6
2022
PET INDUSTRY
TRENDS FOR
Pet Industry Trends for 2022
Mapping data across the pet industry is notoriously dicult. Unlike fashion mar-
keting, health and wellness, and the beauty industry, no single source of market
research exists.
Thankfully, by coordinating resources, we can get clear answers on a number of
pressing questions, namely...
Globally, the pet care market has grown from $216 billion in 2020 to $232
billion in 2021. An estimated 6.1% compounded annual growth rate (CAGR),
will catapult that gure to $350 billion by 2027.
While North America and Western Europe are mature, they still oer possibilities
for an uptick in consumer purchases relative to the growth experienced world-
wide.
Space exists for the development of new products and especially new channels:
an advantageous lifecycle stage for emerging brands to enter and thrive.
How protable is the pet industry?
How much is the pet industry worth?
Is the pet industry growing or shrinking?
What is lacking in the pet industry?
And what challenges do pet brands face?
Pet Industry Trends for 2022
How Big is the Pet Industry?
Global Market Size & Growth Rate
Year-over-Year Worldwide Sales
Pet Industry Growth by Region
$261B
2022
+6.1%
CAGR
$350B
2027
$300B
$200B
$100B
$0B
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Asia Pacic
Australia
Middle East and Africa
Eastern Europe
Western Europe
Latin America
North America
9.3%
1.0%
5.0%
4.2%
1.4%
5.9%
2.3%
Pet Industry Trends for 2022
While retail stores have seen a slow increase in buying, the online pet market has
nearly quadrupled since 2013.
With pet ownership rates continuing to rise, the target market for the industry as
a whole will expand, allowing new penetration points.
Yes, the big-box pet stores are experiencing good fortune. But, to fear the compe-
tition is to miss the way forward.
For entrepreneurs eager to penetrate new markets, pet food and pet supplies are
the second and third biggest ecommerce CPG categories across the industry. The
promise of prosperity is acutely high within the natural foods, animal care, and
supply sectors.
1.
The Boom of the
Online Pet Market
In millions of USD
Vitamins $7,401.1
$5,652.7
$3,503.7
$3,343.5
$2,232.9
$1,907.1
$1,399.8
Pet supplies
Pet food
Skin care
Coee
Weight control
Cosmetics (Facial)
Leading Ecommerce Categories in US
Pet Industry Trends for 2022
as customer preference for shopping for pet products on ecommerce sites is
estimated to grow at 9.4% — a sizable increase over its already 13% market share.
-
forms — the result is an expansion of the global pet market. No surprise, the area
of opportunity for businesses looking to expand market share in the pet industry
is online.
Sales by Purchase Channels
13% Ecommerce
36% Mass, Dollar, or Club
32% Pet speciality
Data from Statista.com
19% Grocery
Pet Industry Trends for 2022
The traditional model relied upon by the major industry players clashes with
what customers have come to expect in the world of digital.
This digital disconnect oers an opening for ecommerce brands to leap up and
capture market share. Their opportunity lies in creating a unique brand identity
within their pet market niche and the advantage of ridding themselves of middle-
man margins in comparison to mass-market pet brands.
Looking to the future, it’s a game of how high will ecommerce sales go. However,
to focus on the sales numbers alone is to miss an even more compelling signal: a
generational shift.
Convenience and comfort
Product information and choice
Pricing comparisons that make value clear
Devoted focus on customer relationships
Ecommerce gives pet owners exactly what they want
Pet Industry Trends for 2022
Share of Pet Owners in US
No longer do Baby Boomers represent the largest portion of pet owners; that title
now belongs to Millennials. Pet brands who will win the future of the industry
must understand how Millennials dier from the other generations.
Digital purchasing power cannot go without emphasizing the importance of
marketing within that space. Millennials nearly double baby boomers in relation
to time spent on social media — 90.4% of millennials are active social media
users compared to 48.2% of Baby Boomers (eMarketer, 2019).
2.
Pet Ownership
Demographics
and Preferences
Millennials
35%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Generation X
32%
Baby Bommers
27%
Builders (71+)
6%
Pet Industry Trends for 2022
By nature of how users natively wield social, the pet category seamlessly ts
within the realm of sharable content. Thus, retailers who meet millennials where
they’re at, can be a make or break dierence for brands looking for competitive
channel advantage.
In addition, competitive pricing, convenience, and personalization are blowing
the brick-and-mortar house down.
The response: dual-channel retailing, faster fulllment, improved cost controls,
and advances in home delivery. Demand for high-quality products from millenni-
als further attributes to industry prot because of the generally higher mark-ups
of premium products.
Making this data actionable for means examining ecommerce trends and statis-
tics within three segments, each with its own unique value propositions.
Convenience: I can shop anytime, any place
44%
44%
41%
35%
29%
28%
27%
26%
25%
23%
Good value due to free shipping
Product selection
Can easily do the price compare
Shop a lot online generally
Easier to get extra product information and reviews
Can more easily nd sales and promotions
Easier to nd new products I might want to try
Good value due to tax savings
Online is convenient for "rell' purchases
Motivation for Purchasing
Pet Products Online in US
Pet Industry Trends for 2022
Share of Pet Owners in US
$60.2B $93.1B
2015 2025
At $91.1 billion worldwide, pet food represents the single largest niche within the
larger space.
Within the United States’ 2020 market volume of $30.9M, most revenue is gener-
ated by the food segment, which also includes treats and supplements.
Add to this the potential for premium pet food products within the market seg-
ment. Natural and organic food products tend to come at a higher price tag,
aording operators to earn greater markups.
An increasing penetration of retail sales has augmented the growth of the pet
food market. At the same time, availability of pet food on ecommerce platforms
entices consumers with convenience and the stripping away of physical shop-
ping constraints.
3.
Data on Three Verticals
within the Industry
Pet Food Market
36% Food
27% Vet care
23% Supplies
10% Groom and board
4% Animal purchases
Pet Industry Trends for 2022
The pet services market includes grooming, boarding, training, and care. Over the
past ve years, it has been the fastest-growing product segment under the indus-
try umbrella. With more and more owners considering their pets as family, its rise
is driven by interest in pampering and specialty services for furry family members.
Alongside it is the veterinary care industry, which has undergone growth as a
result of mass household penetration.
Pet Care & Services
Veterinary care Pet grooming or boarding
2015
43.5
45.9
47.8
50.1
52.6
55.2
2015 2025
$0
$0
$10B
$20B
$30B
$40B
$10B
$20B
$30B
$40B
$50B
$60B
2016 2017 2018 2019 2020
Value of US Pet Market
Value of Pet Care Market for
Veterinary Care & Grooming or Boarding
6
25
9.2
Pet Industry Trends for 2022
Rising per capita income and growing pet adoptions for companionship lend to
an increase in spending on pet care which will continue to boost the market.
Regardless of the distribution channel, brands within the pet care industry that
oer premium services may see further gains.
Because households are obtaining higher incomes, they are able to aord premi-
um discretionary service. It also aects the lifestyle of pet owners, aording them
more ability to travel, thus increasing the importance of the boarding services
segment.
With food and pet care holding the top two spots in terms of industry sales, there
are more promising prospects within the pet supply market because it is slower
growing and encompasses niche products like clothing, food bowls, collars, and
carriers.
A key driver for this industry will be the wide range of availability of fashionable
and multifunctional pet accessories.
Pet supplies are a leading industry category in the United States, with sales of
approximately 4.54 billion U.S. dollars and positive sales growth of 2.7%.
Its share of revenue also spread due to the “pet parenting” trend, in which pet
owners treated their pets as family members and started supplying them with
complementary products. This segment accounts for an estimated 40.6% of total
industry revenue in 2019.
Of those buying pet products, approximately 17% reported buying pet products
online in 2017, up from approximately 13% in the previous year.
Pet supplies and accessories sold by retailers also encounter mounting competi-
tion not only from mass merchandisers but by smaller outlets because there are
no regulations that limit their sales.
For online retailers, favorable economic conditions in the pet supply segment can
be complimented through product innovation. Since mass-market brands oer
goods with little dierentiation, the spike in exclusive niche products will help
diversify the current price competition.
Pet Products & Supplies
Pet Industry Trends for 2022
Pet food Pet supplies
2015
$0
$5B
$10B
$15B
$20B
$25B
$0
$2.5B
$5B
$7.5B
$10B
$12.5B
$15B
2025
Pet treats Cat or dog litter
12.7
4.5
3.4
2.1
US Pet Product Categories
by Sales
Value of Pet Care Market for
Over-the-Counter Supplies
21.2
13.8
Pet Industry Trends for 2022
Share of Pet Owners in US
PetSmart and Petco still hold the largest market share in the pet stores industry,
despite the online rise of Chewy and Amazon.
According to Pet Business’ Top 25 Retailers list for 2019, while PetSmart added a
net total of 48 stores (versus more than 100 in 2017), Petco added a net total of 10
stores (versus 39 in 2017).
“Despite mounting competition from supermarkets, mass merchandisers and
online retailers that oer similar products at greater convenience and
competitive prices –traditional brick-and-mortar establishments have 18
successfully positioned themselves as pioneers and exclusive providers of
high-quality food and service oerings, such as grooming or daycare,” states the
IBIS World Industry Report.
Meanwhile, digitally native pet brands are steadily gaining more market share.
4.
Pets Stores, Retail
and Pop-Ups
US Pet Stores Market Share
by 2019 Revenue
15% PETCO
33.7% PetSmart Inc.
Source BISWorld
51.3% Other
Pet Industry Trends for 2022
Their success reects how advances in technology within the human consumer
retail market are driving change in the companion animal market as well.
None illustrate this shift more than.
Chewy.com
Petco.com
1080PetMeds.com
BarkBox.com
SmartPakEquine
Petow.com
Petsmart.com
Dog.com
$3.500M
$497.8M
$251.1M
$250M
$124.7M
$94.7M
$91.5M
$80.9M
Leading Online Pet Retailers
Annual Sales
Pet Industry Trends for 2022
Share of Pet Owners in US
With Amazon’s main website and third-party sellers taking up 35% of the online
market share, pet startups are left to ght over the remaining food in the bowl.
Coupled with the launching of Amazon’s rst private-label pet brand Wag, might
have traditional retailers with their tail in between their legs. The Wag brand
oers dry food, the highest moving categories within pet, exclusively to its Prime
members.
While Amazon’s scale and market share might seem daunting, it does oer a
glimpse of hope for brands looking to enter the online pet space. Amazon’s
success shows that there is money to be made in the ecommerce space for the
pet industry.
It further arms pet brands need to take things digital in order to succeed and
gain more market share.
5.
Amazon:
The Elephant in the Room
Amazon: Main
Share of respondents
Walmart
Chewy
Pet specialty store
Amazon: Third party
Veterinarian
23%
22%
20%
15%
12%
9%
US Websites Used in the Last Three Months
to Purchase Pet Products
Pet Industry Trends for 2022
Share of Pet Owners in US
While all of this is great to tell at parties and motivating enough to ‘go mobile’,
you’ll need a detailed plan of attack. One that identies the weak spots of your
target audience, and plays with the strengths of your business.
One thing your team will have to realize is that mobile shoppers and desktop
shoppers behave very dierently—even if they’re essentially the same person.
People are impatient. The whole reason we’re buying from our phones is that we
don’t want to wait, and certainly don’t want to wait until we are near our laptop.
What this means for you: speed it up. Make sure loading times are minimized,
checkout is easy and straightforward and people can nd what they need
instantly.
People judge quicker. Having everything at the tip of our ngers means that we’ll
go for the best option available. There’s no forgiving and very little second
chances. According to Google, when a mobile experience is not optimized, 53%
of shoppers will never return. It’s the harsh reality.
What this means for you: optimize, check and then double check. Make sure the
experience in your app or mobile website is awless.
People are more impulsive. We tend to research a bit longer behind our desktop.
With our smartphone, we just buy. 70% of mobile searches lead to action within
an hour. People using desktop on the other hand, can toss and turn for a month.
What this means for you: make shopping instantly possible. Make your socials
shoppable, always link to products and put up or cross-sell products in plain
sight.
6.
Mobile App:
The best way to boost LTV
Pet Industry Trends for 2022
Despite all its complexity and all the data, pet brands grow based on only four
metrics: visitors, conversion rate, lifetime value — your 60-, 90-, or 120-day
payback window (cash multiplier) — and variable costs.
Engage your customers with customized oers, reminders, and deals. Our cus-
tomers benet from 40% reduced cart abandonment.
Push notications are an opportunity for sellers to communicate directly with
their customers. They can send direct alerts about new products, updates,
discounts, and promotions. Most people want exclusive stu and perceive
informing about news or deals as care. All this leads to better engagement,
expanded reach, and customer loyalty and brand awareness.
How can Mobile App help you with this?
1. Push notications for higher engagement
Share of Pet Owners in US
Pet Industry Trends for 2022
As users, we are impatient – we wish for a checkout process in under 5 seconds or
go to the competitor because the Internet is one crowded place. Distracted
customers aren’t converting, so building a fast app not only perfects your
checkout process but allows customers to place their monthly orders in a loop.
Loyalty programs and gamication features encouraging users to return to the
app. As a result, you can boost trac and users’ engagement, leading to increased
revenue. Gamication and Loyalty made user engagement grow 47%, which is
why the most prominent companies use it so frequently.
2. Quick checkout and reorder
3. Increase customer loyalty
Mobile apps for pet shops
Turn your visitors into loyal customers. Stay installed on their phones and in their
pockets. Help them order easily on repeat and boost your revenue.
Book your free Session and nd out how can Mobile App help your Business.
Book your free Session