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 and Fetch! Pet Care are two large pet care services franchises.
                              Industry Forecast
                              Pet Care Services Industry Growth
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Jul 9, 2024 - Productivity Declines in Pet Care Services
                              • Labor productivity in pet care services, except veterinary services, fell 2.1% per year from 2004 to 2022, according to recently released data from the US Bureau of Labor Statistics (BLS). Output increased 5.9% per year and hours worked rising 8.2% per year for the pet care industry during the period. According to a BLS Beyond the Numbers article, labor productivity in pet care services has lagged as technology such as pet sitting platforms allowed more people to enter the pet care industry. Individual pet sitters, for example, are putting in more hours of work per dog than a kennel. Pet sitters may also offer complementary services such as grooming to attract more customers. Per the article, “Competition based on personalized care simply requires more time, causing hours worked to outpace output and ultimately lower productivity.”
                              • The Institute for Supply Management reported its services-sector PMI contracted to 48.8% in June 2024 from 53.8% the previous month. It was the second contraction in a three-month period, following 15 consecutive months above the baseline growth. The report tracked the performance of 18 service sectors, out of which eight posted gains in June. Growth sectors include Other Services, which includes Pet Care Services; Management of Companies & Support Services; Health Care & Social Assistance; Construction; Utilities; Finance & Insurance; Educational Services; and Professional, Scientific & Technical Services. Eight sectors showed a decrease in June, including Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Mining; Retail Trade; Public Administration; Wholesale Trade; Transportation & Warehousing; and Information. The Services PMI report is based on data from purchasing and supply executives nationwide compiled by the ISM.
                              • Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
                              • A demand indicator for pet care services, US office vacancy rates reached a 30-year high of 19% in the first quarter of 2023 compared to 17.8% in the same quarter a year ago, according to real estate firm CBRE’s Q1 office report in Facilities Dive. The majority of the 57 office markets tracked by CBRE in Q1 saw negative net absorption, meaning more space was vacated than leased. Still, tenant downsizing has slowed in the past 12 months as part of a gradual rebound, according to a JLL report on Q1 US Office Market Dynamics. The report expects office leasing to reach 85% of pre-pandemic levels in 2024. Higher workplace occupancy levels can generate demand for pet care services.
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