The pet store and pet specialty retail markets were valued at $31 billion in 2021, according to a report by Packaged Facts, a division of MarketResearch.com that publishes market intelligence on a wide range of consumer market topics.
The growth rate of the market is projected at 18%, a rate that is higher than the overall veterinary market.
“Manufacturers across the pet market have slowly increased their prices,” said Shannon Brown, an analyst for Packaged Facts. She added that the increase in prices is “spurred by challenges in acquiring ingredients, packaging materials, and a host of other items that go into making and selling pet products.”
Costs have increased as ingredients are more difficult to obtain; the difficulties are more likely to impact portions of the market that provide fresh food that must be frozen or refrigerated.
According to a 2021 survey by Packaged Facts, 59% of pet owners were spending higher amounts on products for their pets. This figure was an increase from 45% in a previous survey and was also attributed to the pandemic.
Even with higher prices, specialty retailers, whether in a brick and mortar setting or online, had significant activity from 2020 to 2022. This included Chewy.com reaching sales of $10 billion, an IPO for Petco, and a $2.4 billion bond for PetSmart.
Many stores have also begun to offer services within their walls as a draw from e-retailers. These include boarding, grooming, training, and veterinary care. Individual store brands and pet products are also important for pet specialty stores.
Learn more about the survey on Packaged Facts’s website.