Pet Services in the US, 2nd Edition

Table of Content

CHAPTER 1: EXECUTIVE SUMMARY

SCOPE & METHODOLOGY

Scope of Report

Methodology

Figure 1-1 National Map by State, Geographic Region, and Census Region

MARKET OVERVIEW

Market Segmentation and Performance by Category

Economic Stress/Inflation Takes a Toll

Declining Dog Population

• Market to Reach $19 Billion by

Competitive Structure

The Franchise Revolution

Walmart Opens First Walmart Branded Pet Services Center

Pet Specialty Retailers Increasingly Reliant on Services

Overview of Consumer Usage Rates

GROOMING

Sales and Market Share

Competitive Overview

Consumer Focus

Usage Rates for Pet Grooming

Size and Growth of Customer Base for Pet Grooming

Shares of Pet Grooming Customer Base by Dog/Cat Ownership

Top Demographics for Pet Grooming

BOARDING & DAYCARE

Sales and Market Share

Competitive Overview

Consumer Focus

Usage Rates for Pet Boarding and Pet Daycare

Size and Growth of Customer Base for Pet Boarding and Daycare

Shares of Pet Boarding and Pet Daycare Customer Base by Dog/Cat Ownership

Top Demographics for Pet Boarding and Pet Daycare

TRAINING

Sales and Market Share

Competitive Overview

Consumer Focus

Usage Rates for Pet Training

Size and Growth of Customer Base for Pet Training

Shares of Pet Training Customer Base by Dog/Cat Ownership

Top Demographics for Pet Training

OTHER NON-FINANCIAL PET SERVICES

Sales and Market Share

Competitive Overview

PET INSURANCE

Sales and Market Share

Competitive Overview

Consumer Focus

Usage Rates for Pet Insurance

Size and Growth of Customer Base for Pet Insurance

Customer Shares for Pet Insurance by Dog/Cat Ownership

Top Demographics for Pet Training

OPPORTUNITIES

Franchising

Retail-ization

Omniservice and Omnimarket

Health & Wellness and the Veterinary Synergy

Pet Insurance

Old Dogs, New Tricks

Subscription/Membership Programs and Shopper Loyalty

Consolidation

Technology

Cats

Meeting Pet Care DIYers Halfway

Senior / Overweight / Special Needs Pets

Payment Options

Pets and Human Health

Pet Service Professionals Increasingly Influential

CHAPTER 2: MARKET OVERVIEW

CHAPTER HIGHLIGHTS

MARKET PERFORMANCE

Market Segmentation and Performance by Category

Table 2-1. US Sales of Non-Medical Pet Services by Category, 2021 - 2023P (million dollars and percent change)

Figure 2-1. Share of US Pet Services Sales by Type, 2019, 2021, and 2023P (percent)

Hands-on Services Account for Two-Thirds of the Market

Figure 2-2. Shares of Dollar Sales of "Hands-On" Pet Services, 2019 vs. 2023P (percent)

Spending on Dogs Dominates Across Categories

Table 2-2. Dollar Shares and Shares of Non-Medical Pet Services Spending: Dog Owners vs. Cat Owners, 2023P

Pandemic Takes a Toll

Table 2-3. Sales of Non-Medical Pet Services by Category, 2019 - 2023P

Pet Care Spending Increases Are Partly a Function of Inflation

Figure 2-3. Annual Price Inflation for Pet Services, 2019 - September 2023 (percent)

Table 2-4. Changes in Levels of Pet Care Spending in Last 12 Months, February 2021, January 2022, and February 2023 (percent of pet care customers)

Figure 2-4. Changes in Spending Level on Non-Medical Pet Services Overall, January 2022 vs. February 2023 (percent of services users who've had pets two years or more)

Economic Stress/Inflation Takes a Toll

Figure 2-5. Due to inflation, are you cutting back on pet care spending in any of these areas,?

Table 2-5. Overall Dog/Cat Owner Usage Rates by Pet Service Category, 2020/21 - 2022/23 (percent of dog/cat owning households)

Table 2-6. Overall Dog/Cat Owner Customer Base by Pet Service Category, 2020/21 - 2022/23 (thousand households and percent change)

Pet Care Spending and the Un-Freezing of Student Loans

Table 2-7. Student Loans Overall by Geographic Region and Generational Cohort: Dog Owners, 2022/23 (percent, thousand borrowers, and index)

Declining Dog Population and Pet Relinquishment

Pet Population Outlook: Dog vs. Cat Trends

Table 2-8. Dog- and Cat-Owning Household Population by Generational Cohort, 2017/18 - 2022/23 (thousands)

Figure 2-6. Projected Growth in Dog vs. Cat Population, 2024 - 2030 (percent)

Puppy vs. Kitten Adoption Trends

• Table 2-9. Number of U.S. Households with Dogs/Puppies vs. Cats/Kittens, Fall 2014 - Spring

Figure 2-7. Percent of Dog Owners with Puppies vs. Percent of Cat Owners with Kittens, Fall 2014 - Spring 2023 (% of dog/cat-owning households)

Table 2-10. Usage Indexes for Pet Services by Demographic, 2022/23 (base index among dog/cat owners = 100)

Senior Pet Population

• Market to Reach $19 Billion by

Table 2-11. Projected Sales of Non-Medical Pet Services by Type, 2023P-2028P (sales in millions and percent change)

Figure 2-8. Share of US Pet Care Services Sales by Category, 2023P vs. 2028P (percent)

Pandemic Intensifies Focus on Health and Wellness

INDUSTRY TRENDS

Competitive Structure

• Table 2-12. Number of US Pet Care Establishments by Business Structure and Number of Employees, 2014 vs.

Veterinary Share of Pet Care Service Revenues

Table 2-13. Revenue Share of Selected Non-Medical Pet Services: Veterinary vs. Non-Medical Pet Services Sectors, 2022 (million dollars and percent)

The Franchise Revolution

Pet Supplies Plus/Wag N' on Rapid Growth Track; Franchise Group Parent Goes Private

• Dogtopia Shooting for 400 Units by

Figure 2-9. Number of Dogtopia Units, 2002 - 2025P

Mars' Camp Bow Wow

EarthWise Pet

Woof Gang Bakery & Grooming

Other Leading Pet Care Franchises

More Franchisors Entering the Market

Non-Franchise Chain Best Friends Pet Care Teams with Walmart, Meijer

Illustration 2-1. Best Friends Pet Hotel and Doggie Daycare & Spa

Other Non-Franchise Pet Services Chains

Rover and Wag! Dominate App-Based Pet Sitting/Walking

Walmart Opens First Walmart Branded Pet Services Center

Illustration 2-2. Walmart Pet Services Center - Exterior

Pet Specialty Retailers Increasingly Reliant on Services

Petco

Illustration 2-3. Petco's Pilot Pet Care Center Featuring Samsung Technology

PetSmart

Illustration 2-4. PetSmart Pet Services

Illustration 2-5. PetSmart Monthly Service Offers

Chewy Focuses on CarePlus Pet Insurance, Virtual Vet Care

Illustration 2-6. Chewy CarePlus Pet Insurance and Virtual Vet Consult

OVERVIEW OF CONSUMER USAGE RATES

Table 2-14. Most Important Sources of Pet Care Information: Overall, by Dog vs. Cat Owners, and by Generational Cohort, 2023 (percent)

Pet Insurance Is the Growth Category

Table 2-15. Topline Usage Rates for Pet Services: By Type of Service and Types of Pets Owned, 2017/18 - 2022/23 (percent of dog/cat owning households)

CHAPTER 3: PET GROOMING

CHAPTER HIGHLIGHTS

CATEGORY OVERVIEW

Grooming Feeling the Economic Crunch Post Pandemic

Table 3-1a. Sales of Pet Grooming, 2019 - 2023P

Table 3-1b. Projected Sales of Pet Grooming, 2024P - 2028P (million dollars and percent change)

Figure 3-1. Dollar Shares of Non-Medical Pet Services: Pet Grooming vs. Other Categories, 2019, 2023P, and 2028P (percent)

Inflationary Effects

Figure 3-2. For which pet grooming services are you lowering or eliminating spending?,

Figure 3-3. Pet Owners Attitudes Regarding Availability of Grooming Services, February 2023 (percent of services users who have had pets two years or more)

COMPETITIVE LANDSCAPE

Range of Service Providers

Walmart Jumps In

Illustration 3-1. Walmart Pet Services Center - Interior

The Franchise Boom

The Omnichannel Pet Specialty Push

Loyalty Programs

Illustration 3-2. Scenthound Care Club Membership Program

Self-Wash an Increasingly Popular Option

Illustration 3-3. Petco's Self-Serve Dog Wash

Mobile Grooming Keeps on Van-ing

Illustration 3-4. Aussie Pet Mobile Franchising Guidance

App-Based Petcare

CONSUMER FOCUS

Usage Rates for Pet Grooming

Table 3-2. Usage Rates for Pet Grooming Services: Overall and by Dog/Cat Ownership, 2017/18 - 2022/23 (percent of dog/cat owning households)

Size and Growth of Customer Base for Pet Grooming

Figure 3-4. Customer Base Growth for Dog/Cat Ownership vs. Selected Pet Services, 2012/13 vs. 2022/23 (total percent growth over 10-year period)

Table 3-3. Customer Base for Pet Grooming Services: Overall and by Dog/Cat Ownership, 2017/18 - 2022/23 (thousand households)

Shares of Pet Grooming Customer Base by Dog/Cat Ownership

Figure 3-5. Shares of Customer Base for Pet Grooming Services by Dog/Cat Ownership, 2017/18 vs. 2022/23 (percent)

Top Demographics

Figure 3-6. Top Indexing Demographics for Use of Pet Grooming Services, 2022/23 (base index among dog/cat owners = 100)

Table 3-4. Key Growth Demographics for Use of Pet Grooming Services, 2012/13, 2017/18, and 2022/23 (thousands and percent)

Table 3-5a. Usage Rates for Pet Grooming Services by Demographic, 2012/13 - 2022/23 (every other year) (percent of dog/cat owning households)

Table 3-5b. Customer Base for Pet Grooming Services by Demographic, 2012/13 - 2022/23 (every other year) (thousand dog/cat-owning households)

Table 3-5c. Usage Indexes for Pet Grooming Services by Demographic, 2012/13 - 2022/23 (every other year) (base index among dog/cat owners = 100)

CHAPTER 4: PET BOARDING & DAYCARE

CHAPTER HIGHLIGHTS

CATEGORY OVERVIEW

Boarding and Daycare Buck Post Pandemic Headwinds

Table 4-1a. Sales of Pet Boarding/Daycare, 2019 - 2023P

Table 4-1b. Projected Sales of Pet Boarding/Daycare, 2024P - 2028P (million dollars and percent change)

Figure 4-1. Dollar Shares of Non-Medical Pet Services: Boarding/Daycare vs. Other Categories, 2019, 2023P, and 2028P (percent)

Travel Trends Spur Daycare

Figure 4-2. US Citizen Departures to International Regions, January 2019 - October 2023 (number of passengers in millions)

The Home Work Factor to Daycare

• Figure 4-3. Average Days per Week Working from Home Post-Pandemic: Workers Overall vs. Workers Able to Work from Home, July 2020 - October

COMPETITIVE LANDSCAPE

Range of Service Providers

Dogtopia

Figure 4-4. Number of Dogtopia Units, 2002 -2025P

Mars' Camp Bow Wow

Illustration 4-1. Camp Bow Wow

Other Franchisors

Best Friends Pet Care Offering Daycare Services in Walmart, Meijer

Illustration 4-2. Best Friends Pet Hotel - Walt Disney World

PetSmart PetsHotels Number 200+

Illustration 4-3. PetSmart PetsHotel Promo Offer (fall 2023)

Pet Shop Consolidator EarthWise Folds in Services Including Daycare

Dogdrop Focuses on Convenience, Short-Term Options

Illustration 4-4. Dogdrop Dog Daycare

Loyalty Programs and Promotions

Feline Focus

Luxury Trend Is Ongoing

Illustration 4-5. K9 Resorts Luxury Pet Hotel

CONSUMER FOCUS

Usage Rates

Table 4-2. Usage Rates for Pet Boarding and Pet Daycare Services: Overall and by Dog/Cat Ownership, 2017/18 - 2022/23 (percent of dog/cat owning households)

Size and Growth of Customer Base

Figure 4-5. Customer Base Growth for Dog/Cat Ownership vs. Selected Pet Services, 2012/13 - 2022/23 (total percent growth over 10-year period)

Table 4-3. Customer Base for Pet Boarding and Pet Daycare Services: Overall and by Types of Pets Owned, 2017/18 - 2022/23 (thousands of households)

Shares of Customer Base by Dog/Cat Ownership

Figure 4-6. Customer Shares for Pet Boarding Services by Dog/Cat Ownership, 2017/18 vs. 2022/23 (percent)

Figure 4-7. Customer Shares for Pet Daycare Services by Dog/Cat Ownership, 2017/18 vs. 2022/23 (percent)

Top Demographics

Figure 4-8. Top Indexing Demographics for Use of Pet Boarding Services, 2022/23 (base index among dog/cat owners = 100)

Table 4-4. Key Customer Growth Demographics for Use of Pet Boarding Services, 2012/13, 2017/18, and 2022/23 (in thousands and percent)

Figure 4-9. Top Indexing Demographics for Use of Pet Daycare Services, 2022/23 (base index among dog/cat owners = 100)

Table 4-5. Key Customer Growth Demographics for Use of Pet Daycare Services, 2012/13, 2017/18, and 2022/23 (thousands and percent)

Table 4-6a. Usage Rates for Pet Boarding Services by Demographic, 2012/13 - 2022/23 (every other year) (percent of dog/cat owning households)

Table 4-6b. Customer Base for Pet Boarding Services by Demographic, 2012/13 - 2022/23 (every other year) (thousand households)

Table 4-6c. Usage Indexes for Pet Daycare Services by Demographic, 2012/13 - 2022/23 (every other year) (base index among dog/cat owners = 100)

Table 4-7a. Usage Rates for Pet Daycare Services by Demographic, 2012/13 - 2022/23 (every other year) (percent of dog/cat owning households)

Table 4-7b. Customer Base for Pet Daycare Services by Demographic, 2012/13 - 2022/23 (every other year) (thousand households)

Table 4-7c. Usage Indexes for Pet Boarding Services by Demographic, 2012/13 - 2022/23 (every other year) (base index among dog/cat owners = 100)

CHAPTER 5: PET TRAINING

CHAPTER HIGHLIGHTS

CATEGORY OVERVIEW

Post Pandemic Headwinds Take a Toll

Table 5-1a. Pet Training Sales, 2019 - 2023P (billion dollars and percent change)

Table 5-1b. Projected Pet Training Sales, 2024P - 2028P (million dollars and percent change)

Figure 5-1. Dollar Shares of Non-Medical Pet Services: Pet Training vs. Other Categories, 2019, 2023P, and 2028P (percent)

COMPETITIVE LANDSCAPE

Range of Service Providers

Illustration 5-1. Bark Busters Private In-Home Dog Training

Illustration 5-2. Dog Training Elite

Illustration 5-3. Sit Means Sit

Zoom Room Aims to Transform Dog Training with Innovative Business Model

Illustration 5-4. Zoom Room

Training a Core Services Offering for Petco and PetSmart

Virtual Dog Training Takes Off During Pandemic Shutdowns

Illustration 5-5. PetSmart's Virtual Dog Training

Illustration 5-6. Petco's In-Store and Online Training Options

Illustration 5-7. Sirius Virtual Dog Training

App-Based Dog Training

Illustration 5-8. Puppr Dog Training App

Illustration 5-9. Pocket Puppy School Dog Training App

CONSUMER FOCUS

Usage Rates

Table 5-2. Usage Rates for Pet Training Services: Overall and by Dog/Cat Ownership, 2017/18 - 2022/23 (percent of dog/cat owning households)

Size and Growth of Customer Base

Figure 5-2. Customer Base Growth for Dog/Cat Ownership vs. Selected Pet Services, 2012/13 - 2022/23 (total percent growth over 10-year period)

Table 5-3. Customer Base for Pet Training Services: Overall and by Dog/Cat Ownership, 2017/18 - 2022/23 (thousands of households)

Shares of Customer Base by Dog/Cat Ownership

Figure 5-3. Shares of Customer Base for Pet Training Services by Dog/Cat Ownership, 2017/18 vs. 2022/23 (percent)

Top Demographics

Figure 5-4. Top Indexing Demographics for Use of Pet Training Services, 2022/23 (base index among dog/cat owners = 100)

Table 5-4. Key Growth Demographics for Use of Pet Training Services, 2012/13, 2017/18, and 2022/23 (in thousands and percent)

Table 5-5a. Usage Rates for Pet Training Services by Demographic, 2012/13 - 2022/23 (every other year) (percent of dog/cat owning households)

Table 5-5b. Customer Base for Pet Training Services by Demographic, 2012/13 - 2022/23 (every other year) (thousand households)

Table 5-5c. Usage Indexes for Pet Training Services by Demographic, 2012/13 - 2022/23 (every other year) (base index among dog/cat owners = 100)

CHAPTER 6: OTHER NON-FINANCIAL PET SERVICES

CHAPTER HIGHLIGHTS

CATEGORY OVERVIEW

Pet Sitting/Walking Category Realizes Post Pandemic Rebound

Table 6-1a. Sales of Pet Sitting/Walking and "Other Pet Services" Categories, 2019 - 2023P (million dollars and percent change)

Table 6-1b. Projected Sales of Pet Sitting/Walking and "Other Pet Services" Categories, 2024P - 2028P (million dollars and percent change)

Figure 6-1. Dollar Shares of Non-Medical Pet Services, 2019, 2023P, and 2028P (percent)

COMPETITIVE LANDSCAPE

Range of Service Providers

Rover: Revenues Up, Share Prices Down

Illustration 6-1. Rover Pet Care Services

Wag! Goes Public, Continues Expansion into Tech-Based Wellness

Illustration 6-2. Wag! Wellness Perks

Illustration 6-3. Wag!/Petsense Promotion

Barkly Pets Calls It Quits

Illustration 6-4. Goodbye from Barkly Pets

Fetch! Pet Care

Illustration 6-5. Fetch! Pet Care

DoodyCalls

Illustration 6-6. Doody Calls

Pet Butler

Illustration 6-7. Pet Butler

End of Life and Bereavement Services

Illustration 6-8. CodaPet End of Life Care Services

Illustration 6-9. BluePearl Pet Hospice Services

Sniffspot Pioneers Outdoor Space Rentals

Illustration 6-10. Sniffspot.com Private Dog Park Options

CHAPTER 7: PET INSURANCE

CHAPTER HIGHLIGHTS

CATEGORY OVERVIEW

Pet Insurance Is Star Pet Services Performer

Table 7-1a. Pet Insurance Sales, 2019 - 2023P (million dollars and percent change)

Table 7-1b. Projected Pet Insurance Sales, 2024P - 2028P (million dollars and percent change)

Figure 7-1. Projected Sales of Pet Insurance vs. Non-Financial Pet Services, 2023 - 2028 (million dollars)

Figure 7-2. Projected Share of Pet Service Sales: Pet Insurance vs. Non-Financial Pet Services, 2023 - 2028 (percent of total)

Table 7-2. Percent of Dog vs. Cat Owners Who Have Pet Medical/Veterinary Coverage: Overall vs. Pet Insurance, 2023 (percent of dog/cat owners)

Cats Outrunning Dogs as New Pet Insurance Clients

High Cost of Veterinary Insurance a Key Factor

Eyes on the Price

COMPETITIVE LANDSCAPE

Market Consolidation

JAB's Independence Pet Group Acquires Crum & Forster, Pethealth

• Trupanion Revenues up 29% in

Retailer Involvement Is Mostly a PR Tack

Chewy and Trupanion and Lemonade

Illustration 7-1. Chewy's CarePlus brand insurance

Petco and PetCoach

Walmart and Fetch and Nationwide

Illustration 7-2. Fetch Pet Insurance - Walmart Shopper Discount Page

Costco and Figo (IAIC)

Illustration 7-3. Costco Pet Insurance from Figo

Human Insurance Company Cross-Over Branding

Illustration 7-4. Liberty Mutual Pet Insurance

Employee Benefits Programs

Figure 7-3. Fast-Growth Types of Emerging Insurance Plans

Illustration 7-5. Wagmo Pet Insurance as Employee Benefit

New Regulations?

CONSUMER FOCUS

Note on MRI-Simmons Data

Usage Rates

Table 7-3. Usage Rates for Pet Insurance/Veterinary Expense Plans: By Types of Pets Owned, 2017/18 - 2022/23 (percent of dog/cat owning households)

Size and Growth of Customer Base

Figure 7-4. Growth in Customer Base: Pet Insurance/Veterinary Expense Plans, Dog/Cat Households, and Veterinary Services, 2012/13 vs. 2022/23 (percent)

Table 7-4. Customer Base for Pet Insurance/Veterinary Expense Plans: Overall and by Dog/Cat Ownership, 2017/18-2022/23 (thousand households)

Customer Shares by Dog/Cat Ownership

Figure 7-5. Shares of Customer Base for Veterinary Expense Plan/Pet Insurance Coverage: By Dog/Cat Ownership, 2017/18 and 2022/23 (percent)

Top Demographics

Figure 7-6. Top Indexing Demographics for Veterinary Expense Plan/Pet Insurance Coverage, 2022/23 (base index among dog/cat owners = 100)

Table 7-5. Key Growth Demographics for Veterinary Expense Plan/Pet Insurance Coverage, 2012/13, 2017/18, and 2022/23 (in thousands and percent)

Table 7-6a. Usage Rates for Pet Insurance/Veterinary Expense Plans by Demographic, 2012/13 - 2022/23 (every other year) (percent of dog/cat owning households)

Table 7-6b. Customer Base for Pet Insurance/Veterinary Expense Plans by Demographic, 2012/13 - 2022/23 (every other year) (thousand households)

Table 7-6c. Usage Indexes for Pet Insurance/Veterinary Expense Plans by Demographic, 2012/13 - 2022/23 (every other year) (base index among dog/cat owners = 100)