Pet & Pet Supplies Stores
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 5,100 pet retailers in the US sell products and services related to pets, including pet foods, pet supplies, pet services, and live pets. The top four companies, including large retailers like PetSmart and Petco, account for 66% of industry sales. The industry also includes pet retailing franchises, such as PetLand.
Strong Sales Drive Heavy Competition
Strong industry sales have resulted in competition for pet products from a variety of alternative channels, including warehouse clubs, grocery stores, mass merchandisers, veterinarians, and E-commerce and catalog retailers.
Proliferation Of New Products
Similar to the human food market, the pet food sector is driven by product innovation, with manufacturers constantly developing and introducing new items.
Industry size & Structure
A typical pet store operates out of a single location, employs 27 workers, and generates about $3-4 million annually.
- The pet and pet supply retailing industry consists of about 5,100 companies that employ 138,100 workers and generate about $18 billion annually.
- The industry is concentrated at the top and fragmented at the bottom. The top four companies, including large retailers like PetSmart and Petco, account for 66% of sales.
- The industry also includes pet retailing franchises, such as PetLand.
Industry Forecast
Pet & Pet Supplies Stores Industry Growth
Recent Developments
Jan 31, 2025 - Employment, Labor Costs Up
- Employment for pet and pet supplies retailers rose 2.1% in November 2024 compared to a year ago, according to the Bureau of Labor Statistics (BLS). Average wages for nonsupervisory employees at pet and pet supplies retailers increased 8.5% in November 2024 year over year, reaching $21.72 per hour. Producer prices for dog and cat food manufacturers rose 0.7% in December 2024 compared to a year ago, per the BLS. Sales for miscellaneous store retailers, including pet supply stores, fell 1.1% in November 2024 year over year and declined nearly 13% from the previous month, according to the US Census Bureau. In addition, consumer spending levels increased nearly 3% in November 2024 compared to a year ago and were up 0.3% from the previous month, according to personal consumption expenditures data from the Bureau of Economic Analysis.
- A new report from the American Pet Products Association titled “2024 Bird, Small Animal & Horse Report: Strategic Insights from the National Pet Owners Survey” shows that pet owners are demonstrating increased emotional attachment and proactive pet care with their specialized pets, according to Pet Age. One key finding from the report involved a marked increase in proactive health management across all pet types. Small animal owners have also increased their vitamin and supplement purchases by 44%. Specialized pet owners prefer to shop at specialized pet retailers and do their shopping in person, according to the survey. Other trends found among these diversified pet owners are significant increases in gift giving and owners making more provisions in their wills for the long-term care of their pets.
- 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 in Pet Business. Pet costs becoming more expensive are pet food (76%), vet services (56%), and necessary supplies (40%), per the survey. 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.
- 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.
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