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Pet Industry Boom: 2020 Sales Surpass $100 Billion for First Time

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Despite the many challenges that the pandemic brought to virtually every business segment during 2020, the pet industry managed to achieve an impressive milestone with total sales topping $103.6 billion for the year. This represents a historic high, according to the American Pet Products Association (APPA) State of the Industry Report released mid-March of this year.

These results represent an increase of 6.7% over 2019 retail sales of $97.1 billion. Here are some additional interesting stats on 2020 sales as reported by APPA:

  • $42 billion spent on pet food and treats (9.7% increase year over year)
  • $31.4 billion spent on vet care and product sales (7.2% increase)
  • $22.1 billion spent on supplies, live animals and over-the-counter meds (15.1% increase)

An additional $8.1 billion was spent on other services such as grooming, dog walking and boarding — a 21.4% decline from the previous year, which is attributed to the business slowdown forced by COVID-19 lockdowns and the economy. As we slowly edge our way forward, away from the quarantines of the pandemic, the APPA predicts theses services will rise as consumers once again increase spending.

“We have reached a critical milestone, generating $103.6 billion in sales,” said Steve King, president and CEO of APPA. “We are bullish for the coming year, projecting growth of 5.8% — well above the historical average of 3% to 4%. This past year presented a host of challenges that resulted in consumers across the country turning to their pets for comfort and companionship. Interestingly, the product trends we are seeing in the pet care community mirror those of consumers — a desire for a healthier lifestyle, increased focus on fitness, turning to supplements for improved well-being and technology playing a larger role in everyday life.”

Throughout 2020, the pet industry saw supply chain disruptions due to panic buying that peaked in March to May 2020. However, once panic buying slowed and supplies were then able to normalize, sales continued to soar. This continued increase in pet owner spending is attributed to the fact pet owners, many of whom were forced to continue to work from home, continued to spend a lot of that time at home with their pets.

Predicted Growth for 2021

As the pandemic wanes and consumers get back to normal, APPA is projecting a 5.8% industry increase for 2021, with estimated total sales of $109.6 billion – welcome news for those looking to join the pet service market. APPA expects growth across all pet industry categories. Other findings from the APPA report include:

  • Pet specialty and independent retailers experienced solid growth.
  • 30% of pet owners spent more on their pet/pet supplies in the past year with only 10% saying they spent less.

The pet industry was already growing pre-pandemic, as more and more Americans become pet owners. However, the mandatory quarantines and alternate workspaces forced many to re-evaluate their work/life balance. For an increasing number of individuals, this self-reflection fueled the pet industry growth as many Americans recognized a need for companionship and looked to fill that void with a pet. There is no better time to  join the pet industry! Why not join the fastest growing franchise opportunity with multiple revenue streams?

If you are interested in learning more about how we can help you achieve your dream of owning your own business and get in on the booming pet industry, please download a copy of our free Franchise Report. Inside this report you will learn more about what Splash and Dash has to offer and what makes us a great franchise business opportunity.

 

 

The Number of New Pet Owners Has Greatly Increased During the Pandemic

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There’s never been a better time or a bigger need for “man’s best friend” than now. As officials across the country urged Americans to stay at home and practice social distancing to stop the rampant spread of the COVID-19 virus during the pandemic, many Americans turned to our furry friends for comfort and companionship. In fact, the American Pet Products Association reported in its most recent “COVID-19 Pulse Study” that 11.38 million U.S. households have gotten a new pet during the pandemic. In addition, three out of four pet owners reported that spending time with a dog, cat or another animal species helps reduce their stress and increases their sense of well-being during COVID-19. The report also showed:

  • 16% of Generation Z respondents and 13% of Millennials have welcomed a new pet during the pandemic. Just 3% of Baby Boomers have done so.
  • 72% said their pet’s diet is “very important to them” and that they “do not plan to make any changes to it regardless of their financial situation.”
  • 56% are very loyal to their chosen pet food brand.

With the dramatic increase in the number of new pet owners and the fact that many Americans are still working from home as we eagerly await the definitive conclusion of the pandemic, all pet owners (new and old) are spending more time with their pets. And with this increased time spent with a pet, comes an increase in pet owners’ awareness of their pet’s well-being along with an increase in spending on their pet. When you combine these with the fact the life expectancy for our pets has greatly increased, it’s clear that American consumers are prioritizing innovative approaches to animal health and happiness, which will lead to an even greater increase in consumer spending in the pet products market.

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Consumers are Increasingly Placing Greater Value on Their Pets

Not so long ago, a family’s pet would be relegated to live and play outdoors, but today’s pet owners would never dream of that. Today pets enjoy the luxury of sharing the family home – often with free reign. For many pet owners, their pet is their loyal companion.  More time spent at home during the pandemic has only solidified this bond.

Over the last year, pet owners have grown even closer to their pets. This trend is recognized in the continued industry growth. Increased consumer spending on pets is at play for new pet owners as well as those who have had a pet for some time.  Pet owners are continuing to look for ways to provide the best care possible for their pet. This trend toward continued investment in pet well-being foreshadows a continued bright future for the pet products market and significant growth opportunities for those who own a pet store franchise, especially a pet groomerie and boutique franchise that provides multiple revenue streams.

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The Pet Products Industry has Surged During the Pandemic

The pandemic has caused many consumers to cut back on their spending habits, creating a trickle-down effect in many business markets. However, even during the pandemic, pet owners have continued their increased spending on pet products. The American Pet Products Association estimates that Americans spent nearly $100 billion on their pets in 2020, which is higher than ever before. But this isn’t the first time the pet products industry has thrived during difficult times. During the financial crisis that hit in 2008-2009, the pet products industry continued to grow, proving the resiliency of the market.

However, those who think the pet products market is just resilient would be mistaken. That’s because we’ve seen the pet products market do more than just survive. Time and again the pet products market weathers the storm and comes back stronger than ever. This is a trend that shows no signs of stopping.

If you are interested in learning more about how we can help you achieve your dream of owning your own business and get in on the booming pet industry, please download a copy of our free Franchise Report. Inside this report you will learn more about what Splash and Dash has to offer and what makes us a great franchise business opportunity.