- How quarantine helped the pet industry raise the “woof” on sales
- Doggy demand leads to tail-waggin’ innovations
- Meet the furry friends of DSJ!
It’s been said that the pet industry is indestructible. It survived the global recession of the early 2000’s, but COVID-19 is a unique beast whose effects couldn’t have been predicted. But after a year of successful back-to-back quarters, the results are in… and so are pandemic pets.
Millennials almost single handedly drive the industry these days; more and more young adults are putting off children for later years while starting families early on with furry friends. They’ve lead a steady trajectory over the past several years, one that’s predicted to bring the pet industry to $281 billion by 2023.
Quarantine spiked an unprecedented “doggy demand,” bringing pet euthanasia rates down 43%. In some areas, demand now outweighs supply as shelters are emptying cages and finding homes for their four-legged occupants. According to Shelter Animals Count, a non-profit that collects shelter statistics, the community adoption rate during the current period is 73% (compared to last year’s 64%).
Stocks have seen a major spike since the quarantine “doggy demand” as well. Major pet supply & product companies have seen major increases over the past few months:
- ProShares Pet Care (PAWZ) ^ 48% (past 12 months)
- Indexx Laboratories (IDXX) ^ 61%
- Zoetis Inc. (ZTS) ^ 25%
With increased demand comes a need for increased supply, and the pet industry didn’t let us down. Innovators showed up with new products, boosting business for companies like Chewy.com which boast quick shipping on pet products ranging from medicine and food to toys and clothes. The most unexpected untapped market? Doggy diapers. The early stages of quarantine kept owners and pets indoors, creating a space for the new product to make its big drop into the market. As of the 3rd quarter, sales have reached over $24 million.
New toys, new products, and new services—the pet industry is almost pandemic-proof. We have a few friends who are going “mutts” about this investment op-paw-tunity!
Associate, Creative Solutions
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