Industry Insights That Could Impact Your Business

According to a recent comprehensive report from a research in 2017, the pet industry in the U.S alone reached $86 billion and it still has a strong trajectory for growth.

Facts show that sales of pet products as well as services rose about 5% in 2017. However, business owners in the pet industry are always trying to adjust to the market landscape which is rapidly shifting due to the threats of disruption.

There are various new things to look out for as a pet business owner, ranging from the importance of pet-tech to the efficiency of e-commerce. Below are some important trends that are currently reshaping the pet industry’s future.

E-commerce Turns the Heat Up

Pet retailers are currently having a rough ride as there is a great surge in internet sales of pets. Shoppers have begun to migrate online at a great pace. As a pet supply or pet food company, you shouldn’t miss out on the fast-growing channel.

Earlier in 2018, Packaged Facts surveyed pet owners in the U.S and it revealed that 37% of pet shoppers online concur that “I am shopping online for pet products more than I used to.” 14% of shoppers stated they made at least one purchase within the past 7 days.

The fact is there are wide varieties of pet products available online, moderate shipping costs, and great auto-replenishment programs. These are some of the reasons why shoppers have started moving onto the internet for their pet and other related purchases.

Amazon Dominates Online Sales of Pet Products

If anyone has the power to make traditional pet retailers nervous, it’s Amazon — and for good reason. Amazon boasts 65 million Prime members (and counting), a highly popular shopping app, and unique voice-shopping capabilities via the Amazon Echo. The e-commerce behemoth continues to outpace its competitors in the pet industry.

According to Packaged Facts, Amazon attracts more than half of those who purchase pet products online, surpassing Chewy.com, PetSmart.com, Petco.com, and Walmart.com by a significant margin. What’s more, Amazon is doubling down by implementing robotics innovations in its warehouses, which could give it an additional competitive advantage in the future.

New Smart Devices Address Pet-Care Needs

Technology has not only changed how many consumers purchase pet products, it’s also changing the type of pet products available on the market. In particular, the rise of the Internet of Things and smart devices is transforming pet care in new ways.

Pet owners can now track their pet’s physical activity, location, and health metrics with pet wearables, Fitbit-style monitoring devices. Internet-connected video cameras and treat dispensers have been upgraded to allow pet owners to engage with their pets via Skype-like connections and dispense food while away from home. The goal of these smart devices is to eliminate stress for busy pet owners and to better care for the needs of dogs and cats.

Packaged Facts also expects to see veterinary services move toward digital, alongside the advancement of Internet-based solutions and applications designed to assist veterinary professionals.