Pets – Becoming more human than ever before
As pet owners are lavishing more money and care on their pets than ever before, the demand for pet food products and services is becoming increasingly ‘human’.
It is not just dogs
Over the past 50 years, the number of newly-born infants has declined by some 50%, while, at the same time, pet ownership has increased dramatically. With less children, pet parents have more money to spend on their pets. And although a dog might well be a man’s best friend, it is not just dogs that are receiving added attention from their pet parents. Besides dogs, ownership of both exotic and less exotic pets is on the rise.
What is the case? Millennials (the current 18 to 34-year-old age group) are coming of age and showing a strong attachment to the idea of pet ownership. In fact, 69% of millennials agree with the statement that ‘having a pet is a good way to get ready to have a family’.
Children replaced by pets
But, it was the baby boomers (born between 1946 and 1964) who were the first generation to take pets in to their homes and create the pet humanisation effect. A decade ago, just 34% of adults in the 70+ age group owned pets. Now, as the oldest cohort of boomers begin to turn 70, this percentage has jumped to around 40%… and rising. Children leaving the home are being replaced by pets. Their owners are lavishing their sizeable disposable income on innovative toys, healthier food and treats, to grooming and activities.
In the US, pet parents continue to increase spend on pets with each passing year, by at least $2 billion (€1.7 billion). The APPA estimates that Americans spent $69.5 billion (€60 billion) on their pets in 2017, up from $66.75 billion (€57.63 billion) in 2016. Back in 2007, they spent just $41.2 billion (€35.5 billion).
In addition, demographic shifts towards smaller households also make some pet parents want to plug the familial gap with a pet companion. Rising incomes mean more money to indulge their ‘companion animals’.
What do pet products and services stand to gain?
Established pet care categories such as food and treats are pushing relentlessly upmarket as pet owners grow ever more discerning and as previous outlier trends become mainstream.
For example, ‘free from’ items are becoming more sought after. In dog food, Americans are seeking foods that don’t include GMOs (genetically modified organisms) or ingredients such as: corn, fillers, artificial colours or preservatives.
Similar to the growth for medicinal ingredients in human food and beverages, sales of pet products that boast additional health benefits are also on the rise. As consumer awareness increases, they read labels and become more engaged in functional ingredients. Probiotics are also booming in pet foods, with a 139% sales growth within one year for dog food. Now, with 16% of US households purchasing dog foods with pre/probiotic ingredients, it is no longer a niche market.
Cat counselling and pet weddings
In addition to pet food, owners are spending on a range of products and services, from veterinary services and healthcare products, to grooming, training, accessories and insurance. It is one of the reasons why diseases – common amongst pets 40 years ago – have all but disappeared. Pets now suffer from conditions resulting from old age. Unsurprisingly, 20-25% of British pet owners have animal health insurance.
Because millennials and younger generations know no better than relating to their pets as part of the family, humanisation will continue to increase. For industry, there are significant opportunities to commercialise this trend further into a vast range of goods and services: from dog beer to cat counselling, from pet weddings to social pet work.