Luxury goods, health care, gourmet food and services for pets are booming since pets have become members of the family.
As outlined in our recent trend report Meet the New Family, pets have become full-blown members of the family, with owners treating animals much like humans. As a result, luxury goods, health care, gourmet food and specialized services for pets are booming—and Michael Moe of GSV Asset Management writes in Ozy today that America’s $59 billion-a-year pet industry is “about to get much bigger.” He notes that increasingly pet owners want only the best for their animals and that today, “for every marketplace, there’s pretty much a pet equivalent.” One example he spotlights: DocVacay, often dubbed an Airbnb for pets, which Moe says his investment firm is eyeing. Moe also points to Trupanion, a pet health insurance company that completed an IPO in July and recently posted a 42 percent revenue jump for Q2.
Meanwhile, Businessweek this week spotlights Freshpet’s recent IPO filing. The company’s pricey refrigerated pet food is aligned with trends in human food: Its buzz words are fresh, “real food,” natural and local. “We position our brand to benefit from mainstream trends of growing pet humanization,” reads the filing. The approach seems to be striking a chord: Freshpet net sales for the six months ending June 30 were up 38 percent year over year. For more on the rise of pet foodie-ism, and other high-end products and services geared to the pet’s new household status, see Meet the New Family.