Pets’ influence on their owners’ investment decisions
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Pets are a fundamental part of many people’s lives since they are considered another member of the family, and for this reason, they directly or indirectly influence the decisions that people make about their lives and, of course, about their investments.
It is estimated that approximately 60% of the world’s households have a pet, with dogs as the favorite animal, followed by cats. According to a study conducted by GfK, Latin America is the leading region, with 80% of Mexican and Argentinean respondents owning a pet and 75% of Brazilians.
According to figures from the National Institute of Statistics and Geography (INEGI), Mexico is the country with the largest number of pets in the region, with seven out of every ten households having one. It is estimated that there are 27 million dogs and eight million cats in the country.
The pet care industry ranges from veterinary pharmaceuticals, diagnostics, product and service distributors, food manufacturers and supplies of all kinds. The industry is expected to grow from $232 billion in 2020 to $350 billion in 2027.
Some of the areas that are most influenced by pets when making decisions and investing are the following:
- Home purchases: Purchase decision variables define consumer behavior and reasons for choosing a certain product.
According to a SunTrust Mortgage survey, one-third of new homebuyers said they considered the need for more space for their pet as a factor.
Among the reasons why they were buying their first home, having a pet was the third most frequently mentioned option, even ahead of children and marriage.
The survey also showed that 42% of millennials who had never bought a house before would consider their pet as a decisive reason for buying one.
- Vehicle purchase: For animal lovers, it is essential to have a vehicle that adapts to their pet’s needs.
Some considerations to take into account are that large dogs can occupy more than one seat, so a larger space is necessary; in addition, the dirt they may leave behind is easier to clean in materials such as vinyl, then leather and finally fabric.
Today there are vehicles with rear climate vents and good rear roof height, trunks with generous cargo openings, low floor and other features ideal for the comfort of pets.
- Travel and tourism: The desire to enjoy leisure time with pets is causing travelers to take them with them on their trips, this has caused social prejudices to be demolished and, in response to this demand, the tourism industry is seeking inclusive growth in a way that permeates for all, including animals.
At present, many businesses, restaurants, hotels and beaches are already certified pet friendly, and there is an offer not only in rural areas but also in beach areas and some cities, and these establishments even offer added values such as organic food or biodegradable bags to collect waste.
- Recreation and entertainment: Pet owners are also looking for places in their cities where they can go with their furry friends. The pet friendly range includes restaurants, recreational parks and shopping malls.
Retail spaces are in the process of developing this concept, so it is not yet common to see pet friendly as a rule; however, they are moving towards it and more and more businesses are implementing it.
The pet friendly concept has a value of 1.9 billion dollars and is expected to grow to 2.7 billion dollars by 2022, according to figures from Euromonitor International.
- Pet welfare and care: Pet welfare is one of the areas where pet owners invest the most, spending up to 11% of their salary on it.
This industry ranges from pharmaceuticals, preventive treatments, diagnostic and detection tools and imaging, as well as products, services and food of all kinds.
In the U.S., private health insurance will be purchased for more than 3.45 million animals in 2020. Meanwhile, the accessories and food sector grew 87% over the past five years, according to Euromonitor International.
The industry is expected to grow from $232 billion in 2020 to $350 billion in 2027.
Did you know that your pet can make you a lot of money?
One key to the pet care industry is that it remains stable even in times of crisis; that is, if a pet gets sick, it will be taken care of in the best possible way, regardless of the economic situation.
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