Editor’s note: This article was first published in May 2014. The market figures are from 2014 (CNBC): more than 55 billion spent on pets in the US, 68% of households with a cat or dog, a 21 billion pet food market, and 1% of 160 million US dogs and cats insured.
Thinking about a business idea built around pets, or simply about earning some extra money by offering products or services for pets? Wondering whether this market can really be profitable?
In the United States alone, more than 55 billion has been spent on pet products and services, an increase of more than 100% over the previous decade. Pet spending is expected to keep growing, given that 68% of households have a cat or a dog, according to a CNBC report.
So what kind of business can you start to tap into pet spending?
To begin with, there are already large companies covering every kind of service for domestic animals. There are even pet psychologists and pet coaches. It is such a big market that there is even a publicly listed company (Zoetis, NYSE: ZTS) whose main product is medicine for pets.
1. Pet insurance companies
Since pets have no social security (for now) and vet bills are not cheap, insurance companies whose customer is an animal have appeared. The Wal-Mart chain was a pioneer in offering pet insurance in its stores. It is estimated that only 1% of the more than 160 million dogs and cats in the US are insured, so interest in this service will keep growing as families look to be covered if their pet falls ill.
2. Pet training
Until now, training was mostly offered to produce guard dogs. Today, gyms for pets are opening, and the fitness industry is even taking advantage with deals on yoga and fitness classes for pets and their owners. The claim is that keeping your pet fit and relaxed makes it feel better.
3. Pet devices
Devices are now sold that attach to an animal’s collar and measure and store data such as calories burned. These devices are giving vets information they never had before.
4. Pet food
Pet food is already a very profitable business worth 21 billion in the United States alone. Just as with food for humans, innovative businesses offering specialised pet food are booming.
On the one hand, we already have the first restaurants for pets (crazy as it sounds, there is demand for them). There is also organic food for dogs and cats competing with the big pet food brands, and this is where small entrepreneurs have a way in.
See also: What businesses to open in a small town: 17 profitable ideas
5. Pet toys
Pet toy makers are also starting to innovate with intelligence games for pets. It is no longer enough for us to want the smartest children; we also want to stimulate our pets’ brains.
There is already a best-selling game that works like a puzzle board, where the cat has to move the pieces to find the treat its owner has hidden. There are also other toys, such as fake mice whose only purpose is to get the cat exercising while we enjoy watching it give chase.
6. Pet clothing
Most people buy those bits of wool to put on their pets, but the rich want their pets to look as luxurious as they do. So there are shops specialising in pet clothing, with real outfits and dresses to turn your pet into a diva. Hats, bows and even ties.
To give just one example, one company came up with the idea of selling sunglasses for dogs and ended up with sales in the millions. A well-off family’s annual spending on dog clothes is higher than an ordinary family’s spending on clothes.
7. Pet hotels
That’s right: poor people’s dogs end up in kennels, while rich people’s dogs sleep in hotels made especially for them. In 2010, Walt Disney World Resort in Florida decided to open the first luxury hotel for pets that cannot go on holiday with their owners. Other hotels later followed with the same idea.
Between boarding and training, spending on pets reached 4 billion dollars in 2012–2013.
And for anyone who finds these business ideas too complicated, there are always the usual suspects you see written about: making money walking dogs, pet sitting, and pet grooming services.
There are also all kinds of blogs and YouTube tutorials offering information about pets. So if you love animals, you may find your business opportunity in them. As my dog would say: “Woof!”
Featured image: Sciencia58, CC0 1.0, via Wikimedia Commons.
