M/A/R/C Research completed a third wave for its COVID-19 Animal Health Tracker among 1,003 pet owners between August 17th-19th, 2020. A supplemental survey of 1,008 pet owners was conducted to provide additional context on vet visits, pet adoptions, and telemedicine.
Wave #3 reviewed the purchasing behavior as a result of staying home due to COVID-19 for pet owners in all three waves. Wave #3 showed a significant increase in the purchasing of groceries going from 52% in Wave #2 to 57% saying they are spending significantly to somewhat more money.
Other categories with noticeable increases over the previous wave include DIY Projects at 40%, Video Entertainment at 36% and Electronics purchases at 28%.
Packaged Facts Shares results from a follow up pet owner study in February 2021 - U.S. Pet Market Outlook 2021-2022.
Packaged Facts survey data show that, in the wake of COVID-19, local veterinarians reasserted their role a veterinary care, and were the main business beneficiaries of churn in pet owners, pet owner locations, and pet population. Pre-pandemic 2019 data show 55% of dog or cat owners using local clinics, compared with 63% of dog owners and 60% of cat owners for the 12-month period ending February 2021. Chain veterinary clinics not located at stores also posted gains, while usage rates were flat for chain clinics located in stores as well as for telemedicine/online consultations with a vet. Usage rates were down, in turn, for various niche veterinary service options, such that the diversification of veterinary services receded in the COVID-19 era.
ITR Economics CEO, Brian Beaulieu, recently shared his outlook on the economy and how it might impact the animal health industry at the United Veterinary Services Association Annual Conference on May 4, 2021.
This week we are sharing slide #4 from his presentation which shows the positions of the Fed Open Market Committee on interest rates over the next several years taken from their positions as of March 2021. You will note that no substantial interest rate hikes are anticipated in the next few years. They currently have no plans to raise the rates until after 2023.
These low rates, according to Beaulieu, make these next few years a good time to make acquisitions, invest in your products – innovate and invest in your processes – efficiency gains.
The United Veterinary Services Association (UVSA) is a not-for-profit organization which serves as a resource for supply chain innovation and the enhancement of animal care through its support of animal health distributors, manufacturers and other suppliers to the veterinary profession.
For the week ending May 8, 2021, the Canine and Feline core vaccine indices were tempered a bit compared to previous weeks as YTD growth has now plateaued at +31.2% across the 32,000+ practices and shelter locations in the Animalytix Marketplace. Kennel Cough vaccine purchases, which provide a measure of the pet mobility, also moderated a bit but remain robust and at +27.7% growth YTD. A similar plateauing effect is also evident in the purchases of Surgical Suite consumables which serve as a proxy for incidence of surgical procedures have held steady in the +19% growth range for several weeks, and in the purchases of Chronic care medications which have held for some weeks in the +8% YTD growth range. While overall growth for Parasiticides purchases remains robust at +14.7% growth YTD, this sector’s growth rate continues to decelerate at a modest rate. Overall, all segments remain in excellent positions versus 2020 sales volumes, suggesting continued strong recovery for the veterinary wellness and in-house pharmacy sectors.
Among the “Bellwether” Vetalytix zones selected for routine reporting primarily based on the relative size of annual Core and Lifestyle vaccines purchases, all zones are now posting positive results vs PY. The Boston, MA zone leads all regions with +44.4% growth compared to 2020. Following closely behind were Philadelphia, PA at +40.0% and Seattle, WA at +39.3% growth vs PY. Birmingham, AL rounds out our “Bellwether” zones at the bottom with a very respectable +20.6% growth. Annual Core and Lifestyle vaccine purchases were selected as the principal “Bellwether” metric given 50% or more of annual visits to a veterinary practice are associated with the administration of these products.
*Map displays YTD Core & Lifestyle Vaccines sales courtesy of Animalytix
This week’s totals for reported parasiticide purchases across all segments year to date through the week ending March 6, are ahead of 2020 results by an extremely robust +12.2% among the 32,000+ practices and shelter locations in the Animalytix Marketplace. The most significant YOY change in the market is the +49.7% growth in the canine combination flea and heartworm products (e.g. specifically Simparica Trio), as substitution continues to occurring at the expense of products from the canine flea and tick preventatives which are experiencing a decline softening decline of (-1.9%) YTD. Canine heartworm preventatives purchases moved ahead of 2020’s record strong sales for the same period, posting growth of +2.6%. Feline flea and heartworm preventatives are now ahead of last year at a robust +8.8% growth.
Among the leading “Bellwether” parasiticide market zones, Greenville, SC now leads with +32.0% growth in total parasiticide purchases followed by Philadelphia, PA at +31.8%. Among the lagging “Bellwether” zones is Los Angeles, CA at +1.9% versus the same YTD period in 2020 bringing all “Bellwether” parasiticide market zones into the positive YTD.
*Map displays YTD Canine/Feline F/T/HW Parasiticide sales courtesy of Animalytix
For the week ending May 8, 2021, aggregate YTD practice revenues improved, growing from +14.6% growth versus the previous week to net growth of +15.5% for the ~4,000 reporting practices. The growth in unique patients was up at +7.6% while the number of unique clients remained positive at +8.2%. Total invoices continues positive with a +6.4% YTD growth vs 2020 results.
Among the leading “Bellwether” market zones, Brooklyn, NY continues in the lead with a +32.3% YTD revenue growth and +17.0% growth in unique patients YTD. Among the lagging zones, the Miami, FL market is struggling at (-3.6%) revenue growth and +1.4% growth in unique patients YTD compared to 2020.
Following more current trends, the 3-week rolling average for practice revenue growth nationally declined from +14.2% to +6.5%. Eight census divisions posted positive 3-week average revenue growth rates though all divisions moved down from prior week. The West North Central division is notable for the most recent 3-week period with a positive average revenue growth of +13.0%. The rolling 3-week average revenue growth index is designed to provide a view of relative robustness of growth trends (e.g., market velocity) for each reporting zone. A positive value indicates rolling revenue growth vs the previously reported 3-week period.
Map displays YTD total hospital revenue courtesy of Animal Care Technologies
*Indicates Merged Zone Group
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