Industry Update - Pet Products
Alexander Hutton Industry Update | September 2020
The coronavirus pandemic has not been kind to many industries - but pet supplies may see a silver lining. As Americans follow stay-at-home orders and reduce possible exposure to the virus, retail shopping across all sectors has declined and largely shifted online. Non-food pet supplies sales were anticipated to fall 23% in 2020, a shock to an industry that has seen consistent growth over the last decade.
However, these same conditions wreaking havoc on brick-and-mortar retail are also creating the perfect conditions for pet ownership. Dog adoption rates in particular have significantly increased in the past few months as people spend more time at home and crave the companionship of pets to combat the loneliness of social distancing. Multi-pet households skew higher income, leaving room for plenty of discretionary spending in the coming years where the pet products industry will see a boost from this increased pet ownership.
Oaklins petcare specialist, Jonathan Buxton, raves "With valuations at an all-time high and the presence of both strategic and financial players with huge cash reserves, the petcare market is supportive of strong M&A activity."
For more on market trends, transactions in this industry and more, click below to read the Full Version of the Pet Products Industry Update!