Apparently there are two main types of pet ownership: Pet owners and pet parents. As a “mum” of two little dogs, I fit firmly in the latter category. 

All pet owners love their animals but according to IBISWorld senior industry analyst Alen Allday, pet parents are characterised by those “who go over and beyond looking after their pet”. 

This means, their beloved pet sleeps on the bed, gets regular professional grooming and in some instances is adorned by frilly tops and little bows/ties. I rule out the clothing, but my little Papillion dog Giuseppe does enjoy regular professional grooming while my Jack Russell Murphy has a favourite spot on the bed. 

Pet parenting love: Giuseppe, the Papillon. 

The pet industry in Australia is worth around $8 billion, according to estimates by IBISWorld.  The chart below highlights the segment breakdown. While pet food accounts for 54% of the sector, the pet services sector is expected to grow driven in part by the pet parent segment. 

Source: IBISWorld

Allday says that it is a premium part of the pet market.  He says pet parents are typified by both an older demographic (as their children have flown the coop) as well as a younger generation, who still remain inspired by the popular culture sensation Paris Hilton and her pet Chihuahua. Allday also notes that many younger couples are shelving plans for parenthood. By putting off having children until later in life, their pets “are normally seen as their baby”. 

Allday estimates that the pet parent segment accounts for about 5% to 10% of the $8 billion pet industry. This segment has been a key driver of speciality products and services. 

Indeed, walk into any super-size store such as Pet Barn or PetO and you will find a dizzying array of products across grooming, clothing and food. 

A vast array of shampoo choices for your beloved pooch

Socks for those tired paws

Allday notes that these products are provided by pet businesses that spend time innovating products that feed into the pet parent demand. Think high visibility dog jackets (an excellent idea for those nightly walks!), or diamante collars. A friend of mine has a pooch Farah (named after Farrah Fawcett, of course) who apparently loves “dress-ups” – her favourite “outfit” at the moment is a green dragon suit. 

Allday says there are also a number of ancillary services, such as pet cremation, pet hotels and doggy day care services that are also growing.  In fact a colleague of mine pays $35 a day for day care for her Maltese Terrier while another friend always adds on extras such as massage services for her feline when she books her beloved in for a pet hotel stay. 

One company Greencross has been savvy enough to cross-sell into the pet market. Greencross listed in 2007 as a veterinary business. In 2013, it bought Petbarn’s owner Mammoth Pet Holdings to create a $588 million business. This allowed the business to provide both medial and retail services to the pet industry. The strategy seems to have paid off.  Its latest first half fiscal 2016 earnings revealed solid business growth with revenue for its retail business up 15% to $228 million with a strong performance in premium food. The business has plans to rollout more stores including its in-store pet grooming services. 

Although it is a premium market, Allday says that pet parents don’t necessarily need to be high-income earners – it’s about the portion of income that they spend on their pets. With an ageing population and planned parenthood being shelved, Allday estimates that the pet parent industry will only continue to grow.