People have a tough time wrapping their heads across the numbers and growth of the pet industry. For this reason, because the pandemic, investors and VCs are eagerly on the lookout for the subsequent big thing within the pet scene and are attempting so as to add a pet business to their portfolio.
Some numbers to get your tails wagging
Over the past 25 years, the pet industry has grown by 450%. The pet industry is predicted to achieve $358.62 billion by 2027. American pet owners spent over $123.6 billion on their pets in 2021, which is a 115% increase since 2011. The millennial generation already makes up 32% of pet industry consumers as they see their pets in an entire latest light in comparison with their parent’s generation. Millennials are actually 3 times more more likely to be pet owners than they’re to be parents.
Source: American Pet Products
The Post Covid Dog Boom
Covid-19 had a dramatic and positive effect on the industry and market. Pet ownership soared, and dog shelters across the globe emptied like never before. Within the UK, 3.2 million latest homes adopted pets. People under 35 accounted for 59% of recent pet owners, while 56% of those buying a pet for the primary time had children at home. Within the U.S, the numbers are equally staggering. There are actually around 108 million dogs in the USA– roughly one dog to each three humans. Within the U.S., 70% of all households now own a pet (a rise from 56% in 1988), which implies there are actually more households with pets than children.
The COVID-19 pandemic coupled with this latest younger pet ownership has led brands to comprehend that they must move away from the standard brick-and-mortar industry and focus more on data and their online presence. A tangible example is seen in the rise in online pet shopping; within the U.S., 86% of pet owners now buy their food online, in comparison with only 60% before the pandemic.
Data is king
Large pet brands are actually trying to seek out ways to learn more about their customers, in addition to create stronger loyalty and customer engagement with their brand. As brands focus more on their online presence, there may be a novel opportunity for brand spanking new pet tech to assist brands higher understand who their customers really are and offer a much more tailor-made experience for them.
I even have spent a variety of time chatting with a few of the largest pet food manufacturers on this planet, who know next to nothing about their customers and their dogs. But now, pet brands aren’t only seeking to learn more about their customers, but also they are seeking to forge a stronger reference to entrenched customer loyalty. These brands are searching for brand spanking new ways to attach with their customers, not only at checkout.
Dog owners want the perfect for his or her best friend
Nearly 42% of dog owners opt to purchase their dogs premium food, but with so many options, dog owners often depend on friends’ recommendations or alternatively search out a brand that they honestly connect with.
There have been tremendous success stories of recent players within the pet food space, offering specialized and tailor-made food specifically on your dog. Millennials not consider within the ‘one-size-fits-all’ model but prefer to decide on a brand with shared values resembling sustainability and high-quality ingredients. For instance, 69% of Millennials opt for his or her pets to have natural and organic products.
Likewise, within the health space, pet owners are in search of more information to make higher decisions on their pet’s wellbeing and lifestyle. Dog owners often have a really negative connotation with visiting the vet, because it is more likely to be an expensive trip. There may be an absence of centralized and accessible information to seek out out what services or products other dog owners of comparable breeds are using, and that are good or not.
A market ripe for disruption
As we all know, pet brands are on the lookout for ways to construct stronger and longer-lasting relationships with their consumers, putting a much stronger emphasis on pet health and wellbeing. Covid-19 bridged the gap between humans and telemedicine, but we now have not yet seen the identical impact on the pet world. There are several latest exciting tech startups which are focusing exclusively on telemedicine for pets they usually have made some notable strides in the sector, with big investments coming their way. Preventative care can also be on the rise, with vets attempting to push dog owners to be more lively with their dogs to cut back obesity or heart disease risks. In North America, obesity is essentially the most common preventable disease in dogs. Roughly 25-30% of the overall canine population is obese, with 40-45% of dogs aged 5-11 years old weighing in higher than normal.
The pet insurance market can also be set to grow from $3.2 billion in 2020 to $5.9 billion in 2025. Smart tech will help insurance firms track and monitor pet health and wellness. Today, pet insurance relies in your dog’s breed, age, and any previous health conditions. Tech firms resembling YuLife, have led the best way find smart and gamified ways to disrupt the human ‘life insurance’ industry. Lemonade has had an analogous disruptive effect on the house insurance space. The long run of pet insurance shall be to seek out a better way of tracking health and wellness data, in a way that rewards pet owners who take higher care of their dogs, with cheaper insurance premiums.
Technology is the long run of pet health and wellness
To really reach the pet industry, I feel it is advisable to create a fun and fascinating user experience which provides clear value for dog owners, whilst also providing wealthy and comprehensive data for pet brands. The key is making a product that helps educate pet owners to be more lively with their pets and rewards them with real, tangible value and useful utility. It’s about making a loyalty program on your pup and empowering dog owners to take control of their dog’s health and wellness. Over the past 20 years, we now have seen the rise of the ‘humanization of pets’. I feel the subsequent stage on this evolution is the ‘digitalization of pets’ as we see greater integration of technology into our pets’ lives. A wiser ecosystem allows for rewards and discounts on premium pet products and the perfect veterinary professionals, on the touch of a button.
The long run for pets is as fluffy because it is profitable
The continued growth on this market proves that there’s a deep emotional connection for consumers and that the pet industry is just not only a cute ‘area of interest’, but a very unique industry with truly amazing metrics and unit economics. If once it was a dog’s size that won the fight, today there isn’t any doubt that it’s your dogs’ data that shall be the perfect weapon in protecting their health and ultimately, disrupting this market.
Written by Alon Zlatkin, CEO of Dogiz