In 2018 the pet industry was worth $72.56 billion as opposed to $66.75 billion just two years earlier. This industry is big and continues to get bigger! But wait- what about the recession being predicted following the COVID-19 outbreak?
How will this affect the pet industry and small pet businesses?
Numbers Don’t Lie
67% of all American households own pets. That’s about 85 million families. 63.4 million of those households own dogs! 42.7 million own cats, 11.5 million keep freshwater fish, 5.7 million own birds, 5.4 million own a small animal such as a guinea pig or ferret and 4.5 million own reptiles. About 1.6 million Americans own a horse and the same number of people own saltwater fish.
As you can see, producers of pet products in the US have a market of millions to provide for.
Most Valuable Pet Products
So, what are the most valuable products or services in the pet industry currently? Pet food production tops the charts with about $31.68 billion dollars. Vet Care is a close second at about $18.98 billion in annual spending. Other supplies accounts for about $16.44 billion. Live animal sales, which often have a low-profit margin compared to expenses, have about $1.79 billion spent on them every year.
But wait, what if people no longer have that kind of cash to throw around? Maybe they’ll stop bringing Fido to the groomer or opt to look up “home remedies” on google rather than going to the vet (highly unrecommended.)
As we see the insanity of herd-think spiral out of control, resulting in a drop in the economy, what can we expect for the future of the pet industry?
The Place of Pets in America
If you think that the pet industry will suffer because people don’t want to care for the “extraneous” expenses of pets, you probably don’t own a pet. The average American views feeding their pets as a staple expense of existence, right up there with feeding themselves.
In the US, pets are not luxuries to be tossed aside when we have trouble affording them. They are family members in over 85 billion US homes. Not as many people are having children as they used to, so they take that nurturing instinct and pour it into their pets instead.
Spending on pet luxuries like high-end doggy spas, toy of the month clubs and custom dog sweaters may decrease during a recession, but basic pet care won’t. People will still invest in food, litter, basic healthcare and other things that they consider essential to keeping their animals well-cared for and healthy.
As a pet owner of more than 18 years, I can say from personal experience that people will eat ramen for a few months and sell some furniture to pay off a steep vet bill if necessary. So, no matter the dire financial circumstances of the pet owner, they will find creative ways to keep and care for the animals that depend on them.
This Is One of the Most Secure Industries
Can you guess what percentage of pet industry money people spend on pet food? Over 40% of the billions of dollars spent annually is spent on pet food. This should come as no surprise since pet food is one of the most basic needs.
Pet services such as boarding and medical care are also sustainable industries during both a thriving market and during a recession.
Don’t despair when people speak of a recession. No matter what your product or service is, if you can get people to see the value in it, you’ll do just fine. Change doesn’t mean everything is over, instead, it’s an exciting opportunity to look for new ways to better serve our clients and customers.
If you’d like to see how you can gain more web traffic, sales and leads from Instagram, especially during uncertain times, sign up for a Strategy Session where I’ll walk you through exactly how to tailor your Instagram plan to bring in more business.
