The retail pet supplies industry comprises both brick-and-mortar establishments and online retailers. The specialized brick-and-mortar retailers are facing stiff competition from online giants like Amazon and Chewy.com, as well as mass merchants such as Walmart and Target.
Typical inventory includes pet food and treats, collars, leashes, medications and preventative treatments, pet toys, and pet carriers, and many companies offer services such as grooming, boarding, and training as well.
Spending on pet supplies is, not surprisingly, driven by rising pet ownership among U.S. households. Even when the economy dipped into recession, spending on pets steadily increased. As a reference, the American Pet Products Association (APPA) reports that in 1994, Americans spent $17 billion on their pets. By 2016, that amount had nearly quadrupled to an estimated $62.75 billion. Market-research firm Packaged Facts estimates that spending on pet foods alone increased almost 6% to top $26 billion in 2017, and that number is forecast to continue growing through 2022.