet parent through a retailer.
Other trends popping up are the order to deliver food services where pet kitchens are opening up at your street corners where owners can request for a combination of food for their pet that is prepared and delivered at home.
Specialty Pet Care Services
These are like pet daycare services, these businesses offer to care for your pet by offering services like dog walking, pet sitting, training, behavioral specialist, pet social events, pet photography, pet massage, pet grooming, pet washing, and pet wellness services.
The pet specialty service is becoming increasingly popular as the demand for high-end pet products to provide the best care is necessary. Furthermore, they offer ease and convenience for the pet parents and for people looking for a pet business to set up; this is a budding niche that has a lasting potential for the future.
Mobile Grooming Service
Mobile grooming service involves going to a client’s home to care for their dog or cat offering a whole range of grooming care for the animal. Although the cost is hefty, it is a better option for busy, old, and passive customers who don’t have the time or capacity to take their pet for the necessary grooming routine.
Pet Travel and Pet Insurance
With pets becoming a significant part of our lives, pet owners want them to participate in every activity, including travelling.
Although the process is a tedious one with plenty of paperwork required, this is another area of the pet care industry that is adding to the revenue of this market
Pet insurance policies cover your pet in the case of an eventuality like an accident, health, special care, and even death.
The consistent rise of the pet care market might be due to the factor listed above, but another fact is the stability in the pet industry economy. Pet parents love their pets and are will to go the extra mile to ensure that they get only the best service as demanded by them.
This drive and love are why the pet care industry will remain a booming one into the future.
Overall, the pet care industry is a healthy atmosphere with vibrant opportunities for all sectors. While the market is looking up to a brighter tomorrow, analysts are predicting continued growth in all sectors of the market.
While the US remains the dominant force in this industry, countries like China and the Asia Pacific are brewing to be the next big pet market in the world and an expected unbelievable rise in the market in the next five years.