2024 Trend Predictions For The Pet Industry

I'm seeing many "2024 trend predictions" online, so here are some of mine for the pet industry (opinions are my own and may not be accurate). 📝


1. A decrease in pet spending for certain categories 💰
▪️ While most pet owners will still spend a significant amount of money on their pets, I'm going to make the bold assumption that things will get tougher for non-essential categories, i.e., accessories, treats, wearables, etc.
▪️ "Affordable premium" will be a great product positioning (purely from a financial POV)

2. The rise of cat-focused brands (and owners) 🐱
▪️ We have been seeing a huge uptick in cat ownership, and brands are starting to take notice.
▪️ Brands have been dedicating budgets (and new products) to the cat category, and we believe it will continue to grow significantly.
▪️ We can expect to see more brands, i.e., Smalls, and Made by Nacho—a good vertical to expand into for existing players.

3. Retailers (middlemen) will start to feel the pressure 🖥️
▪️ The rise of platforms like Shopee, Lazada, and recently, TikTok Shop will make it even easier for brands or manufacturers to go DTC.
▪️ Pet commerce sounds attractive on paper but is a hard game to play (low margins, typically 20%) with high overheads. Personally, this is not a space I will want to go into unless I'm an existing (and strong) player (note: USA and SG specific).

4. The rise of UGCs and testimonials 🍉
▪️ Technology has made it easy for brands to get connected with creators, e.g., platforms like Pawjourr and @cookwithcrafted.com. For less than $1k, you can get 2-3 great UGC videos to use forever for your ads.
▪️ SMBs will shift away from spending $100k on production shoots, choosing to invest their budget into similar marketing activities that give better ROI.

5. Longevity and Health in pets will be an interesting space in 2024 💊
▪️ We all wish our pets could live longer, and for some time, test kits were all over my newsfeed (along with "Fitbit for dogs"), but these are "good to have."
▪️ The recent news of a potential new drug from Loyal for Dogs is exciting and, if true, a game changer. If I'm an investor, I will keep a lookout here.

6. Huge market potential: the last mile of a pet journey 👼
▪️ Taboo topic, but a lucrative business from a financial standpoint (and operationally easier than humans). In 2021, everyone bought or adopted a pet. You do the math.
▪️ Losing a pet can be akin to losing a family member (or loved one). Pet owners will want remembrance and/or a ceremony for closure.