More Millennials Opt For Pets Than Kids As Pet Industry Continues To Grow – Freshpet (NASDAQ:FRPT), Chewy (NYSE:CHWY)

Millennials and their “fur babies” are at the center of modern society. As millennials increasingly delay major life milestones like marriage, children and buying a home, pets seem to be left out. By 2024, 66% of American households will own a pet, and more than half of pet owners consider their pet to be as much a part of the family as human family members. Isolation during the pandemic has dramatically increased pet ownership, with 78% of surveyed pet owners getting a pet during the pandemic. However, the increase in pet ownership caused by COVID-19 is only one part of the puzzle. As the cost of living and inflation continue to rise while the threat of climate change burns in the background, many millennials see pets as an economical and ethical choice for companionship.

These pet owners are willing to make sacrifices to keep their furry friends happy and healthy. Nearly 40% of pet owners live on a tighter budget to cover their pet’s expenses, and 36% of dog owners report they spend more than $4,000 on out-of-pocket life-saving medical care for their dogs. Pet owners are also willing to make compromises in other areas of their lives to support being a dog parent; according to Forbes Advisor’s survey of 10,000 dog owners, 7.47% of dog owners stayed at a job they didn’t like because it allowed them to work remotely and 6.78% broke up with their partner who didn’t like their dog

Another recent survey showed that more than half of pet owners would even pay off the loan before reducing their pet budget. These changing perspectives correspond closely to the humanization of domestic animals. Pets are increasingly seen as members of the family, leading to increased demand for high-quality services such as better veterinary care, pet insurance, organic food and unique pet experiences animal Pet industries across the board are experiencing growth as a result. Americans spent $136.8 billion on their pets in 2022, which is a 10.68% increase from 2021 and a 51.16% increase from 2018.

There has also been an increase in services and companies that cater to pets such as Chewy Inc. (NYSE:CHWY), Don’t! Group (NASDAQ:PET) and Inspire Veterinary Partners Inc. (NASDAQ:IVP). While companies like Wag! offers pet care as an employee benefit, as do others Freshpet (NASDAQ:FRPT) is leading this movement toward advanced personalized nutrition for pets, with a focus on high-quality, specialty pet food products.

As an employee-owned veterinary group, Inspire Veterinary Partners is another innovator in the space. The company specializes in owning and operating veterinary hospitals in the United States, with a focus on small general practice animal hospitals that serve companion pets – including purebred dogs and cats – as well as also horse rearing. For veterinary doctors and pet owners, this can feel like a breath of fresh air as large consolidators currently own approximately 50% of all US veterinary hospital revenues.

One of the core principles of Inspire Veterinary Partners is making ownership transitions healthy for employees, pet owners and pets. It aims to create a seamless and positive experience for veterinary teams and the patients they serve. But what really sets Inspire Veterinary Partners apart is their unique equity model. As the first employee-owned veterinary team, its practices are about to launch plans to offer equity to vets and team members, allowing them to share in the rewards of assisted practice. they develop.

The pet services industry is set to grow at a compound annual growth rate (CAGR) of 8% over 2022-2030, reaching a projected total of $277 billion. As this industry continues to expand, companies like Inspire Veterinary Partners seem well-positioned to take advantage of the market and change the way we as a society view veterinary care.

Featured image by Kate Stone Matheson on Unsplash.

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