Zoetis seeing “above-market” growth, says CEO
Kristen Peck believes the pet business is witnessing an “incredible strength action” worldwide.
In an interview with CNBC and Bloomberg ahead of the JP Morgan Annual Healthcare Conference, Kristen Peck highlighted that 50% of pet parents are millennials and Gen Z and that high-income households are adopting more than one pet.
“Pet owners are engaged more than ever with their pets, they’re spending more time at home with their pets,” she said.
Zoetis is seeing “significant above-market growth led by innovation” in areas such as pain, dermatology, and parasiticides.
The New Jersey-based company estimates to end 2022 with a revenue of around $8 billion (€7.4B) and post 7-8% operational revenue growth.
No budget restrictions
According to the company, innovation and pet owners’ “willingness to spend” at vets drives its growth.
A recent Zoetis survey concluded that pet parents are reluctant to cut down on pet expenses even if average household incomes drop by 20%. “No one is willing to spend less on their animal companions,” Peck added.
In her opinion, this sustains the pet industry despite inflation and recession scares. Zoetis continues to invest in its animal companion business which she says is now two-thirds of the company’s share. In 2021, it invested $500 million (€465M) in research and development alone.
“We see the importance of companionship, which many of us have learned during the pandemic, as important, durable, and long-lasting developments. Add that to our innovation, and we think this will be a strength for animal health and, more importantly, for Zoetis in the future,” she said.
