Indulgent pet parents will continue to drive demand for premium pet food and services.
Los Angeles, CA (PRWEB) September 10, 2013
The Pet Stores industry is ahead of the pack when it comes to sales. Even during the Great Recession, which slowed demand throughout most of the retail sector, the industry continued to yield revenue growth. This trend was mainly driven by an increasing number of pet parents, or pet owners who treat their four-legged friends as family members. During the economic downturn, when consumers of all income levels reduced spending, pet parents cut back on their personal discretionary spending before spending less on their pets. Consequently, revenue growth for the industry slowed during the recession but maintained its overall positive trend. Revenue is expected to increase in the five years to 2013.
According to IBISWorld Industry Analyst Andy Brennan, “The emerging trend of pet parents has also commanded high demand for premium pet products and services.” Since pets are often considered family members, pet owners frequently lavish them with all-natural and organic pet foods and treats, in addition to high-end services. Examples of pet services go beyond the traditional grooming, dog walking and training; today, premium services like pet therapy sessions and pet-only flights are available for four-legged family members. This is the case particularly for dog and cat owners. These positive trends, combined with rising sales, have increased profit margins for industry players in the five years to 2013.
“In the five years to 2018, the Pet Stores industry is projected to maintain strong growth,” says Brennan. As the economic recovery gains traction and consumers have more discretionary income, revenue from premium products and services is projected to increase. Moreover, the number of pet-owning households is expected to continue increasing, yielding greater demand for industry products. However, for basic pet supplies, competition from supermarkets and discount department stores is expected to remain strong. In the five years to 2018, industry revenue is forecast to rise.
A significant portion of the Pet Stores industry's revenue comes from two specialty supply retailers: PetSmart and PETCO. The other portion of the industry consists of family-owned stores, small franchises and small chains of pet stores. Despite the moderate degree 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 2018, major players PetSmart and PETCO are expected to grow their share of the industry.
For more information, visit IBISWorld’s Pet Stores in the US industry report page.
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IBISWorld industry Report Key Topics
The Pet Stores industry sells 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 also offer pet services such as grooming and training.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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