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Come rain or shine, we love our pets, don’t we? In spite of the recession, the pet care industry continues to grow and is one of the strongest performers in the stock market today. In fact, this is one of the first industries that marked a new high soon after the Great Recession. Even though the recession hit all areas of consumer behavior, it did not affect the upward trend in pet care and pet spending.While the overall consumer spending fell by 3% during the recession, spending on pets kept increasing at a 5% annual rate. This is enough to prove that pet stocks are recession-proof. This trend is expected to continue for a long time to come due to the change in attitudes.People’s growing willingness to spend on pet health care has opened doors of new opportunities as many companies are now involved in developing pet medicines and pet health care products.Here are 3 reasons to prove that pet care is one of the best recession-proof industries:Most Pet Spending Comes From the Millennial
People’s attitudes towards pets are changing, and that change is driven by millennial and baby boomers as they are commonly known! Millennial are getting more pets than the previous generations.Forty percent of customers who seem most interested and involved in pets and pet care are those in the age group of 30-49.Research firm Mintel has found that while three-fourths of Americans in their 30s have dogs, more than half of Americans in their 30s are proud owners of cats.Millennial are also known to use technology to buy services and products for their pets, thus giving ventures new growth opportunities.Growth in Pet Care and Pet Spending
Spending on pets in the US has increased by 4.6% annually in the last 10 years. Boarding revenue and pet grooming were at $8 billion in the U.S. back in 2016. At the time, IBIS Word predicted a 7 percent annual growth until the year 2021. Between 2012 and 2016, $486 million was reportedly invested in the global pet tech sector across 170+ venture capital deals, as per CB Insights.Market research firm IDTechEx has predicted that by 2019, the worldwide pet wearables market will be a $2.6 billion market.The American Pet Products Association has estimated our expenses on pets this year (2018) to be approximately $72.1 billion. That is an increase of 30% from five years ago. This change is seen not just in the US, but across the globe.You can easily see why investing in the pet care industry is such a great investment opportunity.Pet Care – Best Recession-Proof Industry
There is no doubt that more and more people are beginning to raise pets. Spending huge amounts of money on pets is becoming increasingly common, especially in the US. Considering the fact that pet spending has grown rapidly during the three recessions goes to prove that pet care is none of the best recession-proof industries.