According to an Animal Medicines Australia survey, two-thirds of Australia householders owned a pet in 2019, with 29 million animals registered (more than the two-legged population of 25 million).
Not surprisingly, dogs accounted for 5.1 million of this national menagerie, followed by cats (3.8m). Canberra householders are more likely to own dogs – so much for fat-cat public servants – while South Australians are more likely to own (crow eating) cats.
Fish might be low reward pets– albeit low maintenance – but we still own 11.3 million of them. And 2% of households owned pets “such as horses, goats, cows, alpacas and hermit crabs.”
According to data cited by the recently listed Mad Paws ((MPA)), Australians spend $13 billion on their pets each year. This includes $3.9bn on food, $2.6bn on vet care and $1.4bn on products.
While the supermarket shelves are laden with gourmet pet delights, investors aren’t exactly spoiled for choice when it comes to listed exposures to one of the most promising growth sectors.
Founded by Glen Richards of Shark Tank fame, Greencross Vets listed in 2007 and then merged with the Petbarn retail chain in 2013. The union was less than dazzling and the company was taken over by private equity giant TPG for $675 million.
With just over 100 clinics, National Veterinary Care was then snaffled up by another private equiteer in late 2019, at a handy 56% premium equating to a market valuation of $251 million.
Mad Paws listed in late March this year, having raised $12 million in an oversubscribed IPO.
The Airtasker of the pet world, Mad Paws facilitates third-party services such as dog walking, pet sitting and grooming. The company generates its revenue from clipping the ticket to the tune of 20% from the service provider and 7% from the pet owner.
The company is also moving into the online subscription pet food delivery game; with a start-up business called Dinner bowl. We guess this makes them more like the Uber Eats of the pet world.
