Pet Industry Outlook: Veterinary Services and Pet Product Retailing

  • ID: 4581086
  • Report
  • Region: United States
  • 147 Pages
  • Packaged Facts
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FEATURED COMPANIES

  • Banfield
  • BluePearl
  • Henry Schein
  • Mars Inc.
  • PetCo
  • PetIQ
  • MORE

The U.S. market for veterinary services is undergoing transformation. The industry has long been the domain largely of independent practitioners, veterinarians who opened up shop in standalone practices and animal hospitals. But recent years have seen significant consolidation in the industry, with veterinary practices being bought up under one umbrella. And as big-box pet product retailers seek ways to stave off the loss of sales to e-commerce, they're increasingly looking to veterinary and non-medical pet services. Most animal hospitals remain independent, but between the aging demographics of the veterinarian profession, the heavy debt load of recent veterinary school graduates, and the money being offered by consolidators, the consolidation wave will continue.

The changes reshaping the veterinary industry include:

  • Mars Inc. has brought some of the largest animal hospital chains under its expansive pet market umbrella: Banfield, BluePearl, Pet Partners and now VCA.
  • PetSmart, Petco and Walmart have all added or are looking to add additional veterinary service offerings to their stores.
  • Private equity firms including KKR and Shore Capital Partners and many others have been scooping up veterinary practices.
  • Veterinary distributor Henry Schein announced it was spinning off its animal division and combining it with Vets First Choice, a high-flying and well-capitalized e-commerce startup that focuses on increasing patient compliance.

This report is packed with data tracking how the industry is changing, how pet owners view veterinary services and the role of their veterinarian, and how this market sector affects the fast-changing outlook for pet product manufacturers, marketers, retailers, service providers, and investors.

Scope

Pet Industry Outlook: Veterinary Services and Pet Product Retailing forecasts market size and growth for the industry, examines new product activity and sales trends, and analyzes trends and shifts in how veterinary services are meeting the needs of today's pet owners. The report contains extensive insight from Packaged Facts' exclusive surveys of pet owners, including surveys conducted in February/March 2018 and March/April 2018, featuring new data specific to pet owners' attitudes and expectations about veterinary services. The report contains dozens of numerical tables and charts, as well as numerous market and marketing images across key topics.

Report Methodology

The information contained in Pet Industry Outlook: Veterinary Services and Pet Product Retailing was obtained from primary and secondary research, drawing on national online consumer polls of U.S. adult pet owners (age 18+) conducted on an ongoing basis ; participation in veterinary and pet industry conferences including VMX Veterinary Meeting & Expo 2018, Global Pet Expo 2018, and Petfood Forum 2018; interviews with external pet market experts and trade association executives; extensive research in trade, business, government, and corporate publications and other sources; and Packaged Facts' extensive collection of research and reports on the pet market.

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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Banfield
  • BluePearl
  • Henry Schein
  • Mars Inc.
  • PetCo
  • PetIQ
  • MORE

1. Executive Summary

  • Introduction
    • Scope and Methodology
    • Report Methodology
  • Market Performance
    • Veterinary Sales at $27 Billion in 2017
    • Table U.S. Veterinary Services Market, 2013-2017 (in billions of dollars)
  • Market Landscape
    • Veterinary Care Establishments
    • Table Veterinary Services: Number of Establishments, Employees, and Payroll
    • Growth and Consolidation
    • More Consolidation on the Horizon
    • Aging Pet Population
    • Smaller Dogs Are Big
  • Industry Trends
    • M&A and Investment Activity
  • Pet Products
    • Role in Revenue Mix
    • Vets the Top Brick-and-Mortar Source for Pet Meds
    • Table Level of Agreement with Statement: "I would purchase more pet medications from my veterinarian if they offered more …" (percent of dog or cat owners)
  • Veterinary Competition
    • Online, Pet Specialty, and Mass Market
    • Veterinary Services Inside Pet Superstores
    • Table Percent of Dog or Cat Owners Who Have Taken Pets to a Pet Superstore for Veterinary Services in Last 12 Months, 2016-2018
    • Pet Specialty and Mass Retailers Up Their Vet Game
    • Veterinary Pharmacies Online
  • Consumer Attitudes and Trends
    • A Source of Advice and Information
  • Sales Growth Opportunities
    • Opportunity 1-Veterinary Consolidation
    • Opportunity 2-Referrals from In-Store Clinics
    • Opportunity 3-Human/Animal Bond Among Young and Old
    • Opportunity 4-New Pet Medications
    • Opportunity 5-Digital
    • Opportunity 6-Loyalty to Veterinarians

2. Market Trends

  • Chapter Highlights
  • Market Performance
    • Veterinary Services Market at $27 Billion
    • Table U.S. Veterinary Services Market, 2013-2017 (in billions of dollars)
  • Market Landscape
    • Table Veterinary Services, Number of Establishments, Employees and Revenue
    • Table Number of Employed and Median Income, Select Pet Industry Occupations
    • Aging Pet Population
    • Table Age of Dogs and Cats, 2018 (percent of dog or cat owners)
    • Pet Overweight/Obesity
    • Table Agreement with Statement: "I have an overweight dog/cat," 2018 (percent)
    • Growth and Consolidation
    • More Consolidation on the Horizon
    • Prescription Diet Class Action Suit Dismissed
    • Higher-Income Households Achieve New Pet Expenditure Milestone
    • Table Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K Income Households, 2001-2016 (percent)
    • Table $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 2010-2016 (percent)
    • Table $70K+ Household Share of U.S. Pet Market Expenditures: By Category and Income Level, 2016 (percent)
    • The Human/Animal Bond
    • Table Level of Agreement with Statement: "I consider my dogs/cats to be part of the family," 2018 (percent)
    • Beyond Humanization and Premiumization
    • Table Level of Agreement with Statement: "I am willing to pay more for pet food products that are healthier for my pets," 2017 vs. 2018 (percent of pet product buyers)
    • Smaller Dogs Are Big
    • Table Size of Pet Dogs: Owned and Most Recently Acquired, 2018 (percent of dog owners)
    • Cause Marketing
    • Table Level of Agreement with Statement: "The participation by pet product retailers in pet welfare and rescue causes and events plays a significant role in where I buy pet products," 2014-2018 (percent of pet product buyers)
    • Table Level of Agreement with Statement: "The participation by pet product brands in pet welfare and rescue causes and events plays a significant role in which brands I buy," 2014-2018 (percent of pet product buyers)
    • Table Agreement with Statement: "I have contributed time or money to pet welfare or rescue causes," 2017 vs. 2018 (percent of dog vs. cat owners)
    • Looking Ahead: Vet Services to Top $30 Billion by 2019
    • Table U.S. Veterinary Services Market, 2017-2022 (in billions of dollars)
    • Table U.S. Pet Market Compound Annual Growth Rates for Veterinary Services: 2012-2017 vs. 2017-2022 (percent)

3. Industry Trends

  • Chapter Highlights
  • M&A and Investment Activity
    • Year-End 2017
    • Table Level of Agreement with Statement: "I like the idea of Mars pet food company joining forces with animal hospital chains such as VCA or Banfield," 2018 (percent)
    • Table Top Veterinary Clinic Chains, 2018
  • Pet Owners Rely on Vet Advice
    • Pet Meds and Beyond
    • Veterinary Visit Statistics: Routine vs. Emergency
    • Table Percent of Dog and Cat Owners Who Have Visited Vet in Last 12 Months for Routine and Sick/Emergency Vet Visits, 2018
    • Table Percentage of Dog or Cat Owners who had been to a veterinarian/animal hospital in the last 30 days, 2018
    • Table Services Received at the Veterinarian's Office in Last 12 Months: Dog vs. Cat vs. Bird Owners, 2016 (percent of pet owners)
    • Veterinary Prices
    • Table Average Veterinary Expenses in Last 12 Months: By Type of Pet, 2016 (percent of pet owners)
    • Digital Veterinary & Pet Health
    • Fairness to Pet Owners Act

4. Veterinary Product Trends

  • Chapter Highlights
  • Pet Products
    • Pet Product Customer Base by Retail Channel
    • Table Household Customer Base for Pet Products by Retail Classification, 2013 vs. 2017 (thousands of households and percent)
    • Table Draw Among Pet Product Purchasers by Selected Retail Channels and Pet Superstore Chains, 2010-2017 (percent of dog- or cat-owning households)
    • Table Purchasing Base for Pet Products by Selected Retail Channels or Pet Superstore Chains, 2010-2017 (U.S. dog- or cat-owning households in thousands)
    • Marketing to the Trade
    • Vets the Top Brick-and-Mortar Source for Pet Meds
    • Table Channel Choices for Pet Product Shopping, Last Three Months: Pet Food, Pet Medications, Other Pet Supplies, 2018 (percent of pet product buyers)
    • Table Level of Agreement with Statement: "I would purchase more pet medications from my veterinarian if they offered more…," 2018 (percent of dog or cat owners)
    • Where Consumers Purchase Flea/Tick and Heartworm Products
    • Veterinarians and Pet Medications Other Than Flea/Tick
    • Table Purchasing by Channel of Selected Other Pet Medications for Dogs, 2017 (percent)
    • Table Purchasing by Channel of Selected Other Pet Medications for Cats, 2017 (percent)
    • Among E-Commerce Options, Flea/Tick Owners Favor Amazon
    • Table Purchasing of Flea/Tick Products for Dogs by Online Source, 2017 (percent)
    • Table Purchasing of Flea/Tick Products for Cats by Online Source, 2017 (percent)
    • Key Sales Channels for Pet Food
    • Table Where Dog Food Was Purchased in Last 12 Months, 2017 (percent of dog owners)
    • Table Where Cat Food Was Purchased in Last 12 Months (percent of cat owners)
    • Table Retail Outlets for Dog and Cat Food Purchases, 2017 (percent)
    • Organic Pet Food and Channel Choices
    • Table Purchasing Rates for Organic Pet Food by Channel Shopped for Pet Products, 2017 (percent of U.S. households with pets)
    • Veterinary Diet Marketers
    • Veterinary Dog Food Brand Penetration
    • Table Veterinary Dog Food Brands Purchased in the Last 12 Months, 2017 (percent of dog owners)
    • Table Veterinary Cat Food Brands Purchased in the Last 12 Months, 2017 (percent of cat owners)
    • Functional Foods: Veterinarians to the Fore
    • Table Level of Agreement with Statement: "High-quality dog foods/cat foods are effective for preventive healthcare," 2018 (percent)
    • Veterinary Exclusive/Prescription Only Not a Top Claim
    • Table Draw for Selected Product Claims Among Dog and Cat Food Purchasers, 2017 (percent of dog vs. cat owners)
    • Other Top Products and Services in the Veterinary Channel
    • Table Most Recent Teeth Cleaning by a Veterinarian, 2018 (percent of dog owners vs. cat owners)
    • Pet-Tech Products Tackle Health and Redefine Veterinary Interaction
    • Petcare Apps Keep on Coming: Fetch My Pet and Barkley Pets

5. Veterinary Competition

  • Chapter Highlights
  • Veterinary Competition
    • Online, Pet Specialty, and Mass Market
    • Table Where/How Pets Received Veterinary Services in the Last 12 Months, 2017 (percent of pet owners)
    • Table Level of Agreement with Statement: "I prefer to get vaccinations for my pet at a veterinary clinic or animal hospital," 2018 (percent)
    • Table Level of Agreement with Statement: "I prefer to purchase my pet medications from …," 2018 (percent of pet product buyers)
    • Veterinary Services Inside Pet Superstores
    • Table Percent of Dog or Cat Owners Who Have Taken Pets to a Pet Superstore for Veterinary Services in Last 12 Months, 2016-2018
    • Table Level of Agreement with Statement: "I like the idea of veterinarian services being provided at PetSmart or Petco," 2018 (percent)
    • Table Level of Agreement with Statement: "Veterinarian services provided at PetSmart or Petco locations are as high quality as those from independent veterinary practices," 2018 (percent)
    • Table How a Pet Owner Becomes Aware of New Pet Products: By Type of Pet, 2016 (percent of pet owners)
    • Petco Diversifies into Services
    • Petco + PetInsuranceQuotes.com
    • Petco's Pet Med Play
    • PetSmart Looking to Expand Beyond Banfield
    • PetIQ Brings Walmart into the Clinic Space
    • Mobile Clinics
    • The Upshot: Pet Specialty Increasingly Reliant on Petcare Services
    • Beyond Services: Mass Market Retailers and Pet Meds
    • Are Pet Meds Better In-Store or At the Vet?
    • Table Levels of Agreement/Disagreement with Statement, "With Spot-On (Topical) Flea/Tick Products, the Products Available in Stores Are Just as Effective as Those Available Through Veterinarians": Dog Owners vs. Cat Owners, 2017 (percent)
    • Table Levels of Agreement/Disagreement with Statement, "Veterinarian-Dispensed Spot-On (Topical) Flea/Tick Products Are Too Expensive": Dog Owners vs. Cat Owners, 2017 (percent)
    • E-commerce Going Gangbusters
    • Veterinary Pharmacies Online
    • New Records for PetMed Express
    • Table PetMed Express Sales, 2007-2017 (in millions of dollars)
    • Fast-Growing Vet Companies
    • Veterinary Visits Outside of the Clinic
    • Table Percent of Dog and Cat Owners Who Would Be Interested in Having a Veterinarian Visit Their Home or Work for Routine Health Services, 2018
    • House Call Startups Making Waves

6. Consumer Attitudes and Trends

  • Chapter Highlights
  • A Source of Advice and Information
    • Vets Are the Top Information Source
    • Table Top Pet Owner Information Sources of Advice: By Type of Pet, 2016 (percent of pet owners)
    • Table Level of Agreement with Statement: "I rely on my veterinarian for advice about my dog," 2018 (percent of dog owners)
    • Table Level of Agreement with Statement: "I rely on my veterinarian for advice about my cat," 2018 (percent of cat owners)
    • Table Best Sources for Information for Choosing Pet Food and Nutrition Products, 2018 (percent)
    • Table Main Sources Relied on by Dog and Cat Owners for Information About Pet Nutrition, Pet Food Formulation, and Pet Food
    • Table Main Source Relied on by Dog and Cat Owners for Information About Pet Nutrition, Pet Food Formulation, and Pet Food Ingredients, 2018
    • Table Level of Agreement with Statement: "The most important consideration when buying pet medications is …," 2018 (percent of dog or cat owners)
    • Table Levels of Agreement/Disagreement with Statement, "I Trust the Pet Medications My Veterinarian Recommends": Dog Owners vs. Cat Owners, 2017 (percent)
    • Pet Owner Loyalty to Their Vet
    • Table Percent of Pet Owners Who Consider Themselves Loyal to the Veterinarian/Animal Hospital They Go To, 2018
    • Table Size of Channel-Loyal Customer Base: By Leading Retail Channels or Pet Superstore Chains, 2013-2017 (in millions of dog- or cat-owning shoppers)
    • Most Pet Owners Don't Decide Based on Price
    • Table Percent of Pet Owners Who Consider Price a Factor in Choosing Which Veterinarian/Animal Hospital for Regular Medical Check-Ups, 2018
    • Table Percent of Pet Owners Who Consider Price a Factor in Choosing Which Veterinarian/Animal Hospital for Emergency Healthcare, 2018
Note: Product cover images may vary from those shown
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  • Banfield
  • Barkley Pets
  • BluePearl
  • Fetch My Pet
  • Henry Schein
  • KKR
  • Mars Inc.
  • Pet Partners
  • PetCo
  • PetInsuranceQuotes.com
  • PetIQ
  • PetMed Express
  • PetSmart
  • Shore Capital Partners
  • VCA
  • Vets First Choice
  • Walmart
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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