Topic: Is the pet industry recession-proof? (Read 845 times)
The pet industry is seriously blowing up, even in tough economic times and crazy price hikes. Can you believe it? It's projected to hit a whopping $281 billion by the end of 2023! And get this, it's not just a fluke. Even during past recessions, the pet industry kept on growing like a champ. So, why is that? Well, there are a few reasons. First off, pets are legit part of the family now. People treat them like their own flesh and blood. They've gone from being outside-only buddies to sleeping in our beds and maybe even having their own room soon. It's wild! Plus, there are way stricter laws protecting animals, so their medical expenses, food, and shelter become a big part of the family budget. Some places even give pet products subsidies, like they're basic necessities or something. And let's not forget about Generation Z. These youngsters are all about owning pets. They see them in a whole new light compared to their parents. It's like pets are their BFFs, maybe even more important than their siblings or romantic partners. Oh, and the COVID-19 pandemic? It actually boosted the pet industry too. With everyone working from home, adoption rates went through the roof! People wanted that emotional connection, and pets were there to save the day. It's a match made in quarantine heaven. So, all in all, it's clear that the bond between people and their pets is stronger than ever. The pet industry ain't going anywhere. It's here to stay!
Over the past months, the world has been ravaged by inflation and people are losing their purchasing power due to the high cost of goods and services. So many sectors of the economy are in a deep recession that has resulted in business failure. The pet sector is also suffering from inflation. In June 2022, pet food inflation in the U.S. reached 10.3%, Canadian had 8.1% and Europe has 8.8%.
But when it is expected that during an economic crisis, people would pull back on spending on their pets, it turned out the opposite. According to research by Edge by Ascential, the pet industry is forecasted to reach $281 billion by 2023. Many economists believe that the pest industry is recession-proof. In the past two recessionary dips of 2001 and 2008, pet spending actually grew unabated each year by 7 percent and 5 percent respectively. Moreover, it has followed a steady trajectory of growth over the past 30 years. It's rare to find a sector that offers both growth and defensiveness in recessions like the pet industry.
Generation Z loves pets: It is now fashionable for the younger generation to own pets. The millennial generation already makes up 32% of pet industry consumers as they see their pets in a whole new light compared to their parent's generation. Millennials are now three times more likely to be pet owners than they are to be parents. Investors, founders, and analysts in the pet industry stated that while other sectors are suffering, the sector is bullish about its ability to withstand the worst. Part of this is because pet owners love their pets a lot. A recent study by Consumer Affairs surveyed 1,000 pet owners and found that 57 percent of participants aged 27 and 42 love their furry friends more than their siblings. The study also found that millennials’ romantic partners come second to a pet for 30 percent of participants.
In the UK, 3.2 million new homes adopted pets. People under 35 accounted for 59% of new pet owners, while 56% of those buying a pet for the first time had children at home. In the U.S, the numbers are equally staggering. With the current trend of humanization among Generation Z, pest owners are not tightening their purse strings when it comes to everyday staples like good quality nutrition.
But when it is expected that during an economic crisis, people would pull back on spending on their pets, it turned out the opposite. According to research by Edge by Ascential, the pet industry is forecasted to reach $281 billion by 2023. Many economists believe that the pest industry is recession-proof. In the past two recessionary dips of 2001 and 2008, pet spending actually grew unabated each year by 7 percent and 5 percent respectively. Moreover, it has followed a steady trajectory of growth over the past 30 years. It's rare to find a sector that offers both growth and defensiveness in recessions like the pet industry.
Reasons for the growth of the pet industry
Generation Z loves pets: It is now fashionable for the younger generation to own pets. The millennial generation already makes up 32% of pet industry consumers as they see their pets in a whole new light compared to their parent's generation. Millennials are now three times more likely to be pet owners than they are to be parents. Investors, founders, and analysts in the pet industry stated that while other sectors are suffering, the sector is bullish about its ability to withstand the worst. Part of this is because pet owners love their pets a lot. A recent study by Consumer Affairs surveyed 1,000 pet owners and found that 57 percent of participants aged 27 and 42 love their furry friends more than their siblings. The study also found that millennials’ romantic partners come second to a pet for 30 percent of participants.
In the UK, 3.2 million new homes adopted pets. People under 35 accounted for 59% of new pet owners, while 56% of those buying a pet for the first time had children at home. In the U.S, the numbers are equally staggering. With the current trend of humanization among Generation Z, pest owners are not tightening their purse strings when it comes to everyday staples like good quality nutrition.
In my opinion, The reasons behind the growth of the pet industry, particularly among Generation Z. As you mentioned, millennials are now three times more likely to become pet owners than parents. This shift in attitudes toward pet ownership is due to a variety of factors, including the humanization of pets and the desire to make friends.
One thing that is unique in this moment, the People are no longer satisfied with providing basic needs for their pets and This trend is evident in the demand for high quality pet nutrition and health products, as people are willing to invest in the health and well being of their pets.
Well, another factor contributing to the growth of the pet industry is the increasing availability of pet-friendly housing. This increased accessibility to pet-friendly housing has made it easier for people to become pet owners.
Until today I don't know how much the cost of pet food is, I maintain 2 cats in my home for 3 years and I never buy pet food in shop, so that case I don't know the price. I always give my 2 cats for from the fish I cook. I buy 1 Kg fish a week just $1 and cook it. I did it weekly and I never have a problem with it, but sometimes, the price a bit grow like $1.5, but not often only if the weather is not good at sea.
So my pet is not affected by inflation.
So my pet is not affected by inflation.
I know something about inflation in pet supplies. We have 2 cats and in 2 years the price of cat sand (bentonite) went up by 100%. It's not something we can't deal with, but this used to be a very cheap thing to buy every month, now it costs more than a restaurant meal. Cat's don't seem to appreciate what we're doing for them, they do their thing like nothing happened. Maybe we should learn from them and ignore inflation. It's better for our mental health.
Don't buy royal, it's actually a low quality food. Vets get paid to promote and sell it, which is why they do. Check the ingredients. Animal food should contain a lot of meat and it doesn't need to have corn or rice, but royal has this inverted with lots of veggies and little meat. Compare ingredients with taste of the wild and you'll see what I mean.
The recession has no respect for any industry. The pet industry is similar to other industries where sales of goods and rendering of services occurs. And since it is humans involved in carrying out these activities and not robots, the effect of the recession will also be felt there too.
For example the cost of Royal Canin a dry dog kibble has tripled in price since the recession began.
The veterinary doctors have to raise their fees because the cost of items have skyrocketed. It's terrible but then it is what it is.
For example the cost of Royal Canin a dry dog kibble has tripled in price since the recession began.
The veterinary doctors have to raise their fees because the cost of items have skyrocketed. It's terrible but then it is what it is.
Don't buy royal, it's actually a low quality food. Vets get paid to promote and sell it, which is why they do. Check the ingredients. Animal food should contain a lot of meat and it doesn't need to have corn or rice, but royal has this inverted with lots of veggies and little meat. Compare ingredients with taste of the wild and you'll see what I mean.
It is true that gen z likes more with pets and you know what I've observed with most gen z's today? They'll tell that they don't need someone to get with as long as they've got their pets with them. Others don't even want to have their own baby because their baby is their pet.
That's a true thing these days and some people are thinking of shifting into that thinking and that's why this type of business is booming. But while in the height of covid pandemic, every business has been down and that has included this industry.
That's a true thing these days and some people are thinking of shifting into that thinking and that's why this type of business is booming. But while in the height of covid pandemic, every business has been down and that has included this industry.
The veterinary doctors have to raise their fees because the cost of items have skyrocketed. It's terrible but then it is what it is.
IMHO, all types of expertise from these doctors have raised their professional fees. As in everything now has increased, they're all saying that it's because of the inflation but that does that really make sense at all? Some have doubled the fee and others nearly tripled. Well, talking about how lucrative it is then it is. 
The recession has no respect for any industry. The pet industry is similar to other industries where sales of goods and rendering of services occurs. And since it is humans involved in carrying out these activities and not robots, the effect of the recession will also be felt there too.
For example the cost of Royal Canin a dry dog kibble has tripled in price since the recession began.
The veterinary doctors have to raise their fees because the cost of items have skyrocketed. It's terrible but then it is what it is.
For example the cost of Royal Canin a dry dog kibble has tripled in price since the recession began.
The veterinary doctors have to raise their fees because the cost of items have skyrocketed. It's terrible but then it is what it is.
I am thinking out of the box and with the current technology development we are not too far from reaching the complete virtual reality world so why would someone is going to spend a lot of money from their monthly earnings when they are capable of watching the same animal either its a dog, cat or fish or anything then I would choose the advanced virtual reality.
Yes, it may not completely same as the pet near us but trend will change everything so I wonder pet industry does have any potential at all in the next decade?
Yes, it may not completely same as the pet near us but trend will change everything so I wonder pet industry does have any potential at all in the next decade?
You can't believe it... I couldn't believe it either, but after watching a few documentaries I changed my mind. Some people in some countries spend more money on their pet/pets weekly than I earn from months of working. Pedicures, manicures, hairdressers. special shops with clothes and all "accessories", everything for beloved pets. I don't think we will see this trend dropping to some lower levels, pets have become a substitute for children, partners, friends... there were many such cases before, but every year more and more people decide on this path.
The pet industry is growing year after year, but I don't think we can say that the pet industry is recession-proof. If I take my city as an example 10 years ago we had one or two pet stores (+300k city population), and now we have them on every corner. Supply is definitely rising, but demand will not rise to infinity.
When it comes to the prices, I have pets, and feeding them cost a lot more compared with the prices from a year ago.
I am thinking out of the box and with the current technology development we are not too far from reaching the complete virtual reality world so why would someone is going to spend a lot of money from their monthly earnings when they are capable of watching the same animal either its a dog, cat or fish or anything then I would choose the advanced virtual reality.
Yes, it may not completely same as the pet near us but trend will change everything so I wonder pet industry does have any potential at all in the next decade?
Yes, it may not completely same as the pet near us but trend will change everything so I wonder pet industry does have any potential at all in the next decade?
Even the pet industry can't escape the threat of recession. Here in my place, some pet shops have closed this year because customers going to them have decreased a lot. It's also hard to find now a store that sells food only for animals like dog, cat, or bird. People that have pets on their households just feed what they eat to their pet and doesn't care anymore if it's good or bad for them. Some even resorts to leading their pet astray just to be able to cut their spendings.
Pets are like a companion to man because they are always fun of you,moreover you can count on them for a certain tax. I remember when we were kids,we have alot of rats in the house,so my mom got a cat and before you knew it,all the rats where dead. Pets demand become high during Covid-19. In my neighborhood everybody has a dog unlike before just few persons had so inflation is still not affecting keeping pets in the house. Most of this pets especially in Africa has a cheaper way to feed them. Then some persons train dogs or cats to eat during festive period.
Most of my friends who have pets treat them as full family members, they would never consider giving a pet away only to save some money in recession. Same goes for the food they get, animals are usually getting the same food all the time and are very used to it and if you switch to a more cheap alternative he might not even touch it. In my family we have dogs since I was little and they are an important part of our family. Whenever we have lunch there is always an extra portion for the dogs and they know it. All day they are not touching their food and wait for the good stuff after eating lunch. And whenever my mother goes to the butcher, she will bring back some bones as a special treat. If inflation keeps rising and living cost keeps skyrocketing than I am sure we would be cutting back everywhere else before even thinking about our dogs. My parents would rather not go on vacation and use that money instead to make sure our dogs are fine. A vacation you enjoy for 1 or 2 weeks, with the dog you have fun and companionship all week, it's an easy choice.
I don’t agree that the pet industry is recession proof. Shelters around me are already asking people to adopt due to animals being dropped off. People are leaving their pets as costs rise and they’re forced to deal with difficult financial choices. While pets have become part of the family, it would seem they are expendable in tough times.
difficult times like now. I think there will be a lot of abandoned animals. and I also think that the animal industry is more prone to recession. At first I had other thoughts. but then I saw the facts around my environment. many pet shops have been deserted of customers. some have even closed. and what makes me sad and sad is that some homeowners have left their homes but they don't take their pets with them. so sometimes I feed the animal. because they continue to walk around the complex looking for food.recession will impact all sectors. and what the government should pay much attention to is the farmers and agricultural areas. because that's where the food resources come from. and food is needed and is the main need. even a food crisis can be the most dangerous thing for a country.
Isn't it possible that the industry is growing proportionally to the inflation? Let's say pets products' prices have increased 10% in one year, at same time the industry has grown 7%-8% on that same time period. If that is the case, people aren't spending more with pets, they are simply maintaining the same budget all the time, what is expected, since people who can afford such expenses with pets aren't in the lowest classes of society.
On the other hand, I'm aware of several cases of poor people who abandon their dogs on desert roads and even kill them at home at some point. Actually, I doubt most animals, especially dogs, are being well treated in the world, although the mindset nowadays is changing to a more humanist approach towards animals.
On the other hand, I'm aware of several cases of poor people who abandon their dogs on desert roads and even kill them at home at some point. Actually, I doubt most animals, especially dogs, are being well treated in the world, although the mindset nowadays is changing to a more humanist approach towards animals.
While not exactly recession-proof, I would say it could be fairly resilient in the more advanced economies compared to say, some other minor luxuries. As already stated, people there tend to budget with pets in mind.
In more developing economies, probably not as much resilient. It would require that it at least have a large middle class that can afford the services/products. For example my cat had some problems giving birth (first time I actually had a cat had problems like this) and we asked around and apparently these are expensive - just as expensive as human procedures sometimes.
So yes, we can afford the food and litter so those manufacturers get a bit of our lower income money but not the vets, who would be relying on the middle class for their income.
Sadly that's the case. Most people would rather give up their pets than let their children starve.
In more developing economies, probably not as much resilient. It would require that it at least have a large middle class that can afford the services/products. For example my cat had some problems giving birth (first time I actually had a cat had problems like this) and we asked around and apparently these are expensive - just as expensive as human procedures sometimes.
So yes, we can afford the food and litter so those manufacturers get a bit of our lower income money but not the vets, who would be relying on the middle class for their income.
I don’t agree that the pet industry is recession proof. Shelters around me are already asking people to adopt due to animals being dropped off. People are leaving their pets as costs rise and they’re forced to deal with difficult financial choices. While pets have become part of the family, it would seem they are expendable in tough times.
Sadly that's the case. Most people would rather give up their pets than let their children starve.
Seeing record inquiries about dog and cat returns, the tightest squeeze on living standards since at least the 1960s, is forcing many owners to decide the additional cost of food and vet bills isn't manageable. It comes amid warnings of recession and as Uk households are dealing with a massive crisis in their energy bills. Even Netflix subscriptions fell during this time due to a cost-cutting drive.
That is correct - i am working 20 hrs a day and i am also planning to unsubscribe the Netflix to reduce some costs.Someone once advices - take care of pennies and dollar will take care of you
it is important to reduce unnecessary expenses,
I agree with someone who advised you, especially with the current condition of inflation
Working 20 hours a day is really a horrible working time, it is too much for everyone's health. I myself have to work more than 17 hours a day and it is too tiring for me. But the crisis is happening and we are not only saving as much as we can, we are forced to work overtime to cover the cost of living. The economic crisis put pressure on all industries in all countries, everything went up but only our wages did not. I hope the crisis will end soon and everything will return to normal.
Seeing record inquiries about dog and cat returns, the tightest squeeze on living standards since at least the 1960s, is forcing many owners to decide the additional cost of food and vet bills isn't manageable. It comes amid warnings of recession and as Uk households are dealing with a massive crisis in their energy bills. Even Netflix subscriptions fell during this time due to a cost-cutting drive.
That is correct - i am working 20 hrs a day and i am also planning to unsubscribe the Netflix to reduce some costs.Someone once advices - take care of pennies and dollar will take care of you
it is important to reduce unnecessary expenses,
I agree with someone who advised you, especially with the current condition of inflation
Seeing record inquiries about dog and cat returns, the tightest squeeze on living standards since at least the 1960s, is forcing many owners to decide the additional cost of food and vet bills isn't manageable. It comes amid warnings of recession and as Uk households are dealing with a massive crisis in their energy bills. Even Netflix subscriptions fell during this time due to a cost-cutting drive.
I don’t agree that the pet industry is recession-proof. Shelters around me are already asking people to adopt due to animals being dropped off. People are leaving their pets as costs rise and they’re forced to deal with difficult financial choices. While pets have become part of the family, it would seem they are expendable in tough times.
We've been experiencing the same thing in our country. Shelters are asking people to adopt their rescued pets and even asking for donations for them to sustain the needs of those animals. Everyone and everything is badly affected by this recession. Even if pets are part of our families, the price of their necessities has increased as well. We could save them yet we can't deny the fact that it's aching our pockets most of the time.
I don’t agree that the pet industry is recession proof. Shelters around me are already asking people to adopt due to animals being dropped off. People are leaving their pets as costs rise and they’re forced to deal with difficult financial choices. While pets have become part of the family, it would seem they are expendable in tough times.
I think he's not getting the whole idea, we are not saying that pet industry have build a resistant to the effective and implication of the ongoing inflation across the world, of course many areas of the economy were affected and alot of businesses have suffered great loss but in a crypto economy, this may be totally avoided because the currency in question here is not fiat but crypto, the liberty is there in using it because it is decentralized and permit me to say bitcoin of all crypto because other cryptocurrencies appears centralized to me, so why should the pet industries be excluded from this, except they have a change in mode of financial operations in their economy as well.
I don’t agree that the pet industry is recession proof. Shelters around me are already asking people to adopt due to animals being dropped off. People are leaving their pets as costs rise and they’re forced to deal with difficult financial choices. While pets have become part of the family, it would seem they are expendable in tough times.
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