Pet Age Staff //February 13, 2019//
By: The Pet Business Professor
According to John Gibbons, president of A GPS for Pet Businesses, after putting the segments side by side to make the parallels and differences more readily apparent, 2017 saw movement toward more balanced spending in terms of income and higher education and a definite spending migration to lower populated areas in both rural and suburban settings. There was another change in consumer behavior that we should note. In 2015 and again in 2016, we saw how shifts in spending behavior in one major category, pet food, can negatively (2015) or positively (2016) impact the spending in others. Consumers, in effect, traded money. In 2017, this was not a major factor. Price deflation in food and supplies in conjunction with extraordinarily low inflation in the services segments, made 2017 a year of “Consumer Value” in the pet industry. Remember, value is the #1 driver in consumer spending behavior. Consumers recognized the opportunity and took advantage of it by spending $9.84B (14.6%) more on their pet children. It was a year for the record books.
Associates Degree or Higher – Higher education often correlates with higher income. We see spending performance very similar to Income but even more pronounced. In 2017 the importance of education was dialed back a little in the services segments but remained stable in supplies. The big change was in food where the advantage almost vanished. This came as a result of a big spending lift from one segment – HS grads w/some college.
Married Couples – Being married makes a huge difference in spending in all segments. A minimum performance of 126% says it all. In 2017 their high performance became virtually even across all segments as they dialed back on services but gained over 4 share points in supplies.
Everyone Works – Income is important, but the number of earners became markedly less important in 2017 with a big drop in share and performance across the board. This was driven by a big year from 1 earner, 2+ CUs and retirees.
All Suburban – Most pet dollars are spent here but the share and performance of this group has become more volatile. In 2016, they loss ground due to a big across the board spending lift by Central City. In 2017, they held their place in supplies and veterinary but lost share to rural areas in food and services. Food performance fell below 100%.
Although there are numerous individual changes, I saw these trends of note:
See full report here.