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
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Nov 14, 2023 - Slower Growth Projected for Industry
                              • Weaker consumer spending, competitive pressures, and higher prices are expected to limit growth in the US pet care services industry, which is projected to increase at a 2% CAGR from 2022 to 2027, according to a recent Inforum forecast. This rate is slower than the projected growth of the overall economy. The forecast follows volatile sales growth during the pandemic: 2020 (-9.1%), 2021 (23.8%), and 2022 (10.5%).
                              • Consumer confidence levels fell in October 2023, marking three consecutive months of declines, according to data from The Conference Board. The Conference Board’s consumer confidence index declined to 102.6 in October 2023 from 104.2 in September 2023. According to Dana Peterson, Chief Economist at The Conference Board, “Write-in responses showed that consumers continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular. Consumers also expressed concerns about the political situation and higher interest rates. Worries around war/conflicts also rose, amid the recent turmoil in the Middle East.” Peterson added that the decline in consumer confidence was evident across householders aged 35 and up, and not limited to any one income group. Plans to purchase autos and appliances rose in October 2023, while plans to buy a home within the next six months weakened.
                              • More than 90% of dog owners say the rising costs of pet care have caused them some level of financial stress during the past year, and about two-thirds of owners have cut back on personal spending to keep up with rising costs, according to a new study in USA Today. When asked how they manage pet costs, 65% of respondents say they've reached out to family and friends for funds, 47% have gone into debt, and a third have looked for ways to earn more money. Many dog owners say they are also reducing their dog care expenses. When asked how they were cutting back, respondents said they were delaying or cutting back on veterinary services (55%), pet insurance (51%), food or less expensive dog food (50%), doggie daycare or walking services (46%), grooming services (34%), toys (25%), treats (22%), and spaying or neutering pet (16%).
                              • The global pet care market is expected to increase by nearly $73 billion by 2027, growing at a CAGR of 6%, according to Technavio. During the forecast period, the North American market is estimated to account for 42% of the global market. Modern pet owners desire to give their pets the best care possible, and pet grooming services are becoming more popular. The grooming sector has historically grown at the fastest rate, and its growth is expected to continue. The report notes that the significant factor fueling the expansion of the pet care industry is people's desire for a pet companion, as dogs are known to reduce stress and anxiety, encourage activity, and improve cardiovascular health. Technology is also influencing the industry, in particular pet apps. The apps allow pet owners to monitor their pets' eating habits, playtime, and health regimens.
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