The top 4 top reasons why you should invest in the pet industry
Pet Industry: Recession Resistance, Growth, Demographic Trends, and Opportunities
The pet industry has emerged as a dynamic and resilient sector, characterized by its ability to withstand economic challenges, significant growth over recent years, shifting demographic trends, and a wealth of opportunities for entrepreneurs and professionals. Below, we explore these aspects in detail, supported by data and insights from reputable sources.
Recession Resistance
The pet industry is widely regarded as recession-resistant, a trait that makes it an attractive sector for investors and businesses. During the 2008 financial crisis, the pet industry achieved a growth rate of 5.1%, demonstrating its stability when other sectors faltered. More recently, during the 2020 COVID-19 recession, the industry outpaced the broader U.S. economy, growing by 16.2% compared to the national economy’s 4.3% growth. This resilience stems from the deep emotional bond pet owners share with their animals, often prioritizing spending on pet essentials like food, veterinary care, and services such as grooming and boarding, even during economic hardship. For instance, a survey found that only 3% of pet supplement shoppers would cut pet-related expenses first when reducing monthly spending, underscoring the non-negotiable nature of pet care for many.
Certain segments, such as pet food, are particularly robust, as owners are less likely to compromise on their pets’ nutritional needs. Veterinary care also remains a priority, with spending in this area growing rapidly—rising from $4.9 billion in 1991 to $35 billion in 2015, outpacing U.S. GDP growth. The industry’s ability to maintain growth during recessions, coupled with pet owners’ willingness to invest in premium products and services, positions it as a stable and compelling investment opportunity.
Growth Over the Past 5 Years
The pet industry has seen remarkable growth over the past five years, driven by increasing pet ownership, the humanization of pets, and rising consumer spending on pet products and services. In 2023, the global pet market was valued at $246 billion, with U.S. pet spending reaching $89 billion. This represents a significant increase from previous years, with total U.S. pet industry expenditures rising by 7.5% from $136.8 billion in 2022 to $147 billion in 2023.
Key growth areas include:
Pet Food and Treats: In 2023, U.S. pet food sales increased by 16%, with premium and natural pet food segments growing rapidly. The global natural pet food market is expected to grow by 4.6% from 2023 to 2033.
Veterinary Care: Spending on veterinary services has surged, with an estimated $34.3 billion in revenue in 2021, driven by advancements in diagnostics and pharmaceuticals.
Pet Services: Services like boarding, grooming, and training have seen increased demand, with $8.1 billion spent on these services in 2020.
Pet Technology: The market for wearable pet technology, such as GPS trackers and health monitors, was valued at $1.8 billion in 2020 and is poised for explosive growth.
Projections indicate continued expansion, with the global pet industry expected to reach $500 billion by 2030, driven by a growing pet population and premiumization trends. The pet care market is forecasted to grow at a compound annual growth rate (CAGR) of 8.7% from 2020 to 2027, reflecting strong consumer demand and market potential.
Pet Ownership vs. Birth Rates
The relationship between rising pet ownership and declining birth rates has garnered attention, particularly as younger generations navigate economic and social changes. In the U.S., pet ownership has increased significantly, with 66% of households (approximately 86.9 million) owning a pet in 2023, up from 56% in 1988. Shelter adoptions have also risen, with 2.2 million dogs and 2.6 million cats adopted in 2023.
Concurrently, U.S. birth rates have declined, with a 10% drop from 2007 to 2013, primarily among women aged 15-29 ([Fa
Pet Food and Treats: In 2023, U.S. pet food sales increased by 16%, with premium and natural pet food segments growing rapidly. The global natural pet food market is expected to grow by 4.6% from 2023 to 2033.
Veterinary Care: Spending on veterinary services has surged, with an estimated $34.3 billion in revenue in 2021, driven by advancements in diagnostics and pharmaceuticals.
Pet Services: Services like boarding, grooming, and training have seen increased demand, with $8.1 billion spent on these services in 2020.
Pet Technology: The market for wearable pet technology, such as GPS trackers and health monitors, was valued at $1.8 billion in 2020 and is poised for explosive growth.
Projections indicate continued expansion, with the global pet industry expected to reach $500 billion by 2030, driven by a growing pet population and premiumization trends. The pet care market is forecasted to grow at a compound annual growth rate (CAGR) of 8.7% from 2020 to 2027, reflecting strong consumer demand and market potential.
Pet Ownership vs. Birth Rates
The relationship between rising pet ownership and declining birth rates has garnered attention, particularly as younger generations navigate economic and social changes. In the U.S., pet ownership has increased significantly, with 66% of households (approximately 86.9 million) owning a pet in 2023, up from 56% in 1988. Shelter adoptions have also risen, with 2.2 million dogs and 2.6 million cats adopted in 2023 (World Animal Foundation).
Concurrently, U.S. birth rates have declined, with a 10% drop from 2007 to 2013, primarily among women aged 15-29. Some studies suggest that younger generations, particularly Millennials, may be opting for pets over children due to economic pressures, such as high childcare costs and housing expenses, as well as lifestyle preferences that prioritize flexibility (Scirp). For example, the ownership of small dogs has nearly doubled since 1999, aligning with the decline in birth rates.
However, the relationship is not necessarily causal. Research from the Institute for Family Studies indicates that when controlling for factors like marital status and race, the data does not strongly support the idea that pets are directly replacing children (Institute for Family Studies). Instead, both trends may reflect broader societal shifts, including delayed marriage, urbanization, and increased disposable income for pet-related spending. A study from the National Center for Biotechnology Information also suggests that pet attachment may influence fertility intentions under specific socioeconomic conditions, but cultural and economic factors play significant roles.
Opportunities in the Pet Industry
The pet industry’s growth and resilience create a wealth of opportunities for professionals, entrepreneurs, and investors. The global pet care market is projected to reach $428 billion by 2032, driven by trends like the humanization of pets, premiumization, and technological innovation (Fortune Business Insights). Below is a detailed overview of key opportunities:
Market Insights
Pet Care Services
Veterinary services, grooming, pet sitting, dog walking, boarding, and training.Veterinary care generated $34.3 billion in 2021; pet services spending reached $8.1 billion in 2020.
Pet Products
Premium pet food, treats, toys, accessories, and supplements. Pet food sales grew 16% in 2023; premium food market projected to reach $3.5 billion by 2030.
Pet Technology
Wearable devices (GPS trackers, health monitors), telehealth, and pet apps. Pet tech market valued at $1.8 billion in 2020, with significant growth expected.
Pet Retail
Physical and e-commerce pet stores, subscription boxes, and customized products.E-commerce pet sales outpacing overall online retail growth.
Pet Insurance
Policies to cover veterinary costs and unexpected expenses. Pet insurance market growing at 23.4% annually.
Franchising
Pet daycare, grooming salons, and retail franchises. Stable franchise opportunities,
Niche Markets
Vegan pet food, pet photography, fitness wearables, and personalized medications. Vegan pet food demand rising; personalized medication services expanding.
Career Opportunities: The pet industry offers diverse career paths, from entry-level roles like kennel attendants ($27,708 average salary) to high-earning positions like veterinarians. Jobs are expected to grow by 11% through 2024, driven by rising pet ownership and spending. Certification programs, such as dog grooming or veterinary assisting, provide accessible entry points.
Entrepreneurial Ventures: Entrepreneurs can launch grooming salons, pet bakeries, or e-commerce stores. Subscription-based services, like customized pet food boxes, are gaining traction. Franchising with established brands offers a lower-risk entry point, with opportunities in daycare, training, and retail (myfranchiseusa.com).
Investment Potential: The pet industry’s recession resistance and projected growth to $500 billion by 2030 make it a compelling investment sector. Areas like pet tech, premium food, and telehealth are particularly attractive due to their high growth rates and consumer demand.
Addressing Common Concerns
For those considering entering the pet industry, common concerns include fear of the unknown, funding challenges, and uncertainty about where to start. The industry’s recession-resistant nature mitigates economic risks, with historical growth during downturns providing reassurance. Funding can be addressed through small business loans, franchising opportunities, or investor partnerships, given the sector’s stable returns. To start, individuals can explore entry-level roles, pursue certifications, or leverage e-commerce platforms to test niche products.
