For many Americans, their pets may as well be their children—and they’d do anything to ensure their health. In fact, according to the latest ValuePenguin (owned by LendingTree) survey of nearly 2,000 U.S. consumers, pet owners spend over $1,500 a year on medical care for their furry friends.
Having a pet—particularly a dog—is common in the U.S. Three-quarters (75%) of Americans have at least one pet. Overall, 57% of respondents report owning a dog, followed by cats (37%) and fish (7%). I own a dog myself—a beagle mix named Boomerang.
The 75% of Americans with at least one pet report spending an average of $1,507 a year on medical care. However, 76% of pet owners would spend much more and even take on debt if it meant saving their pet’s life.
The millennial generation, born between the early 1980s and the late 1990s and facing a variety of cost-of-living pressures, appear to be having fewer children than their predecessors. They are, however, particularly keen to look after their four-legged friends. This, coupled with a general rise in pet ownership among wealthier households—turbo-charged further by the pandemic—is proving to be a boon for animal health businesses.
Americans spent nearly $36 billion on vet services and clinic product sales in 2022 alone, according to the American Pet Products Association (APPA).
This is great news for the providers of veterinary medicines…
Especially Zoetis (ZTS), the one-time spinoff from Pfizer (PFE). Let’s take a closer look at the company.
Zoetis: Global Leader in Veterinary Medicine
Zoetis is the world’s largest pure-play animal health company, with its products sold in more than 100 countries.
The company discovers, develops, manufactures, and commercializes vaccines, medicines, diagnostics, and other technologies for companion animals and livestock. It generated $8.1 billion in revenue in 2022, making it the market leader. Products for companion animals, primarily dogs and cats, represented 64% of sales in 2022, up from 60% in 2021.
It benefits from broad diversification across product categories and customers. It has a wide range of products, including anti-infectives, vaccines, medicated feed additives, and other pharmaceuticals for cattle, swine, poultry, sheep, fish, and companion animals.
This diversification enables Zoetis to offset…
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