All pet owners can attest to the joys of having a furry friend, making pets a very important part of many people’s lives. It is estimated that more than half the households in the UK, the US and many other countries now own at least one pet, with more people discovering how much animal companionship can help combat feelings of isolation during the coronavirus pandemic.
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According to the Pet Food Manufacturers’ Association, 3.2 million households in the UK have acquired a pet since the start of the pandemic1 — an unprecedented number.
Pets are part of the family
Whether or not you are a pet owner yourself, investing in pet care stocks might be worth considering. A whopping 95% of pet owners see their animals as members of the family and it is increasingly common for people to indulge their pets with toys, treats, custom furniture and even designer apparel. Like everyone else in the household, pets require food, medical care, and other various services — all of which add up to big business. In addition, higher spending trends for humans, such as making healthier lifestyle choices, are trickling down to pet care as well: 69% of millennials opt for natural and organic products for their ‘fur babies’ (and 31% of pet industry customers are millennials)2.
Pet care: a high growth industry
The global pet care industry has soared over 70% in the last decade, making this market worth more than $200 billion today and is expected to grow to over $350 billion by 20273. Well-known brands such as General Mills and Nestle are taking notice of this booming sector and making acquisitions that add pet care to their portfolio of products in order to take advantage of the trend. Online retailers, whether general such as Amazon or specialised such as Chewy, have profited by providing pet owners with quick delivery of a wide range of products at the click of a button.
Health-related stocks are also benefitting from growth in this sector. These include companies such as Merck and Zoetis, which develop veterinary pharmaceuticals and diagnostic technology, as well as insurance companies such as Metlife and Lemonade, which help protect pet owners from potentially pricey healthcare costs.
Invest in the pet care industry with PetPortfolio
From an investment point of view, the pet care industry has enormous potential. To help investors gain exposure to this market, eToro offers PetPortfolio — a fully allocated thematic portfolio that contains exposure to a wide range of leading companies that address the needs of pets and their owners. Designed for long-term investing, this investment strategy has been created to help investors benefit from the powerful growth the industry is expected to generate in the years ahead, while minimising risk through its diversified approach to stock selection.
Invest in PetPortfolio
Your capital is at risk.
Sources:
- https://www.pfma.org.uk/news/pfma-releases-latest-pet-population-data
- https://petpedia.co/pet-industry-statistics
- https://content.etoro.com/lp/pdf/eToro_PETS_CopyPortfolio_EN.pdf