Pet Care Services in the U.S., 2nd Edition

Attention: There is an updated edition available for this report.
 
   Single User - $2,000
   Hard Copy Mail Delivery - $2,000
   Corporate License - $4,000
   Online Download plus 1 Hard Copy - $2,300


Loading...
Published Jun 1, 2006 | 182 Pages | Pub ID: LA1219007

Special Offer. Now 20% off the original price of $2,000.
Pet owners’ desire to take better care of and interact more closely with their pets has driven demand for pet care services to an all-time high, with 83% of pet specialty store shoppers citing “more services” as their number-one trend of interest. Also contributing to the surge in sales are the rising costs of veterinary medicine; the ongoing expansion into the market of PetSmart and PETCO; the competitive response of regional and independent market participants; the entry into the field of new players; greatly expanded options in grooming, boarding, and training; and pet owners’ willingness to spend heavily on health-oriented services that nurture their pets.

As a result, pet care services are the fastest-growth area of the overall pet market, chalking up double-digit annual sales gains expected to continue for the foreseeable future, driving the market past the $20 billion mark by 2010. This fully updated Second Edition examines all major areas of the market—Veterinary, Boarding, Grooming, Training, and Pet Sitting— providing separate focus chapters for each while also comparing and contrasting cross-market trends. Hot-button trends covered include:

  • Consolidation of the veterinary field, with VCA Antech and Banfield now collectively operating almost 900 animal hospitals nationwide.
  • The growing emphasis on veterinary specialties and diagnostics.
  • The growth of regional pet care chains like Best Friends and of franchising outfits with national aspirations, such as daycare specialist Camp Bow Wow/Digs! and training specialist Bark Busters.
  • The emphasis on “one-stop pet care” by service providers in all areas, as well as by pet specialty retailers.
  • The surge in luxury boarding and doggie day care options.
  • The addition of pet care services in retail shops, in which services currently represent 10% of dollar volume but over 17% of profits.

Using data from a variety of sources including the Bureau of Labor Statistics’ most recent integrated Consumer Expenditure Survey and Simmons Market Research Bureau’s Fall 2005 adult consumer survey, the report also provides in-depth demographic profiles of users of veterinary services and other pet care services, and examines market-shaping trends in dog and cat ownership.

Chapter 1: Market Trends
  • Introduction
    • Scope of Report
    • Category Overlap and Market Quantification
    • Report Methodology

  • Market Size and Composition
    • Pet Care Services Market at $18.2 Billion in 2005
    • Veterinary Services Account for Lion’s Share of Market
    • Table 1-1: U.S. Pet Care Services Market Revenues, 2001-2005 (in millions of dollars)
    • Table 1-2: U.S. Pet Care Services Market Revenues by Category, 2001-2005 (in millions of dollars)
    • Figure 1-1: Share of U.S. Pet Care Services Market by Service Type, 2001 vs. 2005 (percent)
    • Grooming Accounts for Over Half of Service Sales in Pet Specialty Stores
    • Table 1-3: Share of Pet Service Sales in Pet Specialty Stores by Service Type: 2003 vs. 2004 (percent)

  • Market Outlook
    • Overall Pet Market Going Strong
    • Table 1-4: Average U.S. Household Expenditures on Pet Products and Services, 1994 vs. 2004 (in dollars)
    • Table 1-5: Aggregate U.S. Household Expenditures on Pet Products and Services, 1994 vs. 2004 (in thousands of dollars)
    • Increased Spending on Veterinary Services
    • Interest in Pet Services at an All-Time High
    • Figure 1-2: Pet Care Services in Pet Stores: % of Shoppers Who Have Used Service, 2004 vs. 2005
    • PETCO and PetSmart the Driving Force
    • Other Promising Segments: Daycare and At-Home Services
    • Pets as Family
    • Table 1-6: Consumer Activities and Opinions Reflecting Humanization of Pets, 2003 and 2004 (percent)
    • “Convenience Pets”
    • Pet Population Trends
    • The Aging Pet Population
    • Demographic Trends
    • Figure 1-3: Share of U.S. Population Growth for Selected Age Brackets, 2005-2010 (percent)
    • Table 1-7: Dog and Cat Ownership Indices: By Adult Age Bracket, 2005 (U.S. households)
    • Other Key Demographics
    • Figure 1-4: Two-Adult Households/No Kids as Pet Owners, 2003 vs. 2005 (percent)
    • Looking Ahead: Sales to Top $25 Billion by 2010
    • Table 1-8: Projected U.S. Pet Care Services Market Revenues by Category, 2005-2010 (in millions of dollars)
    • Future Trends

Chapter 2: Competitive Trends

  • Introduction
    • Still a Local Business
    • Extreme Customer Loyalty
    • Increasing Professionalism
    • Advertising Concentrated in Local Media
    • Adding Retail Products to the Mix
    • More Cross-Over Across the Board
    • VCA Antech, PetSmart/Banfield, and PETCO Driving Market Consolidation
    • Table 2-1: PetSmart and PETCO: Total Sales vs. Pet Care Service Sales, 2000-2005 (in millions of dollars)
    • Figure 2-1: PetSmart/PETCO Share of Total Grooming/Boarding/Training Market, 2000 vs. 2005 (percent)
    • The Personnel Crunch
    • Best Friends Pet Care
    • Other Chain Store Retailers Lag Behind in Services
    • Independent Pet Specialty Retailer Service Initiatives
    • Figure 2-2: Percentage of Pet Specialty Retailers Offering Pet Care Services: By Type of Service, 2004
    • Strong Consumer Demand
    • Table 2-2: Pet Trends of Most Interest, 2004 vs. 2005 (percent)
    • Table 2-3: Pet Care Services in Pet Stores: % of Shoppers Who Have Used Service, 2004 vs. 2005
    • Table 2-4: Pet Care Services in Pet Stores: % of Shoppers Who Would Use Service if Available Where They Shopped, 2004 vs. 2005
    • Table 2-5: Price Elasticity of Pet Care Services in Pet Specialty Stores, 2004 vs. 2005 (percent)

  • Competitor Profile: Banfield, The Pet Hospital
    • PetSmart Is Catalyst to Explosive Growth
    • Company Honored with Franchise Award
    • Company Opens First After-Hours Emergency Hospital
    • Expanded Diagnostic Capabilities
    • Focus on Pet ID Microchipping
    • International Expansion

  • Competitor Profile: PETCO Animal Supplies, Inc.
    • Pet Services at 5% of Total Sales
    • Table 2-6: Petco: Total Sales vs. Pet Care Service Sales, 2000-2005 (in millions of dollars)
    • Grooming Services Available in Most Stores
    • Grooming Promotions
    • Groomer Training Centers
    • Personnel Recruitment
    • Training Services a High-Growth Area
    • Doggie Day Care
    • Other In-Store Services
    • Pet Insurance Co-Marketing

  • Competitor Profile: PetSmart, Inc.
    • Pet Services at 9% of Total Sales
    • Table 2-7: PetSmart: Total Sales vs. Pet Care Service Sales, 1999-2005 (in millions of dollars)
    • From PETsMART to PetSmart, With Big Ad Push
    • Life-Long Pet Services for Pet Enthusiasts
    • Banfield Veterinary Services
    • The PetSmart Grooming Pitch
    • The PetSmart Training Pitch
    • Boarding and Daycare: PetsHotels and Doggie Day Camps Going Strong
    • Targeting the Trade

  • Competitor Profile: VCA Antech, Inc.
    • A National Leader in Pet Hospitals and Diagnostics
    • Figure 2-3: VCA Antech Revenues, 1996-2005 (in millions of dollars)
    • Rapid Growth Through Acquisitions
    • Antech Diagnostics and STI
    • Consumer Marketing

Chapter 3: Service Trends

  • Focus on Veterinary Care
    • Business Basics
    • A Seasonal Business
    • Long Hours, Short Pay
    • Education and Licensing
    • An Increasingly Female Profession
    • Trade Support
    • AVMA Holds Disaster Summit Post-Katrina
    • Ongoing Market Consolidation
    • A Shift to Services
    • One-Stop Pet Care
    • Bereavement Products and Services
    • Figure 3-1: Would Buy a Casket, Urn and/or Headstone Upon Death of Pet, 2004 (% of dog- or cat-owning households)
    • More Veterinarians Making House Calls
    • Veterinarians Losing Med Sales to Online Outfits
    • Focus on Pain Management
    • The Compliance Issue
    • Higher-Ticket Veterinary Care
    • Pet Insurance Will Help to Cover Rising Veterinary Costs
    • Figure 3-2: U.S. Pet Insurance Market Revenues, 2005 vs. 2010 (in millions of dollars)
    • Increasing Specialization
    • Geriatric Pet Care
    • Specialized Care for Overweight Pets
    • Emphasis on Oral Care
    • Growing Consumer Demand for Alternative Care
    • VPN Names Top Trends to Watch in 2006

  • Focus on Pet Boarding/Daycare
    • Boarding Basics
    • Share of Boarding Kennel Revenues by Animal Type
    • Table 3-1: Services Provided by Boarding Facilities, 2005 (percent)
    • Employees and Employee Training
    • Operating Expenses
    • A Seasonal Business
    • Boarding Kennel Suppliers
    • One-Stop Pet Care
    • Figure 3-3: Common Add-On Services Offered by Boarding Facilities by Kennel Size, 2005 (percent)
    • Expansion of National Chains
    • Market Segmentation
    • Luxury Boarding
    • Doggy Daycare and Activity Centers

  • Focus on Pet Grooming
    • Grooming Basics
    • Groomer Training and Pay
    • Fees and Add-Ons
    • A Seasonal Business
    • Groomer Certification
    • Licensing Debate Continues
    • Industry Shows and Competitions
    • The PetSmart/PETCO Effect
    • Professionalizing Grooming
    • Trading Up in Supplies and Equipment
    • Focus on Ergonomics
    • Greater Specialization and Add-on Services
    • Adding on Daycare
    • Adding on Retail
    • Figure 3-4: U.S. Retail Sales of Pet Grooming Products, 2001, 2005, 2010 (in millions of dollars)
    • Mobile Grooming
    • Self-Service Grooming

  • Focus on Pet Training
    • Training Basics
    • Where Training Takes Place
    • Seasonal Patterns
    • Trainer Education and Certification
    • Clubs and Competitions
    • Off Lead & Natural Pet Magazine
    • The Power of Professional Recommendations
    • Dog Training on a National Scale
    • Bark Busters Franchise Going Strong
    • More Training Options for Pet Owners
    • Club Memberships
    • The Internet Era
    • Professionalizing Training
    • More Retail Training Products
    • Figure 3-5: U.S. Retail Sales of Pet Training Products, 2001, 2005, 2010 (in millions of dollars)

  • Focus on Pet Sitting
    • Strong Growth Prospects
    • Two National Trade Associations
    • Pet Sitters International
    • The National Association of Professional Pet Sitters
    • Pet Sitting Basics
    • National Aspirations
    • Strong Urban Demand Includes Pet Taxi Services
    • Pet Specialty Retailers, Service Providers Weighing In

Chapter 4: Consumer Trends

  • The Veterinary Services Consumer
    • Veterinary Care Spending: Trends and Demographics
    • Figure 4-1: Average U.S. Household Expenditures on Veterinary Services, 1994-2004 (in dollars)
    • More Pet Owners Using Veterinary Surgeons
    • Table 4-1: Trends in Veterinary Care Spending and Service Types Among Pet Owners: 2003 vs. 2004 (percent)
    • Surgical Visits Costing the Most
    • Figure 4-2: Service/Products Obtained at the Veterinarian’s Office, 2004 (percent of dog- or cat-owning households)
    • Table 4-2: Services/Products Obtained from the Veterinarian by Dog Owners: 2002 vs. 2004 (percent)
    • Table 4-3: Services/Products Obtained from the Veterinarian by Cat Owners: 2002 vs. 2004 (percent)
    • Veterinary Care Consumer Demographics
    • Criteria for Choosing a Veterinarian
    • Females Calling the Pet Care Shots
    • Figure 4-3: Selected High-Index Demographics for Spending on Veterinary Services, 2004 (U.S. Households)
    • Table 4-4: U.S. Household Spending on Veterinary Services: By Age, Income, Household Type, Race, Region, and Educational Attainment, 2004

  • The Pet Care Services Consumer
    • Pet Care Services Spending: Trends and Demographics
    • Figure 4-4: Average U.S. Household Expenditures on Pet Care Services Excluding Veterinary, 1994-2004 (in dollars)
    • Types of Pet Care Services Used
    • Table 4-5: Selected Pet Care Services Used in Past Six Months, 2004 (percent of pet owners who used any services)
    • Pet Care Services Consumer Demographics
    • Figure 4-5: Selected High-Index Demographics for Spending on Pet Care Services, 2004 (U.S. Households)
    • The Boarding Kennel Customer
    • Figure 4-6: Reasons for Visiting a Boarding Facility, 2005 (percent)
    • The Pet Sitting Services Consumer
    • Table 4-6: U.S. Household Spending on Pet Care Services: By Age, Income, Household Type, Race, Region, and Educational Attainment, 2004

  • Pet Ownership Trends and Demographics
    • The Simmons Survey System
    • Over 50 Million Households Own Dogs or Cats
    • Trends in Multiple-Pet Households
    • Figure 4-7: Total Households for Selected Pet-Owning Classifications: By Number of Dogs or Cats Owned, 2005 (in thousands of U.S. households)
    • Pet Ownership by Age Bracket: The Boomer Skew
    • Whites 21% More Likely to Own Both Dogs and Cats
    • Dog Owners Skew Upscale
    • Households of 3-4 Persons Are 18% More Likely to Own Both Dogs and Cats
    • The Pet Specialty/Mass-Market Divide
    • Pet Specialty Store Shopper Demographics
    • Table 4-7: Household Penetration Rates for Selected Pet-Owning Classifications, 2003-2005 (U.S. households)
    • Table 4-8: Demographics Favoring Ownership of One or More Dogs, 2005 (U.S. households)
    • Table 4-9: Demographics Favoring Ownership of One or More Cats, 2005 (U.S. households)
    • Table 4-10: Indexes by Demographic for Selected Pet-Owning Classifications, 2005 (U.S. households)
    • Table 4-11: Indexes by Demographic: Single vs. Multiple Pet-Owning Classifications, 2005 (U.S. households)
    • Table 4-12: Percentage of Pet-Owning Households Who Shop for Pet Supplies in Specialty vs. Mass-Market Outlets: By Number of Dogs or Cats Owned, 2005 (U.S. pet-owning households)
    • Table 4-13: The Pet Store or Online Shopper for Pet Supplies: Dog Owners, 2005 (U.S. dog-owning households)
    • Table 4-14: The Pet Store or Online Shopper for Pet Supplies: Cat Owners, 2005 (U.S. cat-owning households)