Puppy love: Pet owners will invest in premium products and services as the economy improves

The Pet Stores industry has purred along over the past five years as cats, dogs, fish and birds have remained popular home companions. Pet parents, or pet owners who treat their four-legged friends as family members, have grown increasingly common and facilitated demand for pet stores. Accelerated by economic recovery, the industry has expanded strongly, despite increased competition from supermarkets, mass merchandisers and online retailers that offer consumers greater convenience and competitive prices. Over the five years to 2022, the industry is projected to maintain strong growth. As the economy continues its upward trajectory and consumers have more discretionary income, revenue from premium products and services is projected to increase...read more.

Industry Statistics & Market Size
Revenue
$18bn
Annual Growth 12-17
2.4%
Forecast Growth 17-22
Profit
Employment
121,994
Businesses
17,574

Industry Threats & Opportunities

  • The emerging trend of pet parents has bolstered demand for premium pet products and services
  • Supermarkets have lured customers away from smaller specialty stores
  • A rise in pet ownership will lead to higher demand for industry products
  • Industry Report - Industry Analysis Chapter

    The Pet Stores industry is anticipated to post strong gains over the five years to 2017 due to the growing number of pet owners who treat their pets like family members. By offering a wider array of innovative, specialized and premium products and services, pet stores cashed in on owners’ desires to pamper their pets. In addition, rising pet ownership in the United States led to overall higher demand for pet food and supplies. Consequently, industry revenue is expected to increase at an annualized rate of 2.4% to $18.4 billion over the five years to 2017. Moreover, industry revenue is expected to rise 1.2% in 2017 alone, as higher disposable incomes encourage greater spending on pets...purchase to read more.

    Additional Insights for the Pet Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pet Stores Industry are

  • Attractive product presentation
  • Experienced work force
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Number of pets (cats and dogs) and Per capita disposable income in the Pet Stores industry impact industry performance..

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    What's in this report

    What is the Pet Stores Industry?

    Pet stores sell 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.

    Industry Products
  • Pet food
  • Pet supplies
  • Pet services
  • Live animals
  • Industry Activities
  • Retailing pets
  • Retailing pet food and supplies
  • Providing pet grooming and boarding services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of pets (cats and dogs)
  • Per capita disposable income
  • Percentage of services conducted online
  • Number of households

  • Current Performance
  • Pets and products
  • Competition from bigger stores
  • Chart: Revenue Growth

  • Industry Outlook
  • Pet ownership to grow
  • Premium products will remain popular
  • Changing competition
  • Table: Pet Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pet Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Animal Food Production
  • Toy, Doll & Game Manufacturing
  • Veterinary Services

  • Products & Services
  • Pet food
  • Pet supplies
  • Pet services
  • Live animals
  • Chart: Pet Stores Industry Products and Services Segmentation

  • Demand Determinants
  • Pet ownership
  • Income
  • Demographics and lifestyle

  • Major Markets
  • Consumers aged 45 to 54
  • Consumers aged 55 to 64
  • Consumers aged 35 to 44
  • Consumers aged 25 to 34
  • Consumers aged 65 to 74
  • Consumers aged 75 and older
  • Chart: Major Market Segmentation for the Pet Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Pet Stores

  • Basis of Competition
    InternalExternal
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pet Stores Industry

  • Industry Globalization
    PetSmart Inc., PETCO Animal Supplies Inc.,
  • Table: PetSmart Inc. - financial performance
  • Table: PETCO Animal Supplies Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pet Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pet Stores Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of pets - cats and dogs (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Initial Public Offering
  • A type of public offering in which shares of a company are usually sold to institutional investors who, in turn, sell to the general public on a securities exchange for the first time.
  • Pet Boarding And Day-Care
  • Long- and short-term options for owners who need assistance looking after their pets. Services include feeding, walking, grooming and lodging.
  • Pet Parents
  • Pet owners who are enthusiastic about their pets and treat them as members of their family.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Pet Stores can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pet Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pet Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pet Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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