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 20,800 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 $385,000 annually.
- The pet care services industry consists of 20,800 firms that employ 165,000 workers and generate $8 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
Recent Developments
May 19, 2023 - Texas Pet Boarding Facilities Facing New Safety Requirements
- The Texas Legislature has passed several new requirements to improve safety levels at pet boarding facilities, according to KVUE.com. Filed by State Rep. James Talarico, House Bill 2063 requires kennels to give pet owners written notice if their pet will be left unattended during specific hours or if the facility does not have a functioning sprinkler system. Under the new rules, the kennel owner would face a Class B misdemeanor if their facility has not given written notice and a pet is injured or dies while unattended. The bill was filed in response to a 2021 fire at a pet boarding facility in Georgetown, Texas, that resulted in the death of 75 dogs. The facility was unattended at the time of the fire and did not have smoke alarms or sprinklers. The new regulations will go into effect on September 1, 2023, if signed by the governor.
- Labor quality was the top business problem for small business owners, called out by 24% of owners, according to a survey by the National Federation of Independent Business (NFIB). The NFIB’s Small Business Optimism Index declined 1.1 points in April 2023 to 89.0, marking the 16th consecutive month below the 49-year average of 98. According to NFIB Chief Economist Bill Dunkelberg, “Optimism is not improving on Main Street as more owners struggle with finding qualified workers for their open positions. Inflation remains a top concern for small businesses but is showing signs of easing.” Owners are still encountering supply chain disruptions, with about half reporting a significant or moderate impact on their business.
- The pet industry remained strong in 2022, with pet spending up 11% year over year, according to data from the American Pet Products Association (APPA). Pet spending reached $136.8 billion in total sales in 2022; categories included pet foods and treats ($58.1 billion, up 16.2%); vet care and product sales ($35.9 billion, up 4.7%); supplies, live animals, and OTC medicine ($31.5 billion, up 5.7%); and other services including grooming, dog walking, and boarding ($11.4 billion, up 20%). The National Pet Owners Survey found that 66% of US households own a pet, about 86.9 million households. Pet ownership was evenly split between the younger and older generations. Younger pet owners spent more on their pets in the past year but reported concerns over the expense of pet ownership. Older owners reported being focused on the benefits of owning a pet and maintaining the care they have always given their pets.
- Inflation is motivating pet owners to cut back on pet spending, including pet services and treats, according to a report in the Wall Street Journal. In February, a survey of 1,000 pet owners by consumer-insights firm Zappi for the Wall Street Journal found that half actively took steps to reduce pet-care costs in the past year. Nearly half of pet owners opted for at-home grooming instead of paying a professional. About a quarter skipped or delayed a pet’s veterinary visit or routine medicine to save money. About 10% said they had to give a pet away due to rising costs. Per the article, Yelp reported that interest in businesses in the pet boarding, grooming, walking, and services spaces fell more than 20% between peak in June 2021 and June 2022, bringing it more in line with pre-pandemic spending.
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