Pet Industry Market Recap 2024: Shifting Trends and Strategic Moves in a Changing Landscape 

PET|VET M&A, Sales & Advisory announces recap for consumer and M&A markets for 2024 and outlook for 2025GRAND JUNCTION, Colo., Feb. 6, 2025 /PRNewswire/ — The pet services industry (boarding, daycare, grooming, training) navigated a complex landscape in 2024, marked by shifting consumer behavior, rising operational costs, and a dynamic acquisition market. Despite financial pressures, strategic adaptations and market flexibility have continued to drive industry evolution.Consumer Market: Revenue Declines with Regional VariabilityContinue Reading


Teija Heikkilä, CEO. PET|VET M&A
The pet care industry experienced an overall revenue decline in 2024, with noticeable regional differences. Most notable downturn (nationwide) was in daycare services. Rising labor costs and softening revenues placed pressure on profit margins and business valuations causing a tightening of the historically high-profit margins the industry has enjoyed; operational (focused on labor) efficiencies has become a critical factor for sustaining profitability.Amid these challenges, in-home pet care services gained traction in select urban markets, increasingly capturing market share from traditional brick-and-mortar facilities. This shift underscores the need for businesses to innovate and adapt strategically to maintain a competitive edge in the evolving pet care landscape.Acquisition Market: Strong Activity and Increased Seller FlexibilityDespite financial challenges in the consumer sector, acquisition activity remained robust throughout 2024. A growing number of investors and private equity firms entered the pet industry, providing business owners with more flexible exit strategies. Sellers now have the opportunity to pursue full acquisitions or retain equity by partnering with investors for brand expansion while reducing day-to-day operational involvement.Corporate buyers have become more disciplined in their approach, focusing on key factors such as geographic regions, revenue performance, strength of management teams, and labor efficiency when assessing potential acquisitions. The evolving market landscape has made deal structuring increasingly diverse, allowing business owners to tailor their exit strategies to align with long-term objectives while considering ‘cultural fit’.Looking Ahead to 2025: Key Industry Trends and Market OutlookConsumer Market: Shifting Preferences and Intensified CompetitionThe pet care industry is expected to undergo continued disruption in 2025, particularly from in-home and app-based service providers gaining traction in high-density urban markets. Traditional pet care facilities must implement strategic innovations to stay competitive in this evolving environment.Inflationary pressures are influencing consumer spending, particularly among multi-dog households, leading to increased price sensitivity. Pet owners are prioritizing value-driven options, including discounts, lo