Non-Medical Pet Services Industry in Wake of the Pandemic

The pandemic and its aftermath of high inflation and economic uncertainty continue to exact a toll on non-medical pet services such as grooming and boarding, reports Packaged Facts’ just-released Pet Services in the US.

It’s primarily inflation, rather a rebound in demand, that’s helped the pet services sector return to pre-pandemic 2019 sales levels, along with the strong performance of pet insurance as a financial service. Assuming ongoing economic recovery, Packaged Facts projects sales of non-medical pet services to reach $13.27 billion.

Pet insurance and pet sitting/walking are expected to be the strongest performers in the full year 2024, with sales rising 19% and 15%, respectively. Revenues for grooming and training remain flat when price inflation is factored in, due to factors including household budget crunching and sluggish growth in the dog population. Taken together, these core hands-on pet services – grooming, boarding, pet sitting/walking, and training – account for almost two-thirds this sector’s projected revenues for 2024.

Services for dogs rather than cats dominate across the non-medical pet service categories, with both usage rates and spending levels higher than the feline averages. For 2024, dogs are projected to account for 86% of revenues for non-medical pet services.

Trends and opportunities in the non-medical pet services sector are framed not only by the post-pandemic economic trajectory and by dog population trends, but also by the ongoing “retail-zation” of veterinary and pet care services.According to report analyst David Lummis, “Hands-on, non-medical pet and veterinary services are – and increasingly will be – a retail affair, as they are probably the most reliable means for brick-and-mortar retailers to draw shoppers away from Chewy and Amazon.”

In the years ahead, not only will pet product retailers become more reliant on revenues from pet services, but veterinary and non-medical pet service providers will be more reliant upon retailers. This remix will largely be attributable to pet owners’ increasing embrace of one-stop shopping convenience for products and services. One of the biggest signs of these times was the September 2023 opening of Walmart’s first Pet Services Center, offering routine veterinary care and grooming, with five more centers slated to open in October 2024. Chewy, in turn, plans to open its seventh Chewy Vet Care clinic by the end of 2024.

The appeal of one-stop shopping for pet care is potent, especially for younger-generation pet parents and among retailers able to offer human and pet products and services in the same location. In Packaged Facts July/August 2024 National Survey of Pet Owners, over-half (55%) of pet owners strongly or somewhat agree they like the idea of getting pet products and services at the same place.

About Packaged Facts  

Packaged Facts publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at our company website https://www.freedoniagroup.com/packaged-facts.