Pet Supplies & Products in 2020 and Beyond
Would it surprise you to know that there are more than 29 million pets in Australia? In fact, we Aussies have one of the highest pet ownership rates on the globe.
Around 61% of Australian households own pets today; dogs are the most popular at 40%, followed by cats at 27%.
That would be music to the ears of anyone thinking of getting into the pet supplies and products industry in 2021. Even more reassuring is the fact that the pet industry in Australia is worth more than $12 billion.
Whilst much of that revenue is generated through more traditional pet services and products, the last couple of years have seen a sharp rise in the number of start-ups. And some of those would most definitely fall into the niche market.
Puppuccinos and pup cakes
These days, if you’re buying, say, a collar and lead, you are spoilt for choice. And if you’re looking for something different, the sky’s the limit! From personalised harnesses and doggy haute couture to puppuccinos and pup cakes, anything goes.
The huge increase in pet product profits comes to down to several factors. More and more Australians now consider their pets to be family members and, as such, spend time and money on gifts for birthdays, Christmas, and other special occasions.
In turn, this change comes down to more awareness of good pet management and care.
Many of us now choose to make our pet-related purchases in specialty pet stores and consumers are demanding premium products for their fur-kids. In addition, a pleasingly high and growing number of industry retailers have teamed up with animal shelters and now offer pet adoption services rather than selling pets from other sources.
Interestingly, the growing premiumisation of the industry has followed human health trends – for example, organic, non-GMO, grain-free, dietary supplements etc.
Surge in demand
COVID-19 has also had a positive effect on both the industry and pet adoptions with a surge in demand for pets from animal shelters.
The good news for those buying a pet product or services business is that industry revenue is expected to increase by 3.4% a year during 2020 and 2021, and then by 3.0% a year over the five years through 2025-26.
One of the fastest growing arenas for this industry is online sales, allowing smaller, niche businesses to claim their section of the ever-growing market.
Where we live also affects the market. On one hand, high-density urban living has become more popular, leading to an increase in demand for smaller pets, such as fish, birds, and reptiles. However, COVID has caused many people to rethink their living arrangements, drawing them out of the crowded cities to the countryside, where they can keep dogs, horses, and poultry.
So, what can we expect from this industry in the future?
Spending on our pets is set to continue increasing in line with our own health and fitness trends. However, competition is likely to intensify as new businesses open. In addition, other pet services are also increasing their range. For example, most veterinary clinics now sell not only prescription food, but also a range pet products, including toys and treats.
Supermarkets, too, are fighting back by expanding their pet food ranges and other products and offering click-and-collect delivery options.
And Amazon launched its pet supplies category in the Australian market in September 2018 and will continue to expand.
The good news, however, is that pet ownership looks set to increase quite dramatically with more single households becoming the norm. Pets provide companionship and security, with dogs top of the list. Of course, as mentioned earlier, many of these dogs will be adopted as live animal sales from stores continue to fall.
If you are planning a move into the pet product and supplies industry, be sure to do your due diligence. Go for quality over quantity and try and find a point-of-difference that draws customers in. This may be a niche product or an affiliation with pet rescue.
61% of Australian households own pets
Of those, 64% are female
65% of pet owners are from households with incomes of $50,000 or more
70% of those aged 18-24 years old are pet owners
66% of those aged 40-54 years are pet owners
More than three-quarters of families with children aged 6 years or older are pet owners