4 Pet Projects in Retail That Show a Lot About People
Is the retail pet sector growing faster than the pet population? These partnerships, rewards program strategies, and engaging services can test industry training.
By Jenn McMillen
How much do Americans spend on non-human family members? Put it this way: If everyone put lipstick on their pigs, they might spend as much on beauty products as they do on their pets.
Nearly 87 million American households – 66% – include pets as members. And every year, the amount they spend on their furry, feathered and scaly friends grows like goldfish in a big bowl – a bowl that’s now worth about $143.6 billion.
That’s how much pet owners are expected to spend on their baby animals in 2023, according to the American Pet Products Association (up from $136.8 billion in 2022). For context, the total beauty and personal care market in the US is expected to reach $100 billion by 2024, according to Statista.
That’s a lot of kibble, catnip and, potentially, lipstick.
Out With The Babies, In With The Wag-, Fin- And Purr-Babies
An interesting side note is that in 2023, the number of households with pets has dropped to 86.9 million from 90.5 million in 2022. However, spending on pets is still rose.
The higher spending is likely due to more people choosing to have pets instead of babies, leading to pet humanization. Only about 40% of dog owners opt for pets over parenthood, USA Today reports. In total, the 65.1 million dog families spend an average of $912 annually, according to Forbes.
Cat owners are kicking their heels: 46.5 million households have purr-babies on which they spend an average of $653 annually.
Pet owners also buy for birds, fish, reptiles, horses and various small animals – from chinchillas to rats.
Stack ‘Em High And Watch The Feathers Fly
A rich market seeds innovation, and the pet category is seeing a lot of it. Following are four key trends that will determine where pet owners and retailers will invest in 2024.
Pet-Spend Trend 1: Insignificant But Suddenly Must-Have Products
Pets play, poop and grow like babies. We can even walk them in strollers like babies. If products are available to help, pet owners buy them.
Take supplements. Global sales of pet vitamins and such are expected to reach $1.05 billion by 2027, according to analysis by Grand View Research. This category includes dog vitamins, doggy probiotics, CBD and fish oil (for cats).
Hygiene products also sell – think pet wipes, deodorizers and spritzers, and even mouthwash (“dental health solutions”). On Amazon, a loving pet parent can purchase a pet spa gift basket.
Pet pots have entered must-have territory as well. Crystal-based PrettyLitter changes color to reveal potential kitten health issues. Apartment dwellers can splurge on a self-draining Porch Potty (with a scented fire hydrant) for $279 or go all out with a Fydoo self-cleaning dog toilet for $972. More budget-conscious pet owners can find washable pee pads that look like area rugs.
And pet play has become smart business. Includes pet robots, interactive balls and activity boards for cats.
Pet-Spend Trend 2: A Good Shake: Partnering with Non-Pet Brands
Pet owners house their pets, so they also bought paint and pipes and hardware. Lowe’s and Petco took it up a notch and in 2023 added store-in-store Petco boutiques carrying food, toys, and pet supplies to nearly 300 Lowe’s locations (following a 2022 test run). Additionally, Petco Vetco clinics visit 75 Lowe’s stores once a month.
Pet owners can be tricky, too, which is why PetSmart and Michaels partnered for a limited-time 2023 holiday promotion, where each gave their customers in-store discounts by another retailer, Retail Dive reported. In the deal, Michaels email subscribers received 20% off purchases from PetSmart’s holiday collections, and PetSmart Treats rewards members received discounts on custom framing.
Many more partnerships are up for adoption. At Flagstop Carwash in Virginia, owners can wash their pets. At Scrub It Up Car Wash Laundromat, Pet Wash in Oregon, owners can do all of the above. Mars Petcare, maker of Pedigree, IAMs and other brands, has partnered with Hilton to offer pet-friendly stays that include access to Mars pet care experts, while Petco has partnered at the Marriott Bonvoy for pet-approved hotel stays. Petco can even ship beds, bowls, and toys ahead of time for the pet’s convenience.
Pet-Spend Trend 3: Sitting Rewards Programs
Pets are unfailingly loyal, so it should come as no surprise that some pet rewards programs pass the loyalty test in their efforts to encourage greater spending. One couple ranked on Newsweek’s top list of all loyalty programs in the US.
Among them is the PetSmart Treats Rewards program, according to Pet Product News. Members earn eight points for every dollar they spend on every purchase, including services like grooming, training and doggie day camp.
With Pet Supplies Plus, reward members are treated to birthday and adoption day surprises, free products, and a personalized pet dashboard to track their earned points and tailored content.
Meanwhile, Petco has turned its Vital Care rewards programs into a two-tiered platform. Free Vital Care Core tier members get complimentary grooming, free bags of pet food and an app-based dashboard for pet care management. Its fee-based Vital Care Premier tier offers a 20% discount on repairs, unlimited regular vet exams and $15 in monthly rewards.
Pet-Spend Trend 4: Insignificant But Enticing Services
Pet owners spend $11.8 billion each year on non-veterinary services such as boarding, training, walking and insurance. (Fun fact: the first pet insurance policy was issued in 1982 to the TV dog Lassie). Non-essential services also get a share of the wallet.
The free GoDoggo app features dog-friendly locations and events, from parks to pubs. Retailers can ensure that their events are included in these apps and use them to encourage activities at local businesses, such as dog-days brunches at outdoor cafes.
For owners who prefer to bathe their pets, DIY dog grooming and self-serve pet washing shops stand alone and within larger pet chains.
What Non-Pet Retailers Can Learn
Which pet owners are most likely to purchase these goods and services? Millennials are the most likely to own pets — 33% of this age group, compared to 25% of Gen Xers and 24% of boomers who own pets, APPA reports.
Yet millennials spend less. According to MarketWatch analysis, each generation spends the following on their pets in a year:
- Millennials: $731, or 0.72% of their income.
- Gen X: $866, or 0.68% of their income.
- Boomers: $793, or 0.96% of their income.
Regardless of age, consumers want one thing: to be with their pets throughout their lives. Any retailer that supports this preference should benefit. Even beauty chains can add pet shampoos and skin care products near lipstick.
Of the 87 billion pet-owning households, it’s likely that a good portion of those lipstick buyers have a fur-baby at home.
This article originally appeared on Forbes.
Forbes.com retail contributor Jenn McMillen is nationally known as the architect of GameStop’s PowerUp Rewards, and Founder and Chief Accelerant of Fire, a firm that builds and manages marketing, consumer engagement, loyalty and CRM programs. Incendio provides an agile, flexible and technology-agnostic approach without the cost structure of a large agency and is a trusted partner of some of the biggest brands in the US
