Pet Care Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 22,000 pet care services firms in the US provide pet boarding, grooming, sitting, and training, but exclude veterinary services. Firms may specialize in a particular area, such as pet waste removal or dog walking, or offer a range of services. The industry consists primarily of franchises and independent operators. Some large veterinary services chains and pet supply retailers also offer pet care services.
Competition From Alternative Providers
Pet care service providers face competition from a variety of sources, including veterinarians, pet supply retailers, and providers closer to home.
Pet Industry Projected To Grow
Improved economic conditions and the ongoing “humanization” of pets are expected to drive growth in the pet industry, which includes pet care services.
Industry size & Structure
The average pet care services provider operates out of a single location, employs fewer than 10 workers, and generates $455,000 annually.
- The pet care services industry consists of 22,000 firms that employ 183,000 workers and generate $10 billion annually.
- The industry is highly fragmented; the top 50 companies account for less than 9% of industry revenue.
- Some large veterinary services chains and pet supply retailers offer pet care services.
- The industry consists primarily of franchises and independent operators.
- Camp Bow Wow (owned by Mars), Fetch! Pet Care, and All American Pet Resorts are large pet care services franchises. Large pet retailer PetSmart also offers pet grooming, training, day care, and boarding.
Industry Forecast
Pet Care Services Industry Growth
Recent Developments
Nov 17, 2024 - Labor Costs Rise
- According to the Bureau of Labor Statistics, labor costs were on the rise for pet care services in September 2024. Average wages at pet care services increased 11.5% in September 2024 year over year, reaching $21.35 an hour for nonsupervisory employees. Employment by pet care services grew 1.1% in September 2024 compared to a year ago. Prices for pet services were 8.3% higher in October 2024 compared to the previous year and up 0.5% from the previous month, according to Consumer Price Index data.
- Consumer spending on pet products and services will increase by over $50 billion in the next six years, according to a forecast from the American Pet Products Association. Growth drivers include increased pet ownership, the humanization of pets, and advancements in veterinary care. The global pet industry, including pet food, healthcare, grooming, and luxury items, currently offers an economic contribution of $303 billion and is growing rapidly, with a 16% increase since 2022. According to the forecast, private equity firms are playing a growing role in the pet industry in mergers and acquisitions, as investors consolidate their businesses and expand market share. New investment trends include subscription-based services, tech-enabled products, and organic and sustainable foods.
- The US pet care industry is projected to grow at a CAGR of 4% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy‘s anticipated growth. The report noted that consumer confidence is expected to improve in the forecast period, which bodes well for the various service industries. One impact from the COVID-19 pandemic was a jump in remote work, which has continued post pandemic with approximately 30% of employees working remotely at least some of the time. This suggests lower demand for pet needs such as pet walking and daycare related to commuting and working in corporate environments. Factors that continue to limit consumer spending are lower consumer sentiment levels, higher interest levels, and elevated price levels. Price growth, however, is diminishing and likely to stabilize soon near intended rates.
- Some 85% of pet owners in the US say inflation is making ownership more expensive, and almost 40% of pet owners have gone into debt for their pets, according to a new survey by Lending Tree. When asked if they have gone into debt for their pets, 37% of pet owners say they have, with a medical emergency being the most common reason. The high costs of owning a pet have caused nearly a quarter of Americans to consider going petless, and almost 40% say they wouldn’t own another pet. Twelve percent of Americans say they have surrendered a pet due to no longer being able to afford to care for it.
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