More individuals will adopt their pet from shelters, which will provide a boon to the industry
New York, NY (PRWEB) June 06, 2014
Over the past five years, animal rescue shelters have grappled with state budgetary issues, which have caused many municipalities to slash their animal shelter funding. Nevertheless, an estimated six to eight million dogs and cats are rescued by animal shelters each year, according to the Humane Society of the United States (HSUS). In response to the high volume of animal rescues each year, many animal welfare advocacy outreach programs have managed to secure funding for many nonprofit shelters. Also, according to HSUS data, the number of US households that have cats and dogs has more than doubled over the past four decades, which has been partly attributed to population growth. According to data from Ralston Purina and the National Council on Pet Population Study and Policy, about 10.0% to 20.0% of households with cats and dogs have rescued their pet from a shelter, which has stimulated industry revenue.
However, many animal shelters provide additional services, including animal microchip implantation and sterilization services, which has caused many animal shelters to struggle to provide pet care, as many of these costs have steadily increased. Additionally, animal overpopulation in shelters has been an issue for the industry, which has partly resulted in the euthanasia of about three to four million dogs and cats per year, according to the HSUS. According to IBISWorld Industry Analyst Sarah Turk, “Despite these trends, industry revenue is expected to grow at an annualized rate of 2.3% to $628.6 million during the five years to 2014, including 0.6% growth in 2014.” This increase is mainly due to rising consumer awareness about animal shelter overpopulation, which has stimulated demand for adopting rescue animals rather than purchasing animals from breeders or puppy mills. Profit is expected to rise due to many nonprofit animal shelters securing funding from animal welfare advocacy groups and other organizations. As a result, many nonprofit animal shelters have expanded the services in their product portfolio, such as microchipping services.
During the next five years, more consumers will be wary of how animal breeders and the lack of pet sterilization can further exacerbate pet overpopulation. As a result, more individuals will adopt their pet from animal shelters, which will provide a boon to the industry. During the five years to 2019, industry revenue is forecast to grow.
“The Animal Rescue Shelters industry is characterized by a low level of market share concentration,” says Turk. In 2014, no animal shelter organization is expected to account for more than 3.1% of total industry revenue. Animal shelters typically own only one location and offer services to their local region. While some leagues and associations operate nationwide, they typically cooperate with region-based animal shelters in other areas rather than build new facilities. Additional funds are typically used to increase awareness, upgrade facilities and provide additional services. Other factors that limit industry consolidation include varying legislation at the local and state level as well as limited grants and funding for industry operations.
For more information, visit IBISWorld’s Animal Rescue Shelters in the US industry report page.
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IBISWorld industry Report Key Topics
The Animal Rescue Shelters industry includes establishments that provide a temporary home and care for stray and homeless pets while seeking permanent homes for them.
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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