Pet Franchise

American Pet Spending is Nearing the 100 Billion Dollar Mark

According to the American Pet Products Association, U.S. sales of pet products and services are nearing $100 billion for the first time.

2019 boasted new records for this ever-growing segment where consumer spending reached $95.7 billion.

The announcement came during Global Pet Expo, while the Splash and Dash team were in attendance. Although the number sent a shockwave through the crowds, industry analysts would argue this is no surprise. The pet industry has been predictably growing and at a rate that many industries envy. At Splash and Dash, we have been capitalizing on the industry growth since 2014, and some might even consider us “late to the game” since American pet spending has continued to rise every single year since 1994.


Pet industry spending can be categorized into four overarching segments:

  1. Pet Food and Treats
  2. Supplies, Live Animals and over-the-counter Medicine 
  3. Vet care and Related Product Sales
  4. Other Services

What is fueling this growth?

Dog and cat food are the dominant industry leaders. Food and treats are responsible for $36.9 billion worth of 2019 industry sales. The pet food market has changed dramatically over recent years. Thanks in part to the growing popularity of pet food mixers, specialty brands, as well as an increase in subscription-based delivery programs. Although this segment has become increasingly competitive it remains prosperous. The pet food segment is embracing some of the most conscious consumers the industry has ever seen. A new age of customers demands quality and transparency, and with this request comes an increased ticket price.  With little to no push-back on increased pricing, pet food labels are diverse and abundant. The food and treat category is expected to see another four percent increase in 2020 alone.

Veterinarian care and product sales reached $29.3 billion in 2019. This segment experienced a significant jump from previously reported spending figures. In addition to routine veterinary care, surgical procedures and sales of pharmaceuticals, vet clinics are experiencing fully booked schedules. As new medical must-haves are becoming the norm and with technology contributing to this growth, this segment will continue to grow. Today you can find clinics appearing in major retail outlets and the introduction of veterinary telemedicine platforms are on the come up. Pet-insurance has also grown with great popularity and consumers have shifted to an overall proactive approach to maintaining the health of their four-legged family.

The pet-services category contributed an impressive $10.3 billion to industry sales in 2019 and received the second-highest year-over-year growth (6%), right behind the cornerstone of the industry, food & treats. Services include boarding (daycare or extended stay), grooming, training, pet sitting, pet walking, and any additional services that fall outside of veterinary care. Maximizing convenience for pet owners has become a major trend in the pet service segment and this trend is here to stay. Technology has turbocharged this segment making pet services accessible from the smartphone. As the number of pets continues to increase, these segments will follow. 

What does the future of the industry look like?

Aside from the impressive figures and endless growth charts, these soundbites remind us of just how much Americans adore their pets. As the consumer continues to grow and change the industry will follow. Happily, each business in our massive industry network is proud to operate here. We are an industry fortunate to be improving the lives of animals and the humans who care for them every day.

Passion is our business! Find out how it can become yours too

 

4 Factors Contributing to Pet Services Industry Growth. Why You Should Invest in a Pet Business Today.

According to a report by Grand View Research, the global pet care market is expected to reach USD 202.6 billion by 2025. The rise in the adoption of pets, changes in consumer trends, and the growing demand for premium care products are a few factors expected to drive that market growth.

American pet spending has continued to rise every single year since 1994 – even during the 2007-2009 recession – reaching an estimated $72.13 billion in 2018 and almost $100 billion by the end of 2019. China, Brazil, and India are also experiencing exponential industry growth and a rise in pet ownership.

Within all of the pet spending, the global pet grooming segment alone is expected to reach USD 14.5 billion by 2025

Why Such Steady Pet Industry Growth?

Shifts in Culture

Over the last 30 years, pet ownership has gone from 56% to 68% of all U.S. households. Socially, over the past century, the culture of being a pet-owner has greatly shifted. Dogs have always satisfied that need for companionship, but historically many of them were seen as tools or aids – meant to sleep outdoors, in dog-houses. As time progressed this need for a working dog has diminished and in many cases, they are now solely seen, as companions. As millennials and Generation Z consumers enter adulthood, they strengthen and embrace the pet-owning lifestyles and now dictate the market. While baby boomers account for 32% of pets owned, households headed by younger cohorts account for 62% of pet ownership.

Ease of Technology

Advances in technology are disrupting traditional views of the industry. With subscription-based retail taking over traditional pet supply stores and app-based companies bringing convenient alternatives to pet care. The innovation has been endless and pet owners are enjoying the conveniences. According to Wakefield Research, 69% of millennials are likely to use technology to keep track of their pets.

Tastes & Preferences

Traditional pet foods and treats are not up to snuff for modern and more conscious consumers. Today’s pet-owners demand healthy ingredients and they want to understand the brand’s ingredients and supply chain values. Although these products cost more, consumers have no hesitation and expect the same quality assurance they receive with their own human grade goods.

Increased Market Diversity

Pet service offerings are becoming as vast as the trends of human counterparts. Businesses with a close focus on niche segments of the industry including, daycare, grooming, pet care, pet transportation, end of life services, pet-friendly eateries, hotels, and walking services, are all establishing a unique place in the market and minds of pet-loving consumers.

3 Reasons to Consider Owning a Business in the Pet Service Industry

Finding Balance

Achieving a true balance of work and life looks different to everyone. Whatever that vision is for you is certainly valuable and we want you to know it’s achievable. As an industry that is built on emotions and affection, we understand the love that exists outside the 9-5 hustle. Invest your time and energy into something that excites you, the rest will fall right into place.

Uncovering Passion

Passion comes in many forms and faces. It is unique to the beholder and it is a powerful yet lesser considered business tool. We all know that skills, behaviors, and experience, weigh heavily in professional development but why don’t we place that same focus on emotion? At Splash and Dash Groomerie & Boutique, we do! Passion populates profits and we’ve proven that one true!

Reaching Stability

The world of business is complex and constantly evolving. With that said, starting a new one can feel awfully daunting – so we’ve taken the guesswork out of it. There is no need to re-invent any wheels. There are methods that are proven to work, proven to increase revenue, increase profits, and increase your happiness. Business is strategic and we’ve established a roadmap that could work for you and your community!

Find out more about what makes a good Splash and Dash Franchisee and let us know if we align well with your current values and future aspirations.