The Market Trends: U.S. Market for Pet Care Services

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Published May 1, 2004 | 138 Pages | Pub ID: LA935962

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Although veterinary services still account for approximately three-quarters of pet care service revenues in the United States, regional and national “one-stop” centers are emerging as an important force in this market, as PETsMART and PETCO continue to legitimize pet services in the eyes of consumers and fuel incremental market growth. This new Market Trends report from Packaged Facts examines the U.S. market for pet care services of all kinds—including Veterinary, Boarding, Grooming, Training, Pet Sitting, Travel, and Funerary/Cremation—whose future seems assured by the growing range of costlier healthcare options for pets (spurred in part by growing populations of geriatric and overweight pets), as well as other factors including the ever-important “pets-as-family” trend, the “Convenience Pets” trend, and the “At-Home” trend in pet care services. Currently valued at over $16 billion and forecast to top $22 billion in 2008, the pet services market is the fastest-growth pet market of all, outpacing both food and non-food supplies.

As a result, Packaged Facts predicts a surge of “cross-over” branded pet product retailers and marketers into this field—as has already begun to happen with Radio Systems’ new PetSafe Village, and with human product marketers like John Paul Pet now talking about franchised pet salons. At the same time, PETsMART and PETCO continue to sharpen their double-digit growth focus on pet services, with daycare and dog training considered especially hot areas. The U.S. Market for Pet Care Services also explores what local and regional service providers are doing to protect their base of loyal customers, and how smaller players are finding success in add-on services as well as innovative niches ranging from luxury spa to mobile grooming to Internet-based training and travel services to cremation/funerary/bereavement services for pets.

Introducing Market Trends
Market Trends is the latest product line from Packaged Facts. These timely, compact reports offer insight and analysis into new product trends, demographic shifts, and consumer behaviors that affect the food, beverage and consumer goods and services industries.

Report Methodology
The information in Market Trends: The U.S. Market for Pet Care Services was obtained from both primary and secondary research. Primary research entailed attendance at the 2004 APPMA (American Pet Products Manufacturers Association) show in New Orleans, an on-site examination of the retail milieu including veterinary clinics, grooming shops, and pet specialty shops; and interviews and informal discussions with service providers including veterinarians, groomers, trainers, and boarding kennel operators; industry suppliers; and trade associations and magazines. Secondary research included extensive Internet canvassing and research- and data-gathering from relevant trade, business, and government sources; company reports including annual reports, 10Ks, and other financial releases from public companies; company profiles in trade and consumer publications; and other reports by Packaged Facts, which has been reporting on pet-related markets for nearly two decades. Our market size estimates are based on trade association membership statistics and consumer surveys, U.S. Bureau of Labor Statistics Consumer Expenditure Surveys, interviews with the above-noted industry participants, market size estimates appearing in the trade press, and reported revenues of major service providers. Our analysis of consumer demographics derives primarily from the Simmons Market Research Bureau (New York, New York) Fall 2003 consumer survey, which is based on 25,398 respondents.

What You’ll Get in this Report
Market Trends: The U.S. Market for Pet Care Services offers unique perspective on this burgeoning market. No other market research report provides the analysis and trends coverage that Pet Care Services offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

Scroll down to see a more detailed outline of the contents of this report.

How You Will Benefit from this Report
If your company wants to get a head’s up on the trends that will be driving pet care services, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the factors that influence the development of this market.

This report will help:

  • Marketing Managers identify market opportunities and develop targeted promotion plans for new products and ingredients.
  • Research and development professionals stay on top of competitor initiatives and explore demand for pet care services.
  • Advertising agencies working with clients in the pet care and services industries to help understand the product buyer to develop messages and images that compel consumers to purchase these products.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

Chapter 1: Executive Summary
  • Scope and Methodology
    • Scope of Report
    • Report Methodology

  • Market Size and Composition
    • Market to Top $22 Billion by 2008
    • Veterinary Services Account for Lion’s Share of Market
    • Market Drivers and Projections
    • Figure 1-1: Share of U.S. Pet Care Services Market by Service Type, 1999 vs. 2003 (percent)
    • PETsMART and PETCO Grow the Market
    • People Pets
    • Doggy Daycare
    • Products and Services Merging
    • Pet Obesity Driving Up Veterinary Costs

  • Competitive Trends
    • PETsMART and PETCO Shake Things Up
    • “Mom-and-Pop” Providers Wield Their Own Competitive Clout
    • One-Stop Pet Care Centers Gaining Ground
    • At-Home Pet Care a Key Growth Area

  • The Pet Care Services Consumer
    • The Quintessential Purchaser
    • Females Calling the Pet Care Shots

Chapter 2: The Market

  • Introduction
    • Market Definition: Seven Service Categories Category Overlap and Market Quantification
    • Figure 2-1: U.S. Pet Care Services Market Revenues, 1999-2003 (in millions of dollars)

  • Market Size and Composition
    • Total Pet Care Services Market at $16.1 Billion in 2003
    • Table 2-1: U.S. Pet Care Services Market Revenues, 1999-2003 (in millions of dollars)
    • Table 2-2: U.S. Pet Care Services Market Revenues by Category, 1999-2003 (in millions of dollars)
    • Veterinary Services Account for Lion’s Share of Market
    • Figure 2-2: Share of U.S. Pet Care Services Market by Service Type, 1999 vs. 2003 (percent)

  • Market Drivers and Projections
    • Overview
    • Table 2-3: Average U.S. Household Expenditures on Pet Products and Services, 1994 vs. 2002 (in dollars)
    • PETsMART and PETCO Driving Incremental Growth
    • “Convenience Pets”
    • The Daycare Boom
    • Blending Products and Services
    • Veterinary Care Getting More Expensive
    • Humanization of Pets an Ongoing Trend
    • Table 2-4: Pets as Family Members, 2003 (percent)
    • The Growing Pet Population
    • Table 2-5: U.S. Population of Cats and Dogs, 1981-2002 (in millions)
    • Table 2-6: Number of Cat and Dog Owners by U.S. Households and Share of Population, 1981-2002 (in millions)
    • The Aging Pet Population
    • Figure 2-3: Share of U.S. Dog Population by Age of Pet, 1996 vs. 2001 (percent)
    • Figure 2-4: Share of U.S. Cat Population by Age of Pet, 2001 (percent)
    • Table 2-7: Total Number of Visits to the Veterinarian by U.S. Pet-Owning Households, 1996 vs. 2003 (in millions)
    • Market to Top $22 Billion by 2008
    • Table 2-8: Projected U.S. Pet Care Services Market Revenues by Category, 2003-2008 (in millions of dollars)

Chapter 3: Competitive Overview

  • Introduction
    • Still a Local Business
    • Groomer to Groomer Readership Profile Highlights Cross-Over in Service Types
    • PETsMART and PETCO Shake Things Up
    • Focus on PETsMART
    • Figure 3-1: PETsMART Pet Care Service Revenues, 1999-2003 (in millions of dollars)
      • Life-Long Pet Services for Pet Enthusiasts
      • Veterinary Care Services Offered Through Banfield
      • The PETsMART Grooming Pitch
      • The PETsMART Training Pitch
      • Boarding/Daycare: PETsMART Expands PETsHOTEL Concept
      • Targeting the Trade

    • Focus on PETCO
      • Growth in Full- and Self-Service Grooming
      • Other In-Store Services
      • Promoting Pet Services
      • Wooing Groomers
      • PETCO Brings Training In-House

    • Other Pet Specialty Retailers Also Adding Services<
    • “Mom-and-Pop” Providers Wield Their Own Brand of Competitive Clout
      • Extreme Customer Loyalty
      • Increasing Professionalism
      • Advertising Concentrated in Local Media
      • Expanding the Array of Services
      • Adding Retail Products to the Mix

    • One-Stop Pet Care Centers Gaining Ground
    • At-Home Pet Care a Key Growth Area
    • Pet Service Providers Are Big Business for B2B Marketers
    • Table 3-1: U.S. Market for Pet Care Services: Selected Major Providers, April 2004

Chapter 4: Veterinary Service Trends

  • Business Basics
    • Long Hours, Short Pay
    • Education and Licensing
    • Trade Support

  • Market Trends
    • An Increasingly Female Profession
    • Consolidation and Competition
    • A Shift to Services
    • A Growing Focus on Pain Management
    • The Compliance Issue
    • Higher-Ticket Care
    • Increasing Specialization
    • Geriatric Pet Care
    • Specialized Care for Overweight Pets
    • Alternative Care
    • Companion Animal Status for Pets?

  • Focus on Banfield, The Pet Hospital (Medical Management International, Inc.)
  • Focus on VCA Antech, Inc.

Chapter 5: Pet Boarding Service Trends

  • Boarding Basics
    • Share of Boarding Kennel Revenues by Animal Type
    • Employees and Employee Training
    • Operating Expenses
    • A Seasonal Business
    • Boarding Kennel Suppliers

  • Market Trends
    • Adding on Services
    • Moving Indoors; Going to the Cats
    • Scaling Up, From Kennel to “Resort”
    • Doggy Daycare and Activity Centers
    • PETsMART’s Upscale PETsHOTELS

Chapter 6: Pet Grooming Service Trends

  • Grooming Basics
    • Groomer Training and Pay
    • Fees and Add-Ons
    • A Seasonal Business

  • Professionalizing Grooming
    • More Certification
    • Trading Up in Supplies and Equipment
    • Industry Shows and Competitions

  • Greater Specialization and Add-on Services
    • Adding on Daycare

  • Mobile Grooming
  • Self-Service Grooming
  • Looking Ahead: State Licensing a Real Possibility?

Chapter 7: Pet Training Service Trends
  • Training Basics
  • Where Training Takes Place
  • Trainer Education and Certification
  • Clubs and Competitions

  • The New Voice of the Pet Training Industry: Off-Lead & Natural Pet Magazine
  • Pet Training Trends
    • More Options for Pet Owners
    • The Internet Era
    • More Retail Training Products
    • Professionalizing Training
    • Feline Training the Next Big Thing?

    Chapter 8: Trends in Other Pet Care Services

    • Pet Sitting
      • On the Ups
        • Two National Trade Associations
        • Pet Sitting Basics
        • The Pet Sitting Service Consumer
        • Pet Sitting to Go: Pet Taxi Services

    • Pet Travel
      • Mobile Pets
      • Table 8-1: Pets and Travel, 2002 and 2003 (percent)
        • Pet-Friendly Hotels
        • Pet-Specific Travel Services
        • Pet Transport Services

    • Pet Cremation/Funerary Services
      • Market Drivers
        • Cremation Services
        • Pet Cemeteries and Burial Services
        • Bereavement Services and Products

    Chapter 9: Consumer Trends
    • Introduction
      • Methodology and Data Sources

    • The Pet Care Services Consumer
      • The Quintessential Purchaser
      • Table 9-1: Demographic Characteristics Favoring Purchasing of Pet Care Services, 2004 (U.S. adults)
      • Females Calling the Pet Care Shots

    • Consumer Focus: Pet Owners
      • Household Ownership Rates at 33% for Dogs, 25% for Cats
      • Table 9-2: Household Penetration Rates for Selected Pet-Owning Classifications, 2000 vs. 2003 (U.S. adults)
      • Table 9-3: Household Populations for Selected Pet-Owning Classifications, 2000 vs. 2003 (U.S. adults)
      • AVMA Places Pet Ownership Rates Higher
      • Figure 9-1: Share of U.S. Households That Own at Least One Pet (percent)
      • Pet-Owning Singles and Couples on the Ups
      • Table 9-4: Percentage of U.S. Households that Own Pets by Life Stage, 1991, 1996, 2001 (percent)
      • The Aging U.S. Population
      • Table 9-5: Projected U.S. Population by Age Bracket, 2000-2010 (in thousands)
      • Table 9-6: U.S. Population Age 55 and Over, 2000-2010 (in thousands)
      • Health Attitudes and Concerns of U.S. Pet Owners
      • Table 9-7: Health Beliefs and Concerns: Cat and Dog Owners vs. All U.S. Adults (percent)
      • Table 9-8: Humans and Pet Well-Being, 2002 and 2003 (percent)
      • Pet Owners Online
      • Table 9-9: Use/Influence of Internet: Cat and Dog Owners vs. All U.S. Adults, 2003 (percent)
      • Different Strokes for Cats and Dogs
      • Table 9-10a: Cat and Dog Ownership Indices: By Adult Age Bracket, 2003 (U.S. households)
      • Table 9-10b: Cat and Dog Ownership Indices: By Adult Age Bracket, 2003 (U.S. households)
      • Table 9-11: Cat and Dog Ownership Indices: By Household Size, 2003 (U.S. households)
      • Cat Index of 112 for Midwest
      • Table 9-12: Cat and Dog Ownership Indices: By Region, 2003 (U.S. households)
      • Minorities Underrepresented Among Pet Owners
      • Table 9-13: Cat and Dog Ownership Indices: By Race/Ethnicity, 2003 (U.S. households)
      • A High-Income Skew
      • Table 9-14a: Cat and Dog Ownership Indices: By Household Income Bracket, 2003 (U.S. households)
      • Table 9-14b: Cat and Dog Ownership Indices: By Household Income Bracket, 2003 (U.S. households)

    Appendix: Addresses of Selected Marketers