Pet Stores in the US Industry Market Research Report Now Available from IBISWorld

Pet ownership will continue to rise, driving revenue growth in this industry, particularly within the pet food segment. Further, the trend of pet indulgence is increasing the popularity of diverse pet services such as grooming, walking and even pet therapy. Meanwhile, specialty pet stores continue to compete with supermarkets and big-box stores that carry large inventories of similar products at lower prices.

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IBISWorld Market Research

IBISWorld Market Research

Indulgent pet parents will drive up demand for premium pet food and services like grooming

Los Angeles, CA (PRWEB) February 28, 2012

The Pet Stores industry is ahead of the pack when it comes to sales. Even during the Great Recession, which slowed most of the retail sector, the industry continued to yield positive revenue growth. “This trend was mainly driven by an increasing number of ‘pet parents,’ pet owners who treat their four-legged friends as family members,” said Caitlin Moldvay, an IBISWorld industry analyst. During the economic downturn when consumers of all income levels tightened their belts, pet parents cut back on their personal discretionary spending first before scaling down on their spending for their pets. Consequently, revenue growth slowed during the recession but maintained its overall positive trend. Revenue is expected to increase at an average annual rate of 2.8% to $14.7 billion in the five years to 2012.

The emerging trend of pet parents has also brought about high demand for premium pet products and services, Moldvay noted. Since pets are often considered family members, pet owners frequently indulge them with all-natural and organic pet foods and treats, in addition to services such as grooming and day care. Over the five years to 2017, revenue in the Pet Stores industry is projected to maintain strong growth. As the economic recovery gains traction and consumers are equipped with heavier wallets, revenue from premium products and services is projected to increase.

More than half of the Pet Stores industry's revenue comes from two specialty supply retailers: PetSmart Inc. and PETCO Animal Supplies Inc. The other portion of the industry consists of family-owned stores, small franchises and small chains of pet stores. The industry has a high level of concentration with the top four companies generating most of its revenue. Although there is a high level of concentration, small operators are still able to find niche markets in their geographical locations and rarely expand beyond those areas. In the five years to 2017, major players PetSmart and PETCO are expected to grow their share of the industry, with a steady stream of customers patronizing their stores. This is because these big-box retailers are able to offer customers a "best of both worlds" scenario, where they provide broad and industry-specific product selections, while operating on a scale such that they can purchase in bulk and pass on savings to the consumers. Consequently, these stores are expected to grow at the expense of small stores in the industry. For more information, visit IBISWorld’s Pet Stores report in the US industry page.

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IBISWorld industry Report Key Topics

Pet stores sell a variety of pets, including dogs, cats, fish and birds. Stores also sell pet foods and pet supplies, such as collars, leashes, health and beauty aids, shampoos, medication, toys, pet containers, dog kennels and cat furniture. Some stores offer pet services, such as grooming and training.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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