The Pet Market A Review of Existing Research

Topic PaperMarch 2016

Insight Department

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Welcome The objective of this paper is to review existing research into the pet market to shed light on the influence of pets on holiday behaviour and to identify the scale of opportunity for Scottish tourism. The hypotheses being that pet owners are heavily influenced by their pets when it comes to making decisions about leisure, holidays and short breaks and, that the pet market is potentially lucrative for tourism businesses.

The pet market in this context mainly relates to dogs, given they are more likely to be taken on holiday.

Key Insights The pet market potential is large as 46% of all UK households have one pet or more and 24% of all households have a dog

The pet industry has been growing steadily over the last few years with an increase in spending on pets and diversification in the market

Spending among pet owners remained unaffected by the recession

The pet industry is also seeing a growth in responsible pet ownership

Holidays in the UK are popular among pet owners

Pet friendly search terms are more popular than romantic holidays!

Research suggest that having a pet is usually an important part of pet owners’ lives (health, fitness, wellbeing, companionship, connection with others)

The pet market is a potentially lucrative market for Scottish tourism with high spending behaviours among pet owners

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Pets in the UK

The pet industry as a whole has been growing steadily over the last few years. In 2012 alone there was a 12% growth in the market. Much of this growth has come from an increase in the number and diversity of pet products such as nutritional options, toys, grooming treatments, and day care services¹.

There are an estimated 12 million households (46% of all UK households) in the UK who have one or more pets, and of this, there are an estimated 8.5 million dogs. Therefore the scope of the pet market in the UK is significant. However, it should be noted that evidence shows there has been a steady decline in the overall number of pets in the UK but also an increase in responsible pet ownership².

According to the Dogs Trust (the UK’s largest dog welfare charity) the message of responsible dog ownership is now starting to cut through and people are weighing up the decision to get a dog more seriously as the demands of having a dog are more recognised.

Accommodation providers are even partnering up with pet charities to raise money and awareness for pet welfare and care. For example, PDSA – the UK’s leading veterinary charity that helps pets and owners nationwide – joined up with cottages.com to offer a prize draw to win a free mini-break with their pet and ‘Vet for a day’ experience. The competition was advertised in the Petro (Metro) newspaper.

There has been a rise in awareness of pet friendly pubs, cafes, hotels and dog walks through organisations like Dugs in Pubs Welcome³ with a growing number of establishments advertising that they are pet and/or dog friendly. This impacts the overall number of places that people can visit with their pets and in turn increases business. The pet market is clearly diversifying and key organisations are helping to drive this.

Profile of pet owners

Pets are increasingly becoming fully fledged members of the family. This may be due to changing family structures for example, with the rise in single person households and that many younger couples are choosing to have children later (perhaps due to the difficulties younger people face in getting economically established these days) or to have pets instead of children altogether. Also, there has been a shift in attitudes towards seeing pets as companions or even as children, with owners desperate to prove how committed they are to their pets.

According to research by Petplan as part of its Pet Census among 10,000 pet owners4, 99% of respondents regard their pet as key family member. 43% of dog owners have even mixed up their dogs’ name with that of their partner or child.

The Pet Census research found that dog owners feel that having a dog is good for one’s health, wellbeing and connecting with others:

• 56% see pet ownership as a gateway to a better social life

• 69% of dog owners feel that their dog is a reliable companion

• 70% of dog owners are more confident talking to people whilst out with the dog

• 98% believe that owning a pet is helpful for their child’s development.

There is plenty of evidence that dog owners tend to be healthier and fitter than average. For example, a recent study by Queen’s University, Belfast, found that dog owners have lower stress levels and lower cholesterol than non-dog owners. Other research shows dog owners live longer, too, with regular dog walks helping to improve heart health5.

¹ www.petbusinessworld.co.uk/uk-pet-industry² Pet Food Manufacturing Agency (PFMA) Annual Pet Population Survey, 2015³ www.dugswelcome.com4 Petplan, Pet Census, 2011, Base: 10,0005 Dr Deborah Wells, Queens University Belfast, British Journal of Health Psychology, 2007.

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Spending habits of pet owners

Consumer spending on pets is significant. In 2012, the UK pet industry grew by 12% to reach nearly £4 billion. The growth in pet spending can largely be attributed to a growth in ownership of miniature purse dogs and spending on dog clothes/accessories, growth in natural/organic foods for pets and growth in nutritional supplements for pets. In addition, consumers are spending more on grooming treatments, veterinary care and toys for their beloved pets6.

Even during the recession pet owners did not cut back on spending for their pets. Pet owners reduced household spending on luxuries, eating out, clothes, entertainment, holidays, food-shopping and even heating the home before cutting back on spending on pets, which only 6% actually did7.

Overall, evidence from a variety of quarters shows a strong preference among pet owners to prioritise spending on their pets. Further examples include:

• 94% of pet owners would cut back on luxury items including holidays to pay for treatment when a pet became ill;

• 27% have adapted their house for their pet; • 15% have bought a bigger car and 5% have moved house.

Implications on holiday behaviours

It is clear that pets have a significant influence on owners’ choice of holiday. Importantly for Scottish tourism 20% changed holidays in order to take the pet8. Many pet owners base their entire holiday around how suitable the destination is for their pet and are willing to spend more to do so, despite it being harder work. The ‘hound pound’ can be profitable for tourism businesses given the desire by many dog owners to take their beloved friend along with them on holiday.

would pay the same amount to take their dog away on holiday as they would another person. (holidaycottages.co.uk, 2013)

1 in 4

confess to talking to their dog on the phone and leaving voicemail messages when

they are away(holidaycottages.co.uk, 2013)

1 in 3

of dog owners said they consider their dog as family

members when booking holidays

(holidaycottages.co.uk,2013)

72%

average extra spend (Frontline, 2013)

£126

are willing to pay at least £200 extra(Frontline, 2013)

16% always take their dog or cat

away with them. (Frontline, 2013)

7%

of holidaymakers said their entire holiday choice was

based on how suitable the destination was for their pet

(Frontline, 2013)

30%

of pet lovers fret when it comes to holidays

(YouGov, 2007)

69%

think it is harder work taking a pet on holiday

than it is travelling with a baby (Frontline, 2013)

55%

of dog owners would take more holidays in the

UK if there was a better attitude towards dogs

(holidaycottages.co.uk, 2013)

72%

Key facts: holidays including pets

Interestingly, in a survey about people’s feelings around pet friendly, the majority of people said that having dogs around improves the atmosphere of a place:

• 96% said that the atmosphere of a place was improved when dogs are present (Kennel Club, 2013)

6 Pet Business World: http://www.petbusinessworld.co.uk/uk-pet-industry7 Pet Food Manufacturing Agency, Annual Pet Population Survey, 20128 Petplan, Pet Census, 2011

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Pet-friendly holidays in

Scotland

In terms of overall domestic overnight visitors to Scotland, we know that a significant proportion of people who visit Scotland also spend their time walking. In 2014, 2,673,000 visitors (21% of all visitors) went on a short walk/stroll and 1,754,000 visitors (14% of all visitors) to Scotland went on a longer walk/hike.

Of those GB visitors who took a long walk or hike in Scotland during 2014, 961,000 visitors resided in England, 734,000 visitors resided in Scotland and 59,000 visitors resided in Wales (Source, GBTS).

Research by Scottish Natural Heritage (SNH) found that nearly half (48%) of all visits to the outdoors by adults living in Scotland in 2012/13 were accompanied by a dog (189 million visits from the 396 million outdoor visits). This trend has also steadily increased i.e. from 41% in 2004 to 48% in 2013/149.

Evidently, Scotland is well suited to the types of activities which appeal to dog owners – walking, getting out into the countryside / outdoors, using greenspaces and parks.

Further, analysis of search terms that are put into Google and www.visitscotland.com show that taking your dog on holiday with you in Scotland has become very popular. Interestingly, there are 95% more searches for pet-friendly holidays compared with searches for romantic hotels or holidays in Scotland. See table below:

Web Searches

Pet Friendly Romantic95% more interest for pet friendly related searches over romantic

4,006 236

Web Searches

Pet Friendly Hotels

Romantic Hotels 91% more interest in pet

friendly hotels

14,800 1300

Dog Friendly Pubs

Romantic Restaurants 85% more interested in

dog friendly pubs

5,400 720

A quarter of pet owners have admitted to staying at home because they do not want to leave their pet behind. It can also be expensive to leave a dog in a kennel averaging £140 per week compared with £20 per week to take a dog on holiday with you10. Therefore, more and more people are choosing to take their pet with them on holiday.

Based on a lot of this type of research, VisitScotland has included a pet-friendly page on its consumer facing website at www.visitscotland.com/holidays/types/pet-friendly where people can search for and book holidays with their pets in Scotland, including suitable accommodation.

9 Scottish National Heritage, 2013/1410 Holiday Cottages, 2013

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Opportunities for Scottish tourism

This short paper has attempted to show that the area of pet tourism represents a significant opportunity for Scottish tourism. One of the most important trends is that there here has been a shift towards dogs being treated as fully fledged members of the family. Families themselves are seeing certain shifts in terms of structures, make-up, size, extended families, same-sex families, 3 generation families, stepfamilies and so on. Pets and in particular, dogs, are part of this new realisation of what family is, with ‘modern clans’ looking a little different to the 2.4 children set up of the past.

To summarise, it has been estimated that there could be an additional £5.8bn revenue generated annually by dog owners across the UK¹⁴. Therefore consider becoming pet friendly or expanding your pet friendly offering because it can boost your business.

¹⁴ Kennel Club, 2013

Tips for Business

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Be aware of the factors influencing holiday decisions for pet owners such as practicalities of bringing the dog, car parking options, and facility requirements. There may be things you could do to adapt your business for guests with pets such as providing secure access away from roads and/or a small greenspace for the pets to relieve themselves. As evidenced in this paper it can often be the deciding factor for pet owners.

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Focus on being transparent about how pet friendly you are – visibility is key to attracting people with their pets and will greatly help raise awareness of your business. For this you could consider joining organisations like Dugs Welcome www.dugswelcome.com/ which would list your establishment on its website and/or give you a sticker for the window. Or you could place your own notice on the window which tells the public you are pet friendly.

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Crucially, consider how visible your pet-friendly statement is on your website and on listings. It will be the first thing pet owners look for so if it’s not quickly recognisable it’s likely you will miss a potential customer.

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Think about caring for the consumer. Dog owners really appreciate it when they arrive if you offer them a bowl of water for the dog and/or show that you are okay with the dog being in the establishment. It makes the guests feel welcome.

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Finally, do take some time to reflect on the wider trends in the pet market if you can (increasing spend, responsible ownership, pets as part of the family) and remember that a lot of businesses are really starting to serve people better with their pets. Customers will vote with their feet and go to the places where they truly feel welcome. If you are okay with having dogs in the environment, doing just a little bit more will go a long way towards attracting and keeping this loyal tourism segment.

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Disclaimer: VisitScotland has published this report in good faith to update stakeholders on its activity. VisitScotland has taken all reasonable steps to confirm the information contained in the publication is correct. However, VisitScotland does not warrant or assume any legal liability for the accuracy of any information disclosed and accepts no responsibility for any error or omissions.

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March 2016