Is the pet industry recession-proof?

[Zlantann]

Over the past months, the world has been ravaged by inflation and people are losing their purchasing power due to the high cost of goods and services. So many sectors of the economy are in a deep recession that has resulted in business failure. The pet sector is also suffering from inflation. In June 2022, pet food inflation in the U.S. reached 10.3%, Canadian had 8.1% and Europe has 8.8%.

But when it is expected that during an economic crisis, people would pull back on spending on their pets, it turned out the opposite. According to research by Edge by Ascential, the pet industry is forecasted to reach $281 billion by 2023. Many economists believe that the pest industry is recession-proof. In the past two recessionary dips of 2001 and 2008, pet spending actually grew unabated each year by 7 percent and 5 percent respectively. Moreover, it has followed a steady trajectory of growth over the past 30 years.  It's rare to find a sector that offers both growth and defensiveness in recessions like the pet industry.

Reasons for the growth of the pet industry

Pets are now part of the family: There are now around 108 million dogs in the United States– roughly one dog to every three humans. In the U.S., 70% of all households now own a pet (an increase from 56% in 1988), which means there are now more households with pets than children. The bond between pet owners and animals is getting closer. Everyone is treating their pets like children.  

Thirty years ago, dogs couldn’t come into the house, then they were allowed in the bed, and soon they will have their own room. With pets increasingly viewed as members of the family (even often taking the place of children as millennials wait longer to get married and have kids), spending on pet-care has consistently grown.

Animal protection laws: Countries now have written laws that protect pets against maltreatment and suffering. These laws are really enforced in developed countries and not in Africa where pests are exploited. Hence pet parents must ensure that these animals are not maltreated. Therefore, expenses on their medical, feeding, housing, etc are a very important part of the family’s expenses. Sometimes the government subsidizes pet products just like other basic needs.

Generation Z loves pets: It is now fashionable for the younger generation to own pets. The millennial generation already makes up 32% of pet industry consumers as they see their pets in a whole new light compared to their parent's generation. Millennials are now three times more likely to be pet owners than they are to be parents. Investors, founders, and analysts in the pet industry stated that while other sectors are suffering, the sector is bullish about its ability to withstand the worst. Part of this is because pet owners love their pets a lot. A recent study by Consumer Affairs surveyed 1,000 pet owners and found that 57 percent of participants aged 27 and 42 love their furry friends more than their siblings. The study also found that millennials’ romantic partners come second to a pet for 30 percent of participants.

In the UK, 3.2 million new homes adopted pets. People under 35 accounted for 59% of new pet owners, while 56% of those buying a pet for the first time had children at home. In the U.S, the numbers are equally staggering.  With the current trend of humanization among Generation Z, pest owners are not tightening their purse strings when it comes to everyday staples like good quality nutrition.
  
Covid-19 Pandemic: Stay-at-home orders created a perfect environment for pet ownership. Long hours spent in the office that once discouraged potential parents from adopting were replaced by the possibility of being present while working remotely. For the first time, half of the people employed pre-COVID-19 have been working from home, trading long commutes for quarantined conference calls, clearing social calendars, and yearning for emotional connection, which for many, has been filled by their pets. Consequently, animal adoption rates skyrocketed more than 110 percent, and fostering grew 197 percent comparatively year-over-year, according to Pethealth Inc. For existing pet parents, the stay-at-home rules offered a chance to spend more meaningful time and invest more deeply in their pets. The pandemic has made people become used to pets.
  

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[paxmao]

-Givign away your pet is one of the last things people do, but there is nothing really recession proof on that regard. The supplies will be more basic, non-brand items... there will be less buys and much less spending in superficial or optional things. The medicines and food staples tend to be the go-to items when trying to shell from a recession - these are classic defensive assests.

[mk4]

Re: Is the pet industry recession-proof?

Just to answer this question, I don't think it is — but the level of negative effects will generally depend on what specific pet-related business. If worse comes worse in terms of the economy, I'm going to guess that dog(or pet) food businesses will be hit the hardest simply because a lot of people wouldn't be able to afford it, and the likes of dogs and cats will likely be fed with leftovers instead.

^This is just a on-the-top-of-my-head take though.

[jackg]

I'm going to guess that dog(or pet) food businesses will be hit the hardest simply because a lot of people wouldn't be able to afford it, and the likes of dogs and cats will likely be fed with leftovers instead.

Most domestic animals can live well of human scraps (dogs, cats and birds especially).

Most dogs can tolerate even simpler diets of things like chicken, rice and vegetables and aren't that demanding  nutrition wise (most animals can synthesise a lot of vitamins in a way humans can't).


There were a lot more people adopting pets because they were working from home over the pandemic as you've said and I think that's the biggest surge that's been seen. People do tend to buy a lot more from stores now too, I think most pet ownership has been widespread for centuries in the UK and probably a lot of Europe but the difference is the trend that they'll buy things from stores for them (but there are limits to this - dogs can use human things and might need to - like repurposing an old duvet into a bed).

Gen Z buy a lot of human toys for their pets too instead of buying things intended for dogs as they might be better quality or more widespread (to be bough in places like supermarkets or department stores while looking for other things).

[cabron]

Dog owners who hit the rock bottom just abandon dogs on the streets since they couldn't feed them anymore. Its wrong but so many reports of increasing abandoned dogs everywhere.

My kid has a dog.  The dog is the only alarm system we have. He barks whenever unknown person come near the house. To me he's a valauble alarm system. Owners should also look at their dogs this way to see its importance as part of their security and family.

Not sure where I've read it but studies shows feeding the dog once a day will extend his life longer than feeding the dog every meal.

[mk4]

Dog owners who hit the rock bottom just abandon dogs on the streets since they couldn't feed them anymore. Its wrong but so many reports of increasing abandoned dogs everywhere.

I'm guessing that this spike up was due to the covid years. People were probably bored and wanted a pet for funsies, totally underestimating the amount of effort needed to care for a dog.

[Z-tight]

I don't feel the pet-industry is recession-proof, but it is the love of pets in a country and amongst its people that strengthens their pet industry, because people there buy pets and take care of them no matter what the condition is; there are other places of the world that the pet-industry is at its lowest, not that it was ever high, dogs for example can share mans' food and leftovers, but there are places people don't have enough to eat, let alone leftovers to share with their pet, in those places there has never be a boom in their pet industry, but it will be at its lowest now because of global inflation, and as a result many people abandon their pets or even kill then, and they can only possible do this because the love of pets isn't so high in that region.

[Zlantann]

I don't feel the pet-industry is recession-proof, but it is the love of pets in a country and amongst its people that strengthens their pet industry, because people there buy pets and take care of them no matter what the condition is; there are other places of the world that the pet-industry is at its lowest, not that it was ever high, dogs for example can share mans' food and leftovers, but there are places people don't have enough to eat, let alone leftovers to share with their pet, in those places there has never be a boom in their pet industry, but it will be at its lowest now because of global inflation, and as a result many people abandon their pets or even kill then, and they can only possible do this because the love of pets isn't so high in that region.

In some developing countries, dogs and cats are good meat. They are reared for meat and stray dogs or cats are captured and slaughtered. African culture doesn't support keeping animals as pets. Most dogs are reared for hunting or for guiding flocks. This part of the world has some of the best-hunting dogs, that can kill rabbits and bring the meat to the owner without several bites.

Some pet animals in some of these nations' homes are underfed and mal-treated. Where the majority of households are struggling to survive, how would pets have good lives? Also, there are no animal care or protection laws in most emerging countries. Pets are treated based on the owner's discretion. You would always see owners kicking, hitting, flogging, or starving pet animals.  

[hugeblack]

This is the strangest piece of information I read today, I did not have a pet, but the look of many of my friends for pets made me believe that such an industry will develop because it has become just like luxury yachts and gold watches as some tend to buy them all the time.

I remember that someone bought a massager for his cat, so if there were catastrophes, wars or ongoing economic crises, I do not expect this industry to continue to grow because sooner or later and when people have to reduce consumption, the pet will not be a top priority.

Do you have any statistics on developing and poor countries?

[el kaka22]

I am not sure about the recession-proof thing, but I know that it is a big enough industry that if you gain a good chunk of it, you will always be rich. Pet stores are not digitally huge just yet, I can easily say that people still do use stores a lot, and that is one thing that could be improving a lot. A future when one company grows so huge that they deal with ALL needs of a pet owner could literally be the next huge industry.

The main reason it hasn't reached there is the fact that it is a growing industry and as the article says Z generation is a bit different, but someone will eventually do it, and it is going to change the industry and then it will definitely be recession-proof when it is digital as much as it can be.

[Hydrogen]

Its been claimed that the life or death nature of healthcare allows for the industry to demand much higher payments in contrast to any other industry.

Perhaps this trend naturally extends to the pet industry for identical reasons.

Can't comment much on the finance, business and economics side of things. Except to mention that I remember the pet food industry being linked to slavery in asia years back. A good chunk of pet food comes from the fishing industry. Of which the fishing industry in asia is known to use slave labor on fishing boats. While most may not realize it, it is possible a high percentage of the goods and products they purchase and use on a daily basis carry links to sweatshops and slavery in foreign nations.

While these circumstances may be sad and unfortunate. They might also serve as a buffer zone on the labor side, which prevents pet food from reaching unaffordable levels. I don't even know what to think about that.

[Jatiluhung]

The increasing interest of people to have pets at home continues to increase during the Covid-19 Pandemic. because people have to stay at home. and they need entertainment or animals to treat their boredom. or it can be said that they need activities that can be done at home. and came the hobby of pet animals.

in the country where I work today (indonesia), I see the citizens are even more interested in collecting ornamental plants that they buy expensively. even to the point that there is one plant whose price is very expensive, such as an ornamental plant called Monstera. This plant was auctioned for around $8000 dollars.
Monstera

But I see an increase in the pet industry sector and the ornamental plant industry only in the midst of the covid-19 pandemic because people really need it at that time.

but now when inflation starts to get worse in various countries. I actually see that the pet business opportunity will be heavily affected by inflation and will be prone to recession. because nowadays people from the middle to lower economic circles will be much more concerned with their own needs than their pets. they will prefer to stock up on food rather than having to buy a pet.

but in the UK, I believe there is still a high level of interest in the pet industry because in that country, pets are even considered as family and friends. But I read in the news that the cost of funerals for animals is increasing rapidly in the UK as a result of inflation itself.

[Smack That Ace]

My kid has a dog.  The dog is the only alarm system we have. He barks whenever unknown person come near the house. To me he's a valauble alarm system. Owners should also look at their dogs this way to see its importance as part of their security and family.

I have 2 dogs, honestly dogs are the friendliest animals to us humans, I love them for their loyal nature and very helpful in our life as you describe.
I consider them as family members, dogs are friendly friends. and yet so many countries in Asia raise them and butcher them, it's horrible.

Not sure where I've read it but studies shows feeding the dog once a day will extend his life longer than feeding the dog every meal.

I've never heard of it but it's not convincing. Animal bodies, like us humans, need enough energy to function in a day. one meal a day is too little for any animal (I won't mention reptiles like snakes...). For me, what we eat, the dogs will eat the same.

[wxa7115]

Re: Is the pet industry recession-proof?

Just to answer this question, I don't think it is — but the level of negative effects will generally depend on what specific pet-related business. If worse comes worse in terms of the economy, I'm going to guess that dog(or pet) food businesses will be hit the hardest simply because a lot of people wouldn't be able to afford it, and the likes of dogs and cats will likely be fed with leftovers instead.

^This is just a on-the-top-of-my-head take though.

This is probably the most likely scenario, when people are hit with misfortune and they suffer losses which affect their standards of living they sell the stuff they know it has value, but probably one of the last things they ever think about getting rid off are their pets.

However as you say there is nothing that is truly recession-proof, it is just that is going to take a more intense crisis before people begin to think about whether they can afford their pets or not, and once they notice the amount of money they are spending on their pets they are bound to reduce costs.

[Kakmakr]

I think when it comes to pets, people react the same than how they might be reacting to Alcohol taxes.    It seems to me ...no matter how expensive alcohol become, people still find the money somewhere to pay for it.

People will cut back on other expenses to pay for alcohol and food for their pets. The pets stimulate "pleasure" hormones with people...and alcohol does the same... so why would people spend less on something that gives them pleasure?

We need those things that gives us pleasure.... when everything around us falls to pieces... right?

[BRINIRHA]

I am a person who likes to raise animals. and what I feel in the current state of the economy I don't mind raising animals. The animal I keep is a cat. Their treatment does cost a hefty amount of money. but because this is a hobby and pleasure then spending money for pleasure is commonplace. But when the impact of inflation is increasingly felt. I also prefer not to buy food for my cat. better feed them what we eat. thus becoming more cost effective. but if we talk about recession then all industries will definitely be affected including the pet industry. because sometimes we are forced to reduce our hobby of pets a little when the economy is like now.

[Taskford]

Dog owners who hit the rock bottom just abandon dogs on the streets since they couldn't feed them anymore. Its wrong but so many reports of increasing abandoned dogs everywhere.

I'm guessing that this spike up was due to the covid years. People were probably bored and wanted a pet for funsies, totally underestimating the amount of effort needed to care for a dog.

Having a pet is somehow a trend right now many celebrities posted their pets that's why other wants to follow and also they see a lot of cute pets posted that's why some want to have this without knowing there's huge responsibilities in it. Pet industry is not recession proof we all see that the dollar value rise up and it affects the price of all commodities and also with other things including pet cares so for having this issues we can also see the price hike of pet cares and that's what happening at this moment.

[tbterryboy]

I am a person who likes to raise animals. and what I feel in the current state of the economy I don't mind raising animals. The animal I keep is a cat. Their treatment does cost a hefty amount of money. but because this is a hobby and pleasure then spending money for pleasure is commonplace. But when the impact of inflation is increasingly felt. I also prefer not to buy food for my cat. better feed them what we eat. thus becoming more cost effective. but if we talk about recession then all industries will definitely be affected including the pet industry. because sometimes we are forced to reduce our hobby of pets a little when the economy is like now.

No, you didn't reduce your hobby, you still have your pets with you and you can adopt more because you said you can still be able to feed them with the food that you also consume and not foods that are specifically built for cats. We sometimes do that actually. We have one cat and two dogs. Sometimes we bought them dog food and cat food if we have an extra budget but most of the times they just eat regular food.

If the pets are sick and need some medication then that is a different story anymore. I think we normal individuals can't do much to help our pets but they need a special treatment of the experts or veterinarians and this cost some dollars.

[Wapfika]

Dog owners who hit the rock bottom just abandon dogs on the streets since they couldn't feed them anymore. Its wrong but so many reports of increasing abandoned dogs everywhere.

My kid has a dog.  The dog is the only alarm system we have. He barks whenever unknown person come near the house. To me he's a valauble alarm system. Owners should also look at their dogs this way to see its importance as part of their security and family.

Not sure where I've read it but studies shows feeding the dog once a day will extend his life longer than feeding the dog every meal.

We added more dogs this year, they can be consider a stress reliever their loyalty and sweetness makes us care for them more,they are not just a guard dog or our alarm clock but considered as family. We even bring them in vet for checkups even our dog who is not a pure breed. Many will do give their needs once they know how special thei dog is even if there is recession. During pandemic lockdown they are a good companion hopefully those who buy or adopt dog during pandemic will not abandoned their furbabies and will provide what they need. Be a responsible owner and be inspired in some celebrity dogs now in tiktok that gives viewer good vibes.

[Ryu_Ar1]

The increasing interest of people to have pets at home continues to increase during the Covid-19 Pandemic. because people have to stay at home. and they need entertainment or animals to treat their boredom. or it can be said that they need activities that can be done at home. and came the hobby of pet animals.

in the country where I work today (indonesia), I see the citizens are even more interested in collecting ornamental plants that they buy expensively. even to the point that there is one plant whose price is very expensive, such as an ornamental plant called Monstera. This plant was auctioned for around $8000 dollars.
Monstera

But I see an increase in the pet industry sector and the ornamental plant industry only in the midst of the covid-19 pandemic because people really need it at that time.

but now when inflation starts to get worse in various countries. I actually see that the pet business opportunity will be heavily affected by inflation and will be prone to recession. because nowadays people from the middle to lower economic circles will be much more concerned with their own needs than their pets. they will prefer to stock up on food rather than having to buy a pet.

but in the UK, I believe there is still a high level of interest in the pet industry because in that country, pets are even considered as family and friends. But I read in the news that the cost of funerals for animals is increasing rapidly in the UK as a result of inflation itself.

This is the same thing that happens in the area I live in, now maybe even almost every house in my area has this plant to maintain and cultivate.
Maybe this is related to a hobby and obviously this is actually quite profitable because the more they are popular, the higher the price when they are traded.
In the case of animals, maybe this is just for entertainment, but when the economy is getting more and more difficult, this will also definitely be a little burdensome because pets obviously need quite a bit of care starting from food and a place for them to be stored, in contrast to ornamental plants which only allow a little for maintenance costs because it only requires fertilizer and water to water regularly.

[The Sceptical Chymist]

-Givign away your pet is one of the last things people do, but there is nothing really recession proof on that regard.

Well, like human healthcare I think the animal health/pet supply industry is fairly recession-resistant, though not completely.  Nothing really is that I know of, and there are limits to which people are going to care for their pets.  In times of famine, people have been known to....well, you know.  Animals are a good source of protein, let's just put it that way.

But if OP or anyone else is looking for a good stock to buy, a company like Zoetis that specializes in making animal medicines might be a good choice.  I probably wouldn't invest in anything in the retail business, like Chewy and the like, because I think they would see their profits decline during a recession--but my opinion is that you just can't go wrong with healthcare, whether it's human or animal.  People have loved their pets for centuries and veterinarians aren't going broke, I can tell you that.

[Gyfts]

Here's another perspective: https://www.cnbc.com/2022/08/05/higher-housing-costs-force-more-pet-owners-to-surrender-their-dogs.html

The stories above are merely anecdotes, not calculations of the pet industry's growth. Point is, some people will give up their pets if it means they'll survive economically.

Most countries treat dogs as property or useful tools. Only in the developed world is there such affection for pets.

Stay-at-home orders created a perfect environment for pet ownership. Long hours spent in the office that once discouraged potential parents from adopting were replaced by the possibility of being present while working remotely. For the first time, half of the people employed pre-COVID-19 have been working from home, trading long commutes for quarantined conference calls, clearing social calendars, and yearning for emotional connection, which for many, has been filled by their pets. Consequently, animal adoption rates skyrocketed more than 110 percent, and fostering grew 197 percent comparatively year-over-year, according to Pethealth Inc. For existing pet parents, the stay-at-home rules offered a chance to spend more meaningful time and invest more deeply in their pets. The pandemic has made people become used to pets.

And what's tragic is that a lot of these pets went back to the shelter to get euthanized because irresponsible owners did not have the foresight to comprehend that COVID lockdowns/WFH settings were only temporary. Combine the economic turmoil and the result was predictable.

[Cryptomultiplier]

The first question I asked myself in soliloquy is this; is recession not a result of fiat affecting transactions?
The pet industry is also a part of society. The human society in which we live and reproduce love to acquire things that are deemed valuable no matter how expensive, just so as to keep body, mind and soul happy after earning. Covid-19 taught a hard lesson in the subject of companionship around the world and people saw how an unconventional means of relationship worked to help them stay fluid and present during those times. Acquiring Pets, potted plants, music instruments no matter how expensive did not really matter, so long the cash was available. It is all a means to an end.
The pet industry and other industries inclusive are experiencing the effect of recession. As long as exchanging cash to fulfill a desire still exists, and with the current global economic standings, I conclude on the fact that the pet industry isn't recession proof. Almost every sector of the economy right now is affected by the recession, without no exception for the pet industry. We only pray for the best in these times and for grace in spending wisely!

[2stout]

Nope, the existing pets that already have owners will most likely be fine.  However, the affect will be less pets finding homes, whether adopted or bred, which will in turn have a domino effect--> less pet food being bought--> less pet toys and accessories being bought --> overall, breeders struggling with sales to name a few.

[lizarder]

But when it is expected that during an economic crisis, people would pull back on spending on their pets, it turned out the opposite. According to research by Edge by Ascential, the pet industry is forecasted to reach $281 billion by 2023.

I try to summarize some sectors that are vulnerable and resistant to the recession process, by looking at various considerations that support sectors in the US.

• Global Market

• Financial sector

• Real Sector

These three sectors are relatively large in the US, so the potential for recession is greater, in fact this is a picture of the most recession-prone sectors in various countries.
While the business industry that has resilience during a recession.

• Health

• Technology

• Education

Because these three industries are not sensitive to rising interest rates and these industries are needed by many people when the economy is in recession.

Meanwhile, the pet industry did not have a major impact on the occurrence of a recession, because the supply and expenditure of this industry was not directly related to secondary or primary needs. (replaceable)
Furthermore, a recession is associated with a declining domestic product, a negative real economy in two or more quarters and a major slowdown or contraction in economic activity or vice versa.

Animal protection laws: Countries now have written laws that protect pets against maltreatment and suffering. These laws are really enforced in developed countries and not in Africa where pests are exploited.

Including animal protection laws, but in the next comment you said that stray dogs and cats are caught for slaughter.

In some developing countries, dogs and cats are good meat. They are reared for meat and stray dogs or cats are captured and slaughtered. African culture doesn't support keeping animals as pets. Most dogs are reared for hunting or for guiding flocks. This part of the world has some of the best-hunting dogs, that can kill rabbits and bring the meat to the owner without several bites.

Do legal references only apply to pets, but not to wild animals.
This confuses me?
As far as I know the law is used in a general sense, there are no exceptions in its application.
If your assumption is correct, then the person living in the area you mentioned is breaking the law.

Covid-19 Pandemic:
>snip

The area where I live, COVID-19 has started to disappear, activities involving face-to-face meetings are running as usual, although the economic impact has not recovered 100%.
However, it seems that it is no longer in the dangerous category, just waiting for the economic recovery to continue, because people still cannot get out of the economic problems that hit when Covid-19 occurred.

[Fortify]

Over the past months, the world has been ravaged by inflation and people are losing their purchasing power due to the high cost of goods and services. So many sectors of the economy are in a deep recession that has resulted in business failure. The pet sector is also suffering from inflation. In June 2022, pet food inflation in the U.S. reached 10.3%, Canadian had 8.1% and Europe has 8.8%.

But when it is expected that during an economic crisis, people would pull back on spending on their pets, it turned out the opposite. According to research by Edge by Ascential, the pet industry is forecasted to reach $281 billion by 2023. Many economists believe that the pest industry is recession-proof. In the past two recessionary dips of 2001 and 2008, pet spending actually grew unabated each year by 7 percent and 5 percent respectively. Moreover, it has followed a steady trajectory of growth over the past 30 years.  It's rare to find a sector that offers both growth and defensiveness in recessions like the pet industry.

Reasons for the growth of the pet industry

Pets are now part of the family: There are now around 108 million dogs in the United States– roughly one dog to every three humans. In the U.S., 70% of all households now own a pet (an increase from 56% in 1988), which means there are now more households with pets than children. The bond between pet owners and animals is getting closer. Everyone is treating their pets like children.  

Thirty years ago, dogs couldn’t come into the house, then they were allowed in the bed, and soon they will have their own room. With pets increasingly viewed as members of the family (even often taking the place of children as millennials wait longer to get married and have kids), spending on pet-care has consistently grown.

You gave an impression of everything that happened when the country was not in recession and while some of it does make sense, what we've seen recently is an anomaly. The Covid recession spawned all sorts of societal changes, like much more working from home, spending more time stuck at home (sometimes in the garden) and being socially isolated - which spurned a massive uptick in people adopting pets to help keep them company. Sadly that effect seems to have worn off and like the fickle people we are, many people have now switched back to working in the office and unfortunately some others have decided that they are unable to care for the animals they made such a big commitment to and have started abandoning them.

[dothebeats]

They may not be severely affected, but this industry will still get a taste of the recession. I have 3 cats that I regularly take to the vet and it's slowly getting expensive. Also, every week I make sure to buy $15 worth of cat litter and $20 on their food. Fast forward to now, cat litter costs $17 and their food $25. It may not be much of an increase but over time, it'll pile up. Pet supplies and food, which is under a lot of industries will take most of the hit. They can't do anything but be forced to up their prices if they want to stay afloat in this dire economic condition.

[Ucy]

Well, the pets should be beneficial enough to be worth the efforts/money that are used to sustain them otherwise they would end up being a burden to the extent of canceling the joy their owners derive from them.
Instead of owning just a pet donkey, have one that drives you to & from market once in a while. That should help it exercise its body while being beneficial to you at thesame time. I won't be surprised if they already have their gyms over there whereas they could be using the kind of energy they generate in the gym to help you do some important works

[savetheFORUM]

Well, the pets should be beneficial enough to be worth the efforts/money that are used to sustain them otherwise they would end up being a burden to the extent of canceling the joy their owners derive from them.
Instead of owning just a pet donkey, have one that drives you to & from market once in a while. That should help it exercise its body while being beneficial to you at thesame time. I won't be surprised if they already have their gyms over there whereas they could be using the kind of energy they generate in the gym to help you do some important works

I would guess that the pets in question would be stuff like cats and dogs. Many people in the entire world have cats and dogs which means that if you are producing food for these animals then you could still sell them when the pandemic happens or economy goes bad.

Because not like people would start to starve their cats and dogs, even the homeless people share their food with their pets and that means we are going to never see the pet industry going to be bankrupted at all. It is the same as food industry, even on the worst situation people will still need to eat something and that is the important part, as long as you get to eat something, the food industry will keep on surviving.

[Gayong88]

I think for a very few consumers who are willing to spend money on a service or product that benefits their animals and Being recession-proof is really what every business strives for. But pet industry experts say pet owners may have to face some tough decisions as more and more pet owners can't afford their pets. Since pets are considered part of the family, these families may have to let go of their furry friends due to financial difficulties.

[Davidvictorson]

Regarding the OP's query, it is important to note that no company is completely immune to the state of the economy. This implies that both direct and indirect effects will always exist. As you correctly noted, 70% of American families now have a pet, making the pet industry essentially a luxury business. Since individuals are losing their jobs, homes, vehicles, and other possessions, you can be sure that they won't be hiring an expensive dog trainer or spending money on other expensive pet accessories. That is one of the ways recession is having an indirect impact on the pet sector.

[TimeTeller]

Regarding the OP's query, it is important to note that no company is completely immune to the state of the economy. This implies that both direct and indirect effects will always exist. As you correctly noted, 70% of American families now have a pet, making the pet industry essentially a luxury business. Since individuals are losing their jobs, homes, vehicles, and other possessions, you can be sure that they won't be hiring an expensive dog trainer or spending money on other expensive pet accessories. That is one of the ways recession is having an indirect impact on the pet sector.

We can indeed see the impact indirectly even on the pet industry.
Definitely, who would spend good amount of money for training and other pet accessories?
But of course, it is not only in the pet industry but all the other industries are also affected.
In time, they will always recover because pets are always part of the families.
They will just go thru time of being frugal with their pets. As they need to address their personal needs first.
I think, this kind of situation should not be a surprise at all, unless you are rich and you have no problem with your expenditures.

[Zilon]

People got more closer to their pets while the pandemic lasted and ever since then pets became more like members of various families. Staying at home back then as a result of the covid-19 pandemic made correction to so many things that were neglected due to busy schedules including having time for pets and has people spent more time at home they got to see the need to spend on their pets because it was looking like a competition as everyone were forced into staying at home

I was opportune to stay with a close relative during the pandemic who happened to have a Cockapoo a skinny dog back then who was looking malnourished because the owner my relation was always busy with work and returns late at night but when the pandemic came seeing how attractive his neighbours dogs looked he took up the challenge and was so amazed how lovely his dog turned out to look within the few months he spent indoors.

I will see my Senior cousin drafting his monthly budget and at the first 5 items on his monthly budget happens to be the dogs food. It was so serious that he ensured the dog never lacked his feed. One of the key food the dog ate was
which was around $35 then in which most times i do the buying

[Stella Mese]

I don't think the pet industry is recession-proof. the only industries that will survive during a recession are those that provide primary needs such as the food or food industry. When the crisis is prolonged, people will start to leave their hobbies and prioritize the most important thing, namely food. so it is the food industry that will withstand the recession. because everyone needs food. because it's a primary need.

Human needs are divided into three, namely
1. primary (main / food)
2. secondary (secondary/clothing/home/clothing etc.)
3. tertiary (additional needs / hobbies, etc.)

When a recession arrives, it is the tertiary and secondary needs that are most vulnerable and most likely to be affected.

[Dunamisx]

So many sectors of the economy are in a deep recession that has resulted in business failure. The pet sector is also suffering from inflation. In June 2022, pet food inflation in the U.S. reached 10.3%, Canadian had 8.1% and Europe has 8.8%.

Though this may sound a little bit funny but that's just the reality about inflation, every sector is been affected and now the it is also experienced in the animals sector who else is free from the influence of inflation other than going on a look for an alternative that can byecut the inflation through the financial economy, the solution which is believed here is in adoption of cryptocurrency and bitcoin precisely could bring huge amount of difference from how the rate of fiat currency is dealing with economic market price, both humanbeings and animals got affected but a new approach with digital currency serve a preferable option as solution because things had gone bad already that only a change in the system of financial economy can only serve a better opportunity in crypto than fiat.

[OgNasty]

I don’t agree that the pet industry is recession proof. Shelters around me are already asking people to adopt due to animals being dropped off. People are leaving their pets as costs rise and they’re forced to deal with difficult financial choices. While pets have become part of the family, it would seem they are expendable in tough times.

[Dunamisx]

I don’t agree that the pet industry is recession proof. Shelters around me are already asking people to adopt due to animals being dropped off. People are leaving their pets as costs rise and they’re forced to deal with difficult financial choices. While pets have become part of the family, it would seem they are expendable in tough times.

I think he's not getting the whole idea, we are not saying that pet industry have build a resistant to the effective and implication of the ongoing inflation across the world, of course many areas of the economy were affected and alot of businesses have suffered great loss but in a crypto economy, this may be totally avoided because the currency in question here is not fiat but crypto, the liberty is there in using it because it is decentralized and permit me to say bitcoin of all crypto because other cryptocurrencies appears centralized to me, so why should the pet industries be excluded from this, except they have a change in mode of financial operations in their economy as well.

[virasisog]

I don’t agree that the pet industry is recession-proof. Shelters around me are already asking people to adopt due to animals being dropped off. People are leaving their pets as costs rise and they’re forced to deal with difficult financial choices. While pets have become part of the family, it would seem they are expendable in tough times.

We've been experiencing the same thing in our country. Shelters are asking people to adopt their rescued pets and even asking for donations for them to sustain the needs of those animals. Everyone and everything is badly affected by this recession. Even if pets are part of our families, the price of their necessities has increased as well. We could save them yet we can't deny the fact that it's aching our pockets most of the time.

[lucates]

Seeing record inquiries about dog and cat returns, the tightest squeeze on living standards since at least the 1960s, is forcing many owners to decide the additional cost of food and vet bills isn't manageable. It comes amid warnings of recession  and as Uk households are dealing with a massive crisis in their energy bills. Even Netflix subscriptions fell during this time due to a cost-cutting drive.

[SaveOurSea]

Seeing record inquiries about dog and cat returns, the tightest squeeze on living standards since at least the 1960s, is forcing many owners to decide the additional cost of food and vet bills isn't manageable. It comes amid warnings of recession  and as Uk households are dealing with a massive crisis in their energy bills. Even Netflix subscriptions fell during this time due to a cost-cutting drive.

That is correct - i am working 20 hrs a day and i am also planning to unsubscribe the Netflix to reduce some costs.
Someone once advices - take care of pennies and dollar will take care of you

Isn't it too much to work 20 hours a day and if it's me it looks like I'm really feeling tired,
it is important to reduce unnecessary expenses,
I agree with someone who advised you, especially with the current condition of inflation

[Minecache]

Seeing record inquiries about dog and cat returns, the tightest squeeze on living standards since at least the 1960s, is forcing many owners to decide the additional cost of food and vet bills isn't manageable. It comes amid warnings of recession  and as Uk households are dealing with a massive crisis in their energy bills. Even Netflix subscriptions fell during this time due to a cost-cutting drive.

That is correct - i am working 20 hrs a day and i am also planning to unsubscribe the Netflix to reduce some costs.
Someone once advices - take care of pennies and dollar will take care of you

Isn't it too much to work 20 hours a day and if it's me it looks like I'm really feeling tired,
it is important to reduce unnecessary expenses,
I agree with someone who advised you, especially with the current condition of inflation

Working 20 hours a day is really a horrible working time, it is too much for everyone's health. I myself have to work more than 17 hours a day and it is too tiring for me. But the crisis is happening and we are not only saving as much as we can, we are forced to work overtime to cover the cost of living. The economic crisis put pressure on all industries in all countries, everything went up but only our wages did not. I hope the crisis will end soon and everything will return to normal.

[Mometaskers]

While not exactly recession-proof, I would say it could be fairly resilient in the more advanced economies compared to say, some other minor luxuries. As already stated, people there tend to budget with pets in mind.

In more developing economies, probably not as much resilient. It would require that it at least have a large middle class that can afford the services/products. For example my cat had some problems giving birth (first time I actually had a cat had problems like this) and we asked around and apparently these are expensive - just as expensive as human procedures sometimes.

So yes, we can afford the food and litter so those manufacturers get a bit of our lower income money but not the vets, who would be relying on the middle class for their income.

I don’t agree that the pet industry is recession proof. Shelters around me are already asking people to adopt due to animals being dropped off. People are leaving their pets as costs rise and they’re forced to deal with difficult financial choices. While pets have become part of the family, it would seem they are expendable in tough times.

Sadly that's the case. Most people would rather give up their pets than let their children starve.

[uneng]

Isn't it possible that the industry is growing proportionally to the inflation? Let's say pets products' prices have increased 10% in one year, at same time the industry has grown 7%-8% on that same time period. If that is the case, people aren't spending more with pets, they are simply maintaining the same budget all the time, what is expected, since people who can afford such expenses with pets aren't in the lowest classes of society.

On the other hand, I'm aware of several cases of poor people who abandon their dogs on desert roads and even kill them at home at some point. Actually, I doubt most animals, especially dogs, are being well treated in the world, although the mindset nowadays is changing to a more humanist approach towards animals.

[BRINIRHA]

I don’t agree that the pet industry is recession proof. Shelters around me are already asking people to adopt due to animals being dropped off. People are leaving their pets as costs rise and they’re forced to deal with difficult financial choices. While pets have become part of the family, it would seem they are expendable in tough times.

difficult times like now. I think there will be a lot of abandoned animals. and I also think that the animal industry is more prone to recession. At first I had other thoughts. but then I saw the facts around my environment. many pet shops have been deserted of customers. some have even closed. and what makes me sad and sad is that some homeowners have left their homes but they don't take their pets with them. so sometimes I feed the animal. because they continue to walk around the complex looking for food.
 recession will impact all sectors. and what the government should pay much attention to is the farmers and agricultural areas. because that's where the food resources come from. and food is needed and is the main need. even a food crisis can be the most dangerous thing for a country.

[Mauser]

Most of my friends who have pets treat them as full family members, they would never consider giving a pet away only to save some money in recession. Same goes for the food they get, animals are usually getting the same food all the time and are very used to it and if you switch to a more cheap alternative he might not even touch it. In my family we have dogs since I was little and they are an important part of our family. Whenever we have lunch there is always an extra portion for the dogs and they know it. All day they are not touching their food and wait for the good stuff after eating lunch. And whenever my mother goes to the butcher, she will bring back some bones as a special treat. If inflation keeps rising and living cost keeps skyrocketing than I am sure we would be cutting back everywhere else before even thinking about our dogs. My parents would rather not go on vacation and use that money instead to make sure our dogs are fine. A vacation you enjoy for 1 or 2 weeks, with the dog you have fun and companionship all week, it's an easy choice.

[Frankolala]

Pets are like a companion to man because they are always fun of you,moreover you can count on them for a certain tax. I remember when we were kids,we have alot of rats in the house,so my mom got a cat and before you knew it,all the rats where dead. Pets demand become high during Covid-19. In my neighborhood everybody has a dog unlike before just few persons had so inflation is still not affecting keeping pets in the house. Most of this pets especially in Africa has a cheaper way to feed them. Then some persons train dogs or cats to eat during festive period.

[xSkylarx]

Even the pet industry can't escape the threat of recession. Here in my place, some pet shops have closed this year because customers going to them have decreased a lot. It's also hard to find now a store that sells food only for animals like dog, cat, or bird. People that have pets on their households just feed what they eat to their pet and doesn't care anymore if it's good or bad for them. Some even resorts to leading their pet astray just to be able to cut their spendings.

[ZaklievscaD]

I just wanted to continue your point, the pet industry has made significant advancements in pet care. Pet owners can now access a wide range of products and services for their pets, including high-quality pet food, grooming services, and pet insurance. Additionally, veterinary medicine has advanced, allowing for better care and treatment of pets as well as accessibility to the medicine like dog painkillers and other treatment that is in demand. These advancements have resulted in longer lifespans for pets, leading to an increase in pet ownership and the need for more pet care products and services.

[jrrsparkles]

I am thinking out of the box and with the current technology development we are not too far from reaching the complete virtual reality world so why would someone is going to spend a lot of money from their monthly earnings when they are capable of watching the same animal either its a dog, cat or fish or anything then I would choose the advanced virtual reality.

Yes, it may not completely same as the pet near us but trend will change everything so I wonder pet industry does have any potential at all in the next decade?

[iv4n]

I am thinking out of the box and with the current technology development we are not too far from reaching the complete virtual reality world so why would someone is going to spend a lot of money from their monthly earnings when they are capable of watching the same animal either its a dog, cat or fish or anything then I would choose the advanced virtual reality.

Yes, it may not completely same as the pet near us but trend will change everything so I wonder pet industry does have any potential at all in the next decade?

You can't believe it... I couldn't believe it either, but after watching a few documentaries I changed my mind. Some people in some countries spend more money on their pet/pets weekly than I earn from months of working. Pedicures, manicures, hairdressers. special shops with clothes and all "accessories", everything for beloved pets. I don't think we will see this trend dropping to some lower levels, pets have become a substitute for children, partners, friends... there were many such cases before, but every year more and more people decide on this path.

The pet industry is growing year after year, but I don't think we can say that the pet industry is recession-proof. If I take my city as an example 10 years ago we had one or two pet stores (+300k city population), and now we have them on every corner. Supply is definitely rising, but demand will not rise to infinity.

When it comes to the prices, I have pets, and feeding them cost a lot more compared with the prices from a year ago.

[mvdheuvel1983]

The recession has no respect for any industry. The pet industry is similar to other industries where sales of goods and rendering of services occurs. And since it is humans involved in carrying out these activities and not robots, the effect of the recession will also be felt there too.

For example the cost of Royal Canin a dry dog kibble has tripled in price since the recession began.

The veterinary doctors have to raise their fees because the cost of items have skyrocketed. It's terrible but then it is what it is.

[batang_bitcoin]

It is true that gen z likes more with pets and you know what I've observed with most gen z's today? They'll tell that they don't need someone to get with as long as they've got their pets with them. Others don't even want to have their own baby because their baby is their pet.
That's a true thing these days and some people are thinking of shifting into that thinking and that's why this type of business is booming. But while in the height of covid pandemic, every business has been down and that has included this industry.

The veterinary doctors have to raise their fees because the cost of items have skyrocketed. It's terrible but then it is what it is.

IMHO, all types of expertise from these doctors have raised their professional fees. As in everything now has increased, they're all saying that it's because of the inflation but that does that really make sense at all? Some have doubled the fee and others nearly tripled. Well, talking about how lucrative it is then it is.

[coolcoinz]

I know something about inflation in pet supplies. We have 2 cats and in 2 years the price of cat sand (bentonite) went up by 100%. It's not something we can't deal with, but this used to be a very cheap thing to buy every month, now it costs more than a restaurant meal. Cat's don't seem to appreciate what we're doing for them, they do their thing like nothing happened. Maybe we should learn from them and ignore inflation. It's better for our mental health.

The recession has no respect for any industry. The pet industry is similar to other industries where sales of goods and rendering of services occurs. And since it is humans involved in carrying out these activities and not robots, the effect of the recession will also be felt there too.

For example the cost of Royal Canin a dry dog kibble has tripled in price since the recession began.

The veterinary doctors have to raise their fees because the cost of items have skyrocketed. It's terrible but then it is what it is.

Don't buy royal, it's actually a low quality food. Vets get paid to promote and sell it, which is why they do. Check the ingredients. Animal food should contain a lot of meat and it doesn't need to have corn or rice, but royal has this inverted with lots of veggies and little meat. Compare ingredients with taste of the wild and you'll see what I mean.

[blue Snow]

Until today I don't know how much the cost of pet food is, I maintain 2 cats in my home for 3 years and I never buy pet food in shop, so that case I don't know the price. I always give my 2 cats for from the fish I cook. I buy 1 Kg fish a week just $1 and cook it. I did it weekly and I never have a problem with it, but sometimes, the price a bit grow like $1.5, but not often only if the weather is not good at sea.

So my pet is not affected by inflation.

[Freddie Boyer]

Over the past months, the world has been ravaged by inflation and people are losing their purchasing power due to the high cost of goods and services. So many sectors of the economy are in a deep recession that has resulted in business failure. The pet sector is also suffering from inflation. In June 2022, pet food inflation in the U.S. reached 10.3%, Canadian had 8.1% and Europe has 8.8%.

But when it is expected that during an economic crisis, people would pull back on spending on their pets, it turned out the opposite. According to research by Edge by Ascential, the pet industry is forecasted to reach $281 billion by 2023. Many economists believe that the pest industry is recession-proof. In the past two recessionary dips of 2001 and 2008, pet spending actually grew unabated each year by 7 percent and 5 percent respectively. Moreover, it has followed a steady trajectory of growth over the past 30 years.  It's rare to find a sector that offers both growth and defensiveness in recessions like the pet industry.

Reasons for the growth of the pet industry

Generation Z loves pets: It is now fashionable for the younger generation to own pets. The millennial generation already makes up 32% of pet industry consumers as they see their pets in a whole new light compared to their parent's generation. Millennials are now three times more likely to be pet owners than they are to be parents. Investors, founders, and analysts in the pet industry stated that while other sectors are suffering, the sector is bullish about its ability to withstand the worst. Part of this is because pet owners love their pets a lot. A recent study by Consumer Affairs surveyed 1,000 pet owners and found that 57 percent of participants aged 27 and 42 love their furry friends more than their siblings. The study also found that millennials’ romantic partners come second to a pet for 30 percent of participants.

In the UK, 3.2 million new homes adopted pets. People under 35 accounted for 59% of new pet owners, while 56% of those buying a pet for the first time had children at home. In the U.S, the numbers are equally staggering.  With the current trend of humanization among Generation Z, pest owners are not tightening their purse strings when it comes to everyday staples like good quality nutrition.

In my opinion, The reasons behind the growth of the pet industry, particularly among Generation Z. As you mentioned, millennials are now three times more likely to become pet owners than parents. This shift in attitudes toward pet ownership is due to a variety of factors, including the humanization of pets and the desire to make friends.

One thing that is unique in this moment, the People are no longer satisfied with providing basic needs for their pets and This trend is evident in the demand for high quality pet nutrition and health products, as people are willing to invest in the health and well being of their pets.

Well, another factor contributing to the growth of the pet industry is the increasing availability of pet-friendly housing. This increased accessibility to pet-friendly housing has made it easier for people to become pet owners.

[Iadegbola34]

The pet industry is seriously blowing up, even in tough economic times and crazy price hikes. Can you believe it? It's projected to hit a whopping $281 billion by the end of 2023! And get this, it's not just a fluke. Even during past recessions, the pet industry kept on growing like a champ. So, why is that? Well, there are a few reasons. First off, pets are legit part of the family now. People treat them like their own flesh and blood. They've gone from being outside-only buddies to sleeping in our beds and maybe even having their own room soon. It's wild! Plus, there are way stricter laws protecting animals, so their medical expenses, food, and shelter become a big part of the family budget. Some places even give pet products subsidies, like they're basic necessities or something. And let's not forget about Generation Z. These youngsters are all about owning pets. They see them in a whole new light compared to their parents. It's like pets are their BFFs, maybe even more important than their siblings or romantic partners. Oh, and the COVID-19 pandemic? It actually boosted the pet industry too. With everyone working from home, adoption rates went through the roof! People wanted that emotional connection, and pets were there to save the day. It's a match made in quarantine heaven. So, all in all, it's clear that the bond between people and their pets is stronger than ever. The pet industry ain't going anywhere. It's here to stay!