When the world seemingly shut down, during the COVID-19 pandemic, forcing individuals into their homes and away from social settings, Zoom wasn’t the only thing to explode.
Lacking human interaction, Americans — and people across the globe — turned to a safer companionship, given the times: Pets.
A 2021 report by the American Pet Products Association found pet ownership — including small animals, fish and reptiles — grew 30% in 2020, at the peak of pandemic-era restrictions. Naturally, that meant increased spending on products and services related to pets. The same report also found 30% of pet owners spent more on their animal companions in 2020 than they did the year before, with retail treats and pet supplies and vet care growing 6.7%, year-over-year.
Further, an analysis by Arizton Advisory & Intelligence estimates the global pet care market at $295 billion in 2022, a number that is expected to grow to more than $400 billion by 2028. Those figures include pet food, veterinary care, medication, insurance, pet services and other miscellaneous areas.
Pet food makes up the largest portion of the industry, with Grand View Research estimating pet food represented a $103.3 billion industry in 2023 and is expected to grow at a rate of 4.4% from 2024 to 2030.
While much of the industry’s growth is related to more pet ownership, pet owners are increasingly placing more value on spoiling their furry (or not furry) friends.
Great for Local Business
There has been a lot of reporting about growing trends in luxury brands for pets — think Louis Vuitton pet carriers and Kate Spade collars. But Woof Gang Bakery and Grooming, a high-end national pet store brand that has franchises throughout the Tampa Bay area, is noticing some different trends.
Asked about the stores’ top-selling pet accessories, there was nary a mention of blinged out dog collars. Instead, the store finds the most interest in grooming accessories, healthy treats, interactive toys and pet apparel.
Woof Gang has noticed pet parents flocking toward high-quality brushes, combs and grooming kits, items that are designed to be gentle, yet effective, so grooming is a more enjoyable experience for both pet and parent.
Jackie Garcia, a senior account manager for RockOrange, who represents Woof Gang Bakery, said interactive toys are also hot sellers, including puzzle toys and treat-dispensing toys. Pet owners find them attractive, she said, because they stimulate pets and keep them engaged, bonuses that keep pets from getting into mischief that could spell trouble at home.
Pet apparel may be the matriarch of luxury pet items. Once mocked, sweaters and stylish raincoats have become all the rage, and seasonal changes allow retailers to rotate stock. And the clothing isn’t just for aesthetics (who doesn’t love seeing a cute pup in rain boots?), they also provide protection from the elements, whether snow in the north or blistering heat in the south.
Healthy treats are a special area. Increasingly, pet owners are being as mindful about food choices for their pets as they are for themselves.
Garcia said customers look for items made from natural ingredients to provide pets with a satisfying treat, while also promoting dental health and well-being. It’s like sneaking vegetables into a kid’s diet. Just don’t tell Fido his treat contains all the essential vitamins and minerals he needs to keep being a good boy.
Pet Supplements and Specialized Diets
Grand View Research estimates the pet supplement industry will reach $1.05 billion by 2027, with growth expected to continue at a rate of 6.4%.
Just like people supplements, those intended for pets aim to boost immunity, reduce the risk of heart problems, ease digestion issues, protect against cancer and create healthier skin and coats.
Likewise, pet owners’ choices in pet food have evolved. Gone are the days of picking up a bag of Ol’ Roy at the supermarket. Now, pet food options cover a variety of dietary preferences or restrictions, from low-carb choices for diabetic pets, to grain-free for those worried about allergies or cancer risk, to low-calorie for our tubby friends, even food that promotes a healthy urinary tract for cats prone to infection.
Grand View Research, in its analysis of the pet food industry, expects trends to continue. “Increasing availability of organic products, in a variety of flavors and the inclusion of essential ingredients such as probiotics and antioxidants are factors that are likely to induce a positive impact on global market growth,” the analysis reads.
But the analysis also notes some potential for downward pressure. Like any luxury product, specialized pet nutrition can come with a hefty price tag, which “may restrain organic segment growth in the coming years, as every household would not be able to purchase high-priced goods.”
Still, the choices in the pet food market are staggering, particularly for dogs. Freeze dried meats are one new trend taking hold, allowing pet parents to pamper their companions with healthy treats without worrying about shelf stability. Likewise, raw-based diets continue to be popular and have created a market for pet food that requires refrigeration.
The Millennials
Long teased about spending choices, it seems millennials are, at least in part, driving the trend toward bougie pets. Business insider reported that rich millennials are buying $152 poop bag holders and fancy dog bowls exceeding four-figures.
It’s not just that they have cash to blow, it’s also that many are forgoing having children and instead, pampering their fur babies.
A shop in London sells those expensive poop bag holders, and charms to go on them, and has available dog therapists and caricaturists.
Prada launched a line of dog coats, in 2020, which will set owners back $495, at a minimum. The following year, Versace also added a pet line.
The Business Insider piece provided an explanation from senior lifestyles and leisure analyst Kristen Boesel, of the market research firm Mintel. She’s the one who pointed to millennials.
“As they become higher earners, they can spend on things that have less of a functional purpose,” she said, emphasizing the trend among millennials to put off having children, or forego it altogether.
A local pet store owner thinks it’s also Gen Z, teens who will soon enter adulthood and young adults entering and graduating from college.
They, Bark Life owner Tammy Vasquez said, “are waiting longer to have children but treat their dogs like children. This has shown an increase in them seeking alternative foods and places that fit in with their values.”
Not just things
While dog sweaters and kitty boas are adorable — and in high demand — there’s another niche industry in the pet world that has been burgeoning in recent years: services like grooming, pet daycare and pet hotels.
Grooming is the top-selling service at Woof Gang Bakery, according to the company’s marketing firm. It accounts for a majority of business. Woof Gang offers packages from a full groom — a luxury bath with shampoo and conditioner, blow dry, full body brushing and styling, nail trimming, ear cleansing, sanitary trim and anal gland expression — to a mini groom — a less inclusive version of the full groom that provides minimal hair trimming and skips the anal gland. The company uses all-natural products to ensure safety. They also offer a variety of extras whose menu rivals a high-end day spa for people including blueberry pie facials, a “Diamond Dog” sPAW experience, birthday (barkday!) experiences and more.
Bark Life, which is a Pinellas-based pet store with four locations, offers high end food and treats, niche toys, fashionable apparel, grooming and boarding.
Bark Life’s boarding service, or “pet resort,” is marketed as a vacation for your pet. Its resort includes 60 rooms, ranging in size. Each with a bed for the special guest, some big enough for people. And parents can add more luxury to the experience including a breakfast omelet, frozen yogurt, salmon or steak, bedtime cuddle and personal playtime. Its doggy daycare offers interactive play with a human, including access to a pool, in a 2,000 square-foot climate-controlled park and 3,000 square-foot outdoor park.
Happy Pets are Safe Pets
Growing luxury trends and increased desire to pamper pets comes with a benefit: Safer pets.
When pet parents seek to provide the best for their companions, they are more likely to receive the vaccinations needed not just to keep them healthy but protect others from various diseases that can spread between animals.
Indeed, luxury services like pet resorts or swanky doggy daycare require proof of vaccination and temperament tests.
That’s where pet insurance comes in. Global Market Insights estimates that in 2023, the pet insurance industry was valued at $9.6 billion and growing. The growth has been spurred not just by increases in pet ownership, but also by rising veterinary costs and increased awareness about pet insurance policies.
Dogs, the analysis found, represent more than 80% of the pet insurance market.
Google pet insurance and you’ll find hits ranging from listicles outlining the best policies in various categories to mainstream insurance providers such as Progressive and Nationwide touting coverage options.
The Bottom Line
Pets have long been synonymous with human companionship, and the trends toward treating them more like family will continue, especially as more studies show the benefits of pet ownership, such as reduced anxiety.
As long as people continue turning to pets for comfort and friendship, goods and services to care for them will continue to be in high demand. ♦
