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
Oct 17, 2024 - Prices Up for Pet Services
- Prices for pet services were 7.3% higher in September 2024 compared to the previous year and up 0.4% compared to the previous month, according to Consumer Price Index data from the Bureau of Labor Statistics (BLS). Employment by pet care services grew 2.8% in July 2024 compared to a year ago, per the BLS. Average wages at pet care services increased 7.4% in July 2024 year over year, reaching $20.03 an hour for nonsupervisory employees. Consumer spending, a key indicator for the industry, grew 2.6% in June 2024 compared to a year ago and increased 0.2% from the previous month, according to the Bureau of Economic Analysis.
- 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.
- More pet owners are traveling with their animals, which may affect demand for pet boarding and pet sitting services, according to a new report by the American Pet Products Association (APPA). The APPA 2024 Dog and Cat Report showed that 55% of dog owners and 36% of cat owners tailor their travel plans to accommodate their pets. The report noted that 88% of dog owners and 90% of cat owners have traveled with their pets in their vehicle, and nearly 70% of dog owners and 80% of cat owners have traveled by plane. A growing number of pet owners have taken their pets on three or more trips in the past year. More than a third of dog owners have taken their dogs on three or more trips in the car, up from 21% in 2022. The number of cat owners who have taken their cats three or more trips by plane has grown from 14% in 2022 to 22% in 2023. According to reporting by Fortune Magazine, more hotel chains are welcoming customers and their pets for stays, and adding on-demand pet health, wellness, and behavioral support services. Hotels see hosting travelers with pets as a way to build loyalty and increase occupancy during out-of-season periods.
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