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Industry - Pampered Pets
Pampered pets
Australians are splashing out on premium products, driving revenue growth for retailers.
-Words Tim Calabria
OVER THE course of the COVID-19 pandemic, huge swathes of the Australian population came to feel that their lives would be improved if shared with a pet. And, since the first lockdowns of March 2020, Australians have spent more than ever on their animal companions. Amid ongoing disruptions to daily life, many people experienced a sense of sadness, loss, or loneliness, which is reflected in bleak statistics, including higher rates of anxiety and depression. The remarkable uptick in pet acquisitions across Australia is a bright spot in an otherwise challenging period.
Tim Calabria, Industry Analyst, IBISWorld
Animal Medicines Australia estimates that Australians had 5.1 million pet dogs and 3.7 million pet cats in 2019. By 2021, the number of pet dogs had increased by 1.2 million, to 6.3 million, while the number of pet cats had risen by roughly the same figure, to total 4.9 million. Although cats and dogs constitute the vast majority of pets in Australia, exotic animals like ferrets, lizards and cockatoos also grace more homes than ever before.
This sudden influx of pets has flowed on to the booming Australian Pets and Pet Supplies Retailers industry. The industry’s revenue grew by 11.6 per cent in 2020-21, more than doubling the previous year’s growth. The initial purchase of a pet only accounts for 4.5 per cent of total revenue for industry retailers, which include pet stores of varying sizes.
Ongoing spending on product segments of pet healthcare, pet services, and other pet products and accessories each command a significantly larger share of industry turnover.
Premium products within these segments have experienced significant growth over the past five years. The largest segment, pet food, has come to represent 54 per cent of industry revenue, with premiumisation driving growth in total pet food sales. In recent years, pet owners have increasingly demanded higher quality – and higher cost – foods for their furred, feathered, and scaled friends. Specialised foods, which can improve a pet’s health through more balanced nutrition, have especially benefited from owners’ increasing willingness to spend.
Coles has even launched self-service dog treat bars in supermarkets across the nation, increasing competition for industry retailers. Research coming out of Purdue University reveals what many people have long known – that owning a pet can reduce anxiety and loneliness, thereby improving mental health. There can be little doubt that many new pet owners consider this to be money well spent.
Yet, in the present moment, with restrictions easing, vaccination rates improving and workers returning to offices, many in the pet sector fear for the futures of many of these pets. One suburban dog pound manager in northern Sydney recently told The Sydney Morning Herald that her shelter had suddenly reached capacity, due to a local spike in the number of surrendered dogs. Similar stories have emerged from sanctuaries in North Melbourne and the Yarra Valley, claiming that many rehoming requests have been made on the basis of their pets’ difficult behaviour.
Even so, fears of mass abandonments may turn out to be unwarranted. According to a December 2021 article in The Australian Financial Review, Australians have so far demonstrated that their furry pandemic pals are not just for lockdowns. Undoubtedly, some owner-pet relationships simply belonged to a moment that has come and gone. But, if the wider trend within the industry is anything to go by – with owners spending ever greater sums on premium products for their pets – then there is hope that few pets will be abandoned, and that those surrendered will ultimately find better homes.
