January 11, 2021
When it comes to family members, not everyone in the house walks on two feet. The American Pet Products Association reported that 11.38 million U.S. households have gotten a new pet during the pandemic. While a small increase in pet ownership each year is expected, the pandemic has caused more people to stay at home and seek pet companionship when having to isolate.
This increase has also resulted in a bull market for the players in the pet care industry. Here are some brands benefiting as they provide pet products and services for those furry family members.
Chewy, Inc. (Tii:CHWY)
With a robust e-commerce platform, Chewy has gained popularity and relevance at a time when consumers are engaged in record levels of online spending. This company offers everything that pet owners need – food, toys, care products and pet supplements – delivered directly to their homes. Since its IPO in 2019, the online retailer’s shares have gained more than 176%, with the majority of its stock held by pet superstore operator PetSmart.
Trupanion, Inc. (Tii:TRUP)
While focusing on getting the best food and toys for your pet, do not forget to protect them in case of a medical emergency. Many pet owners are turning to pet insurance to help cover the medical costs and treatment of their furry family members to avoid paying large vet bills that can put a dent in their savings. Trupanion is a medical insurance company for cats and dogs in the United States and Canada. The pet insurer’s total revenue rose 31% to $130.1 million for its third quarter ended September 30, 2020, on a 31% increase in pet enrollment.
Freshpet, Inc. (Tii:FRPT)
Many pet owners worry about their pet’s diet. Just like human food, you want to ensure that your pet is getting the best nutrition for a long and healthy life. Freshpet offers refrigerated cat and dog food made from all-natural chicken and beef that is steam cooked without adding any preservatives, by-products, or powders. This company saw an impressive 140% increase in its share price for the trailing 12 months. Also on the positive front, Freshpet reported that net sales increased by 29% to 84.2 million for its third quarter ended September 30, 2020. With a new factory breaking ground in Texas, the company looks to increase the number of pet food products across the country.
Zoetis Inc. (Tii:ZTS)
Odds are if you’ve received a prescription or vaccination for your pet, it may have come from Zoetis. The Parsippany, N.J.-based company provides diagnostic products, vaccines, medicines, and genetic tests for household pets, companion pets such as horses, and farm animals. Some common products include the Vanguard vaccine for dogs and Elimin-Odor pet stain eliminator. Once a subsidiary of Pfizer Inc. (Tii:PFE), shares of the world’s largest pet medicine producer have gained some 24% over the last 12 months and has been ac component of the S&P 500 since 2013.
Church & Dwight Co., Inc. (Tii:CHD)
While this company’s name may not be familiar to most consumers, its Arm & Hammer brand is well known. Under that brand, Church and Dwight manufactures Arm & Hammer cat litter as well as such products as baking soda, toothpaste, and laundry detergent. As cat owners know, having a litterbox for their felines that also deals with pet odors is essential to make their pets happy and improve indoor air quality. With the pandemic and winter weather keeping people indoors, Church & Dwight cleaning and pet care products have benefited. For its third quarter, the company reported a 13.9% increase in sales and raised its year-end sales growth projections to 11% on a significant increase in demand resulting from the pandemic.
With more people adopting or purchasing pets for themselves and their loved ones, it is essential to have the right products and services on hand. These companies and brands are doing their part so that your pet can have its best life.