Increasing numbers of consumers are choosing to buy pet products over the internet
Melbourne, Australia (PRWEB) August 23, 2012
The Online Pet Food & Pet Supply Sales industry has transformed itself in the five years through 2012-13. The industry has transitioned from niche operators selling mainly pet accessories, toys and equipment to be worth $78 million in 2012-13. “The industry is in a growth phase, brought on by expansion of products and services into areas like pet food,” according to IBISWorld industry analyst Craig Shulman. This has allowed the industry to cater to the increasing number of Australian consumers that have adjusted to going online to satisfy their everyday needs. The online shopping sector has benefited from increasingly sophisticated technology and infrastructure over the five years through 2012-13. Over this period the industry has grown in double digits, at an annualised 16%.
This growth is being underpinned by increasingly spoiled Australian pets. “Though declining in number, the average pet now enjoys better food, more treats and even inclusion in sophisticated human products like health insurance,” says Shulman. Declines in pet populations are associated with increasing urbanisation, as dogs, for example, often require a backyard rather than a balcony. Despite the increasing spend per pet, the decline in the pet population signals increasing competition within the pet industries.
This is competition that the industry is well placed to win in the coming five years. Online structures that achieve sufficient scale can pass on the savings to price-conscious consumers. In addition, online platforms favour niche operators. The construction of the National Broadband Network is expected to increase the scope of the industry to include more regional and rural customers. Technology adoption is also expected to increase as Australia follows trends in online shopping adoption seen in the United Kingdom and the United States. The Online Pet Food & Pet Supply Sales industry is fragmented, with numerous small players providing specialised pet products. Over the next five years, industry enterprises and establishments are expected to grow at a slower rate than revenue, indicating that the industry is consolidating as it grows. The major retailers – Wesfarmers Limited and Woolworths Ltd – are expected to grow, using their existing supply chains and brand strength. Pet food, unlike accessories, is bought consistently over a pet's lifetime and supermarkets have a large share of the pet food market. As the major players grow their online sales, the volume of pet food sold online through supermarkets is expected to increase.
For more information, visit IBISWorld’s Online Pet Food & Pet Supply Sales
report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry retails pet food and supplies via the internet. Examples of products offered by online pet supply stores include collars, leashes, health and beauty aids, medication, toys, pet carriers and furniture.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.