Topic: Is the pet industry recession-proof? - page 2. (Read 777 times)
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.
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%.
Though this may sound a little bit funny but that's just the reality about inflation, every sector is been affected and now the it is also experienced in the animals sector who else is free from the influence of inflation other than going on a look for an alternative that can byecut the inflation through the financial economy, the solution which is believed here is in adoption of cryptocurrency and bitcoin precisely could bring huge amount of difference from how the rate of fiat currency is dealing with economic market price, both humanbeings and animals got affected but a new approach with digital currency serve a preferable option as solution because things had gone bad already that only a change in the system of financial economy can only serve a better opportunity in crypto than fiat.
I don't think the pet industry is recession-proof. the only industries that will survive during a recession are those that provide primary needs such as the food or food industry. When the crisis is prolonged, people will start to leave their hobbies and prioritize the most important thing, namely food. so it is the food industry that will withstand the recession. because everyone needs food. because it's a primary need.
Human needs are divided into three, namely
1. primary (main / food)
2. secondary (secondary/clothing/home/clothing etc.)
3. tertiary (additional needs / hobbies, etc.)
When a recession arrives, it is the tertiary and secondary needs that are most vulnerable and most likely to be affected.
Human needs are divided into three, namely
1. primary (main / food)
2. secondary (secondary/clothing/home/clothing etc.)
3. tertiary (additional needs / hobbies, etc.)
When a recession arrives, it is the tertiary and secondary needs that are most vulnerable and most likely to be affected.
People got more closer to their pets while the pandemic lasted and ever since then pets became more like members of various families. Staying at home back then as a result of the covid-19 pandemic made correction to so many things that were neglected due to busy schedules including having time for pets and has people spent more time at home they got to see the need to spend on their pets because it was looking like a competition as everyone were forced into staying at home
I was opportune to stay with a close relative during the pandemic who happened to have a Cockapoo a skinny dog back then who was looking malnourished because the owner my relation was always busy with work and returns late at night but when the pandemic came seeing how attractive his neighbours dogs looked he took up the challenge and was so amazed how lovely his dog turned out to look within the few months he spent indoors.
I will see my Senior cousin drafting his monthly budget and at the first 5 items on his monthly budget happens to be the dogs food. It was so serious that he ensured the dog never lacked his feed. One of the key food the dog ate was
which was around $35 then in which most times i do the buying
I was opportune to stay with a close relative during the pandemic who happened to have a Cockapoo a skinny dog back then who was looking malnourished because the owner my relation was always busy with work and returns late at night but when the pandemic came seeing how attractive his neighbours dogs looked he took up the challenge and was so amazed how lovely his dog turned out to look within the few months he spent indoors.
I will see my Senior cousin drafting his monthly budget and at the first 5 items on his monthly budget happens to be the dogs food. It was so serious that he ensured the dog never lacked his feed. One of the key food the dog ate was
which was around $35 then in which most times i do the buying Regarding the OP's query, it is important to note that no company is completely immune to the state of the economy. This implies that both direct and indirect effects will always exist. As you correctly noted, 70% of American families now have a pet, making the pet industry essentially a luxury business. Since individuals are losing their jobs, homes, vehicles, and other possessions, you can be sure that they won't be hiring an expensive dog trainer or spending money on other expensive pet accessories. That is one of the ways recession is having an indirect impact on the pet sector.
We can indeed see the impact indirectly even on the pet industry.
Definitely, who would spend good amount of money for training and other pet accessories?
But of course, it is not only in the pet industry but all the other industries are also affected.
In time, they will always recover because pets are always part of the families.
They will just go thru time of being frugal with their pets. As they need to address their personal needs first.
I think, this kind of situation should not be a surprise at all, unless you are rich and you have no problem with your expenditures.
Regarding the OP's query, it is important to note that no company is completely immune to the state of the economy. This implies that both direct and indirect effects will always exist. As you correctly noted, 70% of American families now have a pet, making the pet industry essentially a luxury business. Since individuals are losing their jobs, homes, vehicles, and other possessions, you can be sure that they won't be hiring an expensive dog trainer or spending money on other expensive pet accessories. That is one of the ways recession is having an indirect impact on the pet sector.
I think for a very few consumers who are willing to spend money on a service or product that benefits their animals and Being recession-proof is really what every business strives for. But pet industry experts say pet owners may have to face some tough decisions as more and more pet owners can't afford their pets. Since pets are considered part of the family, these families may have to let go of their furry friends due to financial difficulties.
Well, the pets should be beneficial enough to be worth the efforts/money that are used to sustain them otherwise they would end up being a burden to the extent of canceling the joy their owners derive from them.
Instead of owning just a pet donkey, have one that drives you to & from market once in a while. That should help it exercise its body while being beneficial to you at thesame time. I won't be surprised if they already have their gyms over there whereas they could be using the kind of energy they generate in the gym to help you do some important works
I would guess that the pets in question would be stuff like cats and dogs. Many people in the entire world have cats and dogs which means that if you are producing food for these animals then you could still sell them when the pandemic happens or economy goes bad. Instead of owning just a pet donkey, have one that drives you to & from market once in a while. That should help it exercise its body while being beneficial to you at thesame time. I won't be surprised if they already have their gyms over there whereas they could be using the kind of energy they generate in the gym to help you do some important works
Because not like people would start to starve their cats and dogs, even the homeless people share their food with their pets and that means we are going to never see the pet industry going to be bankrupted at all. It is the same as food industry, even on the worst situation people will still need to eat something and that is the important part, as long as you get to eat something, the food industry will keep on surviving.
Well, the pets should be beneficial enough to be worth the efforts/money that are used to sustain them otherwise they would end up being a burden to the extent of canceling the joy their owners derive from them.
Instead of owning just a pet donkey, have one that drives you to & from market once in a while. That should help it exercise its body while being beneficial to you at thesame time. I won't be surprised if they already have their gyms over there whereas they could be using the kind of energy they generate in the gym to help you do some important works
Instead of owning just a pet donkey, have one that drives you to & from market once in a while. That should help it exercise its body while being beneficial to you at thesame time. I won't be surprised if they already have their gyms over there whereas they could be using the kind of energy they generate in the gym to help you do some important works
They may not be severely affected, but this industry will still get a taste of the recession. I have 3 cats that I regularly take to the vet and it's slowly getting expensive. Also, every week I make sure to buy $15 worth of cat litter and $20 on their food. Fast forward to now, cat litter costs $17 and their food $25. It may not be much of an increase but over time, it'll pile up. Pet supplies and food, which is under a lot of industries will take most of the hit. They can't do anything but be forced to up their prices if they want to stay afloat in this dire economic condition.
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.
Pets are now part of the family: There are now around 108 million dogs in the United States– roughly one dog to every three humans. In the U.S., 70% of all households now own a pet (an increase from 56% in 1988), which means there are now more households with pets than children. The bond between pet owners and animals is getting closer. Everyone is treating their pets like children.
Thirty years ago, dogs couldn’t come into the house, then they were allowed in the bed, and soon they will have their own room. With pets increasingly viewed as members of the family (even often taking the place of children as millennials wait longer to get married and have kids), spending on pet-care has consistently grown.
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
Pets are now part of the family: There are now around 108 million dogs in the United States– roughly one dog to every three humans. In the U.S., 70% of all households now own a pet (an increase from 56% in 1988), which means there are now more households with pets than children. The bond between pet owners and animals is getting closer. Everyone is treating their pets like children.
Thirty years ago, dogs couldn’t come into the house, then they were allowed in the bed, and soon they will have their own room. With pets increasingly viewed as members of the family (even often taking the place of children as millennials wait longer to get married and have kids), spending on pet-care has consistently grown.
You gave an impression of everything that happened when the country was not in recession and while some of it does make sense, what we've seen recently is an anomaly. The Covid recession spawned all sorts of societal changes, like much more working from home, spending more time stuck at home (sometimes in the garden) and being socially isolated - which spurned a massive uptick in people adopting pets to help keep them company. Sadly that effect seems to have worn off and like the fickle people we are, many people have now switched back to working in the office and unfortunately some others have decided that they are unable to care for the animals they made such a big commitment to and have started abandoning them.
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.
I try to summarize some sectors that are vulnerable and resistant to the recession process, by looking at various considerations that support sectors in the US.- Global Market
- Financial sector
- Real Sector
These three sectors are relatively large in the US, so the potential for recession is greater, in fact this is a picture of the most recession-prone sectors in various countries.
While the business industry that has resilience during a recession.
- Health
- Technology
- Education
Because these three industries are not sensitive to rising interest rates and these industries are needed by many people when the economy is in recession.
Meanwhile, the pet industry did not have a major impact on the occurrence of a recession, because the supply and expenditure of this industry was not directly related to secondary or primary needs. (replaceable)
Furthermore, a recession is associated with a declining domestic product, a negative real economy in two or more quarters and a major slowdown or contraction in economic activity or vice versa.
Animal protection laws: Countries now have written laws that protect pets against maltreatment and suffering. These laws are really enforced in developed countries and not in Africa where pests are exploited.
Including animal protection laws, but in the next comment you said that stray dogs and cats are caught for slaughter.In some developing countries, dogs and cats are good meat. They are reared for meat and stray dogs or cats are captured and slaughtered. African culture doesn't support keeping animals as pets. Most dogs are reared for hunting or for guiding flocks. This part of the world has some of the best-hunting dogs, that can kill rabbits and bring the meat to the owner without several bites.
Do legal references only apply to pets, but not to wild animals.
This confuses me?
As far as I know the law is used in a general sense, there are no exceptions in its application.
If your assumption is correct, then the person living in the area you mentioned is breaking the law.
Covid-19 Pandemic:
>snip
The area where I live, COVID-19 has started to disappear, activities involving face-to-face meetings are running as usual, although the economic impact has not recovered 100%.>snip
However, it seems that it is no longer in the dangerous category, just waiting for the economic recovery to continue, because people still cannot get out of the economic problems that hit when Covid-19 occurred.
Nope, the existing pets that already have owners will most likely be fine. However, the affect will be less pets finding homes, whether adopted or bred, which will in turn have a domino effect--> less pet food being bought--> less pet toys and accessories being bought --> overall, breeders struggling with sales to name a few.
The first question I asked myself in soliloquy is this; is recession not a result of fiat affecting transactions?
The pet industry is also a part of society. The human society in which we live and reproduce love to acquire things that are deemed valuable no matter how expensive, just so as to keep body, mind and soul happy after earning. Covid-19 taught a hard lesson in the subject of companionship around the world and people saw how an unconventional means of relationship worked to help them stay fluid and present during those times. Acquiring Pets, potted plants, music instruments no matter how expensive did not really matter, so long the cash was available. It is all a means to an end.
The pet industry and other industries inclusive are experiencing the effect of recession. As long as exchanging cash to fulfill a desire still exists, and with the current global economic standings, I conclude on the fact that the pet industry isn't recession proof. Almost every sector of the economy right now is affected by the recession, without no exception for the pet industry. We only pray for the best in these times and for grace in spending wisely!
The pet industry is also a part of society. The human society in which we live and reproduce love to acquire things that are deemed valuable no matter how expensive, just so as to keep body, mind and soul happy after earning. Covid-19 taught a hard lesson in the subject of companionship around the world and people saw how an unconventional means of relationship worked to help them stay fluid and present during those times. Acquiring Pets, potted plants, music instruments no matter how expensive did not really matter, so long the cash was available. It is all a means to an end.
The pet industry and other industries inclusive are experiencing the effect of recession. As long as exchanging cash to fulfill a desire still exists, and with the current global economic standings, I conclude on the fact that the pet industry isn't recession proof. Almost every sector of the economy right now is affected by the recession, without no exception for the pet industry. We only pray for the best in these times and for grace in spending wisely!
Here's another perspective: https://www.cnbc.com/2022/08/05/higher-housing-costs-force-more-pet-owners-to-surrender-their-dogs.html
The stories above are merely anecdotes, not calculations of the pet industry's growth. Point is, some people will give up their pets if it means they'll survive economically.
Most countries treat dogs as property or useful tools. Only in the developed world is there such affection for pets.
And what's tragic is that a lot of these pets went back to the shelter to get euthanized because irresponsible owners did not have the foresight to comprehend that COVID lockdowns/WFH settings were only temporary. Combine the economic turmoil and the result was predictable.
The stories above are merely anecdotes, not calculations of the pet industry's growth. Point is, some people will give up their pets if it means they'll survive economically.
Most countries treat dogs as property or useful tools. Only in the developed world is there such affection for pets.
Stay-at-home orders created a perfect environment for pet ownership. Long hours spent in the office that once discouraged potential parents from adopting were replaced by the possibility of being present while working remotely. For the first time, half of the people employed pre-COVID-19 have been working from home, trading long commutes for quarantined conference calls, clearing social calendars, and yearning for emotional connection, which for many, has been filled by their pets. Consequently, animal adoption rates skyrocketed more than 110 percent, and fostering grew 197 percent comparatively year-over-year, according to Pethealth Inc. For existing pet parents, the stay-at-home rules offered a chance to spend more meaningful time and invest more deeply in their pets. The pandemic has made people become used to pets.
And what's tragic is that a lot of these pets went back to the shelter to get euthanized because irresponsible owners did not have the foresight to comprehend that COVID lockdowns/WFH settings were only temporary. Combine the economic turmoil and the result was predictable.
-Givign away your pet is one of the last things people do, but there is nothing really recession proof on that regard.
Well, like human healthcare I think the animal health/pet supply industry is fairly recession-resistant, though not completely. Nothing really is that I know of, and there are limits to which people are going to care for their pets. In times of famine, people have been known to....well, you know. Animals are a good source of protein, let's just put it that way.But if OP or anyone else is looking for a good stock to buy, a company like Zoetis that specializes in making animal medicines might be a good choice. I probably wouldn't invest in anything in the retail business, like Chewy and the like, because I think they would see their profits decline during a recession--but my opinion is that you just can't go wrong with healthcare, whether it's human or animal. People have loved their pets for centuries and veterinarians aren't going broke, I can tell you that.
The increasing interest of people to have pets at home continues to increase during the Covid-19 Pandemic. because people have to stay at home. and they need entertainment or animals to treat their boredom. or it can be said that they need activities that can be done at home. and came the hobby of pet animals.
in the country where I work today (indonesia), I see the citizens are even more interested in collecting ornamental plants that they buy expensively. even to the point that there is one plant whose price is very expensive, such as an ornamental plant called Monstera. This plant was auctioned for around $8000 dollars.
Monstera
But I see an increase in the pet industry sector and the ornamental plant industry only in the midst of the covid-19 pandemic because people really need it at that time.
but now when inflation starts to get worse in various countries. I actually see that the pet business opportunity will be heavily affected by inflation and will be prone to recession. because nowadays people from the middle to lower economic circles will be much more concerned with their own needs than their pets. they will prefer to stock up on food rather than having to buy a pet.
but in the UK, I believe there is still a high level of interest in the pet industry because in that country, pets are even considered as family and friends. But I read in the news that the cost of funerals for animals is increasing rapidly in the UK as a result of inflation itself.
This is the same thing that happens in the area I live in, now maybe even almost every house in my area has this plant to maintain and cultivate.in the country where I work today (indonesia), I see the citizens are even more interested in collecting ornamental plants that they buy expensively. even to the point that there is one plant whose price is very expensive, such as an ornamental plant called Monstera. This plant was auctioned for around $8000 dollars.
But I see an increase in the pet industry sector and the ornamental plant industry only in the midst of the covid-19 pandemic because people really need it at that time.
but now when inflation starts to get worse in various countries. I actually see that the pet business opportunity will be heavily affected by inflation and will be prone to recession. because nowadays people from the middle to lower economic circles will be much more concerned with their own needs than their pets. they will prefer to stock up on food rather than having to buy a pet.
but in the UK, I believe there is still a high level of interest in the pet industry because in that country, pets are even considered as family and friends. But I read in the news that the cost of funerals for animals is increasing rapidly in the UK as a result of inflation itself.
Maybe this is related to a hobby and obviously this is actually quite profitable because the more they are popular, the higher the price when they are traded.
In the case of animals, maybe this is just for entertainment, but when the economy is getting more and more difficult, this will also definitely be a little burdensome because pets obviously need quite a bit of care starting from food and a place for them to be stored, in contrast to ornamental plants which only allow a little for maintenance costs because it only requires fertilizer and water to water regularly.
Dog owners who hit the rock bottom just abandon dogs on the streets since they couldn't feed them anymore. Its wrong but so many reports of increasing abandoned dogs everywhere.
My kid has a dog. The dog is the only alarm system we have. He barks whenever unknown person come near the house. To me he's a valauble alarm system. Owners should also look at their dogs this way to see its importance as part of their security and family.
Not sure where I've read it but studies shows feeding the dog once a day will extend his life longer than feeding the dog every meal.
We added more dogs this year, they can be consider a stress reliever their loyalty and sweetness makes us care for them more,they are not just a guard dog or our alarm clock but considered as family. We even bring them in vet for checkups even our dog who is not a pure breed. Many will do give their needs once they know how special thei dog is even if there is recession. During pandemic lockdown they are a good companion hopefully those who buy or adopt dog during pandemic will not abandoned their furbabies and will provide what they need. Be a responsible owner and be inspired in some celebrity dogs now in tiktok that gives viewer good vibes. My kid has a dog. The dog is the only alarm system we have. He barks whenever unknown person come near the house. To me he's a valauble alarm system. Owners should also look at their dogs this way to see its importance as part of their security and family.
Not sure where I've read it but studies shows feeding the dog once a day will extend his life longer than feeding the dog every meal.
I am a person who likes to raise animals. and what I feel in the current state of the economy I don't mind raising animals. The animal I keep is a cat. Their treatment does cost a hefty amount of money. but because this is a hobby and pleasure then spending money for pleasure is commonplace. But when the impact of inflation is increasingly felt. I also prefer not to buy food for my cat. better feed them what we eat. thus becoming more cost effective. but if we talk about recession then all industries will definitely be affected including the pet industry. because sometimes we are forced to reduce our hobby of pets a little when the economy is like now.
No, you didn't reduce your hobby, you still have your pets with you and you can adopt more because you said you can still be able to feed them with the food that you also consume and not foods that are specifically built for cats. We sometimes do that actually. We have one cat and two dogs. Sometimes we bought them dog food and cat food if we have an extra budget but most of the times they just eat regular food.If the pets are sick and need some medication then that is a different story anymore. I think we normal individuals can't do much to help our pets but they need a special treatment of the experts or veterinarians and this cost some dollars.
Dog owners who hit the rock bottom just abandon dogs on the streets since they couldn't feed them anymore. Its wrong but so many reports of increasing abandoned dogs everywhere.
I'm guessing that this spike up was due to the covid years. People were probably bored and wanted a pet for funsies, totally underestimating the amount of effort needed to care for a dog.
Having a pet is somehow a trend right now many celebrities posted their pets that's why other wants to follow and also they see a lot of cute pets posted that's why some want to have this without knowing there's huge responsibilities in it. Pet industry is not recession proof we all see that the dollar value rise up and it affects the price of all commodities and also with other things including pet cares so for having this issues we can also see the price hike of pet cares and that's what happening at this moment.
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