There is great news for those vested in the Pet Franchise industry, to newcomers looking to expand their investments to new investors, the Pet Industry is on on the rise. Fields from Groomers to Veterinarians are all reporting strong growth in revenue, and surveys from the APPA,VPI Co., APOP, Purina Dog Chow, and Packaged Facts are all publicizing growth.This article outlines current market trends that is allowing for this economic growth.
The Pattern is Continuing and Projected Strong
2004 marked the beginning of the steady incline in generated revenue in the Pet Franchise Industry as a whole. From 2008 to 2014 there was a $14.9 billion dollar spike that has continued into this year. The American Pet Products Association estimated that the fiscal year will end in $62.75 billion, an almost 20 billion increase from 2014. As more data becomes available, by estimates for 2019 are projected at $91.72 billion. 97.3 households are reporting owning a cat or dog making up 75% of owned popular pets. Because cats and dogs take more care through food, grooming, and veterinary service, than fish and reptiles it is important to note the majority of marketing and product innovation is happening for these animals.
Rapidity Of Growth is Attracting Inventors
Last year was the year of opening pet start-ups. Dozens of companies parenting smaller start-ups like TurboPup was one of the most mediatized of these companies. The creator, Kristina Guerrero, won a $100,000 on ABC’s Shark Tank to create TurboPup all natural power bar for dogs. Another innovation in the industry is application and software based products and services. PetChatz, a conglomerate of Anser Innovation, is a webcam based software that allows owners to see their pets, dispense a treat, and sprays a soothing-scent for your pup. Another Phone App started in 2015 is Swifto, founded by Penina First. Swifto is the Uber for dog owners, and allows owners to connect with Dog Walkers and view the walk in real-time through the App. As technological advancements continues to open doorways for pet-owners the industry responds pushing new ways for franchise owners to innovate and capitalize.
Premiumization of Pet Foods
Market trends for human foods like local produce markets and Trader Joe’s expansion are also carrying its way over into the pet franchise Industry. Owners are more concerned now with the ingredients and health benefits of their pet’s diet because of national awareness to nutrition. Mass brand pet foods are still making majority of the money, but the innovation and more recent market trends suggest that owners will be purchasing more premium food alternatives. For example, the Honest Kitchen–a 2015 start-up aimed at providing human grade food for pets has generated over 21 million dollars in revenue. Honest Kitchen offers a dehydrated mix of free-range chicken, cage-free duck, sweet potatoes, pumpkin, and cranberries as the marketable healthy ingredients in their companies food products.
Dog is Still Man’s Best Friend
The old adage “Dog is man’s best friend” still carries weight and can be seen in marketing trends. Advertorial and PR campaigns, marketing, hashtags, and even Hollywood is using the natural bond between human and pet. Products marketed for eco-friendliness are using images of puppy faces to show safety of the product like bug sprays and air fresheners. The visual of a dog has been shown to resonate with American audiences. MGM studios released Max, a story which pulls on the heart-strings when a Marine dog-trainer passes away. Max, his German Shepherd, bonds with the Marines younger brother Kyle unveiling the mystery of his soldier brother’s death. The movie focuses on the compassion formed during war-time between soldiers and their dog trainees. This year the Secret Life of Pets released with a similar narrative showing that the entertainment industry is correlating with the marketing industry. Everyone loves their pets, even outside of the pet franchise!
Gains are Across the Board
With 68% of households reporting to own at least one pet, and 4 in 6 households owning multiple pets, the pet franchise Industry is emerging as a safe bet for not only Veterinarians and Food distributors, but for investors as well. Surgical and routine vet visits account for $15.24 billion. Live animal purchases account for $2.11 billion. This leaves a margin of $44.71 billion for services, food, and product revenue which are all things owners of pet franchises can provide. The options with investment and entrepreneurship are vast with choices of grooming at home, buying a franchise storefront, or buying stock in one of dozens of successful start-ups. Services in pet grooming and doggy daycare are also expanding to meet the needs of modern consumers.The success the industry is receiving is on a holistic level. New innovative pet products, modern technology, entrepreneurs gaining success, and an already strong brand are paving the way for a rewarding and strong industry to be invested in.