M/A/R/C Research completed two sets of stratified surveys with 1,000 US pet owners to report on some of their behavioral changes with their pets during the Covid-19 health crisis during April & May.
In the second wave of the survey, the number of pet owners spending more time with their pets reflected a modest decline from 81% to 72%. This may reflect more pet owners going back to work or settling in on their routine working from home. Some 16% in this survey reported adopting a pet as a result of this crisis reflecting other sources with similar results.
Among total respondents in the second wave, 76% reported being glad to be spending more time with their pets despite the situation. A total of 55% reported no change in their routines with their pets as a result of the crisis while 75% indicated a reliance on their pets to keep them calm through the crisis. The survey noted a slight shift in respondents on the issue of quarantining their pets, with 39% indicating they did not see this as necessary, down from 48% who believed so in the first wave of the survey in April.
Packaged Facts results from an April/May 2020 Survey of Pet Owners where pet owners were asked about pet adoptions. U.S. Pet Market Outlook (June 2020) https://www.packagedfacts.com/Pet-Outlook-13135569/
Although pet adoption has skewed to “other” pets, there’s no under-appreciation of dogs or cats afoot. Among recent pet adopters, 90% have a pet dog, compared with 75% of pet owners overall, and 70% have a cat, compared with 56% of pet owners overall.
The COVID-19 triggered surge in pet adoption bodes well for boosting the pet market as the economic toll of the pandemic makes itself felt. Packaged Facts will continue to track this pet adoption trend as well as any countervailing patterns of pet relinquishment.
Compared with overall and historic pet ownership patterns, pet adoption in 2020 has been disproportionately high for “other” types of pets, rather than dogs or cats as the most popular types of pets, because current pet adoption also ties in to a multiple-pet-ownership trend. There’s no under-appreciation of dogs or cats afoot: among recent pet adopters, 90% have a pet dog, compared with 75% of pet owners overall, and 70% have a cat, compared with 56% of pet owners overall. But other types of pets have gotten a disproportionate boost in adoption levels during this COVID-19 period because many households are adding to their number and types of pets.
This surge in pet adoption also ties in to having kids underfoot at home, given thisstay-at-home period and school closures. While 8% of pet owners overall indicatedthat they had adopted a pet specifically because of the coronavirus pandemic, that rate notches up to 12% among those with children under age 18 at home.
Pet appeal has unleashed itself in full force in the stay-at-home period of COVID-19. Among adults overall, 5% adopted a dog in a three-month period generally corresponding to the initial COVID-19 impact era, while 4% adopted a cat, and a relative spike of 4% of adults adopted other types of pets (including fish, birds, small mammals/animals, and reptiles/amphibians). On an annualized basis, the adoption rate for the most recent 3-month period (e.g. 20% for dogs, 16% for cats and 16% for other pets) was significantly higher than the rate of adoption for the most recent 12-month period.
Cleveland Research Company shares results from a recent Global Covid-19 Pandemic Update & Implications for the U.S. Market study published in July.
In these two slides from the CRC Report we see that though the US lead the world in confirmed cases in the first week of July it only had 11% of the reported deaths.
We must keep the precautionary standards high. Do not underestimate the recent achievement – death rates declined and tests increased. These are promising signs that suggest, as a society, we can successfully fight the pandemic. At the same time we can restore the U.S. economy faster by implementing a higher standard of precautionary procedures, with businesses continuing to stock/provide protective equipment for employees, in order to strictly follow precautionary procedures in daily business activities.
When looking at the fatality rate per 100 cases, the US has been declining since mid-May (due to better testing and improved treatments) becoming the lowest among its top 5 trading partners.
YTD results for the week ending Aug 1 continue the upward and, in certain segments, robust activity as sales across all categories improved versus the previous week YTD. Though up by 0.1% over prior week’s results, purchases of chronic care medications remain as the only lagging sector, now at (-0.4%) growth vs PY.
Canine and feline core vaccines, supplies, surgical suite purchases and the VCI index remain in positive territory vs 2019 YTD with growth ranging from 1.1% - 6.3% for the period across the 32,000+ practices and shelters in the Animalytix marketplace.
In total, 92% of the Vetalytix market areas (216 / 236) reflect parity or increases over prior year to date purchasing as measured by the proprietary Animalytix Veterinary Consumption Index (VCI), a $1.8B+ market basket of exam room and surgical suite consumables which acts as a proxy for traffic through the practice. Across all regions, VCI performance YTD remains most challenging in the Northeast and West Coast.
*Map displays YTD Canine Core vaccine sales courtesy of Animalytix
For the week ending August 1, total purchases of combined canine and feline flea, tick and heartworm preventatives across 32,000+ practices and shelter locations saw one of its most robust weeks since the start of the Covid crisis with growth up 6.8% versus prior YTD performance. Each of the four individual categories were also up for the week with the feline flea and heartworm category posting very robust YTD results at 4.0% over 2019 purchases. Overall, the parasiticides as a category have been trending positive now for 15 consecutive weeks.
Among the 236 Vetalytix Market Areas, 199 (84%) reported net YTD growth as of last week on total parasiticide purchases. The Morgantown, WV and Memphis, TN zones were among those most improved with purchasing volume increases over prior week of 8.4% and 6.7% respectively. The Allentown, PA market also moved into positive YTD territory up 0.2% vs PY.
*Map displays YTD Canine/Feline F/T/HW Parasiticide sales courtesy of Animalytix
For the week ending August 1, total revenues YTD across all reporting practices were up, posting +2.9% growth versus 2019 results. While YTD results for the number of unique patients, clients and invoice totals continue to lag PY totals, each of these segments showed continued improvement with each being slightly improved over the prior year’s weekly results.
Overall, 169 of 214 reporting zones posted net revenue growth for the week vs the year prior week. This contrasts with total patient counts which remain slightly below PY results at (-2.6%) with only 21% (45 / 214) of market areas reporting parity or above 2019 YTD totals.
Across all regions, a total of seven market zones met or surpassed the “Return to Revenue” threshold this past week including Baltimore, MD, Brooklyn, NY and Providence, RI, among others. The “Return to Revenue” threshold has now been met by 83% or 177 of 214 market zones reported year to date. The most robust week over week improvement in results were reported by Asheville, NC and Chico, CA at 0.8% and 0.7% improvement, respectively.
In total, 43 states are net positive in terms of total revenues compared with 2019 results based on those states included in the Greenline sample. Only MA, NE, OH and PA remain negative on YTD Revenue compared to 2019.
*Map displays YTD total hospital revenue courtesy of Greenline Pet
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