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Pet industry sales in 2020 surpass $100 billion for first time

Food and treat sales increased by nearly 10% as COVID impact felt across all pet categories

Michael Browne, Executive Editor

March 29, 2021

2 Min Read
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The pet industry reached sales of $103.6 billion in 2020, a 6.7% increase from 2019 sales of $97.1 billion.Sonsedska/iStock/Getty Images Plus

The pet industry reached a milestone in 2020, with total sales of $103.6 billion, a historic high, according to the American Pet Products Association (APPA) State of the Industry Report released last week. That marks an increase of 6.7% over 2019 retail sales of $97.1 billion.

"We have reached a critical milestone, generating $103.6 billion in sales," said Steve King, president and CEO of APPA. "We are bullish for the coming year, projecting growth of 5.8% — well above the historical average of 3% to 4%. This past year presented a host of challenges that resulted in consumers across the country turning to their pets for comfort and companionship. Interestingly, the product trends we are seeing in the pet care community mirror those of consumers — a desire for a healthier lifestyle, increased focus on fitness, turning to supplements for improved well-being and technology playing a larger role in everyday life."

Of that 2020 total, $42 billion was spent on pet food and treats, a 9.7% increase year over year; $31.4 billion was spent on vet care and product sales, a 7.2% increase; and $22.1 billion was spent on supplies, live animals and over-the-counter medications, a 15.1% increase from 2019.

Pet 2020 size of the industry.png

An additional $8.1 billion was spent on other services such as grooming, dog walking and boarding — a 21.4% decline from the previous year attributed to COVID-19 lockdowns and the economy. As quarantines are lifted and consumers venture out, the use of these services is expected to rise, the APPA predicted.

Related:Increased pet grooming at home creates an opportunity for retailers

Sales of pet food and supplies skyrocketed in the COVID panic buying period from March to May last year, leading to supply chain disruptions and reports of shortages and out-of-stocks. Demand continued to be high for the remainder of 2020, but panic buying subsided and supply normalized. With people spending more time at home with pets, sales of accessories and treats remained strong, while an uptick in new pets — including a 30% increase in the small animal, fish and reptile category — led to increased sales of supplies as well.

Pet 2021 sales estimates.png

For 2021, APPA estimates total sales of $109.6 billion, with increases in all categories, including 20% growth in other services as that segment normalizes. Growth is projected at 5.8% across the industry for 2021.

In other findings from the APPA report:

• 47% of pet owners reported they increased the number of times they purchased products online.

• Pet specialty and independent retailers experienced solid growth.

• 30% of pet owners spent more on their pet/pet supplies in the past year with only 10% saying they spent less.

Related:Natural shoppers’ behavior patterns extend to their pets as well

APPA released its State of the Industry report findings during the online Global Pet Expo held March 24-26.

About the Author

Michael Browne

Executive Editor, Supermarket News

Michael Browne joined Supermarket News in 2018 after serving in managing and executive editor capacities at leading B2B media brands including Convenience Store NewsLicense Global and Travel Agent. He also previously served as content production manager for print and digital in the Business Intelligence division of Informa, parent company of Supermarket News and Nation’s Restaurant News.

As executive editor, Mike oversees the editorial content of supermarketnews.com as well as the monthly print publication. He also directs all content-based brand-related projects including the annual Top 75 Retailers report, Category Guide, Retailer of the Year, research surveys and special reports, as well as podcast and webinar content. Mike has also presented and moderated at industry events.

In addition to the positions mentioned above, Mike has also worked as a writer and/or editor for special projects at American Legal Media (ALM), managing editor for Tobacco International, special projects editor at American Banker • Bond Buyer, and as production editor for Bank Technology News and other related financial magazines and journals published by Faulkner & Gray.

A graduate of Fordham University, Mike is based in New York City, where he was born and raised.

Contact Mike at [email protected] or follow him on Twitter and LinkedIn.

 

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