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SUMMARY
Pet owners' desire to take better care of and interact more closely with their
pets has driven demand for pet care services to an all-time high, with 83% of
pet specialty store shoppers citing "more services" as their number-one trend
of interest. Also contributing to the surge in sales are the rising costs of
veterinary medicine; the ongoing expansion into the market of PetSmart and
PETCO; the competitive response of regional and independent market
participants; the entry into the field of new players; greatly expanded
options in grooming, boarding, and training; and pet owners' willingness to
spend heavily on health-oriented services that nurture their pets.
As a result, pet care services are the fastest-growth area of the overall pet
market, chalking up double-digit annual sales gains expected to continue for
the foreseeable future, driving the market past the $20 billion mark by 2010.
This fully updated Second Edition examines all major areas of the
market-Veterinary, Boarding, Grooming, Training, and Pet Sitting- providing
separate focus chapters for each while also comparing and contrasting
cross-market trends. Hot-button trends covered include:
- Consolidation of the veterinary field, with VCA Antech and Banfield now
collectively operating almost 900 animal hospitals nationwide.
- The growing emphasis on veterinary specialties and diagnostics.
- The growth of regional pet care chains like Best Friends and of
franchising outfits with national aspirations, such as daycare specialist Camp
Bow Wow/Digs! and training specialist Bark Busters.
- The emphasis on "one-stop pet care" by service providers in all areas, as
well as by pet specialty retailers.
- The surge in luxury boarding and doggie day care options.
- The addition of pet care services in retail shops, in which services
currently represent 10% of dollar volume but over 17% of profits.
Using data from a variety of sources including the Bureau of Labor Statistics'
most recent integrated Consumer Expenditure Survey and Simmons Market Research
Bureau's Fall 2005 adult consumer survey, the report also provides in-depth
demographic profiles of users of veterinary services and other pet care
services, and examines market-shaping trends in dog and cat ownership.
TABLE OF CONTENTS
Chapter 1: Market Trends
- Introduction
- Scope of Report
- Category Overlap and Market Quantification
- Report Methodology
- Market Size and Composition
- Pet Care Services Market at $18.2 Billion in 2005
- Veterinary Services Account for Lion's Share of Market
- Table 1-1: U.S. Pet Care Services Market Revenues, 2001-2005 (in
millions of dollars)
- Table 1-2: U.S. Pet Care Services Market Revenues by Category, 2001-2005
(in millions of dollars)
- Figure 1-1: Share of U.S. Pet Care Services Market by Service Type, 2001
vs. 2005 (percent)
- Grooming Accounts for Over Half of Service Sales in Pet Specialty Stores
- Table 1-3: Share of Pet Service Sales in Pet Specialty Stores by Service
Type: 2003 vs. 2004 (percent)
- Market Outlook
- Overall Pet Market Going Strong
- Table 1-4: Average U.S. Household Expenditures on Pet Products and
Services, 1994 vs. 2004 (in dollars)
- Table 1-5: Aggregate U.S. Household Expenditures on Pet Products and
Services, 1994 vs. 2004 (in thousands of dollars)
- Increased Spending on Veterinary Services
- Interest in Pet Services at an All-Time High
- Figure 1-2: Pet Care Services in Pet Stores: % of Shoppers Who Have Used
Service, 2004 vs. 2005
- PETCO and PetSmart the Driving Force
- Other Promising Segments: Daycare and At-Home Services
- Pets as Family
- Table 1-6: Consumer Activities and Opinions Reflecting Humanization of
Pets, 2003 and 2004 (percent)
- "Convenience Pets"
- Pet Population Trends
- The Aging Pet Population
- Demographic Trends
- Figure 1-3: Share of U.S. Population Growth for Selected Age Brackets,
2005-2010 (percent)
- Table 1-7: Dog and Cat Ownership Indices: By Adult Age Bracket, 2005
(U.S. households)
- Other Key Demographics
- Figure 1-4: Two-Adult Households/No Kids as Pet Owners, 2003 vs. 2005
(percent)
- Looking Ahead: Sales to Top $25 Billion by 2010
- Table 1-8: Projected U.S. Pet Care Services Market Revenues by Category,
2005-2010 (in millions of dollars)
- Future Trends
Chapter 2: Competitive Trends
- Introduction
- Still a Local Business
- Extreme Customer Loyalty
- Increasing Professionalism
- Advertising Concentrated in Local Media
- Adding Retail Products to the Mix
- More Cross-Over Across the Board
- VCA Antech, PetSmart/Banfield, and PETCO Driving Market Consolidation
- Table 2-1: PetSmart and PETCO: Total Sales vs. Pet Care Service Sales,
2000-2005 (in millions of dollars)
- Figure 2-1: PetSmart/PETCO Share of Total Grooming/Boarding/Training
Market, 2000 vs. 2005 (percent)
- The Personnel Crunch
- Best Friends Pet Care
- Other Chain Store Retailers Lag Behind in Services
- Independent Pet Specialty Retailer Service Initiatives
- Figure 2-2: Percentage of Pet Specialty Retailers Offering Pet Care
Services: By Type of Service, 2004
- Strong Consumer Demand
- Table 2-2: Pet Trends of Most Interest, 2004 vs. 2005 (percent)
- Table 2-3: Pet Care Services in Pet Stores: % of Shoppers Who Have Used
Service, 2004 vs. 2005
- Table 2-4: Pet Care Services in Pet Stores: % of Shoppers Who Would Use
Service if Available Where They Shopped, 2004 vs. 2005
- Table 2-5: Price Elasticity of Pet Care Services in Pet Specialty
Stores, 2004 vs. 2005 (percent)
- Competitor Profile: Banfield, The Pet Hospital
- PetSmart Is Catalyst to Explosive Growth
- Company Honored with Franchise Award
- Company Opens First After-Hours Emergency Hospital
- Expanded Diagnostic Capabilities
- Focus on Pet ID Microchipping
- International Expansion
- Competitor Profile: PETCO Animal Supplies, Inc.
- Pet Services at 5% of Total Sales
- Table 2-6: Petco: Total Sales vs. Pet Care Service Sales, 2000-2005 (in
millions of dollars)
- Grooming Services Available in Most Stores
- Grooming Promotions
- Groomer Training Centers
- Personnel Recruitment
- Training Services a High-Growth Area
- Doggie Day Care
- Other In-Store Services
- Pet Insurance Co-Marketing
- Competitor Profile: PetSmart, Inc.
- Pet Services at 9% of Total Sales
- Table 2-7: PetSmart: Total Sales vs. Pet Care Service Sales, 1999-2005
(in millions of dollars)
- From PETsMART to PetSmart, With Big Ad Push
- Life-Long Pet Services for Pet Enthusiasts
- Banfield Veterinary Services
- The PetSmart Grooming Pitch
- The PetSmart Training Pitch
- Boarding and Daycare: PetsHotels and Doggie Day Camps Going Strong
- Targeting the Trade
- Competitor Profile: VCA Antech, Inc.
- A National Leader in Pet Hospitals and Diagnostics
- Figure 2-3: VCA Antech Revenues, 1996-2005 (in millions of dollars)
- Rapid Growth Through Acquisitions
- Antech Diagnostics and STI
- Consumer Marketing
Chapter 3: Service Trends
- Focus on Veterinary Care
- Business Basics
- A Seasonal Business
- Long Hours, Short Pay
- Education and Licensing
- An Increasingly Female Profession
- Trade Support
- AVMA Holds Disaster Summit Post-Katrina
- Ongoing Market Consolidation
- A Shift to Services
- One-Stop Pet Care
- Bereavement Products and Services
- Figure 3-1: Would Buy a Casket, Urn and/or Headstone Upon Death of Pet,
2004 (% of dog- or cat-owning households)
- More Veterinarians Making House Calls
- Veterinarians Losing Med Sales to Online Outfits
- Focus on Pain Management
- The Compliance Issue
- Higher-Ticket Veterinary Care
- Pet Insurance Will Help to Cover Rising Veterinary Costs
- Figure 3-2: U.S. Pet Insurance Market Revenues, 2005 vs. 2010 (in
millions of dollars)
- Increasing Specialization
- Geriatric Pet Care
- Specialized Care for Overweight Pets
- Emphasis on Oral Care
- Growing Consumer Demand for Alternative Care
- VPN Names Top Trends to Watch in 2006
- Focus on Pet Boarding/Daycare
- Boarding Basics
- Share of Boarding Kennel Revenues by Animal Type
- Table 3-1: Services Provided by Boarding Facilities, 2005 (percent)
- Employees and Employee Training
- Operating Expenses
- A Seasonal Business
- Boarding Kennel Suppliers
- One-Stop Pet Care
- Figure 3-3: Common Add-On Services Offered by Boarding Facilities by
Kennel Size, 2005 (percent)
- Expansion of National Chains
- Market Segmentation
- Luxury Boarding
- Doggy Daycare and Activity Centers
- Focus on Pet Grooming
- Grooming Basics
- Groomer Training and Pay
- Fees and Add-Ons
- A Seasonal Business
- Groomer Certification
- Licensing Debate Continues
- Industry Shows and Competitions
- The PetSmart/PETCO Effect
- Professionalizing Grooming
- Trading Up in Supplies and Equipment
- Focus on Ergonomics
- Greater Specialization and Add-on Services
- Adding on Daycare
- Adding on Retail
- Figure 3-4: U.S. Retail Sales of Pet Grooming Products, 2001, 2005, 2010
(in millions of dollars)
- Mobile Grooming
- Self-Service Grooming
- Focus on Pet Training
- Training Basics
- Where Training Takes Place
- Seasonal Patterns
- Trainer Education and Certification
- Clubs and Competitions
- Off Lead & Natural Pet Magazine
- The Power of Professional Recommendations
- Dog Training on a National Scale
- Bark Busters Franchise Going Strong
- More Training Options for Pet Owners
- Club Memberships
- The Internet Era
- Professionalizing Training
- More Retail Training Products
- Figure 3-5: U.S. Retail Sales of Pet Training Products, 2001, 2005, 2010
(in millions of dollars)
- Focus on Pet Sitting
- Strong Growth Prospects
- Two National Trade Associations
- Pet Sitters International
- The National Association of Professional Pet Sitters
- Pet Sitting Basics
- National Aspirations
- Strong Urban Demand Includes Pet Taxi Services
- Pet Specialty Retailers, Service Providers Weighing In
Chapter 4: Consumer Trends
- The Veterinary Services Consumer
- Veterinary Care Spending: Trends and Demographics
- Figure 4-1: Average U.S. Household Expenditures on Veterinary Services,
1994-2004 (in dollars)
- More Pet Owners Using Veterinary Surgeons
- Table 4-1: Trends in Veterinary Care Spending and Service Types Among
Pet Owners: 2003 vs. 2004 (percent)
- Surgical Visits Costing the Most
- Figure 4-2: Service/Products Obtained at the Veterinarian's Office, 2004
(percent of dog- or cat-owning households)
- Table 4-2: Services/Products Obtained from the Veterinarian by Dog
Owners: 2002 vs. 2004 (percent)
- Table 4-3: Services/Products Obtained from the Veterinarian by Cat
Owners: 2002 vs. 2004 (percent)
- Veterinary Care Consumer Demographics
- Criteria for Choosing a Veterinarian
- Females Calling the Pet Care Shots
- Figure 4-3: Selected High-Index Demographics for Spending on Veterinary
Services, 2004 (U.S. Households)
- Table 4-4: U.S. Household Spending on Veterinary Services: By Age,
Income, Household Type, Race, Region, and Educational Attainment, 2004
- The Pet Care Services Consumer
- Pet Care Services Spending: Trends and Demographics
- Figure 4-4: Average U.S. Household Expenditures on Pet Care Services
Excluding Veterinary, 1994-2004 (in dollars)
- Types of Pet Care Services Used
- Table 4-5: Selected Pet Care Services Used in Past Six Months, 2004
(percent of pet owners who used any services)
- Pet Care Services Consumer Demographics
- Figure 4-5: Selected High-Index Demographics for Spending on Pet Care
Services, 2004 (U.S. Households)
- The Boarding Kennel Customer
- Figure 4-6: Reasons for Visiting a Boarding Facility, 2005 (percent)
- The Pet Sitting Services Consumer
- Table 4-6: U.S. Household Spending on Pet Care Services: By Age, Income,
Household Type, Race, Region, and Educational Attainment, 2004
- Pet Ownership Trends and Demographics
- The Simmons Survey System
- Over 50 Million Households Own Dogs or Cats
- Trends in Multiple-Pet Households
- Figure 4-7: Total Households for Selected Pet-Owning Classifications: By
Number of Dogs or Cats Owned, 2005 (in thousands of U.S. households)
- Pet Ownership by Age Bracket: The Boomer Skew
- Whites 21% More Likely to Own Both Dogs and Cats
- Dog Owners Skew Upscale
- Households of 3-4 Persons Are 18% More Likely to Own Both Dogs and Cats
- The Pet Specialty/Mass-Market Divide
- Pet Specialty Store Shopper Demographics
- Table 4-7: Household Penetration Rates for Selected Pet-Owning
Classifications, 2003-2005 (U.S. households)
- Table 4-8: Demographics Favoring Ownership of One or More Dogs, 2005
(U.S. households)
- Table 4-9: Demographics Favoring Ownership of One or More Cats, 2005
(U.S. households)
- Table 4-10: Indexes by Demographic for Selected Pet-Owning
Classifications, 2005 (U.S. households)
- Table 4-11: Indexes by Demographic: Single vs. Multiple Pet-Owning
Classifications, 2005 (U.S. households)
- Table 4-12: Percentage of Pet-Owning Households Who Shop for Pet
Supplies in Specialty vs. Mass-Market Outlets: By Number of Dogs or Cats
Owned, 2005 (U.S. pet-owning households)
- Table 4-13: The Pet Store or Online Shopper for Pet Supplies: Dog
Owners, 2005 (U.S. dog-owning households)
- Table 4-14: The Pet Store or Online Shopper for Pet Supplies: Cat
Owners, 2005 (U.S. cat-owning households)
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