IBISworld released a new report on the online petfood and pet supply sales industry, which expects rising pet ownership to drive demand and boost petfood sales to 2016.
The report estimates that slowly improving economic conditions will boost consumer spending, which will drive online petfood industry revenue to a projected US$595.8 million by 2016. Over the past five years, IBISWorld estimates that revenue in the online petfood industry has grown to $484.7 million. The report also attributes higher demand for premium petfoods and online animal pharmaceutical sales to this growth over the past five years.
"Rising pet ownership in the United States and growth across the e-commerce sector has caused the industry to experience overall growth, despite the recession," says IBISWorld analyst Kevin Culbert. "Niche players like 1-800-PetMeds and discount retailers like Walmart have rapidly gained market share within the industry."
However, the report found industry revenue declined marginally in 2009 as consumer spending fell, but increasing per capita disposable income is expected to cause revenue growth of 2.5% in 2011. Rising revenue is also driving up industry profit margins, which have risen over the past five years due to improvements in automation driving down wages as a portion of revenue. A full copy of the report can be purchased online.