1. Pet ownership demographics and preferences – Millennials are going strong
The key to any business’s success is knowing who your customers are. It is forecasted that most pet parents in 2023 will again be Millennials – people in their 30s and 40s. In the 2022 report, we could see that Millennials overpass Baby Boomers regarding pet ownership. In the following year, we will see the rise of Gen Z pet owners. Still, Millennials are the largest pet-owning generation. In the United States, they make up 32% of all pet parents. As Millennials enter their 30s and 40s, they’re looking for more stability. Which usually for them means relying on an animal companion. Millennials are very close to reaching a critical mass in pet ownership today.
Based on a survey, about 22% of Millennials and Gen Z people said they would delay having a kid and have a pet instead. Nowadays, pet owners strive to make closer bonds with their pets. Analysis shows that around 76% of people between 20-38 years old own at least one pet, and more than 50% of them are dog owners.
The current situation in America is that there is at least one pet in about 68% of households. About 25% of households own at least one cat, and 48 million American households own at least one dog. This trend can be seen globally as well. The steady increase in pet ownership will be on the rise in 2023. And this is what dictates pet industry trends in 2023 and the following year.
2. Growth of global online pet supply market – sales boomed
In the last 10 years, the online pet industry market has quadrupled, and it keeps growing. One of the latest trends existing in the market is the online customization of pet food. But that is just one of the reasons why online pet shops are getting more and more popular. Increasing internet penetration across devices and vendors guarantees convenient availability through online channels. Isn’t that an obvious reason for shopping online?
Advantages of online shopping
During pandemics, online sales skyrocketed. People got so used to shopping from their comfortable couches. That is why the habit of online shopping will follow us for many more years. We will see the growth of e-commerce as one of the pet industry trends in 2023. According to eMarketer, 30.1% of all pet product purchases in 2021 in the US came from e-commerce companies. Even before the pandemic, 60% of pet owners were already shopping online for their pets. Nowadays, 86% of pet owners shop for their pets online.
Owners order food, treats, toys, and accessories from wherever they want with only a few clicks. Digital options such as automated re-orders give online sellers a considerable advantage. These options are more convenient for customers than going to pet stores. Subscriptions and auto-fill options are the solutions that pet owners adore. It is estimated that 12% of dog owners have an online treat subscription. And if we go through generations, 9% of millennial pet owners have purchased a pet subscription box in the second half of 2022. That is why online shopping is one of the pet industry trends in 2023.
Is there room for smaller e-commerce pet brands?
It’s no surprise that the world’s largest e-commerce marketplace, Amazon, has an extensive offer of pet products. About 59% of pet owners who shop online order pet supplies from Amazon. Most pet brands are available on Amazon and can be delivered within 24 hours.
But the market analysis also suggests that there’s room for other pet e-commerce brands. Suppose they want to position themselves beside e-commerce giants such as Amazon. They should apply our approach and they should be active on social media and have both an e-commerce website and a mobile app. This approach will help them be present everywhere in the digital space. Which is exactly where their customers are.
3. Pet mobile apps
E-commerce mobile apps are among the trends that stay on the list of pet industry trends in 2023. It’s because the businesses that have them will profit more than those not having the app. Pet parents love to feel connected to pet suppliers that care and follow what their pet needs. Offer them occasional discounts, and they will choose to always shop from your store. Switching from brick-and-mortar to digital shopping is still popular. By making the loyalty program, you have the most convenient way to offer personalized discounts to your returning customers. Mobile apps give you the most information about your customers’ habits.
Have you heard about gamification before? It’s game incentives that give users awards. Combining it with a loyalty program increases user engagement by 47%. That is why the most prominent companies chose to have their e-commerce mobile apps.
Upcoming pet industry trends in 2023
Experts predict some new things that will keep your pet business running in 2023. You are probably familiar with all or most of them. But believe us, you will see a boom in the market when it comes to these trends.
1. Pet Supplements
The largest portion of spending on pets goes to food. The usual average that pet owners spend on food is around $440 per year. There were more than 630 different pet food brands on the market in 2018. But that’s not all. New brands keep emerging every year. Pet food, treats, and supplements comprise 36% of all pet product spending in America. Every pet owner would agree that food and treats are the most expensive thing on a budget. Still, those are essential things for their pet’s happiness and health. When it comes to health, owners are willing to get any vitamins or other food supplements that will help the longevity of their pet’s life. The category within pet food that is predicted to have a steep demand in 2023 is pet supplements. Analysis shows the pet supplement industry will reach $1 billion by 2027.
CBD-based pet supplements
The trending supplements are dog vitamins, probiotics, and fish oil-based supplements for cats. But the most popular pet supplements are going to be ones based on CBD.
That should not be a surprise, as searches for “CBD for dogs” tripled in the last 10 years. According to the American Kennel Club, around one-third of pet owners have bought CBD products. There are a few potential reasons why CBD-based supplements are on the list of pet industry trends in 2023. CBD pet brands promise their products will either relieve your pet from anxiety or help older pets with inflammation and joint pain. Some studies show that CBD oil can effectively treat canine osteoarthritis, which affects 20% of dogs older than 12 months. Not only CBD supplements but CBD oil itself and CBD-based shampoos are on the rise in the pet product market.
2. Innovation is everything – investing in new technologies
As you have seen in recent years, businesses are becoming more competitive. With that, entirely new pet care product categories are arriving at pet homes.
One thing that was popping out everywhere, from paid ads to TikTok videos, was litter robots. This relatively new invention woke customers’ curiosity. Testing videos are already available on YouTube. This new category still has room for improvement regarding user experience and safety. Thus we will see more models of these robots in 2023. Let’s face it, every cat owner dreams of having a self-cleaning litter box. No wonder they are among the pet industry trends in 2023.
There is also a rise in demand for new pet technology, such as microchips and at-home DNA tests. Pet treadmills and cameras are more and more often found in pet owners’ homes. Wearable pet technology, such as radio frequency identification devices, GPS trackers, and motion sensorsare forecast to generate $4.6 billion in revenue by 2027. Wearable technology is one of the fastest-growing markets in the pet industry. Technology gives pet owners new ways to keep their pets safe, healthy, and amused.
3. Pet accessories is the category to look for in 2023
Globally, the pet accessories market is predicted to grow at a substantial rate during the period between 2023 and 2028. The growth will be slower in 2023 compared to the upcoming years. Yet, investing in pet accessories in 2023 will help you build a path for years ahead as this market will be on the rise. In 2020, the global pet accessories market was estimated at USD 18.25 billion and was forecasted to reach USD 30 billion by the end of 2027.
You really need to step up the pet accessory game in 2023. As you have probably noticed, it is not enough anymore for scratching posts to be attractive to the cat. It needs to fit into the interior design of a cat owner’s home. Pet parents want to have it all, a nice-looking home and the happiness of their pet. Pet accessories incorporated into furniture are becoming more popular on the market.
Technology will also be part of accessories for pets. More pet owners want to have collars with trackers for their pets. And who wouldn’t want to have automatic food and water pet bowls? There is a space for you to enter this market. Make better automatic pet feeders than those with malfunctions that see all the time in videos on social media.
4. Pet grooming is getting on popularity
Pet owners consider bathing, brushing, and nail clipping beneficial for pets’ health and appearance. The global pet grooming market is predicted to have a compound annual growth rate (CAGR) of 7.09%. But, this was not the case in the past, as in 2020, pet grooming services declined. Demand for pet grooming started rising in 2021 and was even more popular in 2022. The pet grooming market is now on a good path to completely recover and grow in the following period. That is why we listed pet grooming as on of the pet industry trends in 2023. Predictions show that the pet grooming industry will increase to $14.5 billion by 2025. Half of that revenue will be made in the United States. Pet shampoos and conditioners are predicted to be in high demand, generating a 52% revenue share.
5. Insurance for pets
Almost one-third of pet spending goes on healthcare. Preventive medicine is becoming more accessible, plus unplanned vet bills can be expensive. That is why many pet owners are deciding to buy pet insurance. Also, the rising number of pets is another reason why the demand for pet insurance is increasing.
In North America, 3.45 million pets are insured. Insurance is a wise solution to manage the financial risk that comes with pet ownership. No wonder it is on the list of pet industry trends in 2023. The pet insurance industry is growing at a 23.4% average annual rate. It is predicted to grow to 16.8 billion US dollars in the next seven years.
To summarize all the pet industry trends in 2023
As you can see, there are plenty of opportunities for growth in the pet industry in the upcoming months.
If you want to invest in the production of specific pet products in 2023, here’s what is best to do:
- You can invest in pet supplements or pet accessories. CBD supplements are hot topic this year.
- If you are a groomer or a pet insurance company, predictions say that you will profit in 2023.
- Invest in developing new pet devices or software solutions, like mobile apps that customers demand.
- Be present in all the virtual places where your customers hang out. Be present on social media, Google, and last but not least, on their mobile devices.