is Higher Than Ever Thanks to Pet (and Farm) Spending
September 11, 2020 https://finance.yahoo.com/news/zoetis-higher-ever-thanks-pet-130451230.html
As we discussed yesterday, spending on pets hasn’t slowed down during the pandemic.
According to a survey from TD Ameritrade, 33% of Americans have considered adopting pets because of the pandemic.
For dog and cat owners alike, the cost can be higher than expected. Respondents to the survey who owned dogs said they spent $1,201 a year
on their pets. Cat owners spent $687 per year
Now, this survey data isn’t exactly news to you if you read yesterday’s article. I already mentioned that the American Society for the Prevention of Animal Cruelty (ASPCA) estimates the average annual cost of caring for a dog at $1,843.
But you know what “average cost” doesn’t cover? What people are willing to spend on their furry friends — particularly when it concerns their health.
I would do anything to keep my miniature dachshund, Blue, healthy, and in the TD Ameritrade survey, dog owners said they were willing, on average, to pay $3,307
treating their dogs’ health conditions. Cat owners were willing to pay an average of $1,991
So, just as we know there is money in human health care, we also know there’s money in pet health care too.
Formerly Pfizer, Still Just as Profitable
Zoetis (NYSE:ZTS), a class-leading animal health and vaccine company
, including animal-to-human virus vaccines
, used to be a subsidiary of pharmaceutical giant Pfizer
(NYSE:PFE), but it spun off in 2013
It sells products in over 100 countries
, and it doesn’t just serve pet owners. In addition to caring for cats and dogs, the company makes products to support cows, chickens, pigs, fish and horses
Farmers were hit hard because of the pandemic, partially because of the disruption to our supply chain. Often, farmers had products they simply couldn’t sell to their commercial buyers, and unfortunately, there wasn’t a way to get those excess products to consumers.
But the USDA stepped in to help, providing $16 billion in direct payments
and another $3 billion helping to get those commercially grown products to the mouths of consumers.
All this is to say, the impact on farmers hasn’t kept ZTS from thriving. And with more people considering buying pets now, you’d expect ZTS to climb higher, which it has.