What is currently driving the pet trade
Written by Matthew Bubear, Founder and CEO of CASCO Pet
We really, really love our pets — so much so that the global pet industry is set to exceed USD $500 billion by 2030 (over £380 billion). Not only does this outpace nearly all retail subsegments, but it’s one of the largest rates of return of any retail sector.
Key drivers behind this growth include a growing pet population worldwide, as well as pet humanisation. More people are choosing to have fur babies instead of human babies, and owners are viewing animals as extensions of their family – and treating them as such.
Even when consumers pare back on other goods during economically challenging times, the demand for pet goods stays resilient. This offers the perfect opportunity for retailers to take stock of their business and further diversify their customer offerings.
Of course, to do so, it’s best to know the latest market trends to take advantage of – read on to find out more.
Premiumisation
A trend with consistent growth, premiumisation is advancing into further product categories. Pet owners are willing to increase spending on premium and super-premium products, driven by the underlying sentiment of providing the best for their pets.
There’s been a shift to higher-end nutrition for family pets, with growth in both fresh refrigerated and frozen pet food products. Although premium fresh food only currently accounts for 1% of the market, Bloomberg predicts it may outpace other categories, particularly as awareness of health effects on pets continues to grow. Owners are also turning to pet vitamins and supplements, with global sales set to reach USD $1.05 billion by 2027.
The design of pet clothing, accessories, and furniture is also being upgraded. More designer fashion brands, such as Prada, Tommy Hilfi ger and True Religion, have launched and continue to launch dedicated pet lines. Earlier this year, Interzoo noted the trend of personal style and lifestyle expression reaching the pet supply sector, with animal homewares having a moment, too. Although pet owners still prioritise practicality, they want their animal’s furniture to have the right “look and feel” – natural-look aquariums, dog beds and cat scratching posts that match the existing décor.
Experiences also play a pivotal role in the premiumisation of pet care – and of retail stores. There’s immense opportunity to elevate the in-store experience by providing spaces, activities, and events that humans and animals can enjoy together.
Experiential retail
When it comes to the experience a company provides, 80% believe it's just as important as the products and services delivers. When you provide these experiences in-store, you draw customers in – and keep them coming back. Tying into the trend of premiumisation, you’re giving your business a two-for-one boost. And then there’s the fact it provides stores with a competitive edge, particularly over online retailers.
So where do you start? Nothing competes with supplying live animals – from quality, regulated sources – in-store. And to do this, animal enclosures are essential – ones that are captivating to the consumer, and also make sure to prioritise animal wellbeing. CASCO Pet’s range of offerings are esthetically pleasing, featuring backgrounds with vibrant, natural graphics that reflect the animal’s preferred environment. Crafted from glass, the enclosures offer a striking centrepiece, helping to ensure animal safety, while allowing visitors in your store to interact with their potential future pets at eye level.
Use strategically placed lights to highlight key features of the enclosures and provide species-relevant enrichment that enables animals to display their natural behaviours. This also acts as an opportunity to showcase other products, encouraging customers to purchase items that continue this enrichment and interactivity with their pets at home.
Combined with pet-friendly events, entertainment, and educational classes, a diverse range of products and advice from trained retail staff means you have a 360-degree experience to offer consumers. This approach curates a sense of community and invites repeat visits.
One-stop shop
When leaning into experiential retail, don’t forget about the opportunity to broaden the suite of services you provide – becoming a one-stop shop.
Big players in the industry — Pets at Home, Jollyes, US entities like Petco and even Walmart — have diversified their offerings, with everything from grooming services to wellness exams to vaccines available in-store. There’s also more personalised elements that can be provided, such as tailored training programs and custom nutrition plans for pets.
Spending has increased on pet-related healthcare — such as diagnostics, veterinary care, and pharmaceuticals; services like these are estimated to represent one-fifth of the entire industry’s worth by 2030. This demand for veterinary services has already seen a response, with large retailers like the aforementioned Petco fitting its NYC retail space with a full-service veterinary hospital, equipped with CASCO Pet WELLKennels.
Becoming a destination for all of a pet’s needs provides consumers with a convenient, seamless omnichannel environment.
Technology
You can’t look at the latest trends without mentioning technology. Wearable devices like smart collars and GPS trackers provide real-time information about pets’ health, activity, and location – becoming essential, reliable tools for owners. For wider adoption of these kinds of devices, work needs to be done to improve battery life performance; keep this in mind with your inventory.
Interactive pet toys – treat dispensers and puzzle toys – engage animals, while automated feeding systems provide convenience for owners. This type of tech will continue becoming prevalent across other products and subsections of pet retail.
Thanks to the care provided by owners – and the trend of humanisation – our pets are living longer, and really have never been treated better. Premiumisation, experiential retail, and technology are all trends that retailers can take advantage of, particularly as the younger, burgeoning generation of pet owners lean towards immersive in-store shopping experiences. By doing so, those working in pet retail can expand their offerings, secure a sense of community, and importantly, further the growth of their business.