The pet industry will generate over $140 billion in revenue in 2023, while growing at an annual compound annual growth rate (CAGR) of 10.8% (source: APPA). Consumers overwhelmingly — 66% according to McKinsey — say they would pay more for sustainable products. Yet many pet companies don’t have an environmental, social and governance (ESG) strategy in place.
What are some direct tactics and strategies that pet-related businesses can deploy to gain a competitive advantage among consumers who care about the environment and are willing to pay for it?
Using plant-based ingredients: Plant-based ingredients are more sustainable than animal-based ingredients, require less land, water, and energy to produce. A study by the University of California, found that it takes 25 times more water to produce a pound of beef than it does to produce a pound of soybeans. Coming out of #SharkTank’s hit TV show and an investment from Mark Cuban, we’re seeing Ryan Bethencourt’s Wild Earth evolve from a D2C online focus into Brick & Mortar retailers; where 65% of all transactions still occur. This isn’t a fad, plant-based pet food is expected to have a 9.2% annual CAGR till 2032, and hit $57.4 billion (Future Market Insights). With nearly 50% of consumers open to serving their pets a plant-based diet, there’s room for growth.
