Pets have been a constant source of love, joy, and comfort to humans. As most families today view their pets more as family members and less as guards, people are willing to spend more money to ensure that their pets are well taken care of, even during uncertainties like recession. No wonder why the pet market sales revenue skyrocketed over 100%, from $50.96 billion in 2011 to an estimated $123.6 billion in 2021. This significant growth even during the times of pandemic recessions shows that the pet industry is recession proof.
The Pet Industry - Growth at a Glance
Over the past decade the role of pets in the lives of people has increased tremendously. Despite economic downturns during the pandemic, more than 23 million American households adopted a pet. As a result, the pet industry in the United States grew by 14% in 2021.
Given that the industry has seen enormous growth even in the face of Covid-19 recession, it's a great option for aspiring entrepreneurs to invest in a pet franchise business and turn their dream of owning and running a successful business into reality.
The Fastest Growing Areas in the Pet Franchise Business
Below are the top 5 areas that play a critical role in the growth of the pet industry and ensure business continuity even during the economic crisis:
- Pet grooming
Modern pet owners, especially millennials and Gen Zs love keeping their furry friends well groomed. This is why they don’t hesitate in giving the best care to their pets by spending dollars on buying the best grooming products like shampoo, toothpaste, nail clippers and services like ear cleaning, bathing, etc. According to Allied Market Research, it’s estimated that the pet grooming business will reach $5.49 million by 2025. This means the grooming area in the pet industry will witness a growth of 4.5% in the next two years, which makes pet grooming franchise business a great option for entrepreneurs interested in starting a pet franchise business.
- Pet food and supplements
The pet food business is known to be a recurring revenue stream for the industry as most pet owners opt for healthy food for their fur babies, which is highly expensive but worth it for their overall health. According to the American Pet Products Association (APPA), the pet food industry recorded the highest revenue in 2021, out of which a whopping $50 billion was generated from pet food and treats. From the surge in the sale of pet food products, it’s evident that this segment in the pet industry is recession-resistant and investment worthy.
- Pet vet care
After pet food and supplements, vet care is the area that drives maximum sales and growth with an estimated $34.3 billion revenue generated from vet care. The number is expected to grow significantly in the upcoming years as it’s believed that the pet vet care will eventually move from traditional neighborhood vet model to highly specialized telehealth model. Some critical factors that will drive this shift in the pet veterinary area include new-age technological developments that will bring efficiency and convenience, and the desire of veterinarians to achieve work-life balance.
- Dog training
Pet ownership in the United States has increased in the last few years, the demand for services like in-person training has seen an exponential growth. Modern pet owners have become more particular in giving their pets ample obedience training. In addition, pet socialization is also something that’s on top of mind for pet owners. As a result, mobile apps or companies that offer remote training will lose popularity in the next few years. Thus, investing in a franchise business model that offers in-person training for pets can be a good investment option.
- Pet Gifting
It’s not just us humans who receive gifts from our friends and family on special occasions. Surprisingly, pet owners in the US spent around $2.14 billion in 2021 to purchase Valentine’s Day gifts for their fur babies. Furthermore, over 75% of pet parents even spend lots of money on buying Halloween costumes for their pets. As the spendings are quite high, it can be a great investable pet franchise business that’ll offer you unlimited income potential.
While there are several other areas such as pet insurance, daycare, and boarding that are growing rapidly, the ones listed above are a few that are more sustainable and profitable franchise options in the pet industry.
Reasons to invest in pet franchise businesses
The Global Pet Market was valued at $223.54 Billion in the year 2020 and is projected to grow at a CAGR of 7.4% by 2026.
If you’re someone who loves pets and has an entrepreneurial spirit, here are some of the top reasons why investing in a pet franchise business can be a lucrative and rewarding opportunity for you to break into the pet industry:
- High demand
As more people adopt pets, take better care of their health, and seek out high-end products, the demand for products and services related to pets continues to grow in the United States . Given that the trend is expected to continue rising in the coming years, it’s safe to say that pet franchises are a stable and profitable opportunity for aspiring franchisees to invest in.
- Brand pedigree
When you invest in a pet franchise brand that already has a presence in the market, it’s easier and less expensive for franchise owners to attract, engage, convert, and retain customers. On the contrary, starting a business from scratch requires a lot of effort, time, and money to create brand awareness, acquire customers, and build trust.
- Proven business model
A pet franchise business model has already been tested, refined, and proven over the years. This means when you invest in a franchise business you don't have to spend the time and effort in creating a business model, marketing plan, SOPs, and other finer aspects required in starting a new business. The likelihood of failure in an already established franchise brand is far less than that of a new business.
- Leverage on what the franchisor has built
Owning a pet franchise business allows franchise owners to reap benefits from the buying power of the franchisor. As the parent company already has deep-rooted relationships with the suppliers, it helps business owners to purchase products at lower prices, which further leads to improved margins and higher profits.
- Training and support
Building a pet business from the ground up is a tedious process, especially if you've got no experience related to the industry in the past. However, when you invest in a pet franchise, the franchisor provides you with the comprehensive training and support you need to run your business successfully with no pitfalls.
Kickstart your PAWSOME pet franchise business
As the pet industry is booming and is resistant to recession, it'll be a great move for you to invest in a pet related franchise business. Not only will it allow you to pursue your passion for entrepreneurship, it’ll also enable you to diversify your portfolio, be your own boss, and generate maximum profits. If you’re already an entrepreneur and have got any tips that have helped you climb the success ladder during your entrepreneurial journey, please do share with us. We’d love to know them.