The pet industry is expected to see declines in three out of the four pet industry sectors –pet food and treats, veterinary services, non-food pet supplies, non-medical pet services – in a year affected by COVID-19 and economic challenges.
Non-medical pet service sales are expected to suffer the sharpest drop in 2020 – at 47% – due primarily to the link between pet boarding services and business/leisure travel. Also projected to drop in 2020 are sales to the veterinary sector and of non-food pet supplies, reflecting in part the discretionary nature of some of the services and products involved.
However, somewhat mitigating the overall market loss will be continued (though tapered) growth in essentially non-discretionary pet products, primarily pet food and cat litter. Pet food, the largest pet industry sector, is forecast to grow 4% in 2020, compared with a 6% growth forecast before the COVID-19 pandemic impact. A slightly less rosy outlook for pet food sales will reflect, as during the Great Recession, some trading down to value and store brands.
Key opportunities exist in products and services that emphasize the ongoing well being of pets. Suppliers will also want to emphasize the value associated with their products.
For more information, see Pet Market Outlook 2020-2021 along with the rest of the pet industry coverage from our sister publisher, Packaged Facts.