BUSINESS - Global Pet Accessories Market Expected to Exceed $19 Billion by 2020

A recent article in Pet Age Magazine predicts a compound annual growth rate (CAGR) of over five percent in the global pet accessories market from 2015 though 2019.

This growth translates into an expectation that the market will exceed $19 billion by 2020.  

This data was gleaned from a market research study by Technavio called “Global Pet Accessories Market 2015-2019.” The study provides an analysis of the market in terms of emerging trends and revenue, along with forecasts for various market segments and all geographical regions.

According to the study, the global pet toys market is expected to reach $10 billion by 2019.  “There is a rising popularity of natural and organic pet toys as they are considered to be a safer option for pets,” Brijesh Kumar Choubey, a lead research analyst at Technavio for pet supplies, told Pet Age.

The global pet housing, bedding, and food market is expected to reach $5 billion by 2019, making it the second most prominent segment in the global pet accessories market. The global pet collars, leashes, and utility market is expected to exceed $3 billion by 2019.

Packaged Facts Provides Trends for the Pet Supply Market

In 2014, the nonfood pet supply market had a value of $15 billion USD in the United States according to Packaged Facts (all statistics in this article are from “Pet Supplies in the US, 10th Edition”). From 2010 to 2014 the pet supply industry grew by 15%.

There are approximately 2,250 companies that participate in the American pet supply market and this number continues to increase. Competition is expected to increase as well and the pet supply market is expected to reach $17 billion USD by 2019.

Packaged Facts provided four macrotrends for 2015 and onwards:

1. Impact of economy: Spending on pet supplies will reflect the economy. With the economy not as strong as it once was many people will continue to keep their spending low. While many people struggle financially they are reporting feeling more affluent than in previous years.
2. Savings are a priority: Saving money is important to people. Approximately 50% of people are spending more on pet products. In the past four years, people have been becoming more comfortable with higher priced pet items. The percentage of people that felt that products were too expensive dropped from 74% to 64%. While people may be comfortable with higher prices they still want to see lower prices and sales; most are looking for a good deal.
3. Premiumization and natural pet products: For at least ten years premiumization has been a strong trend in the pet supply market. Many industry experts believe that premiumization is necessary to maintain profit margins on premium products when compared to normal brands. Premiumization is often closely tied with natural pet products. One driving trend to encourage people to spend more on premium and natural products are the potential health benefits to pets. People will spend more if a product could potentially benefit their pet.
4. Baby boomers are key to market growth: With approximately 77 million baby boomers in the U.S. they are a large force in keeping the pet supply market strong. Many boomers have high incomes and are able to spend large amounts of money. Boomers have also remained willing to share their wealth and lifestyle with their pets as they age. If boomers continue this trend as they become seniors then this promises a continued strong pet supply market.

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