The Pet Care Market is Getting a Boost From COVID
Americans love their furry, four-legged family members. Dog and cat ownership across the United States has long been a tradition. However, the COVID-19 pandemic has only increased pet ownership even greater.
According to the Shelter Animals Count, a non-profit focused on sharing data on animals in shelters, the community adoption rate for pets was 73% between January-June 2020. This compares to a rate of 64% during the same period in 2019. Another great statistic is that shelter euthanasia has collapsed 43% thanks to expanded fostering and more pets finding homes.
The growth in pet ownership bodes very well for the pet care and supplies industry, which was already a fast-growing market prior to the pandemic. In 2019 alone, the U.S. pet care market was worth an estimated $95.7 billion, which was an increase of 5.7% from 2018 numbers. By the end of 2020, industry experts the U.S. pet care market will increase an additional 3.5% to $99 billion.
U.S. Remains Largest Pet Care Market, But Rest of World Picking Up Steam
North America, specifically the United States, is by far the largest pet care market in the entire world. Europe remains the second largest pet care market, led by Germany. However, it is the Asia Pacific market that is seeing the largest growth in pet care. According to ResearchandMarkets.com, the surge in pet ownership across the Asia Pacific region will help drive the market value to $25 billion USD by 2025.
Overall, the global pet care market was worth $223.1 billion USD in 2019. According to Global Market Insights, the global market is estimated to see a compound annual growth rate (CAGR) of 5.9% between 2020-2026 to $327.7 billion USD. The market research firm notes that e-commerce sales and services-based pet care will be the highest growing subsegments of pet care.
Investors Prism Emerging Pet Care & AgriBiz Index
Investors Prism maintains a proprietary index that is comprised of emerging pet care companies. Under the Emerging Pet Care & AgriBiz Index, Investor Prism lists the following pet care companies:
TDH Holdings, Inc. (NASDAQ: PETZ): TDH is engaged within the development, manufacture, and sale of pet food products across China, Asia, Europe, and North America. The company’s portfolio consists of 200 products, across six product lines, including pet snacks, chews, died food, wet food, dental treats, leashes, toys, and other products.
Phibro Animal Health Corporation (NASDAQ: PAHC): Focused on animal health and nutrition products, Phibro operates three main business segments: Animal Health, Mineral Nutrition, and Performance Products. The company’s target market is livestock animals, such as pigs, cows, and chickens.
Covetrus, Inc. (NASDAQ: CVET): The animal-health technology and services company is focused on the sale of animal health consumable products, lab equipment, lab products, branded and generic pharmaceuticals, diagnostic tests, vitamins, supplements, and more.
PetMed Express, Inc. (NASDAQ: PETS): PetMed Express, otherwise known as 1-800-PetMeds, operates as a well-known pet pharmacy within the United States. Primarily operating online, pet care consumers can shop for pet prescriptions, non-prescription treatments, and other health products. PetMed Express’s pharmacy supports dogs, cats, and horses.
ImmuCell Corporation (NASDAQ: ICCC): The animal health company is focused on the acquisition, research, development, manufacture, and sale of health and enhancement products for dairy and beef cattle.
Heska Corporation (NASDAQ: HSKA): Heska is a veterinary diagnostic and specialty products company, which primarily serves dogs and cats. Among the company’s diagnostic technologies include blood chemistry analyzers, electrolyte analysis, blood cell and platelet count, hemoglobin level detection, ultrasound systems, and other related veterinary technologies.
PetIQ, Inc. (NASDAQ: PETQ): Like PetMed Express, PetIQ offers a wide range of pet medications, prescriptions, and non-prescription medications. As of March 2020, PetIQ operates through 60,000 points of distribution across its retail and e-commerce channels.
Trupanion, Inc. (NASDAQ: TRUP): Trupanion offers medical insurance for cats and dogs, which are paid on a monthly subscription-based structure. The company operates across North America and is based out of Seattle, Washington.
Central Garden & Pet Company (NASDAQ: CENT): Although not a pure-play on pet care, Central Garden & Pet Company do offer a lineup of pet supplies across the United States. The company’s pet business features supplies for both cats and dogs, including: edible bonds, chews, rawhides, cat & dog food, toys, carriers, grooming supplies, and more.
Overall, pet ownership is only increasing around the world, which equally impacts the need for pet care supplies. Global growth in the pet care markets is forecasted to be strong for the foreseeable future and emerging small- and micro-cap players in the space could provide some strong returns for patient investors over time.
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