The business of exotic pets: an update
Less conventional species are increasingly capturing the hearts of consumers. Could such animals ultimately be even more profitable than cats and dogs?
The rising demand for exotic pets is creating growth opportunities in the pet industry – not only for bricks-and-mortar retailers, but also for e-commerce platforms, manufacturers of food and accessories, and the veterinary sector. Let’s take a closer look at the unconventional.
Increased demand
With a rapidly growing number of new owners of exotic pets, the demand for high-quality nutrition and veterinary care for non-traditional species is on the rise. Nowadays, millions of exotic animals are being bought and sold around the world.
Insiders point out that the demand for these products has especially skyrocketed in Asia-Pacific and Latin America in the past few years. Pet retailers are increasingly offering a wider range of food, toys and medicines tailored to less conventional species.
The recent expansion of product availability among some e-commerce players is also a sign of popularization. Minnesota-based exotic animal nutrition producer Mazuri – which claims to have more than 500 brand references in its portfolio – started targeting consumers who acquire exotic animals as pets a few years ago. It has leveraged online to tap into this new market.
Growth strategy
In 2023 alone, the company’s net sales increased by 5% through pet specialty retailers and 19% through e-commerce channels. “Part of our growth plan and strategy has been to expand internationally and then venture into retail. You have to be visible and available in e-commerce,” says John Zeloski, Director of Mazuri, in an interview with PETS International.
The firm already expanded its e-commerce operation to Chewy in 2019, offering over 50 food options for alpacas, mini pigs, chinchillas, hedgehogs, reptiles and birds. Mazuri plans to seal a new retail partnership in Canada this year and to continue its expansion in Latin America – including Brazil – as well as Asia-Pacific, the Middle East and Europe.
Profit potential
In Zeloski’s view, the exotic pet market has the same profit potential as dogs and cats. He further notes that receptiveness to products for exotic animals is growing rapidly, fueled by owners’ curiosity to learn more about these species. “Our customers like the fact that they are feeding a unique animal. It’s not just a dog or a cat. They take pride in themselves, and enjoy telling friends they’ve got bearded dragons or a chinchilla,” he explains.
According to him, more retailers are taking notice of category growth. “They want their piece of the pie,” adds Zeloski. “You’re selling bedding, you’re selling water and feeders. You’re selling other things that you may not have previously sold. And so allied lines are a huge area and opportunity for growth for a lot of retailers.”
Tapping into opportunities
Brazil is one of the world’s most biodiverse countries, and this is reflected in the new consumer trend of adopting unconventional pets. Veterinary Nurse Leticia Andrade had always focused on caring for dogs and cats, running a pet hotel in São Paulo. But after the adoption of exotic and small animals skyrocketed in Brazil, she changed the course of her career.
“People often have pets for the status on social media, but lack the skills to understand the species and what they really need,” she states. In September 2022, she opened Letty Sitter, a 150 sq m space offering specialized consultations on basic care for unusual pets such as blue macaws, cockatoos, monkeys, snakes, chinchillas and even ravens.
Steep learning curve
This proved so popular that Andrade says she had to open a waiting list and turn down over 50 animals due to a lack of space. “In the past 2 years, we’ve already tripled the size of the business,” she comments. Letty Sitter recently moved to a 400 sq m location, where it now offers veterinary services and open space for exotic species to interact and play.
“It’s a business where you need to be constantly learning. Dogs and cats have patterns. But with exotics and wild animals, handling is very important. Each species has its peculiarities, diets and routines,” explains Andrade. “For example, reptiles eat rodents, so I need to keep a freezer stocked with mice to feed them while they stay here. This adds complexity to the operation of the business.”
Taking account of risks
A recent study by the UN’s Intergovernmental Science- Policy Platform on Biodiversity and Ecosystem Services (IPBES) pointed out that over 37,000 species of animals and plants reside in habitats where they don’t belong due to human intervention. Unfortunately, some of these cases are the result of malpractices such as animal trafficking.
According to experts, removing wild species from their natural habitat is not without risks. For example, Hector Barros, a Conservation Biologist at the University of São Paulo, warns that exporting exotic species poses a significant risk to the population of these species, potentially leading to extinction.
“When we observe high demand for certain species, many often die along the way because they don’t have the proper conditions,” warns Barros. “And when they reach their final destination – the owner’s home – the space is small or the food is incorrect. Many end up dying within a year in the new habitat,” he says.
Another risk can be the emergence of new viruses and diseases among humans. Scientists estimate that over 6 out of every 10 infectious diseases in humans originate from animals.
Experts are therefore calling on governments and consumers to work together to ensure that exotic pets have living conditions closest to their original habitat. “When buying an animal, the consumer needs to know its origin, have documentation, learn about the species and what it needs to have the best quality of life,” explains Barros. “And most importantly, don’t just buy an animal because it’s pretty. You need to question whether you have the time and the space that the species requires.”
Restricting sale and ownership
To tackle the complex challenge of balancing commercial interests with global wildlife protection, some countries are taking measures to restrict the ownership and sale of exotic animals.
For example, under a new set of rules recently presented by India’s Ministry of Environment, Forest and Climate Change, citizens owning exotic pets such as macaws, cockatoos and turtles will have to register them with the state wildlife department.
Meanwhile, in 2023, Pakistan decided to ban the capture of wild animals, reversing a provision that had been in effect since 1979. Individuals in possession of exotic species are now required to declare and return the animals to the Islamabad Wildlife Management Board. This is expected to particularly have an impact on big cats, which have gained popularity as pets in recent times. The private sector is now also prohibited from operating breeding facilities for wild animals.
In the United States, each state has autonomy to determine how the trade of each species will operate. According to a survey by the University of Michigan, 19 states have a comprehensive ban, while 13 others have a partial ban. The state of New York plans to completely ban the exotic animal market. Legislators there are currently discussing a bill aimed at refining and broadening the definition of wild and exotic animals to ensure proper regulation and to prohibit their importation, sale or ownership.
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