The Corona Pet Ownership Boom and Startups that are Positioned to Take Advantage of it.
By Grace Cen
Loneliness escalates as social distancing policy prolongs to reach its five month point, and people are turning to pets to fill the void! This article will be addressing which start ups are best suited to take advantage of the sudden pet ownership boom.
The Global Pet Care Market Pre Covid:
The global pet care industry seemed to be booming, with an anticipated market size of $202.6 billion by 2025 and tailwinds that pointed to a 4.9% CAGR. Even the U.S. seemed to be infiltrated by pets due to a general increase in disposable income for Gen Y/Millennials and the prevalent “Humanization of pets” trend. It was also considered a recession proof industry, emerging fairly unscathed by the 2008 financial crisis.
The Global Pet Care Market Post Covid:
Experts expect the pet industry to suffer short term due to the decrease in demand for dog service providers. This is fairly intuitive. As people stay home, they have stopped hiring dog walkers, groomers, and pet day care centers. However, according to Packaged Facts, even American retail sales for pet products, have dropped 17% this year. Small retail pet businesses who have not been able to migrate online have suffered the most.
Profitable Pet Start Ups During COVID:
The businesses that are coming out on top are pet delivery and subscription services whose subscription based revenue models create stable recurring revenue. Also successful are health oriented pet companies. As the general public becomes increasingly health conscious, this value of health and wellness also extends to the products consumers are buying for their pets.
Check out--
Jinx: a premium dog food start up, started by CASPER executives, whose nutritious recipes are backed up by years of research
Because Animals: an already backordered dog and cat supplement and treats start up made with superfoods packed with probiotics, fatty acids, and organic ingredients.
Meowbox: a socially conscious cat subscription box, offering toys from local businesses, accessories, and natural treats made in the U.S. or Canada, that donates one can of cat food to a shelter for every Meowbox purchased.
Barkbox: a dog subscription box that has also now expanded their offerings to include a Bright Dental Kit and a Super Chewer (‘durable dog stuff’) box.