Analysts with Morgan Stanley believe the pet industry in the United Statesmay reach US$275 billion by 2030, up from US$118 billion in 2019.
Analysts with Morgan Stanley believe the pet industry in the United States mayreach US$275 billion by 2030, up from US$118 billion in 2019, fueled byincreasing pet ownership and higher spending. Morgan Stanley Research andAlphaWise, the company’s survey and data group, reported on the forcesinfluencing the sustained growth of the pet industry in the coming decade. Oneanalyst stated that the industry may see topline compound annual growth ratesnear 8%, compared to 3% during the past decade.
AlphaWise market researchers surveyed U.S. households. More than half ofrespondents, 66%, had at least one pet. Many of those homes have more than onepet, since the average was 1.7 pets per household. Of those surveyrespondents, 69% strongly agreed that their pets were important members of thefamily. More than one quarter (29%) stated they would put a pet’s needs beforetheir own.
Pet ownership growth may also continue into the future, fueling U.S. petindustry growth. In the survey, 65% of 18- to 34-year-old respondents plannedto acquire or add a pet in the next five years. AlphaWise forecast petownership to grow 14% by 2030.
That larger number of pet owners may also spend a larger amount on those pets.Morgan Stanley’s analysts believe average annual household spending per petmay increase from US$980 in 2020 to US$1,292 by 2025. That spending couldincrease to US$1,909 by 2030, while pet owners become less willing to reducespending on pets.
The brands pet owners spend on may be influenced by their veterinarians.Approximately half of survey respondents said they would change brandsfollowing a veterinarian’s recommendation.
U.S. pet food spending rose in 2020, tracking sales growth
From previous reporting by Debbie Phillips-Donaldson, editor-in-chief ofPetfood Industry: Pet food spending by U.S. consumers increased by more than31% year over year (YOY) by mid-2020, according to data from the U.S. Bureauof Labor Statistics (BLS) reported and analyzed by John Gibbons, aka the PetBusiness Professor.
This huge leap in reported spending corroborates similar growth in spendingrecorded by Packaged Facts, plus healthy pet food sales increases in 2020reported by the American Pet Products Association, Euromonitor and others.(Note that Packaged Facts’ data showed a 15% rise in spending on pet food andtreats in the U.S., though that was for the full year. The U.S. governmentnotoriously moves very slow, even during normal times; hence, the latest BLSdata, recently released, goes only through mid-2020. The agency’s full-year2020 data is expected in September 2021, according to Gibbons.)
Gibbons’ analysis provides additional insights into who actually spent more onpet food: namely, higher-income U.S. households as well as baby boomers.Specifically, households with incomes greater than US$70,000 increased theirspending by 25% in the first half of 2020, and those earning more thanUS$100,000 increased spending by more than 20%. Again, this matches pet foodsales data from Euromonitor and other sources.
Source:Tim Wall Petfood Industry
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