NEW YORK, Nov. 8, 2016 /PRNewswire/ -- In the five years to 2016, revenue for the Online Pet Food and Pet Supply Sales industry has increased at an annualized rate of 8.9% to total $4.9 billion. Rising pet ownership in the United States and growth across the e-commerce sector have caused the industry to experience overall growth, despite the recession.
For the full report, visit IBISWorld's Online Pet Food and Pet Supply Sales Industry report page. The Online Pet Food and Pet Supply Sales industry retails pet-related items ranging from dog treats to bird cages to cat carriers. Rising pet ownership and increased access to e-commerce websites have recently driven revenue growth for the industry. IBISWorld Industry Analyst Anya Cohen notes that "rises in per capita disposable income and consumer spending have allowed shoppers to splurge on price-premium goods for their furry friends, which has driven revenue growth." Over the five years to 2016, these positive trends have caused industry revenue to expand at an annualized rate of 8.9%, totaling $4.9 billion. This includes growth of 7.0% in 2016, driven primarily by a 10.7% increase in the number of broadband connections, which increases consumer access to the online-based retailers that operate in this industry. While many factors have contributed to industry growth over the five years to 2016, one of the strongest drivers has been the increased acceptance of pets as full-fledged members of the family. Consumers who adopt this mentality, or "pet parents," are likely to splurge on price-premium goods and supplies, such as organic dry and wet food and designer-brand collars. As demand for these premium goods has increased, so too have industry profit margins. In 2016, IBISWorld estimates that industry profit will account for 4.4% of industry revenue, an increase from 2011 when margins stood at 3.7%.