Oppawtunity
How pet retail is a whole different animal
Feeding and caring for pets has always been a big business but the sector is currently seeing a frenzy of activity. This is, in part, thanks to Mars, the 6th largest privately held company in the U.S., best known for its chocolate and sweets brands. Mars recently bought AniCura, a Stockholm-based animal-hospital group, which has spread impressively across Western and Northern Europe with 200 clinics.
Mars recently purchased two other similar companies: VCA Inc and Linnaeus Group, and its little-known pet-care division didn’t come alone. Not long ago, big names like General Mills and JM Smucker Co acquired pet food subsidiaries, while traditional pet retailers Petco and PetSmart have begun expanding their sources of revenue with more pet-care services, a space where e-commerce sites can’t compete.
According to AniCura CEO Peter Dahlberg, the reason for the boom is simple: “Pets have become more and more valued.” Americans will spend more than $70 billion on their pets in 2018. Globally, pet care is a growing $100 billion industry. With younger generations delaying marriage and having fewer kids, they increasingly humanize their pets, “We spend as much on our pets’ care as we do on our own – or on our kids. We’re more willing to spend money on things like premium pet care and food products,” said JJ Kinahan, chief strategist at TD Ameritrade.