IDEXX Laboratories (IDXX)
Although pet humanization is a fairly recent trend, coexistence between humans and pets dates back to ancient times. The domestication of animals is considered a milestone in human history, with an impact similar to that of the invention of the wheel, since it facilitated hunting, farming and transportation.
It is not known exactly when the motivation for animal domestication emerged, but it is believed that it happened when human beings realized that they needed to establish ties with nature in order to survive and thrive. Some sources indicate that dogs, one of the first domesticated species, have been bred as pets for about 10,000 years, whereas the domestication of cats in ancient Egypt began around 3500 BC.
Today people love their pets and treat them as if they were members of the family. And no wonder, because animals have the ability to create such a strong emotional bond with their owners that even doctors and therapists recommend them to their patients. According to the 2021 HABRI survey, 76% of surveyed owners say their health has improved as a result of owning a pet, up from 71% in 2016. 87% say they have experienced an improvement in their mental health from pet ownership, up from 74% in 2016. Pets can also change consumer habits (87% of respondents say they are more likely to buy products or services from pet-friendly businesses) and even influence decisions as important as changing jobs (45% would change job to be able to spend more time with their pet) or change housing (61% say they would move so they could have a pet).
People have an indescribable soft spot for their pets, to the point where 95% say they would do anything in their power to take care of them. The fact that owners are not highly price-sensitive when it comes to caring for their pet's health is critical to IDEXX Laboratories (IDXX), which produces and sells veterinary diagnostic test kits and instruments. Millennials and Generation Z have made it clear that dogs are no longer just companion animals, but members of the family. The new generations are more attentive to the needs of their little friends, which has driven medical care for pets in the last two decades and, therefore, the use of diagnostic tests. There are more and more pets (with the pandemic the number increased by 10%, when historically it had grown at 1% per year) and owners spend more and more on them (the average annual cost of owning a pet was $650 in 2009 compared to $1,000 today). In fact, over the past 40 years, pet care spending has grown 60% faster than personal consumption spending.
Currently, 67% of American households own a pet, up from 50% in 1960 Although this growth may not seem so significant, the increase in the US population and the increase in the average spending per pet has taken the industry from $1 billion in the 60s to more than $120 billion today. Over the next decade, millennials and Gen Z will account for more than half of all pet owners. This is one of the reasons Bloomberg Intelligence believes that by 2030 the average annual spend per pet will be $2,000, the industry will grow to $500 billion from the current $320 billion, and the US will remain the largest market, approaching $200 billion in sales.