Why Pet Franchises Have Become a Big Business
They go to the best schools, wear designer duds, and eat only organic food. They’re social media influencers, with thousands following their Tik Tok and Instagram accounts. And when they’re not at the spa or hitting up the newest hot spot in town, they’re chasing squirrels and barking at delivery drivers.
Yes, pets have moved up from family companions to a coveted demographic for business owners. Maybe their humans are the ones spending the big bucks, but it’s their comfort and health that are driving purchasing decisions. According to Franchise Journal, pet owners spent $123 billion on their dogs and cats in 2021, and that amount is expected to rise to $275 billion in the next decade.
For entrepreneurs, now is the ideal time to invest in a pet franchise. Your opportunities are no longer limited to boarding and grooming—our desire to give our pets the best life possible has expanded options to everything from dog park/bar hybrids to gourmet pet bakeries. With help from FranSelect, you can find an exciting new pet-themed venture that will make you the top dog in your market.
Three factors fueling the pet franchise boom
There are numerous reasons why the variety of pet franchises has skyrocketed over the past few years and why the industry sees no signs of slowing down:
- A greater need for products and services – During the pandemic, one in five households acquired a new pet, and by the end of 2020, pet ownership increased to 70%. While animal rescue groups were concerned that these dogs and cats would be rehomed once their owners returned to work, the ASPCA reported that 85-90% of owners still had their pet at home.
What many new pet owners didn’t prepare for was what to do with Fluffy and Fido when they headed back to the office. According to The Washington Post, many doggy daycares, dog walkers, boarding facilities, and training facilities have months-long waiting lists, creating a ready-to-go market for pet franchise owners launching a new business.
- Increased spending on pets by Millennials and Gen Z – When compared to their parents and grandparents, younger Millennials and Gen Z are delaying homeownership, marriage, and parenthood longer for personal and financial reasons. However, they still want comfort and companionship in their daily lives—and a pet easily fills that role.
Coming off COVID, Gen Z and Millennials reported spending 50% more on their pets than the year before. In addition, because the pet ownership rate is higher among individuals with a college education and a stable income, owners have the financial means to splurge on things like high-end doggy day camps and gourmet treats. One study found that when pet owners were assigned to spend $5 on their pet, they felt a greater degree of happiness than participants who were asked to spend that money on themselves or another person.
- Pets are seen not just as animals, but as family – More and more, pet owners are humanizing their dogs and cats, treating them more like kids than pets. As a result, they are seeking services and products similar to those they buy for themselves and their family members. For instance, sales of human-grade pet food and treats increased 29% in 2020, dog toy subscription services are booming, and dog spas have upgraded their services, offering everything from yoga to massages.
Franchise Opportunities for Pet Lovers
Please call Nancee Roberson(405-640-7476) if interested in learning more about three different pet franchise options through CBI Team.
Nancee Roberson, MBA, CLU, ChFC, RHU, REBC, CEBS, CLF
1-405-640-7476
