The pet services industry has been on a steady growth trajectory for several years in a row now. There is no slowdown in sight. In fact, in the U.S. alone, $136.8 billion was spent on pets in 2022 according to the American Pet Products Association. From doggy day care to boarding, food, grooming, training, and more, the various sectors of the industry are contributing to our dominating growth. This is offering new and exciting investment opportunities for franchise owners to jump in and share in that success.
If you are interested in taking advantage of this booming pet economy as a Central Bark franchisee, there is no time like the present. Since 2018, the country has seen a 51% increase in total U.S. pet expenditures. Projected sales in the U.S. market in 2023 are primed to hit $143.6 billion. Before jumping in however, there are a few things to keep in mind.
Pets are Family Now
The humanization of pets is here. No longer are pets considered just an addition to the American household. They have become full-fledged members of the family unit. As of 2023, 66% of U.S. households (86.9 million homes) own a pet. Dogs are the most popular pet in the U.S. (65.1 million U.S. households own a dog), followed by cats (46.5 million households) and freshwater fish (11.1 million households).
There has been a steady rise in pet ownership over the last decades. But that really took off during the pandemic. In fact, 78% of pet owners acquired pets during the pandemic. And thankfully for Central Bark franchisees, dogs account for the largest percentage of pet ownership across generations (Gen Z, Millennials, Gen X, Boomers). At the end of 2022, more than two-thirds (66%) of pet owners say they’ve spent more money on their pets in the last six months than they usually would. This was to help pets adjust to being alone more following the pandemic.
“We think the U.S. pet industry has reached an inflection point. It’s taking topline compound annual growth rates to 8%, vs. 3% for the last decade,” says Simeon Gutman, equity analyst covering hardline retail for Morgan Stanley Research.
Pets Mean More Than Ever
A recent survey also found that 47% of U.S. pet parents treat their pets like children. It also found that 29% would prioritize their pet’s needs before their own. Additionally, the survey broke down the results by generation. 54% of those between the ages of 18–34 say they treat their pet like their child. 35% say they put their pet’s needs above their own.
With millennials and Gen Z driving the increased humanization of pets, Central Bark franchisees are positioned to meet these needs. Finding businesses that provide a quality experience will appeal to pet parents in 2023 and beyond.
Pet Care Growth
The pet care market currently sits at $199 billion and is accelerating towards rapid growth. According to the latest reports, forecasted revenue is set to hit $338.5 billion by 2031. This is a 6.1% compound annual growth rate (CAGR). What this means is that pet parents are willing to spend more on their dogs for the foreseeable future.
Whole Dog Care
Pet parents, especially in younger generations, are expected to spend $1,292 per month on their pets by 2025. This represents a significant jump in 2020 spending that averaged out to $980 per month. This spending represents a variety of services including general care, daycare, boarding, grooming, and veterinary expenses, among others.
By providing multiple whole dog care-related services under one roof, Central Bark is well positioned to capitalize. Additionally, it allows our owners to benefit from multiple revenue streams in a “one-stop-shop” type of business. By combining the booming doggy day care, boarding, grooming, retail, and training markets into a single whole dog care business model, Central Bark owners can take advantage of several multiple revenue streams that other systems just can’t provide.
Franchising Opportunity
For more information on Central Bark franchising opportunities, visit centralbarkusa.com/franchising.