North American Pet Services Industry

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North American Pet Services Industry - Growth

The revenue of the overall pet industry was $62.75 billion in 2016, which was an increase of over 4% compared to 2015. The growth rate each year since 2002 was an average of 5.4%. The average job growth projection for the pet industry for the ten years between 2014 and 2024 is 11%. The annual growth rate for dog walking services is 3.7%. The yearly growth rate for the overall pet care services market is 5%, with the demand for veterinary services growing at approximately 2% each year.

OVERALL PROJECTIONS AND STATS

According to the American Pet Products Association (APPA), in 2015, 65% of households in the US owned at least one pet. The 2015 report provides the following stats:
The revenue of the pet industry was $62.75 billion in 2016, which was an increase of over 4% compared to 2015.
The growth rate each year since 2002 was an average of 5.4%. The pet industry revenue has been increasing steadily for 20 years now.
The average job growth projection for the pet industry for the ten years between 2014 and 2024 is 11%.
In the pet industry, people spend the most on food, which is then followed by veterinary care.

The stats for 2016 are as follows:
Vet Care spending amounted to $15.92 billion.
OTC Medicine spending amounted to $14.98 billion.
Grooming & boarding amounted to $5.73 billion.

In 2017, Euromonitor reported that an overall growth for the global market on the year-to-year basis from 2016 to 2017 amounted to 2%. However, the US is currently experiencing a stagnation in the general volume of the pet population.
The US industry pet expenditures were estimated to be $69.36 billion in 2016, but only amounted to $66.75 billion.
For 2017, it is estimated that $69.36 billion will be spent on pets overall. A breakdown by segment is as follows:
$29.69 billion will be spent on food
$14.93 billion will be spent on medicine
$16.62 billion will be spent on veterinary services
$2.01 billion will be spent on live animal purchases
$6.11 billion will be spent on other services.

According to a 2017/2018 National Pet Owners Survey, currently there are 84.6 million pets in the US which amounts to 68% of U.S. households. Out of that, high-income households account for approximately 60% of the total pet category spending.

The annual spending (overall) by pet in the US can be found in this graph lifted from this source.

GROWTH BY SEGMENT

According to this graph lifted from this source, the yearly growth rate for the overall pet care services market (for years 2013-2018) is 5%. The main drivers of the growth are increased pet ownership, higher medicalization, specialty care and the increase in prices of services.
This means that for each of the following 5 years (2018 – 2023) it can be estimated that the growth will follow the yearly growth rate of 5%.

Veterinarian services can be estimated according to this graph lifted from this source:
The demand for veterinary services will grow for 2% from 2017 to 2018, 1% from 2018 to 2019, 1% from 2019 to 2020, 2% from 2020 to 2021, 2% from 2021 to 2022, and 2% from 2022 to 2023.
On the other hand, the level of supply of veterinary services will grow half the rate of the demand.
Another graph shows the US animal health market growth in market share divided by feed additives, pharmaceuticals and vaccinations. The graph is listed from this report which is behind a paywall.

The expenditure in the US for other services (excluding veterinary care) grew at following rates for years 2012-2016:
$4 in 2012 to $6 in 2016 for other services. This means that in each year, the spending grew by $0.50. In percentages, this is a yearly growth rate of:
$6 — $5.50 /$6 = 0,08333 = 8,33%
We could take this rate and apply it for the next five years, meaning that in 2017 the expenditure grows to $6.50 ($6 x 1,0833). For 2019, it's $7,62. For 2021, it's $8,95. For 2023, it's $10,50.

The annual growth rate for dog walking services is 3.7%.

We were unable to find any projections or estimates for the boarding and daycare market segment.

CONCLUSION

The yearly growth rate for the overall pet care services market is 5%.
The expenditure in the US for other services (excluding veterinary care) increases on average for 8,33% each year. The demand for veterinary services increases on average 2% each year. The annual growth rate for dog walking services is 3.7%.
Sources
Sources