Source: Forbes
The pet industry thrived in 2023, with a $303 billion contribution to the economy, a 16% increase from 2022. Petcare product sales surged in early 2024, outpacing other consumer goods categories, with expected revenue growth of nearly 3%. Pet ownership’s psychological and health benefits, alongside the trend of humanizing pets, fueled this growth. However, concerns arise post-pandemic, as pet ownership declined in 2023, hinting at borrowed growth. Economic pressures, labeled “petflation,” lead consumers to economize, shifting towards cheaper pet products and private labels.
The industry faces a shift from premiumization to affordability, requiring new marketing strategies and engagement methods, including leveraging platforms like TikTok. Supporting pet-friendly workplaces and offering cost-effective shopping options could sustain industry resilience amid changing consumer behaviors. Adaptation to these challenges is crucial for continued success.
Read the full story HERE: https://www.forbes.com/sites/richardkestenbaum/2024/04/10/the-pet-industry-is-doing-great-and-getting-worse/?sh=67a81d6c2d9b