An estimated $53 billion will be spent on pets this year. This is just one reason that the pet care industry is ripe for starting a business. Here are a few more reasons.
By the Numbers
$52.87 billion: Amount pet owners are expected to spend in 2012, according to the APPA
107,988: Number of businesses expected to exist in 2015, according to IBISWorld
164.6 million: Number of cats and dogs owned as pets in the U.S. in 2010, according to the APPA
72.9 million: Number of U.S. households that own a pet as of 2010, according to the APPA
6.1%: Increase in employment in the grooming and boarding sector by 2017, according to IBISWorld
Why It's Hot
Dogs (and cats) have long been man's best friend, and these days, they're full-fledged members of the family. Pet owners dote on their feline and canine "children" with deluxe hotel suites, wading pools, and in-home grooming services. Forget about old-fashioned kennels; today, pet owners take their companions for massages and psychotherapy. And with 62 percent of U.S. households owning a pet (that's about 72.9 million homes), the American Pet Products Association estimates the pet care industry will rake in a staggering $52.87 billion in 2012.
The pet care industry is comprised of retail pet stores, groomers and boarders, and sales from online suppliers (we didn't include vet care, because we consider it to be a profession much like that of doctors and dentists). Surprisingly, the growth in this industry can't be attributed to increasing disposable incomes. According to industry research firm IBISWorld, consumers consider spending on their pets to be crucial. So pet owners are more likely to sacrifice nice cuts of meat for themselves, for a better bag of kibble.
According to IBISWorld, the pet grooming and boarding sector has seen steady revenue growth over the past five years of 4.1 percent and is expected to see another five years of annualized growth of 5.4 percent. By the end of 2012, the APPA expects pet grooming and boarding to account for $4.11 billion in pet spending in the U.S.
Plenty of Competition
Over the past three years, 17,000 jobs have been added, with another 33,031 more jobs expected in the next three years, according to IBISWorld. The industry is expected to house 95,246 enterprises by the end of 2012. Pet groomers and boarders are expected to be the most profitable pet-related businesses in 2012, with average margins of about 7.9 percent.
Barriers to Entry
While the barriers to entry are rather standard, there are a few unique to the industry. If you want to start a grooming service, there are certification and licensing requirements that vary per state for groomers. Also, if you are running a boarding service, having a veternarian on staff isn't a bad idea either, but will likely be a costly asset.
CAITLIN BERENS writes about business innovation and entrepreneurs. Before Inc., she worked at Billboard, SELF, and Better Homes and Gardens. She attended Drake University, and lives in Brooklyn, New York. @CaitlinBerens