ClickZ Pet Products Newsletter - 08.22.2024

PLUS: How PETLIBRO's Black Friday TikTok campaign generated over 110 million views

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ClickZ
August 22, 2024 • Estimated Reading Time: 5 minutes

Specialty Bites 🍪

Pet spending in 2024 is set to reach new heights, reflecting the unwavering bond between humans and their animal companions. According to a Synchrony study, the lifetime cost of owning a dog ranges from $19,893 to $55,132, translating to $1,270 to $2,803 annually. In 2023, Americans spent a staggering $143.5 billion on their pets, underscoring the significant financial commitment involved.

Health-related expenses dominate pet spending, accounting for 19% to 45.5% of dog-related costs and 15% to 38.8% for cats. Annual pet food costs average $434 to $684 for dogs and $351 to $584 for cats. Veterinary costs have surged, with an emergency vet exam costing between $100 to $200, and routine exams in Connecticut averaging $93. Interestingly, Winston-Salem, NC, is the priciest place to own a dog, with annual doggie daycare costs at $2,784.

Pet insurance is another significant expense, with monthly premiums for cats at $19 and the most affordable dog breeds to insure being the German Shepherd Dog and Beagle, averaging $34 per month. Americans also spent $28.8 billion at brick-and-mortar pet stores, and pet food expenses in March 2024 were 23% higher than in 2021.

The holiday season saw pet owners spending an estimated $122 on their pets, with 74% planning to buy toys. Generation Z allocated 35% of their holiday gift budget to pets, while Baby Boomers spent 0.96% of their income on their furry friends. Despite economic challenges, pet owners continue to invest heavily in their pets' health, well-being, and happiness, highlighting the deep emotional connection they share.

Pet ownership trends reveal generational differences: Millennials lead with 30% of pets, followed by boomers, Gen X, and Gen Z. Spending habits vary, with Gen Z spending the most annually. Millennials and Gen Z view pets as "fur babies," while boomers and Gen X appreciate pets' holistic benefits.

“Pet Business Disruptors,” a new podcast by Clayton Payne and Harvey Blackaby, has quickly climbed international charts. Featuring industry experts like Hugh Petit and David Hartigan, it aims to share innovative business strategies. The podcast is available on Spotify, YouTube, and Apple Podcast, promoting industry innovation and boundary-pushing ideas.

Industry Appetisers 🥨

Pet food innovation is focusing on sustainability despite economic concerns. Adoptions are down, but manufacturers invest in sustainable ingredients and probiotics. Consumer surveys show varied commitment to sustainability. Salmonella remains a recall issue. Insect-based diets and brand loyalty are notable trends. Experts suggest new product concepts for market testing.

Pet spending is set to exceed $150 billion in 2024, driven by 82 million U.S. pet-owning households. Key stocks to watch include Zoetis, Chewy, Freshpet, Petco, Elanco, and Trupanion. Despite some post-pandemic revenue declines and inflation concerns, the pet care market remains robust and promising for investors.

Performance Platters 🍽️

PETLIBRO's Black Friday TikTok campaign generated over 110 million views with the #PETLIBRO hashtag, demonstrating the platform's power for pet product brands to create viral content and drive sales during peak seasons.

Snapchat introduces new ad products, including an enhanced Lead Gen suite, First Lens Unlimited, and AR Extensions. The platform's Q2 2024 report shows a 16% revenue increase and a 243% rise in adjusted EBITDA. New features target app advertisers and leverage ML and AI for improved ad performance.

Gen Z is increasingly using Pinterest for shopping inspiration, making it a crucial platform for brands targeting this demographic. Pinterest's user base is growing, with Gen Z being the fastest-growing segment. Brands like American Freight and Bis are leveraging Pinterest's features to boost engagement and sales.

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