ices center with a range of grooming and veterinary services in Dallas, Georgia, in September. By the end of 2023, the company expects to have a total of 48 pet services centers in Georgia, Arkansas, Illinois, Texas, and Florida in close proximity to its stores to help further sales of pet products. The pet center will also have a small amount of retail space, where Walmart plans to sell its own private-label pet care brands.  Walmart and Petco are just the latest examples of a trend among both specialized pet care retailers like Petco and Chewy, and mass-market retailers such as Kohl’s, and Lowe’s, of expanding pet care services and product ranges to meet the needs of an increasingly pet-centered society.  The rise of the pet care industry  The global pet care industry was estimated to be worth $211.1 billion in 2023 and is predicted to rise to $430 billion by 2033 at a compound annual growth rate (CAGR) of 7.4 per cent. During the height of Covid, as people were seeking out comfort and companionship, adoption rates for cats and dogs rose to unprecedented rates. According to the American Society for the Prevention of Cruelty of Animals, more than 23 million American households, approximately one in five, adopted a pet during the pandemic.  And many of them have money to burn. Nielsen IQ reported that over 110 million households purchasing pet products had an average value per buyer of $680 at the end of 2022, representing a 10.7 per cent increase over the previous year and rising.  Aside from the increased number of four-legged friends in American households, the growing humanization of pets is also contributing to the exponential rise of this retail sector. Due to factors such as Covid, the economic recession of the early 2000s, and shifting ideas of gender roles, more millenial and Gen Z individuals are opting out of having children. Indeed, a survey conducted by market research company Consumer Affairs found that 58 per cent of millennials would prefer to have pets over children, and many of them are spending their discretionary income on themselves, their plants, and their pets.  As Eloise Monaghan, co-founder of pet care and lifestyle brand Sgt Puppa, explained, “With a rise in global disposable income, people are prioritizing the well-being and comfort of their pets. This shift in mindset has created significant demand for fashionable pet apparel and accessories that not only meet pets’ needs but also reflect the personal style of their owners.” Launched in early February, Sgt Puppa sells a range of dog apparel and accessories, such as backpacks, food bowls and water bottles, as well as cooler bags, athleisure and other items for humans, in matching, limited-edition prints. “These products not only enhance the stylish appearance of pets but also prioritize their comfort and safety, aligning perfectly with the broader trend of considering pets as integral family members,” Monaghan said. In addition to its product range, Sgt Puppa also organizes in-store events like pooch parties and adoption days, something that Monaghan believes more pet retailers should be doing. Sgt Puppa has one store in Las Vegas and aims to open additional stores in Texas, Florida, and California. Another area of growth in this sector is for high-end products, such as pet perfumes or organic food selections. The pet perfume market alone was estimated to be worth $1.4 billion in 2022 according to a report conducted by research firm Future Market Insights. The same report estimates that the demand for pet perfume is likely to grow to a valuation of $2.3 billion by 2032 at a CAGR of 5 per cent, partially due to growing interest in natural and organically formulated pet deodorizers.   There is rising demand for organic and sustainable product alternatives across the board in retail, so it’s no surprise that more pet owners are seeking grain-free and sustainably packaged food options, and the option to personalize food according to their pet’s specific dietary needs. What retailers need to keep in mind about the pet care industry While the pet care industry as a whole is experiencing strong growth, retailers that want to tap into the opportunities in this market need to keep a few things in mind.  For instance, while the rising cost of pet products has lifted overall sales volumes, unit sales have decreased, according to a 2023 pet trends report conducted by Nielsen IQ. In 2022, pet food prices increased by an average of 30 cents, the largest jump seen in this category in the past five years, and brought the total number of pet food products sold down by 2.4 per cent. As the cost per item increases, consumers are cutting back on their total basket size, limiting brands’ ability to sell multiple units per transaction.   One way vendors can navigate this issue is by placing an emphasis on assortment optimization and delving into data analysis and insights to streamline their product range for their consumer base.  Retailers may also want to consider enhancing the omnichannel shopping experience for their customers. Whether they are looking for pet food, supplies, or toys, over 22 per cent of consumers are combining the in-store shopping experience with online ordering, with no signs of the this shopping trend slowing down in the near future.