Pet Industry 2013 Strategic Outlook

See U.S. market sizes of pet food, veterinary services, supplies and pet services, sliced by demographic group. Includes pet owner spending demographics, core trends and analysis on fragmentation, the retail landscape, changes in the food and vet industries, and opportunities moving forward.

This report provides key spending trends by age, income and household composition that are driving the pet industry. It contains actionable intelligence to help your business, marketing or product development initiatives. Learn more or buy securely here



For instance, the above table shows both overall ($2.4 billion) and segment market sizes for pet owners who have a child younger than six years old. These new families used to be part of a core demographic group with children in the 'pet acquisition years' that can engender loyalty to a brand. These customers continue to increase spending, particularly on food and at the vet.

 

Pet Business Opportunities

Emerging Market Segments in the Pet Industry

Kudos to BusinessWeek for staying ahead of the curve by reporting on one of the emerging market segments in the pet industry (There's Never Been A Better Time to Be a Dead Pet by Eric Spitznagel, Sep 07 2012). Sometimes it's hard for businesses to get behind an idea that's hard to quantify; the article points out that it is "a growing if untracked segment of the pet care industry."

In fact, the pet death segment is on our list of best pet business opportunities for the second year straight. The aging of America, and of our pets, and increased spending, are only three of the reasons.

Cultural changes and pet owner expenditures that span multiple demographic groups have proactively created opportunities for new business ideas, and perhaps more importantly for existing businesses to tap into a multi-billion spending spree.

Check out our market research for more opportunities moving forward. Buy any report now and we'll include a confidential half-hour phone consultation.
 

Walmart launches wheat-free ultra-premium dog food

Walmart (NYSE:WMT) just announced its new ultra-premium dog food called Pure Balance.

Citing the faster growth rate of ultra-premium dry dog food than the value category, the company believes this product will complement the Ol' Roy brand nicely. Reuters reports that this move puts Walmart "into more direct competition" with specialty chains PetSmart (NASDAQ:PETM) and Petco (a private company).

By launching a trendy, wheat-free brand, we think this does indeed align with spending patterns exhibited by dog owners in the U.S., as outlined in our pet industry research published earlier this year.

Source: "Walmart U.S. launches its own high-end dog food," by Jessica Wohl, Reuters, Aug 14, 2012
 

Expanding pet services into real estate

Luxury dog service company The Spot Experience announced a partnership with New York-based Rose Associates to provide a full line of in-house and outdoor dog services to 4,500 residents in two dozen buildings.

This expansion aligns with consumer spending demographics on pet services, showing that over 50% of the market, or approximately $2.5bn, is supported by households making over $100,000 per year.

A unique selling value combined with a high-income buying spree sounds like a winning proposition to me. The company cites this deal as a "first" of its kind, and my guess is, not the last.
 

Is Your Business Pet-Friendly? Why Not?

A good article by SmartMoney Magazine on pet travel also highlights how diverse businesses profit by leveraging their existing pet-owning customer base.

Airlines, hotels, restaurants and retailers like Orvis are mentioned.

Check it out: "Pack Mentality: More People Than Ever Are Traveling With Pets," by Anne Kadet, SmartMoney Magazine, June 13, 2012
 

Baby Boomer Pet Spending

A key driver of pet industry growth is the aging of America. These tables show the percent of spending on each segment, and how that mix has changed over 5 years.



Baby boomer spending trends are evident in the data as they purchase a larger slice of the $50 billion pie each year. Comparing older and younger demographic groups clearly highlights the direction of consumer spending on pets in the U.S.

Many more of these tables, plus charts and analysis by Dillon Media, are available in the latest Pet Industry 2012 Strategic Outlook, dissecting the industry by age range, income bracket, family composition and region.

This report is a great resource for companies that market to pet owners on a nationwide basis.
 

Pet Services Demographics Support the Trends

A good article on pet services by CNBC highlights consumer demand for comprehensive dog care solutions. High-End Doggy Day Care: No Downsizing For Fido

Combining health-related products with a comprehensive suite of services is a growing trend in pet retail. These pet owners can be stickier than in other segments, spending more money per visit and coming back more often than shoppers in the other pet segments. Consumer spending demographics give a clue as to why: the segment is widely bought by higher income pet owners. For example, over 50% of nationwide pet services spending was by households making over $100,000 per year.

If you operate a pet business, check out our upcoming 2012 pet industry research.