The U.S. pet and pet supply store industry includes about 9,750 establishments (single-location companies and units of multi-location companies, both franchised and not) with combined annual revenue of about $17.2 billion, according to First Research. Popular pet store franchises include: Earthwise Pet Supply, Fetch! Pet Care, Global Pet Foods, Husse, Pet Depot, Pet Supplies Plus, Pet Wants, Petland, Wag N' Wash, and more.
The market for pet store franchises has been consistently increasing over the past 25 to 30 years. As much as 70% of U.S. households own a pet—and people are spending more and more money on their furry, feathered and scaled family members.
Consider this: In 1994, pet industry spending totaled about $17 billion. It’s grown exponentially since then. In 2022, the total amount of expenditures on pets in the United States was $136.8 billion, up from $123.6 billion in 2021 and $90.5 billion five years prior in 2018.
Here’s a breakdown from the American Pet Products Association (APPA) of how that nearly $137 billion was spent:
- Pet Food & Treats: $58.1 billion
- Vet Care & Product Sales: $35.9 billion
- Supplies, Live Animals & OTC Medicine: $35.1 billion
- Other Services: $11.4 billion
(The other services category is defined by the APPA as boarding, grooming, insurance, training, pet sitting and walking and all services outside of veterinary care.)
Breakdown of Potential Customers
Per IBISWorld’s report on pet stores in the United States, people in the age range of 45 to 64 are the largest market segment for the pet store industry at 43.5%. The next largest market segment is consumers between the ages of 25 and 44 are 33.1% of industry revenue. It should be noted that the market researcher sees demand from this segment is growing via “young families interested in pets to raise alongside their children for companionship and to teach their children responsibility.”
Per the same report, people 65 and older make up 16.1% of industry revenue. Consumers under the age of 25 comprise only 7.3% of pet store industry revenue in the report, but it is noted that they have an extremely large influence on the pet industry through their own spending power and influence on their parent’s spending decisions on family pets.
Contributing Factors to Pet Store Industry Growth
According to Euromonitor, these are a few reasons those who sell pet products should feel good about the future.
- Via humanization, Americans are increasingly willing to spend more on their pets and treat them as family members.
- Pet owners are investing more in dietary supplements for their pets to keep their pets healthy. Specifically, CBD usage is on the rise for pets. In addition, pet owners are also paying more attention to ingredients in products and as well as where products are built or made.
- Internet sales of pet products will likely continue to grow in line with other online sales. Delivery will also be a huge factor in the future success of pet stores.
Opening a Pet Store Franchise
According to the founders of Wag N’ Wash, the ideal franchise candidate for pet franchise “is a community minded, pet-centric individual who is outgoing, has a fun and friendly personality, loves working directly with customers and leading a team, is able to follow a proven system, has excellent communication skills, and understands the special bond that exists between companion pets and their human guardians.”
Beyond the soft skills needed, there is the matter of the finances…
Opening Franchise Costs
The opening costs for prospective pet store franchisees can depend on many factors, including but not limited to: the business system and execution requirements. The cost of real estate will be especially impactful on the opening cost.
Franchisors offer estimates on the opening costs in their franchise disclosure document (FDD) based upon their experience establishing, and in some cases operating, units. However, prospective franchisees should keep in mind these estimates are just that—an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before making the decision to enter into a franchise agreement.
Regulations
Like any other franchise, your pet store franchise will have to meet all of the local occupancy, safety, and accessibility standards required of any other retail store.
However, if your pet store franchise sells live animals in addition to goods and services, additional animal welfare regulations will apply. For instance, many locales require conditional use permits in order to lodge animals overnight in a place of business. This kind of regulation is especially important to not just boarding franchises, but also pet store franchises that offer grooming as well.
Fortunately, your franchisor will have been through the process and can help you in gaining the necessary licensure.
Top Benefits of Being a Pet Store Franchisee
The benefits of owning a franchise can be numerous vs. independent operation. Here are a few of the top benefits for those who decide to own a pet store franchise instead of going at it alone.
Name Recognition: When it comes to finding a service provider, people tend to deal with someone they have a familiarity with. Franchises tend to have established brand names that, in many instances, have been around for years. If you buy a pet store franchise, you will be given the right to associate your business with that franchise company's name, trademarks, and logo.
Advertising: Getting your name out there can be expensive and sometimes it can be hard to know where to spend your advertising and marketing budget. With a franchise, national advertising is typically done by the franchisor. In addition, though local advertising is generally up to you, you’ll have guidelines in place to help guide you.
Training & Support: A popular feature with all franchises is the training provided. While in business, franchisees will have access to the franchisor’s operations manual, computer systems, and other items designed to help you successfully manage your pet store franchise.
You can also check out many more franchises here on Franchise Direct, such as: