Source: PR Newswire
The pet services industry faced challenges in 2024, including shifting consumer behavior, rising labor costs, and declining revenues, particularly in daycare services. In-home pet care gained market share in urban areas, pressuring traditional facilities to innovate. Inflation also influenced consumer spending, with price-sensitive pet owners seeking discounts and bundled services. Millennials and Gen Z drove demand for digital convenience, prompting businesses to enhance online booking and subscription-based models.
Despite financial pressures, acquisition activity remained strong, with private equity firms entering the market. Sellers had more flexibility, opting for full acquisitions or equity partnerships. Buyers focused on geographic performance, management strength, and labor efficiency. Looking ahead to 2025, competition will intensify, favoring businesses with strong financials and efficient labor management. Multi-site operations will attract high valuations, making 2025 a seller’s market.