The Best Ways To Invest In The Growing Pet Care Industry

By November 12 | See Comments

Published by:

The Best Ways To Invest In The Growing Pet Care Industry
Image Source: Pixabay.com

The global pet care industry is now computed to be $100 billion and increasing. It is a fact that people spend as much on pets as they do on their own kids. For many people, their pets constitute their children. Millennials show this trend, with delayed marriages and fewer, if any, kids. Since pet owners humanize their pets, they are quite happy to spend sumptuous amounts of money on pet food products and pet care. It is also observed that the quantum of spends does not get less even if the pet owner's finances are tight.All of the above means the industry will prosper even in the event of a softening of the economy. This does not mean the industry is totally insulated from financial problems, but the downturns will be much milder and if they happen, of much shorter duration. Large investors have realized this long before. This is the reason venture capitalists have poured almost $500 million into developing and marketing pet technology during the 2012 to 2016 period. Long-term investors tend to gravitate towards pet care. The problem in this particular industry segment is the absence of exchange-traded funds (ETFs). This means you have to select your own stocks.

Pet care stock selection

The selection is similar to that of any other stock pick. The company must be stable and enjoy a robust track record. Its products should be distributed over a wider geographical area as owners of pets shop for pet care products not only online but at physical stores as well, The company should have a minimum of 10 percent profit margin and enjoy manageable debt levels. An ideal company should be administered by animal lovers. Pet care business does well when owners regard the company as a passion and not simply as a business.

Pet food is lucrative

About 40 percent of total per spends go towards purchasing pet food. There are multiple pet food flavors in any supermarket. In fact, more people are found near the pet food aisle than the aisle where human foods are stocked. With the growth of wellness, the demand for organic pet food also went up. Good food trends have how percolated down to the pet market. No wonder many human food companies have also ventured into pet food manufacturing. Pet health has also seen substantial investments in recent times.One of the biggest companies in the business has made its mark to make sure the food your pet eats is safe. Pet edibles are tested for toxins, drug residue, bacteria, and allergens. These help to combat the increasing food-borne illness problem. A number of pet care companies manufacture disinfectants and wound care.

SHOW COMMENTS
comments powered by Disqus

Was this article helpful?