Alex Douzet is CEO of Pumpkina pet care and insurance provider founded to help ensure pets live healthier lives.
getty
The bond between pets and their owners is only getting stronger, in turn increasing the pressure for new pet health products and services. This question is driving innovation in the pet health industry as companies respond to the diverse needs and high expectations of modern pet owners. Below are the trends I predict will have a big impact on the pet health industry in the coming years.
1. Growing demand for preventive care and wellness products
Unlike human healthcare, preventive care compliance is low in the pet health space. While many veterinary professionals actively educate pet owners about wellness care and advocate for increased compliance, pet owners generally are inconsistent with routine health checkups, blood checks, or other annual preventative care services for pets. their pets. There is an opportunity for growth here.
Although preventive care compliance is low, many pet owners are generating increased demand for wellness products and services as they want to help their pets stay healthier for longer. Pet owners also want to offer their pets a high quality of life for as long as possible and are looking for solutions that can enable this. There has been a boom in the purchase of products such as DNA test kits and wearable tracking technology that allow pet owners to gain knowledge about their pet’s unique needs and address potential health risks . I believe this indicates that pet owner attitudes are shifting from solely reactive care to proactive care, which could become standard practice in the next five years.
2. Veterinary clinics leaving private ownership
Currently, approximately two-thirds of veterinary practices are independently owned, with the remaining third being large groups or corporations. With even more clinics formerly independently owned, I see this division continue to change, with far fewer privately owned clinics. The next generation of vets is driving this trend; their passion is for veterinary medicine rather than business management. They want to focus on providing the best possible pet care instead of having to go through the hassle of hands-on ownership. I also see this trend as a product of young vets seeking a better work-life balance, which is nearly impossible to achieve if you take on both full-time vet and practice owner roles. I predict we will see independently owned clinics sold in more significant numbers and accelerated consolidation among veterinary clinics across the United States to network larger veterinary groups.
3. Women’s spending on increasing discretionary income
The Pew Research Center reports that women make up nearly 60% of all college students. More well-educated women with college degrees translates into more women getting well-paying jobs in the years to come due to their higher education and career prospects. Comparing this to the median age of marriage for women rising to 28, the data produce a clear picture of a growing female population without family responsibilities who have high levels of discretionary income.
This demographic greatly influences pet care and healthcare spending as they are very likely to have pets in the home. We are seeing that their willingness to spend discretionary income on their pets results in increased purchases of luxury pet care items and services such as pet daycare and healthcare products such as human grade foods and plans. pet insurance.
4. Data that helps reduce research and development time for pet health products
As more comprehensive pet health data is collected and more people have access to that data, a big benefit is that pet health organizations can more effectively monitor and understand the pet population. This allows them to gain better insight into the identification of new diseases and increase understanding of disease biology to accelerate biomarker development. I see these capabilities combine and have a huge impact on reducing R&D time and test cycles for new products to market. The reduced timeline to identify a new disease, develop a product, receive FDA approval, and then bring it to market will allow pet health companies to achieve a better product-to-market fit.
5. Insights and more personalized treatments for pet health
As mentioned above, pet healthcare isn’t right for everyone. A big benefit of collecting more pet health data is that it gives us a 360-degree view of pet health. That means understanding not only diagnostic data about their health, but also their nutrition, exercise, sleep patterns, responsiveness to certain foods, and more. This knowledge enables veterinary professionals and pet owners to provide even better care and also allows for a much more personalized approach to caring for each individual pet. Veterinary professionals are gaining the ability to tailor their care recommendations to apply to specific pets. Think recommendations tailored to a 4-year-old Golden Retriever with hip dysplasia and a genetic predisposition to orthopedic injuries rather than more vague categories like “adult dog with hip dysplasia.” This level of diagnosis can be powerful as it allows for more effective treatment outcomes and better care for all pets.
Conclusion
Aside from these specific trends, pet healthcare companies are also transforming in broader ways. I have observed that the most successful pet health companies that dominate the market are those that leverage data and AI to automate their processes and deliver a better customer service experience. They are improving their strategies for attracting and retaining the best talent. They are also building agility and resilience into their businesses to help them weather the storms of an unstable economy. I think it’s an exciting time to be in the pet health industry, and as the industry grows rapidly, be prepared to see more innovation and new players emerge.
Forbes Business Council is the premier growth and networking organization for entrepreneurs and leaders. Do I qualify?