newswire: 8/25/2020
- In a shift from previous recessions, Americans in recent months have become more likely to bring their dogs and cats to the vet. Spending on primary care for humans is way down, but spending for pets is not, with much of the increase coming from routine care like vaccinations and checkups. (The New York Times)
- NH: Last week I wrote that parents and kids have never seen more of each other now that they are stuck in their homes. (See “The Future of Helicopter Parenting.”) It's also true that owners and pets have never seen more of each other.
- With vast amounts of free time and more opportunities to notice day-to-day changes in behavior, owners are taking their pets to the vet more frequently than before the pandemic. Vetsuccess reported that revenue for vet clinics in July was up 18% from last year. Trupanion, a seller of pet insurance, reported that their second-quarter earnings were up 28% from 2019. They have also seen a 14% increase in dog and cat insurance since the beginning of 2020. And their stock (TRUP) has increased 132% since last year.
- This surge in vet visits is unexpected since the industry usually suffers during recessions. But stimulus has kept cash in people’s hands.
- Of course, this spike in visits may slow down in the coming months. One theory for the increase is that owners canceled their vet appointments for routine checkups at the very beginning of the pandemic. And now that lockdowns have eased, owners are playing catch up. But I predict that, if large-scale telecommuting continues, owners will bring their pets into clinics with every whimper Fido makes.
- I've been long on the pet care industry for years. (See "Pet Care: The Four-Legged Bull Market.") Boomers were the first generation to treat their pets like family members. Their Millennial children have followed in their footsteps, willing to spend vast amounts of money on their pet's health. In 2019, Americans spent over $52 billion on their animals. (See "Nothing But the Best for My Fur Baby.") Covid-19 has simply made isolated owners that much closer to their pets.
