Dog care market will be booming by 2023. Hereโ€™s all you need to know


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The global dog care market is a booming one. Industry revenues have already exceeded $100 billion and the numbers are only rising. Analysts have it covered: The chief strategist of TD Ameritrade, JJ Kinahan, said that pet owners spend more on their animals compared to their own children. For many, dogs have replaced children. This is specifically true for Millenials as they delay marriages and consequently have fewer children, if at all. Pets are now humanized and thus pampered. Owners now spend good money on premium pet foods and products.


Analysts have noted that pet owners do not scale down their costs even if they suffer a financial meltdown. According to these pet owners, the money spent on their pets cannot be classified as discretionary spending. These people are willing to forgo their other luxuries to properly cater to pets. It means the dog care industry will continue its rise even if the economy falters. This does not mean the industry is protected from market swings. It means the downswings will be less extreme and much shorter lived compared to other industries.Both large and small investors are aware of this quirk. This is why venture capitalists sunk a whopping $500 million in pet technologies in the four year period beginning 2012 and ending in 2016. The venture capital inflow shows the existence of continued innovation in the industry. Both small and big companies have shown interest in pet care. One venture capitalist even launched a special pet care concentrated firm, with the perfect name of Companion Fund. Those investors who search for growth opportunities in the longer term could do well to go through pet care.

Investment strategy

The problem is that investing in pet care companies are easier to say than doing that. No pet industry ETFs (Exchange Traded Funds) exist until now. It means that it is the onus of investors to select particular stocks. You have to choose pet care stocks the same way as any other kind of investment. It is a good idea to select a stable company having an excellent track record. The products must have a far-reaching distribution as they are sold both online and through physical stores. The concerned company must enjoy manageable debt levels and should have profit margins of a minimum of 10 percent. A quick rule of thumb is to know the CEO. Buy stocks only if the head of the company loves dogs. If this is the case, the company will be run by passion. The services and products must solve a specific pain point for the pet owners. It would be even better if the company has an innovative streak.

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