Financial investment in pets’ health sector

2 min. reading
Pets / 8 August, 2021
Financial investment in pets’ health sector

Sofía R. Ustáriz Journalist

The so-called ‘humanization of pets’ keeps the pet health and wellness sector on the rise, with an estimated annual growth of around 5% in the global market for related products and services.

Sectors dedicated to the production of food, accessories, vacations, grooming, medical insurance and even pharmaceutical companies, all betting on the clear need to improve the quality of life of the friendly and beloved members of the “new” family in much of the planet.

Pets' influence on their owners' investment decisions

Pets' influence on their owners' investment decisions

Pets represent a decision variable when choosing to invest in a house, in a car, in travel, in their own care or simply in leisure activities.

Diversity to invest in pets’ health sector

These food and pharmaceutical companies do not necessarily focus on animals but, in some cases, this segment can represent a very considerable part of their sales and profits.

Whether due to the influence of a certain generation, such as baby boomers or millennials, or simply because of the worldwide increase in pets and companion animals, this megatrend is here to stay and grow, in addition to offering significant benefits to those seeking to invest in these sectors.

 

Relevant aspects in pet investment and the markets surrounding this sector:

  • Potential for profitability and good return on investment by stocks in the long term: investments in the area of animal welfare and pet products have had a significant growth since 2014 or so and it is thanks to this that the stock market offers greater participation in opportunities designed for individual shareholders. From pet ecommerce to chain companies with international reach.
  • Investment and risks: investment funds and the entire platform of stocks that revolve around the welfare and care of pets offer excellent rates of return, but more towards the long term. Over short and even medium-term periods they can undergo significant swings and fluctuations, which has been evident during the coronavirus pandemic and its effect on the entire global economy.

The important thing to remember is that pets have gone from being an “asset” to becoming an important part of many families, with each member seeking to provide the best food available and the best medical care and assistance if necessary, which presents an interesting and diverse financial investment system closely linked to every aspect of the lives of the furry family members.

How to invest in Pets?

From BBVA New Gen we have compiled the companies and investment funds that are dedicated to Pets find out how to invest in the companies that are revolutionizing the sector

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