Unlocking Value: Emerging Trends in the Pet Industry
Despite the challenges of inflation and increasing interest rates caused by the Covid pandemic, the pet sector has continued to thrive. With impressive growth over the last 10 years, the global pet industry is expected to reach $500 billion by 2030. Leading the way are innovations in technology and a pet-loving customer base. Business owners in the pet services sector can capitalize on these trends to increase value to grow and eventually exit their businesses.
Pet Services Industry Statistics
The pet services sector is booming, with Americans having spent over $147 billion on their pets in 2023. The pet food and treats industry saw the highest spending at $64.4 billion, followed by vet care and supplies, each exceeding $30 billion, while all other pet services combined amounted to just over $12 billion. This increase in spending is in line with the overall rise in pet ownership during the pandemic, driving growth in the pet sector. Consumer preferences are driving technological advancements and new developments in food and treats as the industry grows.
Trends Driving Growth
As return to work initiatives bring employees back into the office, pet services businesses such as daycare and boarding are experiencing a resurgence following a contraction during the social distancing days. At the same time, the pet foods and treats segment, which makes up the largest share of pet owners’ expenditures, continues to see growth in both new product lines, high average order values, and an increased emphasis on health. Additionally, advancements in technology are transforming the industry, offering innovative tools and services for pet owners and providing business owners in the sector additional revenue streams to increase value.
Pet Food and Treats
The pet food and treats sector is seeing a shift driven by the trend of treating pets as family members and an increased focus on their health and wellness. Consumers are reviewing ingredient lists and looking for pet food options that are plant-based, organic, dehydrated, or freeze-dried. Additionally, there are a variety of customized food choices that target health concerns and cater to the unique needs of different breeds. Similarly, pet treats are evolving to have additional purposes beyond being treats, now helping with digestion, relieving anxiety, and promoting dental health. These trends seamlessly fit into the wellness-oriented mindset of today’s pet owners.
Technology in the Pet Service Sector
Technology is also transforming the pet industry, providing consumers and businesses with cutting-edge tools and services. Wearable gadgets like fitness trackers and AirTag collars allow pet owners to monitor their pets’ health and location more closely. Online platforms are simplifying the way people access pet services, providing seamless e-commerce and booking processes. With the introduction of satellite and GPS-based geo fences, pet owners are able to keep close tabs on their pets. These technology products and services are creating opportunities for pet businesses to stand out and add value.
The trends shaping the pet industry are not only driven by consumer preferences, but also present valuable opportunities for businesses. Business owner’s looking to value and sell their business in the pet services industry can diversify revenue streams by incorporating these emerging trends.