Tag Archives: Pet Businesses

Benefits Of Having A Pet, Pets

Pet Businesses And The Economy

The Economy And Pet Businesses

Pet businesses: As the economy has become more stable, investors will see future opportunity. There will be a boom of consolidation and acquisition within the pet industry and an influx of capital.

It is expected that larger brands will dive into the pet industry in an effort to gain pet loving consumers as customers.

A continued increase in co-branding, private labeling, partnerships and licensing deals will continue. This growth is due to companies looking to bring more products and services to their current and prospective market.

Pet businesses  who move and act to change with the times and align their businesses, products and services to the current and future wants and needs of the new pet loving consumer will be much more successful in the short and long term. They will also be in a  better position  to evolve and become a respected leader in their market.

Pet Businesses Trends and New Innovations

Many innovative and creative companies and individuals are designing and bringing to market a wide variety of products and services.

  • Toys
  • Games
  • Pet Care
  • Therapeutic Garments/Wraps
  • Pet Insurance
  • Pet Clothing

These products and services  will do well in contributing to a more full and happier, healthier lifestyle for pets that satisfies even more of their senses.

We will see everything from scent related toys to unique and helpful services come to market in the coming years that will help pet lovers engage, entertain, and manage their pets lifestyles more completely.

Reasons You Can’t Go Wrong With the Pet Industry

Pet Businesses And The Economy

Pet Industry Trends

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Benefits Of Having A Pet, Pets

Reasons You Can’t Go Wrong With the Pet Industry

One of the industries that many investors are currently betting on is the pet industry.

1. The Pet Industry Is  Recession-Proof

The pet industry seems to defy all odds during recessions and has been very little affected by economic crisis so far.

2. The Industry Is Predictable

Seasonal demand limits the cash-flow to a couple of weeks per year, which means you need to stack up on inventory based on an estimate of future demand. As seen on the Google Trends traffic, the pet industry has peaks in December but maintains a steady level of base demand throughout the year.

3. There Is No Need To Educate The Customer

One of the biggest expense for a new product is to educate the customer on what the product does and why it is so important. The vast majority of new pet products need no explanation whatsoever. Pet owners already know that health, training and the entertainment of their furry family members is important and are happy to give new products a shot in the hope that it will benefit their pets.

5. Good Margins

For retail businesses, you are looking to have an average margin anywhere north of 60 percent. While dog and cat food margins are mostly around fifty percent, the most popular items such as chewing toys and bones have 70 percent margins. Food for pets accounts for slightly more than a third of the entire market, with 23.04 billion spent in pet food annually. Designer collars, luxury clothes and other high-end accessories for dogs also have great margins, which helps to keep the average margin high.

6. Growing Market

There was a steep increase in demand over the recent years as the number of pets has grown to 312.1 million. Since 1994, the market has more than tripled in size and grown from 17 billion to 66.75 billion in 2016 in the U.S. alone.

Dog owners spend an average of around $1,641 and cat owners approximately $1,125 per year. Less than two thirds of the costs are spent on vet visits, leaving the remaining two-thirds up to retailers and service businesses.

Michael Lucroy, DVM

Dog ownership

Pet Parents

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