Pet Service Industry Growth Creates New Opportunities For Franchisees And Startup Entrepreneurs
Written by Tim Morral
Steady and sustained growth in the pet services sector is driving demand for startups and franchises interested in non-traditional pet services business concepts.
While other sectors of the economy are reporting lackluster performance, the pet service industry is thriving.
According to the American Pet Products Association (APPA), last year the U.S. pet industry revenues totaled approximately $51 billion -- a 4% increase over 2010 revenues and nearly doubling the revenues earned by the industry as recently as a decade ago.
Trends driving the growth of the pet service industry include:
- 62% of all U.S. households (more than 70 million homes) now own a pet
- Approximately 46 million U.S. households own a dog -- significant because dogs require more services and are more expensive to own than other pets
- Apart from veterinary expenses, pet owners indicate that food, boarding and grooming expenses are their highest expense categories
Nontraditional and premium pet service companies and franchises are springing up to accommodate increased demand as well as a trend toward more luxurious pet experiences. For example, Camp Bow Wow, the nation's largest pet day and overnight care company, offers a service model that includes premiere service, all-inclusive pricing, in-home training programs and other value added elements.
In 2011, the Camp Bow Wow chain reported $60 million in revenues and expects to sustain its track record of 20% year-over-year revenue growth in 2012. The chain also expects to increase its number of franchises by as much as 10% over the next twelve months -- an indication of the rising number of franchise opportunities available for entrepreneurs eager to gain a foothold in the competitive world of pet services.
But despite the generally positive outlook for pet services franchises, prospective franchisees are advised to carefully evaluate each franchise opportunity according to the cost of franchise ownership and other factors.
It can also be helpful for prospective franchisees to connect with current pet services franchise owners to determine whether the pet services business model is the right fit for their personal and professional goals.
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