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What Does Points of Parity and Points of Difference Mean?

When you want to position your brand two of the first thing you need to define are points of parity and points of difference. Let's start by looking at the basic concepts behind these two marketing terms.

Points of parity (POP) are essentially industry standards that make a business legitimate in their field. It's the qualities that all businesses have in order to be competitive and on par with one another. In other words, points of parity are industry-specific similarities that are shared among many businesses.

Points of parity are the bare minimum for competitive businesses. If you want to be competitive, your company needs to have all the points of parity covered.

Points of difference, also known as points of differentiation or POD, is what you need to determine once the points of parity have been covered. These are the things that are truly unique to your business and that give you a competitive edge. When you are creating marketing pieces, campaigns and landing pages the points of difference are what you want to highlight in your messaging.

Balancing Points of Parity and Points of Difference

For the most effective marketing, businesses have to convey both points of parity and points of difference. POP tells your target market your product or service meets their basic needs. POD tells consumers why your product or service is the best option over competitors that also have the essentials covered.

Points of parity should be mentioned, but your points of difference should be the core message. Consumers just need to know you can meet the points of parity that they are familiar with. If that seems like all your company has to offer, then there's no reason for the consumer to choose you over the competition.

To win market share, you must have clear points of difference. POD tells consumers that you are bringing something different to the table. When you are new to an established marketplace getting consumers to make a switch from their regular brand is easier if you can show you offer something the competition doesn't have. The same holds true in markets that have a very diverse customer base with different needs.

Points of Parity Examples

To better illustrate points of parity we've provided a few examples based on average consumer needs for a common service and product.
Car Rental
Most of today's consumers look for the following points of parity when they're comparing car rental companies:

Insurance options, even if they won't add a policy to the rental.

Unlimited miles so as to avoid unexpected charges.

Good selection of vehicles from cheap compacts to large trucks.

Nearby pickup and drop-offs locations so they don't have to go out of their way.

Virtually all nationwide car rental companies cover all four of these points of parity. They are worth mentioning, but you wouldn't want to base a slogan or marketing campaign on them.
Toilet Paper
Everyone has toilet paper in their home. It's a basic necessity with basic points of parity like:

It needs to be made of a durable softwood fiber paper that won't tear.

The tube should fit standard toilet paper holders.

It has to be flushable so it won't clog the toilet.

Can you imagine a toilet paper manufacturer advertising that their product is made with a standard size tube? As we'll see below, the tube can be a point of difference, but fitting holders isn't the differentiator.

Points of Difference Examples

This marketing concept is the bread and butter for a business. The examples below help to differentiate between points of parity and POD so that finding your own differentiating factors is easier.

Dollar Rental is in a very competitive industry that requires going beyond parity. The car rental company has used points of difference that are focused on savings. They even hired financial guru Dave Ramsey as a spokesperson to signify their rentals are financially sensible. Their rewards programs are another point of differentiation, especially for corporate customers. In addition to getting 15% off by joining the email list, you can get quadruple American Airlines points by renting a compact car for 3+ days.

Angel Soft toilet paper recently found a great differentiator. They've leveraged an overlooked part of the toilet paper roll - the tube. Angel Soft has added a lavender fragrance to their toilet paper tubes. Now you don't need potpourri because your toilet paper is pulling double duty. This is a big differentiator that comes from Angel Soft's understanding of complementary products that are used in the bathroom.

The examples above exemplify two businesses that have a firm grasp on the points of parity for their industry, which has allowed them to effectively identify points of difference that set them apart.

If you're having difficulty grabbing more of the market share you may want to take a look at your brand positioning and adjust slogans and messaging to have a stronger POD slant.

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What Does Points of Parity and Points of Difference Mean? When you want to position your brand two of the first thing you need to define are points of parity and points of difference.

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Before we begin, it's important to note that Instagram is intended for in-the-moment content. To stay relevant among your audience, you'll need to invest the resources required to post regularly.

The best way to keep your followers engaged is to keep your Instagram profile up-to-date. Below, we'll dive into how to build and maintain a successful Instagram profile.

If you don't have it already, download the Instagram app from the App Store or Google Play Store. You can view content on Instagram's website, but you can't upload it via your desktop. You'll need the app for that.

Step 1: Open the Instagram app and click Sign Up With iPhone or Email

When you open the Instagram app, you'll have two choices for creating an Instagram account for your business - Log In With Facebook or Sign Up With Phone or Email. Be sure to sign up with a business email so your Instagram profile isn't linked to your personal Facebook account. ( Trust us , you don't want to do that!)

Step 2: Enter your account details.

Under Full Name, enter your actual business name so your profile is recognizable to visitors. This name is what's displayed on your profile; it isn't your account username (or handle, for those Twitter folks).

Step 3: Pick a username.

The Username is a name unique to your profile and allows other accounts to engage with your brand. HubSpot's username is @HubSpot .

Pick a username that is recognizable and easy to find. If your business name is taken, try to keep the first part of your business name in your username. Note: You can update your username later in your account settings, so don't worry if you want to change it in the future.

Optimizing Your Instagram Account

After you've set up the basics of your Instagram account, it's time to optimize it. Follow these steps to create a profile people will want to see on their news feed every day.

Step 4: Choose a profile picture.

Your profile picture is your first impression on new visitors. For this reason, keep your image consistent with your branding and visual markers.

Consider using your logo or another familiar image. Instagram profile pictures are automatically cropped into a circle, so leave room around the corners of your image.

Step 5: Next up - your Instagram bio.

In your bio, you can encourage users to take a specific action, such as using a certain hashtag or visiting your website. Your bio is the only place where you can feature a clickable URL and drive traffic to an external site.

For this reason, it's common for businesses to update their featured URL to align with their most recent post. If you decide to add a link, be sure to use a link shortener like HubSpot's Tracking URL builder or a tool like Bitly, Goo.gl , or Linktr.ee to keep your profile from looking cluttered. Tracked URLs also help you better understand the amount of traffic Instagram is driving to your website.

Pro tip: For future edits, click on the Edit Profile button on your profile to change your photo, name, username, bio, and URL.

Managing Your Instagram Settings

Lastly, let's review your account settings. In this section, you'll be able to update contact information, privacy settings, and more.

Step 6: Adjust your settings.

Click on the three stacked lines in the upper right-hand corner of your profile, then click on Settings at the bottom of the window. (Under your username, you'll see a few links that we'll cover below.)

Within your settings, you'll be able to do things like change your password, see posts you've liked, enable notifications, and much more. Here are a few things you should check out right away.

Manage your story settings - where you can manage who can see and reply to your Instagram Stories ( which we discuss below ). We recommend allowing all your followers to see and reply to your Stories to increase brand engagement. From your settings, click Privacy > Story to access your Story Controls. (You can also access this by clicking the gear icon in the top left corner when posting a story.)

Switch to a professional account - This allows you to identify your profile as a business profile. Instagram's Business Tools feature makes it easy for users to contact you, provides you with in-depth insights, and allows you to promote your content. Your business must have a Facebook business page to switch to an Instagram business profile. From your settings, click Account > Switch to Professional Account to access these features.

Switch to a business or creator account - Choose this setting, log in to Facebook, and allow Instagram to manage your Pages. Select a Facebook Page to connect to your Instagram profile. (You must be a Facebook page admin to connect the two platforms.)

Instagram will automatically import relevant information from your Facebook page for you to edit. You now have an Instagram business profile. Don't forget to use the features that come with this type of account like profile insights.

Private Account - Here you can change your profile from public to private. Instagram will automatically set your profile to public - we don't recommend changing it! As a business, you'll want users to see your posts and follow your business without any obstacles. From your settings, click Privacy > Account Privacy, and make sure that's turned off.

Comments - This setting allows you to hide comments with certain keywords or phrases. To do this, you must enter the specific words and phrases into your Instagram settings and turn on the feature. Receiving comments is exciting and encouraging, but certain comments may go against brand values or offend your audience. From your settings, click Privacy > Comments to update these.

Adding Additional Instagram Accounts - Add up to five accounts and switch between them without logging in and out. This feature also allows you to have multiple people logged into an account at one time. To add an account, click Add Account at the bottom of your settings. Enter the username and password of the account you'd like to add. To switch between accounts, go to your profile and tap your username at the top of the screen. Choose the account you'd like to switch to.

Now that you've created and optimized your Instagram account, it's time to start posting awesome content. Instagram allows you to post several types of content, including photos, videos, and Stories.

Let's talk about the different Instagram post types and some best practices for encouraging engagement.

Images

The most common post on Instagram is an image post. When posting images, share a variety of photos. Variety will show your brand is diverse and engage your followers in different ways.

It's also important to remember that Instagram users are looking for genuine posts from brands - not blatant advertisements. Try to capture your company culture with lifestyle shots and behind-the-scenes looks. Avoid posting too many photos of your product.

Example: Nike's Instagram includes product photos, but the majority show real athletes, concerts, and other types of content that promote the Nike brand personality as a whole.

As you start to explore the platform, you'll see there are countless kinds of images you can post to your account. Get creative! Take note of any concepts or styles you think would work well for your brand.
To get you started, we've compiled a list of some successful Instagram image types .
Behind-the-Scenes Posts

These posts offer a glimpse into the part of your business that people don't normally see. It's important that they don't look staged - authenticity is key!

Example: Aeronaut Brewing Company provided an inside look at its company culture by showcasing its employees at work..

Reposts From Employees

Great content can be right in front of you ... on your employees' Instagrams. (Just be sure to tag or credit the original poster.) Reposting photos from your employees is an easy way to curate authentic content and humanize your business. Not only will your audience engage with your brand, but they'll also start to "bond" with your employees.

Example: Fenway Park often reposts images shared by the grounds crew as they prepare the stadium.

Educational Posts

Educational posts offer snackable tips on how to do or make something. The photos or videos usually present the instructions in a way that is quick and easy to follow.

Example: The popular Tasty recipe video series from Buzzfeed is educational yet very entertaining and easy to replicate.

Influencer Posts

Influencer posts use the fame of a celebrity or well-known public figure to promote your brand. These posts often include a visual of the influencer using or interacting with your product. One of the main benefits of influencer posts is gaining the attention of another audience.

Example: Goal Zero shows renowned rock climber and photographer Alex Honnold using one of its solar power charging stations. Not only is Goal Zero reaching its own audience, but it's also reaching Alex's 500,000-plus Instagram follower base.

Motivational Posts

A motivational post combines a simple visual with an overlaid quote or uplifting text. These posts encourage your audience and amplify your brand values. While effective, try to post these sparingly to avoid looking cheesy. Apps like Quipio and Typic can help you add text to photos in a way that's consistent with your brand guidelines.

Example: Foundr often shares motivational posts to encourage its follower base of entrepreneurs, small business owners, and marketers. The posts also align with their mission as a business media company.

User-Generated Content

Similar to employee reposts, user-generated content (UGC) is curated content from your fans and followers. Your tagged posts and posts with your brand hashtag are a great source for UGC.

Sharing your fans' and followers' photos not only make the original poster feel good, but it also shows that you truly care about your customers. Just be sure to credit the original post with a tag or in the caption. To repost user-generated content, screenshot and crop the original post or use a reposting app like Repost for Instagram .

Example: WeWork conducts an annual #DogsOfWeWork campaign and compiles the best submissions together into a yearly calendar. Although WeWork doesn't repost every tagged image, their campaign helps create invaluable reach and engagement.

Newsjacking (Trending Holiday Posts)

It seems like there's a "holiday" for everything these days. Events like National Sibling Day and National Ice Cream Day generate a ton of engagement on social media. Join in the fun by participating in a local, national, or world trend. A newsjacking post is a great way to post humorous content that relates to light-hearted events.

Example: Corridor Brewing celebrated the Cubs' Opening Day. Through this post, the American restaurant chain tapped into a popular American pastime.

Share to Reels

Share to Feed

Type: Creates a text post

Music: Pairs a music clip of your choice to an image or video

Live: Captures and publishes live content to your Instagram for your followers to watch

Superzoom: Adds an animated zoom to a video

Focus: Focuses on a subject and blurs the background

Hands-Free: This allows you to capture video without having to hold the record button

One picture may be worth a thousand words, but there's something to be said about the context words bring.

Writing remarkable captions can be tough, and that's why we've come up with some tips to relieve some of that pressure.

1. Don't rush the process.

Write several drafts and ask your friends or co-workers for their opinion. Yes, your content should be timely, but it should also be engaging. Instagram recently changed its algorithm to organize each user's feed to show what they'll likely find engaging. The visibility of each post will depend on the number of likes and comments it receives. Take the time to create content that will delight and engage your customers.

2. Consider the caption length.

Your captions can be up to 2,200 characters. (For comparison, Twitter allows 140.) Regardless of length, users can only see the first 3 to 4 lines of each caption. They have to click More... to see the rest. Because of this, place the most important content at the beginning of the caption so it's always visible.

That being said, don't shy away from long captions. In fact, Instagram can be a great storytelling medium. For example, Humans of New York writes longer captions with quotes from the people they photograph.

3. Engage, engage, and engage some more.

Always include a call-to-action in your caption. Encourage your audience to like, comment on, and share your photo.

You can also use your caption to direct people to your bio link, where they can check out a new product or blog post. Just remember to change the link so it corresponds with your most recent post. Tip: Use shortened tracking links in your URL so you can see how much traffic came from your Instagram account or a specific post.

Include a geotag. Adding a geotag gives users another way to find your content, which can lead to higher engagement.

4. Find your Instagram voice.

Every social platform has a distinct voice. What works Twitter may not work on Instagram. On Instagram, posts with a lighthearted, authentic tone tend to perform the best. Experiment with emojis and other fun tools to give your brand a distinct feel. Don't expect to get it right the first time - it can take a while to develop your brand's voice.

If you're ever in doubt about what to write, keep it short. There's little correlation between caption length and engagement, but short captions allow your visuals do the talking.

Hashtags have taken over the internet. Hashtags refer to keywords or keyword phrases that are spelled without spaces and prefaced with a pound (#) sign. They are generally used to reference events, conferences, pop culture, entertainment, or reoccurring themes and are a great way to make your content more visible.

Originally popularized by Twitter, hashtags are now on multiple social networks.

Using Hashtags on Instagram

Instagram feeds are always changing, which makes sense considering that 95 million photos are shared everyday . With that much content, it can be difficult for your account to get noticed. That's where hashtags come in handy.

On Instagram, hashtags aggregate posts from a wide variety of users into a single feed ... although only public accounts can be shown when searching hashtags.

Instagram makes it simple and easy for users to find tagged content. When you search a word or phrase, the search results page shows you four parts:

Top, which displays the top Instagram accounts, hashtags, and locations that include your keyword (typically accounts that are popular or that you're following)

Accounts, which shows you the top Instagram accounts that include your keyword

Tags, which suggests popular hashtags that include your keyword and how many other Instagram posts have been shared with that hashtag

Places, which displays nearby locations that include your keyword

For example, if you're planning on tagging your post with #coffee, you may want to tag related hashtags like #coffeebar, #coffeeholic, or #coffeehouse to broaden your post reach.

Using hashtags is easy! Simply create hashtags using characters, numbers, or emojis; you can add up to thirty to the caption. Just remember - your account must be public for your posts to appear on hashtag feeds.

Choosing an Instagram Hashtag

How do you choose which hashtags are best for each post? Our best answer is by brainstorming related keywords and researching relevant trends, which is actually easiest within Instagram itself.

Start in the Explore tab (the magnifying glass icon on the bottom menu). There, you'll find popular posts and see what hashtags were used.

If you already have a hashtag in mind, you can also use this page to find popular, related hashtags. Just type the hashtag in the search bar, and filter your results by Tags to see how many posts have used that hashtag as well as other related hashtags.

Try to blend general, trending hashtags and specific hashtags to increase your post reach and relevance. Also, consider creating your own branded hashtag .

Many businesses use their own hashtags to roll out a new product, manage an Instagram campaign, promote an event, and collect user-generated content. If you'd like to do this for your business, make sure yours isn't being used for another purpose ... and then encourage your audience to use it!

Formatting an Instagram Hashtag

Now, let's discuss how to incorporate hashtags in your content.

First and foremost, don't be spammy. Hashtags should be natural in your caption. Aim to use one to four hashtags to avoid overwhelming your audience and making your captions hard to read.

If your hashtags don't naturally blend into your caption, tack them onto the end or even in the first comment. They'll work the same no matter where they're placed.

Let's explore a few little-known Instagram hacks to make the most of the platform. We recommend downloading the latest version of the app to follow along.

1. Post to Instagram at the best times.

Instagram users are active at all times of the day. However, there are a handful of optimal times to post on Instagram. For peak engagement, the best times to post on Instagram across industries are 1 p.m, and 5 p.m. This is for the time zone of your target audience. Many users tend to engage with more content during off-work hours on weekdays.

2. Link Instagram to your Facebook page.

One thing that makes Instagram unique is that you can share your content seamlessly across other social networks.

We don't recommend automatically linking to your other social platforms like Twitter and Facebook; what works on Instagram won't always yield the same results on other channels, especially as you get up and running. For this reason, tailor your content to each platform.

However, linking your Instagram to your other social accounts like Facebook does increase the number of eyes on your posts. Remember, your Facebook Page will already be linked to your Instagram if you set up an Instagram business profile.

If you do decide to do this, go to your Instagram settings and click Linked Accounts under Privacy and Security. Log into Facebook and pick the Facebook Business Page to which you'd like to link. Next, under the Share Settings menu, the Facebook logo should be blue to indicate that sharing is on.

3. See posts you've liked.

You can see all the posts you've Liked in your Instagram settings menu. (Remember, tap the three lines in the top right corner of your profile and click Settings at the bottom.) From there, click Account Posts You've Liked.

4. Reorder Instagram filters.

To maximize productivity, Instagram lets you reorder filters to position the ones you use most often at the beginning. To reorder or hide filters, open the Instagram editor. Scroll to the far right and click the Manage gear icon. Hold down the three gray lines to reorder the filters, or uncheck to hide it.

5. Hide posts you've been tagged in.

If someone tags you in a post, it'll show up when you click the person icon in the menu under your Instagram bio. Your followers can see this, too.

You can hide a tagged post in two ways. One way is through each individual picture. Open a photo you want to hide and click the three dots in the top right corner. Click Photo Options, and from there you can select Remove Me From Post (remove the tag and hide altogether) or Hide from My Profile (leave tag but hide on profile).

If you don't want to have to continually check and remove tagged posts, you can manually choose just to include the ones you do like. To do this, go to Settings Privacy Tags and turn off the Add Automatically option. Moving forward, you'll be notified when someone tags you in a photo. When that happens, tap on the photo you were tagged in and choose Show on Profile.

From this screen, you can manually hide multiple photos and videos from your profile, too.

6. Save photos and build collections.

There's lots of incredible content on Instagram. Maybe you've seen content by competitors that you want to emulate, or maybe you've found some user-generated content you'd like to repost. How can you save this content to access later? Well, Instagram makes it easy - through Saved content.

On your Instagram feed, you can like, comment, and message posts. You can also save them, using the ribbon icon in the right corner. When you tap it, you'll see Save to Collection pop up along the bottom of the post. If the image or video you've saved falls into a collection, such as UGC content or inspiration, you can create a collection for that content.

Access your Saved content through your profile. Tap the three horizontal lines in the top right-hand corner and click Saved in the list. Under All, you'll see all your saved content in chronological order. Under Collections, you'll find that content organized into Collections.

7. Leverage user-generated content.

Keeping up with your Instagram can be a lot of work, especially if you're managing multiple social networks at a time. As I mentioned at the beginning of this guide, in order for you to find success on Instagram you must be prepared to post content and engage regularly. If this sounds intimidating, don't fret; I've found the perfect solution for both - user-generated content.

User-generated content (UGC) is content featuring your brand or product that your customers, users, and followers post on their networks. UGC is a fantastic example of word-of-mouth marketing and helps drive brand awareness and conversions. Better yet? You can use that content for your own networks.

There are a few different ways to use UGC. Some brands share a branded hashtag and ask their customers to use it when posting about their products. The company then follows that hashtag to discover new content and asks the person permission to share their image. Other brands run specific UGC campaigns and contests to gather a lot of UGC at once and "flood" follower timelines with brand-specific content.

UGC campaigns don't have to happen on social media, either. My favorite example of UGC by the pet product brand, Chewy. We all know how much pets love boxes, and so do the folks at Chewy. They encourage customers to post pictures of their pets in Chewy boxes (seriously - it says it right there on the box!), and Chewy shares them on its social media. Not only does this provide the Chewy social media team with endless new content, but it shows potential customers real photos of real customers and their cute pets.

Source

8. Feature guest takeovers.

Your social media manager or management team deserves a break now and then! Consider featuring guest "managers" or employee takeovers on your Instagram. This strategy allows you to mix up your content and provide your followers with a behind-the-scenes look at what it's like to work for your company. (Or, if you feature customers, what it's like to buy from your company.)

The HubSpotLife Instagram does this with HubSpot employees around the world. Each employee takes over for a day and showcases their workspace, hobbies, and other parts of their life.

Source

9. Make your Instagram an interactive space.

While likes and comments are important parts of Instagram engagement, there are other ways to turn your Instagram feed into a space to interact with your followers. Consider these tips:

Conduct a weekly or monthly "ask me anything" (AMA) with employees or executives where followers can leave questions in the comments.

Post a daily countdown to a product release or event (like INBOUND).

Run a contest that asks followers to comment and/or share your posts in their Instagram Stories as entry methods.

Post information about your products and ask for feedback and reviews in the comments.

These are all strategies for making your Instagram a more interactive, conversational space.

Let's discuss Instagram advertising. Instagram advertising offers a unique opportunity for brands to engage with their audience. Since Instagram ads appear in feeds like any other post, they aren't as obvious or disruptive as typical ads. They provide a natural way to encourage users to learn more about your business or product.

How Create an Instagram Ad

If you've ever set up a Facebook ad, you know the drill - setting up Instagram ads is done through Facebook's ad platform.

To create your ad, select a current Instagram post you'd like to boost or create a new one in Facebook Ad Manager. If you haven't run ads through Facebook before, you'll first need to set up an account. You'll also need to claim your Instagram Business account to link it to your Facebook page.

To claim your Instagram account, go to your Business Manager and, on the left side of the page, hover over the menu to click Instagram Accounts. Then click on Claim Instagram Account. Add your account information and click Next.

Pick an objective and name your campaign. While Facebook offers many different choices, only a few include Instagram advertising as an option. To ensure you're on the right track, pick from any of the following options:

Brand Awareness

Reach

Traffic

App Installs

Engagement

Video Views

Conversions

Once you've selected your objective, you'll be prompted to name your ad set.

If you select the Traffic option, you'll be prompted to select a destination for your traffic. Facebook lets you pick between a website and an application.

Next, target your ad with demographic and psychographic factors, such as age, gender, location, language, work, financial status, behaviors, and connections. You can also load previously-used custom audiences.

Select Edit Placements under the placements options and select Instagram under the available platforms. Don't forget this step! Otherwise, your ad will only show up on Facebook. If you only want to run your ad on Instagram, make sure that no other placements are selected.

After you select Instagram as your placement, you'll be asked to set the budget and schedule for your ad. Set a daily spend budget or a lifetime budget for the ad and indicate start and end dates for your campaign.

If you don't set dates or a lifetime budget, your ad will run indefinitely on the daily budget you allocate. You can find more budget and scheduling options under the Advanced Options menu, which allows you to schedule your ad to run during certain hours of the day or set your ad to generate results as quickly as possible using the "Accelerated" delivery type. This option is useful for ads focused around timely events.

Next, set up your ad content. You can boost an existing post or upload new content to run as your ad. Instagram allows you to create Single Image or Video Ads, Carousel Ads, and Story Ads.

To maximize ad delivery, Facebook recommends using images that are 1,200 x 628 for news feed ads and 1,080 x 1920 for story ads. Facebook also recommends limiting your text on the image or video thumbnail.

Once your ad creative is uploaded, place your order and start running your first Instagram ad campaign!

How much should you spend on Instagram ads?

How much you invest in Instagram advertising campaigns should be tied to your campaign goal.

If you're trying to gather more leads, consider the cost-per-lead and how that compares to other channels and your customer lifetime value (CLV). (For example, if your CLV is $3000, then it might be worth spending $500 on a campaign. These are just arbitrary numbers, but you get the gist.)

This is different for every business and industry. It also applies to other goals like increased website clicks and sales.

No matter your goal, it's important to monitor and optimize your Instagram ads to make the most of your budget.

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Learn how to create captivating visuals, grow your following, and drive engagement on Instagram.

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1. Boulder the Blue Staffy
@bluestaffyboulder
Instagram: 175K followers - ER: 7.64%

Boulder the Blue Staffy is a lovable Pitbull who has captured the hearts of thousands of followers on Instagram with his heart-warming and uplifting content. This furry influencer shares a glimpse into his family life, featuring his two-legged siblings Harley and Roman, and spreading love and joy to his audience. Boulder's Instagram page is filled with adorable photos of him living his best life, including playing with his human brothers, taking long walks, and snuggling up with his humans.

Boulder the Blue Staffy is an ideal choice for brands looking to collaborate with a fun-loving, family-oriented pet influencer. As a popular Instagram pet influencer, Boulder has an engaged and loyal audience who eagerly follows his adventures. With his adorable looks and lovable personality, Boulder is sure to bring a smile to the faces of his followers and help promote any pet-related product or service.

2. Ursula Aitchison / Hugo & Huxley
@hugoandursula
Instagram: 351K followers - ER: 10.05%

Ursula is a talented London-based photographer who specialises in capturing the unique bond between dogs and their owners. Her Instagram account features her two gorgeous Golden Retrievers, Hugo and Huxley, in amusing and candid posts that offer a glimpse into daily life with dogs. With her ability to create gorgeous and unique content, it's no wonder Ursula has attracted many brand collaborations, including Amazon, Sony, Hunter, and E.L.F cosmetics.

Ursula's posts provide a mix of animal-focused lifestyle and fashion photography, making her a perfect candidate for any brand looking to collaborate with an influencer in the pet space. Her ability to create authentic and engaging content with her dogs has earned her a loyal following of animal lovers and lifestyle fans alike. Whether you're a pet owner or just love scrolling through adorable dog content, Ursula and her pups are sure to bring joy to your day.

3. Sara Matthews / Keith
@keith_the_cat_cow
Instagram: 127K followers - ER: 4.83%

Sara's cat, Keith the Cat-Cow, has taken the internet by storm with his adorable appearance and endearing story. Rescued off the streets at just six months old, Keith was suffering from cat flu and gastrointestinal problems. Since then, he has become a beloved member of Sara's family and has been a constant companion to her daughter, who has autism. Keith is known for his unique appearance, resembling that of a cow, and has amassed a large following on TikTok and Instagram.

His unique appearance and lovable personality make him an ideal influencer for any pet-related products or services. Keith is the perfect addition to any pet-related influencer campaign. If you're looking to work with a pet influencer in the UK, Keith the Cat-Cow is an excellent choice that is sure to captivate your target audience.

4. King Louis
@kinglouis_britishblue
Instagram: 93.5K followers - ER: 2.55%

Louis, also known as King Louis, is a British Shorthair cat model and animal actor based in Edinburgh. With his playful nature, charming content, and well-trained obedience skills, he is suitable for almost any brief. Louis' gorgeous looks and expressive face make him the definition of 'adorable', making him perfect for pet photography shoots, product placements and meet and greets.

As one of the most experienced British Shorthair cat models and pet influencers, Louis has worked with numerous amazing brands, including Edgard Cooper and Vogue Paws. If you're looking for a cat model and pet influencer that can deliver high-quality content with a unique brand aesthetic, Louis is the perfect choice. He's a stellar example of the ever-popular British Shorthair breed and has the potential to become a top PR cat thanks to his lovely nature and gorgeous looks.

5. Anneka Svenska
@annekasvenskaofficial
Instagram: 153K followers - ER: 2.23%

Anneka Svenska is a naturalist, conservationist, and filmmaker who has made a name for herself as a wolf expert, wildlife crime advocate, and animal rights activist. Her weekly wildlife TV show, Animal Watch, produced by GreenWorldTV, is one of YouTube's most popular channels for wolf and alpha dog breed content, making her a major influencer in the animal welfare space. She is not afraid to speak of her love of apex predators and is quite at home swimming with great whites, catching snakes, tracking wolves in the wild, and anything that involves dangerous, or rather, misunderstood animals.

With her extensive knowledge and expertise in animal conservation and welfare, Anneka has written for many animal and ethical magazines, appeared as a regular guest on UK news and current affairs shows, and produced over 200 short films for various conservation and charitable projects across the world. Brands interested in working with Anneka can benefit from her broad expertise and loyal following, as well as her passion for animal welfare and conservation.

6. Marcel Le Corgi

Instagram: 138K followers - ER: 3.27%

Marcel Le Corgi is a Pembroke Welsh Corgi who is living his best life in London with his French humans, Aurélie and Pierre. He loves to travel and explore new places with his humans, try delicious food, and make people smile. Marcel is a volunteer therapy visiting dog and a co-founder of the UK Corgi Club, making him the go-to influencer for all things corgi in the UK.

Marcel is a well-trained and patient model, perfect for any pet product campaign. Marcel has worked with many leading brands and is available for paid work in London or abroad. Whether you're looking for a review of a dog-friendly venue, content creation/food/photography consultant, or corporate hospitality chef trained in Michelin-starred restaurants, Marcel and his humans are the perfect choice for you.

7. Carter Cunard
@carterchowchow
Instagram: 187K followers - ER: 12.11%

Along with his stylish fashion influencer and model dad, Carl Cunard, Carter regularly shares a new fit and all the fun he has with his followers. Carl Cunard is a well-known figure on Instagram and YouTube for his blogs and videos on men's fashion, lifestyle, grooming, and makeup, which feature his collaboration with brands like Topman, Paco Rabanne, and more.

But what sets him apart is his adorable companion, Carter the Chow Chow puppy, who features in many of his reels and videos where they both match styles. Carter is a chubby and cuddly dog who sometimes outshines Carl with his impeccable fashion sense. Brands looking to collaborate with an adorable, fashionable, and photogenic dog and his stylish owner can contact Carl and Carter for potential partnerships.

8. The Iggy Family
@theiggyfamily
Instagram: 145K followers - ER: 3.44%

The Iggy Family is a group of Italian Greyhounds living in London that are taking the social media world by storm with their bags of personality and charismatic presence. With Winston being 6 years old, Twiggy at 5 years, Cindy at 4 years, and the newest addition Claudia at 1 year, the Iggy Family has gained a huge following by exhibiting an exciting balance of luxury and fashionable pieces, which when put together redefines style.

The Iggy family loves dressing up and therefore they are the perfect influencers to promote pet accessories, clothes and fashion brands. Their audience is always amazed by the content creation which inspires them to engage and interact with the Iggy Family.

9. Toby & Quinton
@tummyandgummy
Instagram: 217K followers - ER: 4.37%

Meet Toby and Quinton, the feline influencers taking Instagram by storm. This dynamic duo consists of two very special cats, Toby and Quinton, who are living their best lives despite their unique medical conditions. Toby, a six-year-old cat, has Ehlers-Danlos syndrome, which affects the structure and appearance of his skin, while Quinton, a seven-year-old cat, is toothless.

Despite their special needs, Toby and Quinton inspire their followers with their worry-free and snack-filled adventures. Their content features an exciting mix of playful antics, snuggles, and adorable personalities. Toby and Quinton are the perfect influencers for promoting pet accessories, clothes, and fashion brands.

10. Yasmin & Kieran / Copper & Skye
@lifewithkleekai
Instagram: 243K followers - ER: 3.84%

Meet the adorable duo of Skye and Copper, two Alaskan Klee Kai dogs who have captured the hearts of over 5 million followers across all social media platforms. With their big personalities and even bigger fanbase, these pups are redefining what it means to be a social media influencer. Skye and Copper are living the dream in the UK with their owners Yasmin and Kieran. From playtime in their apartment to exploring the countryside, the duo share their daily adventures with their loyal fanbase. Their Instagram, TikTok, and YouTube channels showcase their unique breed and offer plenty of laughs.

With a background in content creation and PR, their parents Yasmin and Kieran can create custom content to meet the specific needs of brands interested in working with Skye and Copper. They have previously collaborated with respected brands such as Amazon Prime, TikTok, and Butternut Box, among others. With a wide fanbase across all platforms, Skye and Copper have a highly engaged and passionate audience brands can tap into to showcase their campaigns.

11. Jenna Lou Milly / Wilfred
@wilfredwarrior
Instagram: 978K followers - ER: 1.88%

Meet Wilfred, a Chinchilla Persian cat who has captured the hearts of many on Instagram with his unique appearance and human-like expressions. Wilfred's owner, Jenna Lou Milly, shares pictures and videos of him living his best feline life, whether it's lounging in the backyard or posing for the camera.

Despite his snaggletooth and underbite, Wilfred is a healthy and happy cat who has gained a large following on social media. Brands interested in working with Wilfred and Jenna can reach out to them on Instagram, where they share their passion for animals and unique content that inspires their engaged audience.

12. Cheddar & Chester
@cheddarandchester
Instagram: 84.3K subscribers - ER: 1.51%

Cheddar and Chester are the adorable miniature dachshund twins taking the UK by storm with their big personalities and short legs. They love being photographed and filmed by their mom - especially if there are treats involved!

Cheddar, the best boy, is the happiest creature who loves nothing more than playtime and zooming. He is an inquisitive dog who loves to be fussed by anyone he meets. On the other hand, Chester is an evil genius who lives up to his Kennel Club name, Trouble Maker. He is an affectionate little man who loves his family and insists on daily belly rubs. Despite their different personalities, these adorable sausage dogs are here to share their amazing adventures with everyone, and their short legs do not stop them from living their best lives.

13. Dante Duke
@danteduke_thecat
Instagram: 42.7K followers - ER: 3.68%

Meet Dante Duke, the piebald cat living in London and one of the most loved Instagram pet influencers out there. Dante loves being a city cat, riding the tube, going out for walks, and watching the world go by - all on his terms, of course, after all, he's the boss! Dante and his family create content for all cat lovers out there, including photographs, blog posts, product reviews, and much more. Dante has collaborated with notable brands such as Abel and Cole, Sony, Daily Mail, Virbac, and Freshpet.

Dante Duke's popularity on social media is due to his unique personality and antics. He loves to pose for photos, engage with his audience, and explore his surroundings. He inspires his followers with his playful nature and adorable looks, and his content ranges from funny memes to heart-warming stories.

14. Steph & The Spaniels
@stephandthespaniels
Instagram: 30.6K followers - ER: 1.32%

Steph and The Spaniels is an award-winning dog-friendly travel and lifestyle blog, founded by dog mum Steph who enjoys exploring the best of everything dog friendly in the UK and beyond with her two spaniels, Sev and Lily. With over five years of experience, Steph and The Spaniels offers a great resource for dog lovers who are looking for inspiration and advice on dog-friendly places to visit and products to use. The blog regularly collaborates with brands, big and small, to work on campaigns, reviews, sponsored posts, social media content, and more. As a professional photographer, Steph's focus is on creating the best content possible to showcase the dog-friendly products, places, and adventures that she loves. Recent collaborations include Barbour, Ruffwear, Butternut Box, and Haven.

Steph and The Spaniels have won the best UK Pet Blog award for three years in a row and have been featured in many other dog-friendly and lifestyle awards and lists. With a passion for dog-friendly travel and lifestyle, Steph inspires her audience to explore the world with their furry friends, providing helpful tips and information to make the experience enjoyable for both humans and dogs. For brands interested in working with Steph and The Spaniels, they offer a range of collaboration opportunities, including dog-friendly event coverage, press trips, brand ambassadorship, and dog modelling, among others.

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The Social Shepherd has curated a list of the top 27 pet influencers in the UK, including Instagram, TikTok, YouTube, cats and dogs, among many others.

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No matter how small your operation, a website is essential for any modern business. But how much should you budget for your business website costs?

Our independent reviews and recommendations are funded in part by affiliate commissions, at no extra cost to our readers.

How much does it cost to build a website for your small business?

With a website builder, you can set up a professional-looking website for free, with paid plans starting from as little as £3/month.

Or, if you want something truly unique, advanced, and made to your exact specifications, you could hire a web designer, costing you anything from hundreds to thousands of pounds in upfront costs, or use a CMS like WordPress for around £30 - £1,000 a year.

If you need help choosing between these options, don't fret; we've designed a free comparison quiz that will help you work out which approach is right for you and match you to suitable options for your business. It only takes a minute to find out which option you need and what it costs!

The pandemic has changed the way the world does business: it's never been more important to invest in your online presence, no matter how much you're able to spend.

So in this article, we'll explain the average prices of the best value website builders, like the ever-popular Wix, break down the cost of professional web design, and tell you how much you can expect to pay for a WordPress website.

Find the right website builder for your business Is this your first time building a website?

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How much does a website cost?

Before we go any further, let's see how the costs of these three different options stack up against each other. The table below shows the costs involved with website builders, web designers, and WordPress side by side.

Website builder

Web designer

WordPress

Website builder subscription: £0 - £18/month

Ecommerce subscription: £0 - 240/month

Agency rate: £10 - £150

Domain: £3 - £100/year

Hosting: £25 - £600/year

Security: £0 - £200/year

Maintenance and support: £0 - £1,900/year

Domain: £3 - £100/year

Hosting: £25 - £600/year

Apps and plugins: £0 - £100/month

Themes: £0 - £50 up front

Support: £10 - £150/hour

Total: £0 - £240/month

Total: £4,000 - £60,000+ upfront, £30 - £2,000 ongoing

Total: £30 - £1,000/year

Why does it cost thousands to work with a website designer when you can use a website builder for a small monthly cost, or even for free?

When you use a web designer, you get a bespoke creation, one that's specifically designed to meet your needs, and crafted to your exact specifications. Basically, what you're paying for is the time and expertise of a talented professional. As they're not bound by the limitations of a website builder, they can create the website of your dreams, but doing so takes time and money.

One of the biggest factors in the price of your website is whether or not you want to sell online.

As you'll see below, ecommerce website builder plans are generally more expensive than regular ones and, if you do want to hire a web designer, ecommerce web design is always going to cost more than conventional web design.

Of course, any additional expense has to be balanced against the potential revenue you could make from selling through your website. A successful online store will more than pay for itself in the long run.

The cost of using a website builder: £0 - £240/month

A website builder is software that allows you to create a website without having to manually edit code. Instead, you can choose from a range of pre-existing templates, and then add and arrange elements in a visual editing interface. It's a cheap and easy way to create a website, but your creative freedom is always limited by the options available.

The table below shows the price ranges from the most basic to the most advanced plans for the top website builders on the market.

As you can see, even for our top ranked builders, you're not going to spend more than £30/month for a fully functional ecommerce site using the likes of Wix, Squarespace, or GoDaddy. And all three offer great value for money, with sophisticated features and professional-looking templates at affordable prices.
For a much better idea of how this works in practice, check out our dedicated Wix pricing page - which breaks down what each plan offers and the types of businesses they are suited to.
Shopify and BigCommerce are ecommerce specific website builders. Their higher tier plans have very advanced sales features for large, scaling online retailers. These are great options to have if you've got grand ambitions, but most smaller businesses won't need them.

Our in-depth Shopify pricing page includes lots more info on these features, as well as which features come with which plans.

Overall Score

Based on our in-depth research and user testing

Ecommerce website builders

Overall Score

Based on our in-depth research and user testing

An overview of website builder costs

Website builder plans can range in price from £3/month for the most basic plans to more than £240/month for the most advanced ecommerce plans.

The advertised prices for website builder plans are paid for on an annual subscription basis, so you'll pay for a year in full when you sign up. You can also usually choose to pay monthly, but this will cost you more overall.

What's great about website builders from a budgeting perspective is that, in almost all cases, the pricing is very transparent. Unlike, for example, hosting providers, there are no massively discounted introductory prices, which are then ramped up considerably after the first year. What you see is what you pay.
Our guide to the top website builders for small businesses gives a good idea of how much different web builders cost, and what you get for your money.
There's only one thing you really need to watch out for and that's domain name renewal. All major web builders include a free domain name for the first year, which then renews at the standard rate.

For example, Squarespace's domain name renewal starts from around £16.50 per year, and can reach up to £57.50 per year depending on the top-level domain you use (e.g. .com, .org, .net, .co.uk etc.). Wix renewals start from around £12, while GoDaddy's start from around £15 for a .com domain.

You can save money by using a low-cost website builder, but just how much will you miss out on? Find out how a budget builder stack ups against our top-rated web builder on our Zyro vs Wix comparison page.

The cost of using a website designer: £4,000 - £60,000+ upfront

It's increasingly rare for small businesses to use a web designer. But, if your business has bespoke needs and a bigger budget, then working with a designer is the best way to build a truly unique website that perfectly suits the way your business works.

Bur what exactly is the cost of web design in the UK? Let's break it down.

Web design agencies typically charge you on an hourly basis. Chameleon Studios, a Cambridge-based marketing agency, gave us insight on a rough price list for web design depending on what type of agency you use:

Offshore company - £10 - £25 per hour

Freelance web designer - £25 - £50 per hour

Small web agency - £50 - £75 per hour

Large web agency - £75 - £150 per hour

Based on insights from a number of developers, we're going to accept that an average small business website takes around 12 weeks to build. We'll also assume the agency is devoting seven hours a day to your project.

That means you're looking at a total price of £4,200 - £63,000 for the development of your business website.

Of course, there are a lot of hypotheticals here, and a number of variables we haven't factored into our estimates - namely the size and complexity of the website you're trying to build. The more pages and functionality your website has, the longer it will take and the more it will cost.

But, based on our extensive research, the above is a useful estimate for anyone intending to work with a web design agency.

There are also some running costs you'll need to factor into your website budget. These include:

Total running costs

£30 - £2,000/year

Tip: If you'd like pricing quotes for web design services that are tailored to your needs, use our handy web design company comparison tool. It's a free service that takes around 2 minutes to use.
Domain £3 - £100/year

You need to register the domain name of your website for a small ongoing cost to secure the online address of your website. The more desirable your domain name, the more expensive it will be. Many hosting providers include a free domain for the first year, which then renews at an increased rate.

To learn more, about how domain pricing works and the hidden costs you need to watch out for, check out our in-depth guide to domain name costs.

Hosting £25 - £600/year

You need to pay for your website to be stored on a server. This is done on a subscription basis. The more space your website takes up, the more it costs to store. As with domain names, hosting plans always renew at an increased rate after the first year.

Get the lowdown on how hosting prices are calculate with our comprehensive guide to website hosting costs.

Security £0 - £200/year

Many hosting plans come with a free SSL certificate, which encrypts sensitive information and authenticates the identity of your website. However, you may want to enhance your protection with additional paid for security features.

Maintenance and support £0 - £1,000

This covers everything from making edits and fixing bugs to adding pages and redesigning. You'll almost certainly need to do some or all of these things in any given year. If you don't have the resources to hire a team member to be responsible for these tasks full time, then you can hire the services of a freelance developer or use the web design agency who built your website.

Should I use a web designer?

The above is a pretty rough breakdown of the estimated costs of creating and running a small business website. As you can see, costs can vary hugely depending on who you use, how big your site is, and how complicated it is.

If you can afford it, working with a web designer to build a website crafted to your exact needs and specifications is a great investment that's sure to pay dividends in the long run. If you do go down this route, make sure you shop around for quotes from various agencies before choosing one that suits your needs and budget. Don't just choose the cheapest option, but examine agencies' previous work, testimonials and think about how well their skills and expertise fit with how you want your website to look and work.

Our guide to finding a web designer includes more top tips on locating the web design agency that will bring your dreams to life and supercharge your business.
If using a web designer is something you're considering, we'd highly recommend you use our questionnaire-style comparison tool to shop around web design services and find a budget-friendly match in just two minutes... for free!

The cost of using WordPress: £30 - £1,000/year

A third option is to use a WordPress site. This is a usually a lot cheaper than using a web designer, but gives you more control than using a web builder.

Basically, WordPress is a free, open-source CMS. As with a website builder, you can create a decent website without having to learn code. You can then customise your website using thousands of themes and plugins and add all sorts of additional features like an online store.

Open source means anyone is free to download and use the software.

So what are you paying for?

Well, as with when you have your website designed, you'll have to pay for your own hosting and domain name. These are the only guaranteed monthly costs. The others are optional, depending on your requirements.

For example, you'll want to improve the functionality of your website using WordPress's extensive library of apps and plugins, which includes things like SEO, ecommerce, and social media. Many of these are free, but you might want to fork out for premium add ons if you're after something more particular.

Likewise, WordPress has some existing themes that you can use to base your website around. Some are free, some are not.

And, although it's entirely possible to maintain your own WordPress site, you may end up relying on support from a developer for any complicated technical issues that arise.

Verdict

A small business website can cost as much or as little as you want it to. You can set up a website for free using a website builder, or you could spend thousands on creating a truly unique, bespoke site.

For most small businesses, we'd recommend signing up for a paid plan with a top website builder like Wix, Squarespace or GoDaddy. For around £10/month, you can enjoy a professional-looking business website, and it's easy to upgrade your plan when your requirements change. Or, if you want to launch a high-powered online store, then you can get started on specialist ecommerce platform Shopify for £20 a month.

That said, if you have the budget, working with a web designer to create the website of your dreams is a great investment.

Or, if you're after flexibility and affordability, why not use a CMS like WordPress?

To work out which option is best for you and be matched with top providers, just check out our quick comparison quiz.

There are plenty of options to suit different budgets, and countless ways to create a website that will help your business succeed. With a little research, you're bound to find the right choice for your business.

Frequently Asked Questions

Should I use a website builder or a web designer?

Cost is of course an important consideration here, but not the only one. Using a website builder is a quick, easy, and affordable way to get your small business website up and running - plus you can start off with a basic plan and then scale up if you need to. Using a website designer is the elite bespoke option, the equivalent of paying for a tailored suit instead of buying off the rack. You'll pay more, maybe even a lot more, but you'll end up with something crafted to your exact specifications and something that perfectly suits the way your business operates. It's a substantial investment, but one that could really pay dividends in the long run.

Which is the best value website builder?

Our in-depth testing found that the best value website builder is Weebly. It's easy to use, offers decent templates and features at an affordable price, and you can start accepting payments from just £9/month.

How much does an ecommerce website cost?

The cheapest way to create an ecommerce site is to set up your online store using Square Online - you don't need a premium plan and just need to pay the 1.9% transaction fee. If you want to create an online store using a dedicated ecommerce website builder - which will grant you access to the best range of sales features - prices start from around £20/month for a Shopify or BigCommerce plan.

Is a web designer worth it?

In short, find the right web designer and you really can create the website of your dreams. You'll get absolute control over the way your site looks and works, but you'll pay more for this privilege. If you do go down this route, choosing the right web designer is crucial - don't just look at costs but assess agencies on their previous work, their testimonials, and how closely their skills and expertise align with your intentions for your website. Always be wary of suspiciously low prices, ultimately you usually get what you pay for.

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How much does a small business website cost in 2022? | Startups.co.uk

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No matter how small your operation, a website is essential for any modern business. But how much should you budget for your business website costs? Our independent reviews and recommendations are funded in part by affiliate commissions, at no extra cost to our readers.

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When starting your eCommerce, product-based business there are many budgetary factors you need to consider.

Product manufacturing costs and marketing expenses are what most entrepreneurs plan first, as they comprise a significant portion of the overall startup budget. But one major cost that often surprises new business owners and can make or break your business is the cost of shipping and fulfillment.

When creating your business budget, an accurate calculation of shipping and fulfillment expenses is a must. Although experts estimate that these costs will comprise upwards of 15-20% of your total net sales, the only way to know how much your business truly needs to budget is to calculate these numbers for yourself.

While there is no quick and easy way to figure out these numbers, with a little bit of math and planning, it is possible. This article will help you estimate your eCommerce fulfillment and shipping costs using this simple blueprint:

Start with assumptions about your business

Before jumping into a complex analysis with both feet, it's important to establish a few assumptions about your business. Doing so can help give you a starting point to work from and ensure you have some idea of what to expect.

You'll likely have unique aspects of your business to consider alongside what's listed here, but this is where we recommend you start:

1. You are a new startup

You're either operating your own warehousing and fulfillment operations OR, you are using a fulfillment company to achieve this goal.

2. You are not utilizing drop shipping

Your cost structure will be significantly different if you're utilizing drop shipping and can be determined in conjunction with your drop shipment provider.

3. Your product costs are not included in this estimate

You will exclude product costs since they are considered direct costs of goods sold rather than fulfillment and shipping costs. Inbound freight costs to bring your product from supplier/manufacturer to your warehouse will also be included in the costs of goods sold and are discussed below.

4. Marketing costs are not included in this estimate

You will be allocating the cost of sales and marketing (e.g. commissions on sites like eBay or Amazon, SEO costs, PPC costs, etc.) as marketing costs rather than shipping and fulfillment costs

5. You've already created a sales forecast

Your unit sales forecasts are complete and can, therefore, be combined with shipping and fulfillment projections. If you haven't done this yet, check out our exhaustive guide for forecasting sales, including unit sales forecasting.

2-Steps to start your eCommerce fulfillment and shipping budget

Before you dive into the "meat and potatoes" of your budget, it's helpful to plan for two non-recurring costs: inbound freight costs and initial investment costs.

1. Inbound freight cost

First, you need to account for the cost of inbound freight from your supplier to the warehouse. It's extremely important to note that these inbound freight costs are considered costs of goods sold because they are required to get your products in ready condition to sell.

Of all costs included in this analysis, these are the only costs that will be rolled into costs of goods sold - the remaining costs will be included in sales, marketing, and administrative costs (otherwise known as operating costs).

Shipping finished goods domestically to your warehouse can be done with a small parcel carrier like UPS or FedEx, a less-than-truckload (LTL) company, or a full truckload carrier (commonly referred to as TL carriers). For products produced overseas, a global shipper will be required.

Global shipping often incurs extra costs beyond just delivery and may include customs fees and drayage fees to clear customs and bring your product to your location. Sites that can help you with this equation include freightquote.com, Uship.com, and Icontainers.com.

Once you know your inbound freight estimates, you can easily divide the total cost by the total number of units ordered and come up with your inbound shipping cost per unit. Once sales are made, you may include these numbers in your cost of sales.

Inbound shipping cost (per unit) = total freight cost / # of units ordered

2. Investment cost

Second, you'll need to come up with a projection of your initial investment costs, including the purchase of:

For a start-up running out of a garage or apartment, the initial investment may be as simple as a package scale and some shelving. More sophisticated operations may need a full list of warehouse equipment. However, these costs may not apply if you are outsourcing your warehousing. It's one of many reasons why companies choose to outsource fulfillment and shipping.

Initial investment costs needed to launch your warehouse operations should not be confused with business start-up and organizational costs. That consists of money spent before the business launches to create or acquire a business ( IRS definitions can be found here) and a certain portion of these costs can be expensed immediately.

Rather, initial warehouse investment costs will be amortized using tax depreciation rules and will be visible in your budget as a monthly line-item expense for depreciation of equipment. If you're unclear about whether a cost is expensed or amortized/depreciated, speak to your accountant or tax expert.

Calculating monthly costs of running your eCommerce fulfillment center

Once you have calculated any inbound freight costs (to allocate to your costs of goods sold calculation) and determined what initial equipment will need to be purchased (to be amortized/depreciated over the life of the asset), you should calculate your monthly shipping and fulfillment costs.

The easiest way to determine this is to divide these costs into fixed and variable components. We will assume for this purpose that these costs are recurring and remain constant until your business grows.

Fixed costs of shipping and fulfillment

Fixed costs are business costs that do not fluctuate with volume changes in goods produced. The first factor to consider when determining your eCommerce fulfillment center fixed costs is the cost of labor. This includes the time it takes to receive product from suppliers/manufacturers, pick and pack merchandise, ship orders, provide customer service, and process product returns.

The goal of your labor calculation should be to determine how much labor will be needed in total to run all of your warehouse operations - allowing you to determine overall salaries and benefits expenses. Keep in mind that your labor costs will likely change as you grow, but for now, treat it as a fixed cost.

Receiving

Receiving requires a human employee to receive an order, count that order, quality check the merchandise, enter the items into an inventory tracking program, barcode or SKU the merchandise if needed, and then physically move the merchandise to a location within the warehouse.

To estimate your receiving costs, you'll need to both estimate how frequently you'll be ordering merchandise from the manufacturer, and determine how long it will take to perform the receiving operations for each shipment.

Picking and packing

Picking and packing require time for you and your staff to pull, pick, and pack orders. This is in addition to the time it takes to receive, handle customer service issues, and complete returns. A small enough startup may be able to rely on just the founder to perform these tasks, thereby saving money. However, we still recommend calculating these costs because they will eventually become a factor as your business grows.

Customer service

Don't discount the time needed to provide customer service. This time includes the time it takes to answer customer inquiries and provide a solution to those inquiries.

Management time

Management time is the time it takes to run your business, including day to day warehouse operations and management and training of your staff. In the case of a bootstrapped startup, management time may not come into play right away but will be needed at some point as your business grows.

Returns processing

Nobody likes getting returns, but accounting for them and the time they take to process is a vital part of your budget. Returns processing not only includes the time it takes to process the returns back into inventory, but also the time it takes to inspect them for damage, repackage them, write off damages, and re-shelve them.

This process usually takes more time than it does to pick and pack the original order since there are generally more steps involved. For eCommerce businesses, expect returns to be as high as 30% of sales.

The total fixed monthly costs of labor can be determined by estimating the amount of labor needed to:

Receive product,

Pick and pack orders

Ship orders

Provide customer service

Manage employees

Process any returns.

Remember, labor costs don't just mean employee salaries. To determine labor costs, factor in not just the labor costs themselves, but an additional 15-30% to cover taxes and benefits.

Warehousing

Warehousing is a broad term that addresses the costs associated with operating the warehouse itself, including rent, utilities, insurance, and internet. For rent, a search for local warehousing space can help you determine an estimated monthly cost in your local market.

For utilities, insurance, and the internet, simply calling these providers can give you an exact quote of what you can expect to pay for these vital services. If your business is going to be started out of your home, you won't be paying monthly rent, but you can potentially expense a portion of your home office expenses. Most businesses create a separate expense line item for each component of fixed warehousing costs.

Variable costs of shipping and fulfillment

Next, you'll need to consider your potential variable costs. These are costs that increase and decrease depending upon production volume.

Some of the more common variable expenses include the cost of SKU labels or other bar code labels applied to each product unit (the average cost of printing a SKU label is about $.05 per label), the cost of supplies such as shrinkwrap or other warehousing supplies that may not be required to ship to customers, and the cost of cartons, packaging, inserts, and embellishments. The average cost of a standard carton ranges from $.50 - $.99. Inserts and embellishments, including labels and packaging, can be estimated at sites like Uline.com.

The most significant variable cost of shipping and fulfillment, however, is the actual shipping costs to deliver your products to your end customers. Because shipping costs are extremely complex, we've included a more extensive breakdown of how to budget for this expense below.

Shipping costs to account for

The most difficult part of your budgeting calculation will be determining your shipping costs per unit for an average order. However, this is a crucial step in planning your budget. To determine your shipping costs, you must consider many dimensions:

Product's volume, size, type of packaging needed, girth and weight

Special factors such as refrigeration or hazmat requirements

Insurance

Residential calculations

Understanding domestic and international shipping costs

To get an idea of what shipping may cost per unit, it is recommended to choose a few destination zip codes throughout the country or shipping zones and plug that information into an online freight quote tool and formulate an average cost per shipment. If your sales are made throughout the country, you can estimate the percentage of shipments to different areas of the country to create a weighted average estimate of shipping.

For example, if your warehouse is in California, you can calculate the cost to ship product within the western US, to the central US and the eastern US. And then estimate the percentage of shipments in each of those areas. The blended average shipping cost can then be used as a "best guess" of your unit shipping costs for budgetary purposes.

Other factors to consider for shipping include international shipping (if applicable) and rush shipping fees (express, 2-day, and overnight shipments). To enter these factors into your budgetary equation, determine your average shipping cost for each and create a blended average, or project the estimated percentage of total shipping on each service level, creating a specific average shipping fee per unit.

To determine these shipping costs, utilize the shipping calculator tools on sites such as UPS, FedEx, and DHL.

Important takeaway: By determining an average shipping cost per unit, you can use that number to create projections according to various unit sales levels.

Don't forget to add back shipping and handling charges to customers

Also, keep in mind how you will charge your customers for shipping. There are several ways this can be achieved, many of which can drive down your shipping costs if you are passing along at least some of the cost to your customers.

The first method is calculated shipping. Calculated shipping factors in the exact rate of shipping by using a rate table or a live rate to determine the actual cost at checkout. Another method is flat rate shipping, which determines the average cost of shipping and charging a flat rate based on the dollar value of the product.

You may also offer free shipping at a certain dollar level and cover these costs yourself. Remember, whatever shipping rate methodology you choose, many customers are sensitive to high shipping and may abandon a sale if they feel the shipping is too high.

If you do decide to charge customers for shipping, add this money back to your budget, thereby reducing your overall operating costs.

Some costs will change over time

The good news about variable costs is that they may go down over time, especially as your sales volume increases and your processes become more streamlined. You may also experience a drop in variable costs by investing in your own equipment, such as software and scanning technology. Furthermore, you can expect shipping carriers to give you better discounts as your shipping volumes increase.

Outsourcing fulfillment and shipping

If you opt to outsource with a fulfillment service, your costs will be variable, with the exception of a few costs such as management time needed to oversee the outsourced fulfillment service. Initial investment costs will be at a minimum if outsourcing is pursued.

Outsourcing brings another added benefit - you'll be able to tap into their discounted shipping rates since they aggregate freight among many different customers. Using the shipping estimates from above you can adjust your costs down 10-20% for ground shipping and 20-30% for express shipping because you'll get to use a fulfillment company's rates, depending upon your overall monthly order volumes.

Furthermore, warehouse space costs become variable when using a fulfillment center - so you only pay for what you use that month. To determine an estimate for warehouse charges, you can estimate how many goods would fit on a pallet and figure out the average monthly number of pallets required. Alternatively, you can also formulate a projection for how cubic space you'll occupy per month. This will help determine your total storage costs.

You can use the below numbers from FulfillmentCompanies.net's average fulfillment pricing and costs survey to determine your projected costs.

Set-up Fee (fixed one-time to set-up your account): $520

Account Management Fee Per Month (monthly fee to provide customer service and answer your questions): $130 per month

Receiving Fee Per Unit: $1.50 per box or $.25 per item

Storage Fee Per Month: $14.58 per pallet per month of $.495 per cubic foot per month

Fulfillment Fee Per Order: $$2.96 per single unit order

Box Fees Per Order: $.25-$.99 per carton

Order Insert Fees Per Order: $.17 per insert

Outbound Shipping Fees Per Order: 10-15% discount off of published rates for ground shipping and 20-30% discount off of published rates for express shipping

Returns Fees: $3.55 per order for a single item order

Outsourced fulfillment and shipping fees can be categorized for budgetary use as follows:

Unit costs

Receiving

Fulfillment fees

Box fees

Order insert fees

Outbound shipping fees

Returns fees

Monthly recurring fees

Storage fees

Account management fees

Your set-up fees can be treated like initial investment costs.

Putting it all together

When you complete this analysis, you will have the following information at your disposal:

Inbound freight per unit to be added to your costs of goods sold.

One-time charges, including your initial investment in shipping and fulfillment operations, which you will depreciate over the life of the assets.

Monthly fixed costs, including rent and other overhead and labor costs, which you will expense monthly.

Unit variable costs, including inbound freight per unit and shipping, add-backs, which will be multiplied by total unit sales and expensed monthly according to your sales forecast.

As you can see this process is somewhat complicated and detail intensive, but it is a valuable exercise in determining your shipping and fulfillment costs. Doing so can help you estimate the overall cost of your eCommerce business and can truly spell the difference between failure and success.

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Estimating Shipping and Fulfillment Costs for Your eCommerce Business

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Estimating eCommerce shipping and fulfillment costs is a difficult but necessary step for success. Read on to find out how to calculate your startup costs.

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When you are starting a new business there are many demands on your time and budget. One of your primary concerns could be budgeting for the online marketing of the start-up. You need to put your start-up funding where it will give you the biggest bang for the buck, reach your target clientele, be effective in driving sales, and help grow the business.

Start With a Business Plan

To begin with, you will need a well thought out business plan. Evaluating startup costs can be difficult for new retailers. There can be a lot of stress and tension when creating the plan. The financial demands of a growing business are immense. You need licenses and permits, legal and accounting advice, perhaps a storefront and warehousing space, office staff and supplies, website and marketing, and the list goes on and on.

Many of the figures listed for start-up costs on your business plan are estimates. And you can never be too conservative. The Small Business Association offers a free calculator to help estimate these expenses before you launch your company. You will need an estimate of your cost and how long it will take before you turn a profit-the breakeven analysis-as you approach lenders and investors to raise funds.

Estimate How Much You Need to Sell

Next, you'll need to project a little. To estimate marketing expenses, start with how much you'll need your store to generate in retail sales. Don't consider how much you want to sell. Instead, focus on what you have to sell to stay in business by paying your overhead costs.

In the first year of many retail stores, the owner will publish two numbers for the sales staff each day. The first figure is the "cash flow" number, and the second figure is the sales goal. Every sales member should understand that if the store does not at least hit the cash flow number, the store could not pay its bills-including employee salaries.

This technique helps to rally the troops, but it also gave them a sense of trust and ownership in the store's outcome. They knew jobs were secure if they hit the cash flow number, but they also knew their ability to keep that job was related to hitting the sales goal.

Each retailer's marketing strategy will greatly depend on which market segments they have chosen, including target market, location, media strategy, and other factors. These will all help determine your marketing costs.

Budget Your Marketing Costs

As part of your pre-launch investigations, you completed market research and competitive analysis for your business. You identified your customers and know there is a need for your product or service. You understand how much you need to generate on a regular basis to keep your business afloat. Now, you can turn to advertise and marketing your services to reach your sales goals.

Once you've figured out your sales figures, you can apply a percentage of that amount for marketing and advertising. Early on this marketing percentage will need to constantly monitored and adjusted. As your business grows and adjusts to its place in the market you will measure the productivity and results of your efforts.

The range for marketing is typically based on your retail segment-basically, what you're selling. For some retailers, it requires a very modest marketing budget. For others, it takes much more for people to notice you.

Generally speaking, a successful retail store will spend between 3% and 5% of sales on marketing. Spend more, and you'll be "dependent" on advertising. That means customers will only respond when they see an ad. Spend less, and your traffic will suffer because you may not be present enough. There should be a happy medium.

Let's say your business needs to generate $100,000 each month in sales to make a profit. If you choose to apply 3% of your monthly sales to marketing, then you have $3,000 for marketing. As you build your marketing strategy, you'll learn where to spend that money for the highest coverage.

Spread the Marketing Love

Don't put all of your startup marketing dollars in one place. Too many retail startups make the mistake of putting all of their money into newspaper or on a billboard. When you first open, you don't know what medium a customer will respond to best. You have to test and explore and try different venues and mediums to see what is the best ROI (return on investment) for your store.

Also, consider there are less expensive ways to market your store than advertising. Cross promotions with other retailers or businesses and events in the store all drive traffic but cost much less than a newspaper ad. You should also think outside the box. There is no harm in being creative.

Social Media

One of your first duties, and one of the best ways to get yourself noticed, is by designing a webpage and going through social media. Create a page for your business on sites like LinkedIn, Alignable, Facebook, Instagram, Pinterest, and Twitter. Promoting your business like this can come at no cost unless you count the time invested in creating and maintaining a profile.

Some of these online media giants will be better suited for one type of business over the other. LinkedIn and Alignable give a professional appearance to your company. Facebook, Pinterest, Twitter, and Instagram offer powerful platforms to keep your name and your product or service in front of your target audience.

Sites like Facebook also have services you can pay to help promote your business. For example, you can pay to schedule a post about your official launch, so it reaches your audience at just the right time. You can also pay to have posts promoted on related pages and sites, or have them promoted on general newsfeeds and timelines. Twitter also offers the same service-giving you the option to promote your tweets so a wide range of people can see your post and, therefore, your business.

Professional services are readily available, especially to small businesses and start-ups. These companies will handle and monitor your social media presence and/or other marketing tools. Be sure to research these to see if they're a good fit for you.

Once you get enough traffic from your marketing strategies, you may begin to see a nice boost to your sales and, effectively, your bottom line.

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Planning marketing for your retail start-up can be a challenge. There are so many variables and unknowns. Here are some tips to help you.

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Britain was the first country in the world to start a welfare charity for animals, as early as 1824. Now, almost 20m cats and dogs have a loving place in the country's homes, and almost one in two households is accompanied by a furry, scaly, or feathered friend.

As a historian of family and home life in 19th- and 20th-century Britain, I've been trying to find out how this came about. With Julie-Marie Strange and our research team, Luke Kelly, Lesley Hoskins and Rebecca Preston, we've been exploring archives from the Victorian era and beyond to figure out how and when pets became so prominent in family life.

Humans have interacted and engaged with animals for thousands of years, but pet-keeping didn't become socially acceptable in Britain until the 18th century. Until then, pets were often seen as an elite extravagance, and small dogs frequently appeared in satirical prints of aristocratic ladies, symbolising frivolity and indulgence.

By the late 18th and early 19th centuries there were fewer of these kinds of images. Instead, paintings and illustrations - a good indicator of what was culturally "in" - began to portray pets as an accepted part of domestic life.

In part, this was because of the new emphasis Victorians placed on home and domestic life. Responding to the growth of noisy and dirty industrial cities, Victorians began to idealise the home as a sacrosanct space. Pets were a key part of this celebration of domestic life, appearing in numerous paintings and illustrations and often portrayed as part of the family. This was the clear message behind Frederick George Cotman's painting, One of the Family, which shows a rural family at the dinner table, accompanied by a pet dog and a horse.

In tandem, a rising Evangelical religious movement placed more emphasis on mothers and fathers in bringing up moral children. In this cultural climate, pet keeping took on a new moral value. From the 1840s, advice books and children's literature encouraged children to keep small animals such as rabbits, guinea pigs and birds. The idea was to cultivate commitment, caring values and practical skills. Boys in particular were expected to learn kindness from these activities.

Victorians kept pets for a variety of reasons. Pedigree dogs conveyed class and status, cats caught mice, and rabbits could be eaten when times were hard. But evidence from interviews, diaries, photographs and the numerous newly created pet cemeteries suggests that, above all, emotional attachment was a crucial part of the relationship between most Victorians and their pets.

Dogs, for example, were held to have virtuous characteristics that echoed the values of the Victorian human world - they were seen as steadfast, loyal and courageous. In the popular painting by Briton Riviere to the right, a little girl, perhaps banished to the naughty step, is accompanied by a faithful dog.

Not all rosy

While the Victorians celebrated pets, there was less consciousness of the harm that might be caused to animals by removing them from their natural habits. Mice, rabbits, squirrels, hedgehogs and all kinds of British birds regularly featured in advice manuals as animals that could be captured and tamed.

Hedgehogs, for example, were frequently captured and sold at London's Leadenhall Market. Their willingness to eat black beetles made them valuable in London kitchens as they were thought to improve cleanliness. But as how to care for and feed them was not well understood, they tended not to survive for long.

Birds played an important part in working class culture. Though some families kept them in poor conditions, most cared for them fondly, valuing the song, movement, and colour they added to home life. Removing them from the wild was more contentious than other animals - in the 1870s, legislation was passed to limit their capture to certain times of year. However, markets trading in wild birds continued to operate well into the 20th century.

A new century, a new relationship

Taking animals directly from the wild became gradually less acceptable in the 20th century. Changes in living conditions in the early 20th century also altered the way people kept domesticated pets. The building of new suburban houses with larger gardens in the interwar period created a new, more spacious environment for animals. An increasing urban population was encouraged to take in pets that didn't mind living exclusively indoors, such as pedigree cats.

Disposable incomes rose, so there was also more money for people to spend on their companions. After the Second World War, vet services grew, as did companies supplying bespoke food, toys and pampering experiences.

A stronger emphasis developed on building a relationship with pets, rather than simply caring for them. From the 1920s, commentators increasingly wrote of relationships between humans and pets, and of training as an important facet of dog ownership.

By the 1950s, popular animal experts like Barbara Woodhouse were emphasising that owners also had to be trained. Woodhouse argued that "delinquent canines" - dogs that stole Sunday joints, occupied the favourite chairs of owners, or refused to move from their beds - were due to the failings of owners who had not forged meaningful relationships with them.

By the late 1950s and early 1960s, academics had started exploring the significance of pets in family life. Sociologists Harold Bridger and Stephanie White argued in 1964 that the decline of the traditional "close-knit" family made pets more necessary to bind families together. They predicted that pets would keep becoming more popular long into the future. The booming pet culture in the 21st century appears to fulfil that prophecy.

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Britain is a nation of pet lovers - and it has the Victorians to thank

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A dive into the archives shows that pets developed a special place in Victorians' hearts.

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As a Brit would say, "I'm sat here next to my dog enjoying the brilliant spring weather." Anyone who's ever spent time in the UK knows that pet owners don't just shape pet ownership statistics, but that pet-owning households share a way of life. Brits were the first to declare animals as sentient beings!

At a glance, 52% or more than half of British adults own a pet, of which 27% are dogs. There's an estimated 1 million pet rabbit population.

UK households spend a healthy chunk of their income on veterinary care, services, and pet food, making them the highest-ranking European country in the pet ownership segment. Here's a look at the pet ownership statistics in UK households.

Top 10 Most Captivating Stats

United Kingdom Pets

The UK Pet Food Manufacturers Association (PFMA) has a vested interest in the 62% of households that own a pet.

Their online survey of 9000 households revealed that the dog population suggests that K-9s are still the most popular pet, with a registered 13 million canines. Cats lag slightly at 12 million but don't tell that to a cat; they don't care.

Brits also share their homes with 1.6 million birds, 1.4 million domestic fowl, 700,000 pigeons, not counting wild or feral pigeons, 1 million rabbits, 900,000 guinea pigs, 600,000 wheel-spinning hamsters, 600,000 turtles and tortoises, 600,000 horses and ponies, and other reptiles. ( source)

This number does not include indoor or outdoor fish populations.

In the UK, More Than 62% of Households Own a Pet (PFMA)

Dogs rule, and cats drool. Actually, cats don't drool, but UK households prefer pooches over kittens.

As the PFMA survey suggests, households in the UK don't mind sharing their space with 13 million dogs and 12 million felines, and a slew of small animals, birds, and fowl, as well as fish and horses. That means more than six in ten (62%) households own pets.

53% of UK Adults Have a Pet (PDSA)

Pet ownership is an important part of UK households. While as many as 62% of all British homes own a pet, 53% is directly related to adults owning a pet, according to a PFMA survey snapshot. ( source)

13 Million Pets in UK Households Are Dogs (PFMA)

The United Kingdom has a long history with its dog breeds. Walk through any stately home or art gallery, and artists capture dogs with paint and poetry.

Ten million or 34% of UK households share their space with a pooch. In families with children, at least 77% have a pet which is a 12% increase over 2021 based on the PFMA survey.

Ten million, 34% of UK households, own a dog, compared to 28% (8.2 million) owning a cat. Homes with cats and dogs are up slightly to 11% (3.2 million).

Looking into the dynamics of households with children, 77% have a pet (6.9 million), an increase of 12% on 2021 figures, when an estimated 6.15 million families owned a pet.

12 Million Pets in UK Households Are Cats (PFMA)

Although not as visible as dogs, which are paraded publicly to parks, on trains, into pubs and shops, felines still have a strong presence in the UK pet household at 12 million.

Many families have equal ownership of kittens and pups at 3.2 million or 11% of the pet ownership figure.

Almost 1.5 Million Households in the UK Have Almost 4 Million Birds as Pets (Petfood Industry)

Birds of a feather flock together, and in the United Kingdom, that amounts to a flock of 4 million birds in 1.5 million households, with a 23% increase over the previous year. This figure includes birds, pet pigeons, and domestic fowl like chickens, ducks, geese, and turkeys.

2.5 Million Rabbits, Guinea Pigs, and Hamsters Are Kept as Pets by 1.5 Million Households (Petfood Industry)

This group is typically classified as small mammals and is an important part of 1.5 million English pet-owning families. This need to house small mammals stems from the British farming history revolutionized by agriculturist Jethro Tull (not the band), who invented the seed drill.

There Are 8 Million Indoor and 6.5 Million Outdoor Fish Ponds in the UK (Petfood Industry)

The PFMA survey of 9000 households did not count fish as individual animals, and the number represents indoor tanks or aquariums and outdoor water features like ponds designed to keep fish. The survey found that 17% of homes owned 8 million indoor fish tanks. A further 12% of households owned 6.5 million outdoor fish ponds.

These numbers represent a 60% increase over the previous year's survey of the UK's pet households. ( source)

77% of Households With Children Have Pets (Petfood Industry)

The survey on UK pet ownership also shared data collected from households with children and found that 77% have a pet which means 6.9 million animals with a 12% growth over 2021 figures.

Adding a further pandemic-influenced increase to these statistics should produce even higher figures for 2022.

2% of UK Households Acquired a Pet During the Pandemic (PFMA)

Since 59% of British homes have a pet, that means a fair distribution of pets to all demographics, from Boomers to Gen Z to Millenials in age groups 16 to 34.

As much as 2% of this group owns a pet bird, and the Golden Retriever was the most popular breed at 12% in 2018. However, if you look around the dog park, designer breeds are the most populous.

49% of UK Households Consider Pets as Part of Their Family (Petplan)

It goes without saying, and why would anyone get a pet and think otherwise? According to a Petplan 60,000-participant survey spanning various topics, the truth had a startling significance.

UK pet owners have a strong bond with their animals. Of the participants surveyed, 35% said their pet is part of the family, and 49% said they plan their lives around their pets.

Even more significant is that 15% of participants said their pet dominates and money is no object to ensure their pet is safe, happy, and healthy.

Dogs in the UK

34% of UK Households Have a Pet Dog (Petfood Industry)

British people love dogs; ten million households share their homes with canines, while 8.2 million homeowners have kittens. Sometimes dogs and cats live happily together under the same roof if the pet parents know how to introduce a cat to a dog!

Although dogs have the country's most significant share of pets, more people in London have cats at 61% based on 2018 numbers.

27% of UK Adults Have a Dog Pet (PDSA)

In the UK, 52% of adults own a pet, and 27% of those own a canine leaving ample room for feline pet ownership.

There is a substantial pet cat ownership demographic in the U.K., with 11.1 million felines purring away on a window sill. While the cats are sleeping, 10.2 million dogs chase rabbits in their dreams.

The Number of Dogs Owned by UK Adults Is Around 10.2 Million (PDSA)

It only makes sense that adults hold the highest share of pet owners since there is a substantial cost and responsibility involved in raising any pet. According to industry figures, the cost of owning a dog in England is between £10,000 and 16,000 over its lifetime.

The Most Popular Dog Breed in the UK Is the Labrador Retriever, Taking 12% of the Ownership (Petplan)

In America, it's also the Labrador Retriever who holds the heart string of dog owners. The Lab is purebred and registered, while new designer breeds like Cockapoos and Labradoodles aren't.

French Bulldogs, Cocker Spaniels, Poodles, Dachshunds, Whippets and Vizslas, and Bulldog breeds and mixes are also in demand in the UK pet ownership market.

Both Cats and Dogs as Pets Make Up 11% of Households (Petfood Industry)

Many pet parents have figured out a way to home what many people believe are natural enemies: feline vs. canine. Many pup and cat households have already disproven that outdated theory. Families in the UK with dogs and cats are up over previous years to 3.2 million.

78% of Dogs in the UK Reside in Northern Ireland (Petplan)

It is the luck of the Irish to have such a large share of UK pet canine ownership. Not to be outdone by their Irish cousins, North Easterners have 75% of the dog population, and Wales at 73%. To clarify, these percentages are based on pet ownership by type.

A sample size of pet owners reveals the most popular pets can be compared by the district.
Northern Ireland has this split: Wales has this split:
Pet owners in Northern Ireland had only 1% bird ownership, while Londoners had 4% and are the only two demographic areas that responded to the survey that they owned birds in 2018.

In 2019, the UK Had the Highest Number of Dogs in Europe, After Germany (Petfood Industry)

Sorry, here comes another geography lesson. Russia is part of Europe, though it isn't part of the European Union.

Germany is home to the largest canine population of 10.1 million if the numbers don't include Russia, with 16.8 million leaving the United Kingdom, which includes England, Scotland, Wales, and Northern Ireland at 9 million dogs.

The UK, the second highest-ranking European country, is no longer part of the European Union since Brexit.

Facts About Dog Owners

A Survey From 2020 Revealed That 51% of UK Pet Dog Owners Think Their Dogs Make Them Happy (PFMA)

Owing a pet, a cat, dog, or fish, makes many people feel loved and needed. Animals give us companionship; most people aren't shy about voicing their affection. In a 2020 survey, when participants were asked why they chose a K-9 as a pet, 51% answered that it improved their happiness and provided companionship.

Happiness was the most common response, with 51%, 47% saying their dogs gave them love/affection, and 35% saying their dogs provide companionship.

41% of UK Dog Owners Consider That Their Dogs Give Them Affection (PFMA)

It's difficult not to smile when you're in the company of a dog, even if that dog isn't yours, and experience joy and happiness. Although K-9 owners equate happiness with dogs, 47% of surveyed people added that their dogs gave them love and affection.

35% of Dog Owners Think Their Dogs Are Great Companions (PFMA)

Non-dog parents might not understand this overarching feeling that canine owners share with their canine family members. Being with a dog takes the edge off loneliness, and 35% of pup owners believe their dog is a great friend and partner.

Cost Associated With Owning a Pet

The Lifetime Cost of Owning a Dog Is Almost 10,000 to 16,000 Pounds (IBIS World)

Dog advocates want new pet owners to know that having a dog comes with unexpected expenses. UK pet insurance companies estimate that canine ownership has a hefty price tag from £10,000 to 16,000 in the dog's lifetime.

While food, toys, and accessories are a given, many forget to plan for the health crisis that often has a substantial price tag for the pet population.

While many K-9 owners spend less, being prepared and having the funds to cover expenses is an important consideration. Also, for animal lovers set on specific breeds, prepare to shell out a small fortune on the initial cost.

The Minimum Monthly Cost of Pet Rabbits in the UK Is 35 Pounds (Braemar Finance)

Rabbits and other small animals are a great alternative to pet owners when pups or kitties are not a great option. Although rabbits are much less expensive, providing a safe shelter is essential so that other animals can't harm them.

Also, rabbit owners must provide clean water, hay or grass as part of their main diet, and some pellets.

The Monthly Cost of Pet Dogs and Cats Is Almost 70 Pounds (Braemar Finance)

Pets cost money, and veterinary care and services like grooming and walking can strain a pet budget. Many pet owners set up contingency funds or invest in pet insurance. Here are some of the costs your dog and cats will need monthly:

Food and treats

Toys

Poo bags, toiletries, litter

Insurance

OTC for fleas, worms, ticks, etc

Booster vaccines (scheduled)

Typically a large dog's cost will range around £75, a medium at £61, and £54 for a small dog. These figures represent averages. Felines cost significantly less than most dogs.

Back in the day, people brought home a canine, bought cheap kibble, had it dewormed, neutered, or spayed, and got a license as required.

Today's pet parents are much more involved in their canines and felines' well-being. The UK pet care industry was worth £8 billion in 2020, representing a whopping 170% increase from 2005.

Veterinary and Pet Services Made a Total of 4 Billion Pounds in 2020 (Braemar Finance)

Out of an £8 billion pet industry total, veterinarian care and pet services like dog walking, grooming, and doggy daycare account for nearly half of all expenditures.

Cats in the UK

Dog pet parenting slightly outpaces cat ownership in Great Britain, but who is counting? Said no one ever.

People are predominantly either dog or cat people; however, a few enlightened hoomans can love cats and dogs equally. Each pet offers something unique.

28% of UK Households Have a Cat (Petfood Industry)

In a survey of 9000 pet households in the UK, 12 million kittens lived in 28% or 8.2 million households. There are now 11% more households with a cat and dog in 3.2 million homes. Hoomans provide some pretty good living accommodations.

24% of the U.K. Adult Population Have a Cat (PDSA)

Unsurprisingly, cats have a huge place in UK adult homes. Many people believe felines are much easier to care for, though others might argue that you can't train a cat. Since Brits love kitties, an estimated 11.1 million kitties are purring on laps or curled up by the fire.

London Has 61% of Cats (Petplan)

Sometimes stats make sense. London is such a fantastic city, but it's busy, so when people opt for cats over dogs, it's a good decision.

Cats at 61% dominate in London, whereas all other regions have higher dog ownership which in London is still a healthy 50%. They do have fab parks in the city to take dogs.

Moggy Is the Most Common Cat Breed (51%) Kept as a Pet in the UK (Petplan)

Yeah, never heard of a Moggy, but apparently, 51% of Brits have and choose it as their favorite cat breed, though it isn't a breed at all. It's an ordinary mixed cat with a pedigree that has long ago been forgotten. The British Shorthair cat at 24% is also popular.

70% of Cat Owners in the UK Think Their Cats Make Them Less Lonely (Braemar Finance)

According to a survey from 2019, younger pet owners felt less lonely when owning a cat. Although young and older adults seldom have something in common, the 65 and older group shared the sentiment that cats made them less lonely too.

FAQ's

What Is the Major Reason Behind Pet Ownership?

People choose pets for companionship and a sense of security. Another reason someone might get a dog is to become more active and social.

How Much Do Pet Owners Spend on Their Pets in the UK?

It depends on the type of pet, but on average, Brits spend 1% of their income on their pet, but for their lifetime, it costs thousands.

Who Is the Leading Retailer of Pets in the UK?

The top pet retailer is Pets at Home, with over £1.14 billion in revenue in Europe, according to Statista. They sell products for dogs, cats, fish, birds, reptiles, and small animals, like food, toys, garments, accessories, and equipment.

How Many Brit Pet Owners Buy Birthday Presents for Their Pets?

Brits are generous with their pets, 25% buy birthday presents, and 88% of pet parents spend £50 on their pet darlings. Some are spending as much as £264 on gifts.

Wrap Up

Pet ownership statistics are a fascinating glimpse at how pet parents spend their money and resources on the well-being of their beloved pets. It's also why there is a massive trend toward understanding consumer dynamics behind these spending habits and households owning pets.

UK pet ownership is unique; this author has had the opportunity to observe the differences.

There is always a downside, and animal lovers fight tirelessly against cruelty and caution that the main annual population figures mean more pets end up in shelters. Please don't buy a puppy mill product, yes, they are cute, but they will never end the horrific circle.

Pet ownership has its fixed costs. You must provide food, shelter, and veterinary care as a pet parent. Those are essentials. However, your dog and cat don't care about the extras or fancy designer labels; they care about you and spending time with you. And those, my pet-loving friends, are free to give.

Pet statistics, households owning pets, and dog population numbers are difficult to extrapolate as many animals are not officially registered.

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All About Pet Ownership Statistics UK - Nation of Pet Lovers

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UK households spend a healthy chunk of their income on veterinary care, services, and premium pet food. Read on to know their details!

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by Josh Howarth
November 30, 2022

The pet industry is thriving right now.

The rise of eCommerce, the introduction of new pet technology products, and a shift toward premium, organic foods have all contributed to an already growing industry.

Pet ownership is also on the rise. Adults are putting off starting families, opting instead to head to the local animal shelter. Millennials became the largest pet-owning demographic, shaking up the industry with new preferences and demands.

But just how big is the pet industry? And what does the future hold for the space?

In this article, we'll cover over 75 new statistics about the pet industry.
Contents:
Top Pet Industry Statistics For 2023

Before you read on, here are some of the most eye-catching statistics to get you started:

The pet industry is expected to reach $358.62 billion by 2027.

There are over 630 different pet food brands.

Americans spend $103.6 billion on pet products per year.

Pet industry spending has increased 115% since 2011.

86% of pet owners shop for their pet online.

As you'll see from these stats, the pet industry is in a very strong position, with plenty of growth opportunities in the near future.

Pet Market Stats

Let's begin this list of pet statistics by taking a look at the pet industry as a whole.

The pet industry has grown 450% over the past 25 years (SPINS)

Today's market for pet products is vastly different compared to a quarter-century ago. Specialty pet foods are now widely adopted. Demand for new pet technology, including microchips and at-home DNA tests, is on the rise.

Expect this growth to continue (and even pick up steam) in the coming years.

The pet industry is expected to reach $358.62 billion by 2027 (Globe Newswire)

Industry experts expect a 6% compounded annual growth rate (CAGR) in the pet industry over the next five years. The big driver behind that growth is largely technology.

Technology gives pet owners new ways to keep their pets safe, healthy and entertained. Microchipping is becoming standard practice at many pet shelters. Pet treadmills and cameras are among the new products making headway in the market today.

There are over 630 different pet food brands (Pet Food Processing)

Pet owners don't lack options when it comes to feeding and rewarding their companions. The latest data suggests there are currently 630 distinct pet food and treat brands, up 71% from 2011. Between those brands, there are over 22,000 unique SKUs.

The pet grooming industry is expected to reach $14.5 billion by 2025 (Grandview Research)

Market experts are bullish on the pet grooming industry. They see it hitting $14.5 billion by 2025, with half of that revenue taking place in the United States. Shampoo and conditioner are predicted to be the leading products, with a 52% revenue share.

30% of pet spending goes toward veterinarian care and products (Supermarket News)

Pet health and wellness represent a significant portion of the pet industry. With preventative medicine, telehealth and routine care becoming more accessible (and more recommended by vets), pet healthcare is booming. Pet owners spend $31.4 billion per year on their pets' health.

Searches for "vet telehealth" have increased by more than 500% over the past 5 years.
The market for exotic animal pet products is worth around $3 billion (Packaged Facts)

Small and exotic pets have their own unique product categories that, when taken together, represent a huge overall market. Each exotic pet type has its own dietary, shelter, and habitat needs. Food, water treatment solutions, bedding, and cleaning products are all regular purchases for exotic pet owners.

Pet Ownership Statistics

No matter the industry, marketers understand that knowing the customer is one of the keys to success. Here are some current pet industry demographic stats to keep in mind.

There are 393.3 million pets in the US (DoggieUK9)

That's right, there are more pets than people in the US. And the difference is only projected to increase in the future. That's good news for the pet industry, which relies on regular purchases of food, toys and other products.

70% of US households own a pet - up from 56% in 1988 (APPA)

More American households own a pet than they do homes.

In fact, 90.5 million homes in the US have at least one non-human occupant.

4.1 million animals are adopted from shelters every year (ASPCA)

23% of dogs and 31% of cats are adopted from pet shelters.

In fact, pet adoption is so popular that it's entered the cultural zeitgeist: there are over 50 million posts on Instagram using the #adoptdontshop hashtag.

Over 1 in 3 dog owners say they adopted their dog from a shelter (Humane Pro)

Adopting from shelters has become the most common way people acquire their pets. Nearly 1 in 5 dog owners say they adopted their canine from a friend, 1 in 10 purchased from a pet store, and 1 in 20 took them in as strays.

12.2% of US households have a pet that is not a cat or a dog (Packaged Facts)

The pet industry isn't all cats and dogs. The "other" pet category includes reptiles, rodents, birds, and more. "Other" pets have found their way into nearly one-eighth of American homes, a 13% increase from five years ago.

Millennials are the largest pet-owning demographic, making up 32% percent of all pet owners (APPA)

As millennials enter their 30s and 40s, they're looking for more stability - and animal companionship.

Today, almost a third of pet owners were born between 1982 and 2000.

Baby boomers make up 27% of pet owners, Gen X 24%, and Gen Z 14%.

Millennials are three times more likely to be pet owners than they are to be parents (YPulse & Snipp)

Millennials may start having more children in the future, but they are approaching critical mass in pet ownership today.

76% of people aged 20-38 years own at least one pet, with over half being dog owners.

How Do Pet Owners Spend Their Money?

Pet ownership is more than just buying food and treats. People spend money on vet care, toys, leashes, tech devices, and more for their pets. This section will explore consumer trends and how much revenue each segment of the pet industry generates.

Americans spend $123.6 billion on pet products per year (APPA)

2020 was the first year the pet industry crossed the $100 billion sales mark.

The pet product landscape is more diverse than ever. Organic kibble, pet technology devices, and subscription boxes are among the growing list of categories pet owners are spending their money on.

Americans spend $1,201 per year on their dogs (Statista)

Yes, the average American spends just over $100 per month on their canine companions.

The largest portion of that spending goes to food ($442 per year).

Average vet care and vaccination spending total $241 per year.

Cats, on the other hand, only cost an average of $687 per year (Statista)

It's common knowledge that cats are low-maintenance compared to dogs.

As it turns out, they're also easier on the wallet.

The average cat costs $329 per year to feed and racks up $125 in vet bills.

Pet industry spending has increased 115% since 2011 (APPI)

The pet industry has few, if any, down years. According to the American Pet Products Association, sales went up predictably throughout the late 20th century and started really picking up momentum in the 2000s.

Since then, spending on pets has been steadily climbing from just over $50 billion in 2011. If the trend continues, pets could be a $200 billion industry by 2030.

Pet food and treats make up 40.5% of all pet product spending (APPA)

Any pet owner will confess that feeding and rewarding their companions are the most expensive aspects of pet ownership. In 2020, Americans spent $50 billion on kibble and treats.

When it comes to feeding those hungry critters, there's no shortage of options. In 2018, there was no fewer than 630 distinct pet food and treat brands.

The organic pet food industry is worth around $22.8 billion (Pet Keen)

In the eyes of their owners, pets are part of the family. And as humans consume more and more organic foods, they tend to hold their pets' diets to the same standard.

In fact, despite being relatively new, the organic and natural pet food industry has more than doubled over the past 10 years. Diamond Naturals and Castor & Pollux ORGANIX are among the leading brands in this sub-market.

Wearable pet technology products are forecast to generate $4.6 billion in revenue in 2027 (Grandview Research)

Wearable technology including radio frequency identification (RFID) devices, GPS trackers, and motion sensors is one of the fastest-growing markets in the pet industry.

The market, which was valued at $1.8 billion in 2020, is set for explosive growth over the next half-decade.

Searches for "Petlibro", a pet technology company, are up 2,800% over the past 5 years.
Around 3.45 million pets are insured in North America alone (NAPHIA)

While the average monthly cost of owning a pet might seem manageable for most people, unplanned vet bills can be outright catastrophic.

Insurance is a smart way to manage the financial risk that comes with ownership - be it homes, cars, or even pets.

The pet insurance industry has been growing at a healthy 23.4% average annual rate.

41% of dog owners prefer purchasing premium dog food (American Kennel Club)

As people become more conscious of the food they're consuming, the same thoughtfulness is being applied to pet ownership.

Pet owners are willing to spend extra money knowing they're feeding their pets a nutritious and ethically-sourced diet.

51% of millennial pet owners have purchased a toy for their pet in the past 6 months (YPulse)

Ask any pet owner, and they'll tell you: pets get bored. They need stimulation.

Pet-friendly toys keep them occupied (and away from clothing and furniture).

Around one-third of pet owners have purchased a CBD product for their pets (American Kennel Club)

From treats and supplements to shampoos and oils, CBD pet products are on the rise.

CBD pet brands promise relief for pets with anxiety and older pets with inflammation and joint pain.

Searches for "CBD for dogs" have increased by 128% over the last 5 years
How Big is the Pet eCommerce Industry?

Online retailers got a tremendous boost during the COVID pandemic. As people are now used to turning to eCommerce companies to fulfill more and more of their needs, this segment of the market will likely continue its growth.

30.1% of all pet product sales come from eCommerce companies (Emarketer)

eCommerce has been a game-changer for companies and consumers alike.

Pet products are a natural fit for the eCommerce model. Owners can buy food, treats, leashes, and harnesses from wherever they are with a couple of quick taps. Overnight shipping and automated re-orders give online sellers a huge advantage over their brick-and-mortar competition.

Consumers spent an estimated $16.28 billion on eCommerce pet products in 2021, making up 1.8% of all eCommerce sales.

86% of pet owners shop for their pet online (American Kennel Club)

Pre-COVID, around 60% of pet owners shopped online. Since the pandemic began, this number shot up to 86%.

59% of pet owners who shop online order their pet products from Amazon (Pet Food Processing)

It's no surprise that the world's largest eCommerce store has such a large share of the pet products market. Most store-bought brands are available on Amazon and can be delivered within 24 hours.

This stat also suggests that there's room for eCommerce brands to position themselves as an Amazon alternative.

9% of millennial pet owners have purchased a pet subscription box in the past 6 months (YPulse)

Barkbox, a leading pet subscription box company, has increased monthly searches by 885% over 5 years.
Subscription box brands, take notice.

There are around 6.5 million potential customers in the under-40 market ready to pay for a monthly pet care package.

For dog owners, running out of treats isn't an option.

For the first year or more of a dog's life, having a constant supply of treats is vital for training and obedience.

Subscriptions and auto-fill options are the perfect solutions for pet owners.

Conclusion

As you can see, the pet industry is massive and fast-growing.

People are adopting more pets, taking better care of their pets' health, and seeking out higher-quality products.

The pet industry is also expanding into exciting new verticals.

Pet tech, eCommerce, and natural pet food and treats are all areas of tremendous opportunity for pet suppliers to explore.

In fact, you might say the pet industry is currently in its Golden Age.

If you enjoyed our stats on the pet industry, take a look at our 7 pet industry trends to know and our 20 pet startups with a promising future.

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Data and stats about the pet industry, including market size, number of brands in the space, and more.

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Pet care is one of UK's many thriving industries where consistent growth is happening year-on-year. The most recent figures published by the Office for National Statistics revealed that expenditure on pets and related products reached an annual value of 9.66 million British pounds in 2021, representing a 270 percent increase from the beginning of the survey period in 2005.

Dogs are UK households' best friend

The United Kingdom is host to over 50 million pets, although this number signifies a considerable drop since 2013 when the pet population in the UK peaked at 73 million. The nation's most popular pets were dogs with just over one third of households owning a pet dog.

Pet care

With such affection towards pets also comes the need to care for them. Indeed, over the last decade, spending on veterinary services in the UK rose tremendously, particularly in 2021 when veterinary and other pet care related services reached over four billion British pounds.

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Spending on pets in the UK 2021 | Statista

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Pet care is one of UK's many thriving industries where consistent growth is happening year-on-year.

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Petsathome.com is the online shop with the highest eCommerce net sales that is selling products in the Pet supplies e-commerce market in the UK, with a revenue of US$215 million in 2021 generated in the UK, followed by zooplus.co.uk with US$155 million. Third place is taken by viovet.co.uk with US$68 million. Animeddirect.co.uk is the fourth biggest Pet supplies online store in the UK with US$67 million in 2021.

For an extended ranking or rankings in other product categories, please visit ecommerceDB.com.

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Top Pet supplies online stores United Kingdom 2021 | Statista

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Petsathome.com is the online shop with the highest eCommerce net sales that is selling products in the Pet supplies e-commerce market in the UK, with a revenue of US$215 million in 2021 generated in the UK, followed by zooplus.co.uk with US$155 million.

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According to the Pet Food Manufacturers' Association (PMFA), around 41% of the households in the U.K. owned a pet with a total pet population of 44 million in 2019. Pet ownership has been rising continuously since the last decade, and as of 2019, around 50% of the adults in the U.K. own a pet. Dogs are the most adopted pets, followed by cats. In 2019, the U.K. had a population of 9 million dogs, 7.5 million cats, and 500,000 indoor birds, among others. The pet food adoption is growing due to the changing demographic trends from baby boomers to millennials, the rise in one-person households, young couples planning for late pregnancies, and older people living alone. The pet food market is in a mature state of development, and the landscape is changing towards following human trends. The pet food market in the U.K. was worth $6.0 billion in 2021 and is forecasted to grow at a CAGR of 3.0% during the period 2022 to 2027.

COVID-19 IMPACT

The pet food industry in the U.K. has experienced a surge in profit during the COVID-19 lockdown as the pet owners in the U.K. stockpiled food and medicines on fears of shortages of products. The lockdown has also led to a surge in pet adoption as people tried to deal with isolation. This increased pet adoption created additional demand for pet food.

The Impact of Inflation

The U.K. recorded a 9.4% inflation rate in June 2022, and the pet food industry recorded an 8.4% inflation rate. The food supply chain industry is simultaneously facing challenges like extremely high cost of inputs, freight, packaging material, gas, and electricity, among others. The pet owners in the U.K. struggling with increased expenses and rising fuel and energy billls are forced to turn to food banks to feed pets. Pet food prices in the U.K. have increased by 15% from January to August 2022. Pet owners are also switching to cheaper pet food options or feeding their pets leftover food. In dire situations, owners are abandoning their pets due to the higher cost of feeding and maintaining them. Thus, the ongoing inflation had a sharp effect on the pet food industry and has dampened the market's growth.

Dog and Cat Food

Dog food is the most dominant category of pet food in the U.K and accounts for more than 50% of the market share. The cat food sector has been witnessing a stable volume demand, but the exponential growth in value. This echoes a shift in consumer demands towards single-serve products and treats. The dog and cat food sectors are moving towards premiumization and include categories such as gourmet, artisanal, healthy, grain-free, age-specific, and breed-specific food. The bird food market has also displayed a steady historical growth rate and is estimated to continue the same growth rate.

Current Trends

Pet owners are inclining more to humanize pets taking special care of their diet and health, giving the market a big boost. The pet humanization trend is leading to the introduction of product lines similar to the human diet, i.e., pet food containing raw materials, appearance, and aroma similar to human food. Pet owners are also increasingly looking to feed their animals the high-quality pet food, irrespective of price. The trend of humanization has also strengthened the demand for premium pet food. Premiumisation has led to an increase in demand for pet food varieties such as gourmet, homemade, clean labels, prepared with locally sourced ingredients, with high protein, vegetable, and other nutritional contents.

Raw meat and freeze-dried raw meat products are also gaining popularity among pet owners. One of the fastest-growing segments of pet food is the dog and cat treat market. Products such as muffins, soups, crisps, sausages, popcorn, beer, and wine for cats and dogs are also displaying a rapid growth rate. The use of insects as an alternative source of protein in pet food has also garnered the attention of manufacturers aiming towards sustainable production practices. Vegan dog food is also the current trend in the country as more humans are opting for vegetarianism. Many dogs are also allergic to animal proteins. For dogs that are susceptible to allergies and other health problems, certified animal nutritionists and veterinarians will recommend animal-free diets. At present, manufacturers such as Yarrah, Beco Pets, among others, cater vegan dog food.

Internet- Becoming preferred sales channel

Supermarkets are the most popular outlet for pet food purchases in the U.K. Small and new players in the market opt for this distribution channel to reach a wider consumer base. Moreover, established players also push their premium products through supermarkets. Internet retail is rapidly becoming the favored channel among Millenials, mainly due to the availability of vast product range, convenience, and competitive pricing.

Competitive Landscape

Nestle and Mars are two dominant players in the market, accounting for over 40% of the pet food market share. Mergers and acquisition of small and established brands to acquire a new product line or move into adjacent markets are the most adopted strategies of major players in the market. For example, Nestle acquired Tails.com, a direct-to-consumer, tailor-made dog nutrition subscription business in April 2018, and Lily's Kitchen a premium pet food brand in April 2020, to boost its domestic and global sales. Small and emerging players in the market are developing innovative product lines matching the current human trends at attractive prices to gain market share. Private label brands are also posing a threat to market leaders, mostly in the economy products segment. Some players are also aiming towards tapping market share in the premium and super-premium category by introducing functional pet foods, natural, organic, gourmet food, and by providing convenience across service delivery, product design, and customer experience.

Key Deliverables

Market trends since 2018 and five-year forecasts of market growth

Detailed analysis of the micro and macro elements influencing demand trends

Identifying opportunity spaces across segments

Supply & demand side trend and analysis

Price trend analysis, investment prospects and competition pattern

Insights on the growth potential of the market

Detailed analysis of major producers covering financial investments & strategies adopted

Competitive landscape of the industry

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U.K. Pet Food Market- Size, Trends, Competitive Analysis and Forecasts (2022-2027)

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U.K. Pet Food Market- Size, Trends, Competitive Analysis and Forecasts (2022-2027)

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This statistic displays the value of the pet care market in the United Kingdom from 2008 to 2021. Since 2008, the UK pet care market value has increased, reaching 6.8 billion British pounds in 2016. However, it decreased to 6.2 billion British pounds in 2020, but grew again in 2021.

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Pet care market value in the UK 2021 | Statista

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This statistic displays the value of the pet care market in the United Kingdom from 2008 to 2021.

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Pet food was the category with the largest market value in the pet care industry in the United Kingdom (UK), generating a market value of 3.1 billion British pounds in 2021. Veterinary services had a market value of 2.4 billion pounds in that year.

Pet ownership in the UK

In the UK, approximately 62 percent of households own a pet, with the most popular pet type being a dog. In 2021/22, 34 percent of UK households owned a pet dog, compared to 28 percent who owned cats, and two percent who owned rabbits. As a result, the dog food market is the most profitable, valuing around 1.5 billion British pounds.

Dog food in the UK

As of 2022, approximately 13 million pet dogs were living in the United Kingdom. Due to the big number of dogs living in UK households, different brands compete in the dog food market in the UK, most notably Pedigree and Bakers. In 2020, Pedigree brands were dominating the market for dog biscuits, mixers, and treats. An estimated three million people in the UK were using any Pedigree product, compared to 1.2 million people buying dog biscuits, mixers and treats from Bakers. However, Bakers Complete was the leading brand of complete dry dog food in 2020, this time overtaking Pedigree Complete by a significant margin.

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Pet care market value by category in the UK 2021 | Statista

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Pet food was the category with the largest market value in the pet care industry in the United Kingdom (UK), generating a market value of 3.1 billion British pounds in 2021.

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UK Pet Food & Pet Care Retailing Market Report 2021 - Market Size

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The UK Pet Food & Pet Care Retailing Market Report 2021 covers the latest industry trends. Understand the UK pet care market size, statistics and expert analysis.

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Surges in sales. Immunity from financial downturn. And an ecommerce market share outpacing online retail as a whole.
By every metric, the pet industry represents one of the most lucrative opportunities for online brands. Every metric ... except one.
Despite strong numbers, it's a dog-eat-dog world with the biggest of the big devouring far more than their fair share.

Intense competition marks the pet food, pet care, and pet supplies landscape - especially mass merchandisers privy to high-volume sales, the luxury of lower margins, and scale.

Two players, PetSmart and PETCO, account for nearly half of all online pet product revenue. Amazon's debut into white-labeled pet-food challenges start-ups lacking methods to address variable costs like supply-chain logistics and shipping.

What's more, traditional retail giants like Walmart and Target are expanding their online presence - redefining the pet market and shoppers' expectations.

How can DTC catch up with the pack? Good news: there's plenty of hope.

With real numbers and tested strategies, this guide provides an overview into the state of the pet industry broken into two parts along with tactical lessons from ecommerce brands doing it right:
Pet Industry Trends: Growth & Statistics in 2022 and Beyond

1. The Boom of Ecommerce's Pet Market

2. Pet Ownership and Buying Behaviors

3. Data on Three Verticals within the Industry

4. Pet Stores, Retail, and Pop-Ups

5. Amazon: The Elephant Great Dane in the Room

Pet Industry Marketing: Unleashing Your Ecommerce Strategy

1. Visitors: Driving Paid Traffic

2. Conversion Rate: Ad Creative & Web Design

3. Customer Lifetime Value: Cash Multiplier

4. Variable Costs: Profitability

5. Case Studies: Lessons from Three Pet Brands

Don't have time to read it all right now? No problem. We've compiled all the statistics, examples, and data into a report you can download for later or share with your team.

Don't miss that last section ...

There you'll find detailed examples - packed with tactics and lessons - from three fast-growing ecommerce companies ...

Crown & Paw: After 3Xing conversion rates in the lead up to Black Friday, Cyber Monday, this custom pet portrait retailer 6X'd conversions in Dec and 10x'd growth to close out its first year at over $11M in sales.

PupSocks: Two years of record-breaking left its audiences exhausted and its reach tapped. The answer? A creative infusion that led to a 9.1% CVR, YoY growth of ~60%, and 2.6 ROAS on +$6M in spend.

MaxBone: As a luxury-lifestyle pet brand, both the challenge and opportunity was increasing customer lifetime value. By combining design-forward content and high-LTV first purchases, it 3X'd YoY revenue.

Pet Industry Trends: Growth & Statistics in 2022 and Beyond

Mapping data across the pet industry is notoriously difficult. Unlike fashion marketing, health and wellness, and the beauty industry, no single source of market research exists.

Thankfully, by coordinating resources, we can get clear answers on a number of pressing questions, namely ...

How profitable is the pet industry?

How much is the pet industry worth?

Is the pet industry growing or shrinking?

What is lacking in the pet industry?

And what challenges do pet brands face?
Globally, the pet care market has grown to $261 billion in 2022; up from $245 billion in 2021. An estimated 6.1% compounded annual growth rate (CAGR), will catapult that figure to $350 billion by 2027.

Data via Global Market Insights (2021)

While North America and Western Europe are mature, they still offer possibilities for an uptick in consumer purchases relative to the growth experienced worldwide.

Space exists for the development of new products and especially new channels: an advantageous lifecycle stage for emerging brands to enter and thrive.

Data via IBIS World Report

1. The Boom of Ecommerce's Pet Market

While retail stores have seen a slow increase in buying, the online pet market has nearly quadrupled since 2013.

With pet ownership rates continuing to rise, the target market for the industry as a whole will expand, allowing new penetration points.

Yes, the big-box pet stores are experiencing good fortune. But, to fear the competition is to miss the way forward.

For entrepreneurs eager to penetrate new markets, pet food and pet supplies are the second and third biggest ecommerce CPG categories across the industry. The promise of prosperity is acutely high within the natural foods, animal care, and supply sectors.

Within the ecommerce sector especially there is significant room for maturation, as customer preference for shopping for pet products on ecommerce sites is estimated to grow at 9.4% - a sizable increase over its already 13% market share.

Whether it's a rise in the number of household pets or diversified shopping platforms - the result is an expansion of the global pet market. No surprise, the area of opportunity for businesses looking to expand market share in the pet industry is online.

Ecommerce gives pet owners exactly what they want ...

Convenience and comfort

Product information and choice

Pricing comparisons that make value clear

Devoted focus on customer relationships

The traditional model relied upon by the major industry players clashes with what customers have come to expect in the world of digital.

This digital disconnect offers an opening for ecommerce brands to leap up and capture market share. Their opportunity lies in creating a unique brand identity within their pet market niche and the advantage of ridding themselves of middleman margins in comparison to mass-market pet brands.

Looking to the future, it's a game of how high will ecommerce sales go.

However, to focus on the sales numbers alone is to miss an even more compelling signal: a generational shift.

2. Pet Ownership Demographics and Preferences

No longer do Baby Boomers represent the largest portion of pet owners; that title now belongs to Millennials. Pet brands who will win the future of the industry must understand how Millennials differ from the other generations.

Digital purchasing power cannot go without emphasizing the importance of marketing within that space. Millennials nearly double baby boomers in relation to time spent on social media: 90.4% of millennials are active social media users compared to 48.2% of Baby Boomers (eMarketer, 2019).

By nature of how users natively wield social, the pet category seamlessly fits within the realm of sharable content. Thus, retailers who meet millennials where they're at - even if that means entering new worlds created by Web3 - can be a make or break difference for brands looking for competitive channel advantage.

In addition, competitive pricing, convenience, and personalization are blowing the brick-and-mortar house down.

The response: dual-channel retailing, faster fulfillment, improved cost controls, and advances in home delivery. Demand for high-quality products from millennials further attributes to industry profit because of the generally higher mark-ups of premium products.

Making this data actionable for means examining ecommerce trends and statistics within three segments, each with its own unique value propositions ...

3. Data on Three Verticals within the Industry

(1) Pet Food Market

At $91.1 billion worldwide, pet food represents the single largest niche within the larger space:

Within the United States' 2020 market volume of $30.9M, most revenue is generated by the food segment, which also includes treats and supplements.

Add to this the potential for premium pet food products within the market segment. Natural and organic food products tend to come at a higher price tag, affording operators to earn greater markups.

An increasing penetration of retail sales has augmented the growth of the pet food market. At the same time, availability of pet food on ecommerce platforms entices consumers with convenience and the stripping away of physical shopping constraints.

(2) Pet Care & Services

The pet services market includes grooming, boarding, training, and care.

Over the past five years, it has been the fastest-growing product segment under the industry umbrella. With more and more owners considering their pets as family, it's rise is driven by interest in pampering and specialty services for furry family members.

Alongside it is the veterinary care industry, which has undergone growth as a result of mass household penetration.

Rising per capita income and growing pet adoptions for companionship lend to an increase in spending on pet care which will continue to boost the market.

Regardless of the distribution channel, brands within the pet care industry that offer premium services may see further gains.

Because households are obtaining higher incomes, they are able to afford premium discretionary service. It also affects the lifestyle of pet owners, affording them more ability to travel, thus increasing the importance of the boarding services segment.

(3) Pet Products & Supplies

With food and pet care holding the top two spots in terms of industry sales, there are more promising prospects within the pet supply market because it is slower growing and encompasses niche products like clothing, food bowls, collars, and carriers.

A key driver for this industry will be the wide range of availability of fashionable and multifunctional pet accessories.

Pet supplies are a leading industry category in the United States, with sales of approximately 4.54 billion U.S. dollars and positive sales growth of 2.7%.

Its share of revenue also spread due to the "pet parenting" trend, in which pet owners treated their pets as family members and started supplying them with complementary products. This segment accounts for an estimated 40.6% of total industry revenue in 2019.

Of those buying pet products, approximately 17% reported buying pet products online in 2017, up from approximately 13% in the previous year.

Pet supplies and accessories sold by retailers also encounter mounting competition not only from mass merchandisers but by smaller outlets because there are no regulations that limit their sales.

For online retailers, favorable economic conditions in the pet supply segment can be complimented through product innovation. Since mass-market brands offer goods with little differentiation, the spike in exclusive niche products will help diversify the current price competition.

In this way, niche product marketing will become mandatory to success for brands positioning themselves apart in the space.

4. Pets Stores, Retail, and Pop-Ups: Don't Bite the Hand That Feeds You

PetSmart and Petco still hold the largest market share. Two retailers account for ~40% of the landscape, compared to more fragmented verticals like the home furnishings industry where 13 control 55%.

According to Pet Business' Top 25 Retailers list for 2019, while PetSmart added a net total of 48 stores (versus more than 100 in 2017), Petco added a net total of 10 stores (versus 39 in 2017).

"Despite mounting competition from supermarkets, mass merchandisers and online retailers that offer similar products at greater convenience and competitive prices -traditional brick-and-mortar establishments have successfully positioned themselves as pioneers and exclusive providers of high-quality food and service offerings, such as grooming or daycare," states the IBIS World Industry Report.

Meanwhile, digitally native pet brands are steadily gaining more market share.

Data via Digital Commerce 360 (2018)

Their success reflects how advances in technology within the human consumer retail market are driving change in the companion animal market as well.

None illustrate this shift more than ...

5. Amazon: The Elephant Great Dane in the Room

With Amazon's main website and third-party sellers taking up 35% of the online market share, pet startups are left to fight over the remaining food in the bowl.

Coupled with the launching of Amazon's first private-label pet brand Wag, might have traditional retailers with their tail in between their legs. The Wag brand offers dry food, the highest moving categories within pet, exclusively to its Prime members.

While Amazon's scale and market share might seem daunting, it does offer a glimpse of hope for brands looking to enter the online pet space. Amazon's success shows that there is money to be made in the ecommerce space for the pet industry.
It further affirms pet brands need to take things digital in order to succeed and gain more market share.
Pet Industry Marketing: Unleash Your Ecommerce Growth Strategies

Despite all its complexity and all the data, pet brands grow based on only four metrics: visitors, conversion rate, lifetime value - your 60-, 90-, or 120-day payback window (cash multiplier) - and variable costs.

We call it the Ecommerce Growth Formula. And it's the framework for every successful digital marketing strategy or plan ...

There's no other way to impact your profitability than to affect one of these four variables - propelling them forward through a master plan built for growth.

1. Visitors: Driving Paid Traffic
Entice new and returning customers (your target audience) to your online store across every channel available.
Social Media Advertising

According to a study from Mars Petcare, the world's largest petcare company, 65% of owners post about their pets on social media an average of 2X per week.

Whether it's through organic or paid traffic, pets dominate social media pop culture.

For brands looking to draw visitors, capitalize on using social to insert yourself as a voice within pop culture, playing to the trend of pets as entertainment.

Focus your investment in paid along three lines.

First, calculate your Facebook ad budget based on profitable cost-per-acquisition (CPA) targets. Second, organize your campaigns into a consolidated account structure that unites prospecting and remarketing. Third, build those campaigns around SKU-specific or buyer-persona funnels.

Influencers

Call the paw-purratzi (sorry, we had to). According to Mars, 30% of pet parents follow celebrity pets on social media. It highlights how pets aren't just an important part of pet owners' lives, many are a staple of pop culture.

Leveraging influencer marketing within digital marketing efforts offers a strong entry point into the social pet phenomenon.

"Through a pet influencer program," says Taylor Lagace of Influencer Marketing Agency, Kynship, "brands within the space would (1) maintain an ongoing organic social conversation, (2) build out a highly-converting content library, and (3) expand their audience pool within the exact niche they're targeting."

Search Engine Marketing

An integrated and thoughtful SEM methodology is critical for growing any brand online, including retailers that cater to our furry friends. All SEM starts by understanding keywords and search volume for your industry.

Get to know what your potential customers are searching for and think about how your products match up to those searches.

"When it comes time to Google Ads for ecommerce, start with a Google Shopping campaign. They are almost always the highest returning campaigns and will be worth the investment in resources," recommends CTC's Director of Paid Search, Tony Chopp.

YouTube

Search engine marketing doesn't end with Google. "Don't forget about YouTube!" adds Chopp, "We're seeing solid returns on prospecting and remarketing campaigns on YouTube for our pet brand clients."

Utilize this channel to reach an active, engaged audience with high-quality content.

Organic Traffic (SEO)

When developing a plan of action, start with demand generation via social, capture that demand with SEM - particularly branded search terms - and then combine them both with organic search.

"If you're a new brand, you're not going to have organic traffic right off the bat," says Growth Guide, Andy Reese.

"When you start spending on Facebook, which is a demand generator, you ultimately are driving brand awareness regardless of if someone clicks on the ad or not. As a result, later down the line, we see that paid search, organic direct, and social traffic are all affected by what we do on social."

2. Conversion Rate: Ad Creative & Web Design
Acquire new customers and increase AOV by optimizing your onsite experience.
To set yourself apart from the pack, incorporate visual storytelling and message mapping that breeds brand equity.

From driving visitors through ads to the design experience, conversion rate encompasses the culmination of digital marketing efforts within your sales funnel to finalize a purchase.

Tactics to boost conversion rate include breakthrough creative and an analytical approach to content development.

Onsite, this includes email capture, reviews, trust seals, user-generated content, subscriptions, and in-cart or post-purchase upsells. Layer on site speed and mobile optimization and you've have a seamless shopping experience that will leave your customer like a dog with two tails.

3. Customer Lifetime Value: Cash Multiplier
To build your business in the long and short term, the most important and often overlooked metric is your LTV or "cash multiplier" (CM).
Rather than thinking about the entire lifetime of a customer, you want to know what your customer is worth in a very specific payback period.

Start by determining your 60-, 90-, or 120-day LTV (depending on your SKUs normal reorder or upsell cycles). Then, execute a plan that fits your cash flow while also front-loading the products and offers that yield the highest ROI.

Tactics like memorable unboxing experiences or email marketing can generate an owned community of customers that find your brand worth barking about.

Email Marketing

Retention, retention, retention.We repeat, email marketing is critical to improving your customer lifetime value (LTV) and maximizing revenue.

The good news is, we've already laid out the blueprint to drive visitors to your site. Use their arrival to your advantage by encouraging subscriptions to your email lists, which will drive purchases further down the line if they don't convert the first time around.

Whether your email subscriber is a future or past purchaser, educate your customers about your product but also revere email as a space to engage with them.

Drivers like loyalty or subscription programs are tactics that build community around your brand and lead to upsells further down the line.

From welcome flows to post-purchase flows, ensure your messages speak to your brand and provide value to your consumer's stage in the customer journey.

4. Variable Costs: Profitability

An area that is of highest competitive advantage for online retailers lies in variable costs.

By undercutting price due to lower cost of goods, plus the convenience of doorstep shipping - online pet brands can get ahead of brick-and-mortar retailers that haven't streamlined their fulfillment or supply chain processes under the new rules of the digital landscape.

"Online retailers offer similar products at greater convenience and competitive prices," states the IBIS World Industry Report. "An increase in demand from online pet food and pet supply sales will likely decrease demand for traditional brick-and-mortar stores."

Of course, the real question is: what does all that look like in action?

5. Case Studies: Lessons from Three Pet Brands

To bring each variable in the growth formula to life, let's take a look at three pet brands mastering the new digital world ...

Crown & Paw: If You Don't Sell, It's Not the Product That's Wrong

In Mar. of 2019, Crown & Paw started out of a small town in England. By Dec. of the same year, it had 10X'd growth and was distributed worldwide.

Crown & Paw is a fun-loving custom pet goods brand dedicated to helping pet owners express their love (and sometimes even their obsessiveness) with their pets.

Pet owners simply submit a photo, then Crown & Paw's artists turn them into a hilarious Renaissance-era portrait.

It was a product unlike anything on the market. But, even the best products need awareness to sell.

Through paid advertising, Crown and Paw grew exponentially to become one of the most successful digitally native pet brands on the internet.

The catalyst to that victory came down to three factors:

1. Maximizing click-through rate (CTR)

2. Lowering cost per unique add to cart (ATC)

3. And optimizing conversion rates across its funnel (CR)

(1) Click-Through Rate

The first step in driving more traffic meant creating thumb-stopping ads that brought the value and delight of the product to life. Producing content that felt native across platforms and clearly communicated its one-of-a-kind nature quickly improved CTRs.

But there was another problem ...

(2) Cost Per Unique Add To Cart

Initially, add-to-cart rates were fairly low for the brand; in turn, driving up costs.

"We realized that this was largely attributed to choice overwhelm. We had too many options on the site, so people didn't know where to start, would get overwhelmed, and bounce," says Reese.

"In order to increase conversion rate, we had to start by making it as simple as possible to add-to-cart onsite."

To do so, the website was redesigned to simulate a sales funnel. This meant reducing clutter on the home page, removing unnecessary outbound links within product pages, and clarifying "How It Works":

"These adjustments simplified product selection - reducing any friction for the customer to be taken away from choosing their image, adding to cart, and then converting once in the cart."

Two additional keys were adding a "Quick and Easy Photo Guide" directly to product pages - rather than hosting it on a separate URL or within a pop-up.

And, as a final touch, a virtual waterfall of reviews and UGC located at the bottom:

(3) Conversion Rate

As the sales funnel neared its end, conversion rate became the key variable to be optimized. An on-page upload process led the way; as did subtle trust signals immediately below "Add to Cart" calling attention worldwide delivery tracking, USA production, and profit donations:

Once inside the cart, trust was the unlock. This meant ...

Making security measures obvious

Adding reviews and a digital down option

Keeping the checkout on Crown & Paw's branded URL

Incorporating these elements reduced cart abandonment and catapulted conversion rates. These efforts culminated when the holidays hit ...

By scaling the account during seasons of gifting, sales skyrocketed.
In Nov., Crown & Paw saw a 3x increase in conversion rate heading into Black Friday, Cyber Monday. By Dec., it doubled to a 6x increase.
Paid media isn't the only thing on Crown & Paw's mind. Now that paid efforts have driven initial brand awareness, their organic traffic on Google has seen a strong uptick. Plus, PR efforts led to its inclusion in BarkBox.
The Lesson
6x'd conversions and 10x'd growth in less than a year is no small feat.

If something doesn't sell, it's not necessarily the product that's wrong. By understanding your customer's buying behaviors, you can profitably drive awareness and optimize the onsite experience. The rest will follow.

PupSocks: You Can Teach An Old Dog New Tricks

Based in Atlanta, Georgia, PupSocks makes custom pet products that feature customers' favorite photos of their pets. Selling in 39 countries, it's proof people everywhere want to combine their love of furry friends with trendy fashion.

Being both a gifting product and an impulse buy, Pupsocks was a one-two punch for a strong conversion rate, averaging a whopping 9%.

With the goal of amping up holiday sales, driving new visitors through paid media has been a key component of Pupsocks' strategy.

In 2017, Pupsocks ran a conversion campaign on Facebook during the holiday season targeted to animal lovers, which generated more than 90% of the company's annual revenue and yielded a 3.7X return on ad spend.
But, as we all know too well, it's not 2017 on Facebook.
With returns lower than they used to be, it was time for a new approach to amplify visitors and conversion rates.

"We had exhausted our broad audiences," says Trent Kerth, Lead Paid Media Buyer for Pupsocks. "The brand awareness was there, every potential visitor had been reached. Now it was a matter of getting them to convert."

To revive an exhausted audience, the lifeline came from expanding Pupsocks' creative library.

Refreshing the account with new creative reduced ad fatigue. But it didn't stop there - whether it was a different sock color, pet breed, or ad format - it continually tested and iterated on best-performing ad creative to find the winners ahead of Black Friday.

Like the early bird that got the worm, Pupsocks dominated holiday sales, since the winning creative formats were identified ahead of time.

"When you're spending over $1M a month on Facebook ad costs, eventually people are going to get banner blindness from seeing that ad multiple times," says Kerth.

With extensive creative variation, Pupsocks was able to combat that fatigue - granting more scale and reaching other audiences that you wouldn't be able to otherwise with just one ad.
The Lesson
The amount of ad creative made was more than any other year and, as a result, Pupsocks had their biggest revenue year in the history of the brand.

On the heels of two consecutive record-breaking years, the brand saw ...

Visitors jump by 78%

A conversion rate of 9.1%

And revenue increase by 57.5%

What's more, across the account's lifetime at Common Thread Collective, PupSocks has maintained a 2.6 ROAS on $6M+ in spend.

Max Bone: Revenue to Bark About

"Max-Bone targeted the under-served luxury pet segment by creating highly practical products with innovative twists," said CEO Parisa Fowles-Pazdro in an interview with Forbes.

"The brand, which is one of, if not the first wide-scale luxury pet brand with major distribution, creates unique, sophisticated offerings from hand-knit jumpers designed to keep shedding hairs in place for dogs, dog and cat baby starter kits to owners spoiling their pups with a sold-out line of teepees."

For a luxury brand, both the challenge and the opportunity was in increasing customer LTV.

Creating a lifestyle brand for your pet is very similar to that of apparel DTC's like Buck Mason, Everlane, or Outdoor Voices where retention is critical.

For Max-Bone, it meant convincing an audience that everything they buy for their pet has to be design-forward, the same way they might think that all of the workout clothes they buy for themselves have to be high-end.

To start driving qualified traffic for Max-Bone, involved messaging the brand's unique product offerings in a way that was relevant to their customer personas.

"As a design-forward brand, we were deliberate in choosing the product to prospect with," says Growth Guide, Garrett Hord.

Building a strategy around increasing LTV began from the moment customers first became aware of the product right in an ad right through to the product page, onsite reviews and UGC, as well as in-cart upsells for related items.

The real key, however, was tracking LTV by first-product purchased. Data to understand what SKUs impacted LTV became critical to decisions in the ad account and where to allocate resources.

"For example, Max-Bone has a $290 pet carrier bag. If that's somebody's first purchase and they love the product," explains Hord, "are they going to turn into a higher value customer than somebody whose first purchase is a $50 sweater? That's where the data helps us."

You can't do a great job tactically without having the information on hand. Rather, strategy evolves from understanding, what to track to being with - understanding LTV by first product.
The Lesson
As a result of identifying products that generated the highest customer lifetime value and then prospecting using the highest LTV-yielding products to attract more new customers ...

Max-Bone's revenue increased by more than 100% from Q2 to Q3 and more than 200% from Q3 to Q4.

The Right Partner: Do You Need a Pet Marketing Agency?

After growing brands like Pupsocks, Crown & Paw, MaxBone, and more we pride ourselves on being experts in every stage of the online sales process within the pet market space.

From creative content to media buying, our solutions are specifically tailored to tweak the variables that create revenue.

If you'd like to take this article with you on the go, grab it as a PDF. And, if you'd like to know more about how we can help grow your pet brand, then start a conversation here.

Download the entire Pet Industry Trends, Growth & Statistics in 2021 and Beyond (PDF)

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Pet Industry Trends, Growth & Statistics in 2022 and Beyond: Unleashing Your Ecommerce Pet Marketing Strategies

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Massive growth. Immunity from financial downturns. And ecommerce growth outpacing online retail as a whole. The pet industry represents a lucrative opportunity for emerging DTC brands. Discover the trends and strategy you need to unleash your marketing.

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Our New Country Dog Coats Are Traditional Country Styled and Crafted for Your Four Legged Friends. Our Dog Jackets Are Designed and Manufactured Right Here in the UK.

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Dog Coats and Clothing

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Keep your best friend warm and dry in our snug and stylish dog coats, designed to resist whatever the weather throws at you. Free delivery on orders over £39.

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Jackets, hoodies, sweaters and pyjamas .......keeping your dog warm and walking in style!

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Pet care is one of UK's many thriving industries where consistent growth is happening year-on-year. The most recent figures published by the Office for National Statistics revealed that expenditure on pets and related products reached an annual value of 7.9 million British pounds in 2020, representing a 170 percent increase from the beginning of the survey period in 2005.

Dogs are UK households' best friend

The United Kingdom is host to over 50 million pets, although this number signifies a considerable drop since 2013 when the pet population in the UK peaked at 73 million. The nation's most popular pets were dogs with just under a quarter of households owning a pet dog.

Pet care

With such affection towards pets also comes the need to care for them. Indeed, over the last decade, spending on veterinary services in the UK rose tremendously, particularly in 2018 when veterinary and other pet care related services reached over five million British pounds. This value, however, decreased to under four million British pounds in 2020, most likely as a result on the coronavirus pandemic.

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Spending on pets in the UK 2020 | Statista

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Pet care is one of UK's many thriving industries where consistent growth is happening year-on-year. The most recent figures published by the Office for National Statistics revealed that expenditure on pets and related products reached an annual value of 7.9 million British pounds in 2020, representing a 170 percent increase from the beginning of the survey period in 2005.

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15 Surprising UK Pet Spending Statistics to Know in 2023 | Pet Keen

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The pet industry has a strong future ahead of it, as spending increases across the UK. Dive into these surprising facts and statistics regarding pet spending in the UK.

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Pet owners spend more money on their pets than on themselves, research suggests - Dogs Today Magazine

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Research by MoneySuperMarket suggests that Brits spend an average of almost £500 on luxury items each year... for their dogs!

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Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Pet ownership in the U.S. has jumped significantly over the past three decades. As of 2023, 66% of U.S. households (86.9 million homes) own a pet. That's up from 56% in 1988, pet ownership statistics show. From companionship to emotional support, pets are a vital part of their owners' lives. In fact, 85% of dog owners and 76% of cat owners consider their pets to be a member of the family.

Forbes Advisor conducted a deep dive into the latest available pet owner statistics to determine which pets are most popular, how pet ownership and spending habits differ by generation, the cost of pet ownership and the most common lifestyle sacrifices made by pet owners.

Pet Ownership in the U.S. at a Glance

Pet Owner Statistics

The percentage of pet owners in the U.S. spiked over the past 35 years, according to pet owner statistics analyzed by Forbes Advisor.

The steady rise in pet ownership in the U.S. comes at a time when pet insurance is also rapidly gaining in popularity. What was once an obscure insurance product has more than doubled in growth from 2018 to 2021.

Pet insurance prevents you from having to pay the full cost of unexpected vet bills if your pet is injured or gets sick. It's a smart way to add a layer of financial security to your budget. Here are more interesting facts related to pet ownership:

Pet ownership by generation

Pet ownership statistics reveal that millennials comprise the highest percentage of pet owners in the U.S, among the generations:

Most Popular Pets in the U.S.

The most common pets in the U.S. are dogs and cats, but there's still a lot of love for other animals and species. Millions of households include fish, birds and small animals like hamsters and rabbits.

1. Dogs (65.1 million households)

2. Cats (46.5 million households)

3. Freshwater fish (11.1 million households)

4. Small animals such as hamsters, gerbils, rabbits, guinea pigs, chinchillas, mice and ferrets (6.7 million households)

Are cats or dogs more popular?

Whether cats or dogs make better companions has long been a bone of contention among many pet parents. Popularity certainly has nothing to do with how much a pet is loved by its human family. But in terms of ownership, more households include dogs than cats.

Cost of Pet Ownership

While the love of a pet is priceless, the cost of owning one is not. Veterinary care, grooming, food, treats and other outlays can add up quickly. For example, a Forbes Advisor survey of more than 5,000 U.S. dog owners found that 41% of dog owners spend between $500 and $1,999 a year on their dogs and 8% spend more than $2,000. And if an unexpected vet bill pops up for a major incident, you can be on the hook for thousands of dollars just for that-42% of pet owners say they can't cover a surprise vet bill of $999 or less.

Pet insurance can partially reimburse you when you pay the bill for your pet's unexpected accidents and illnesses. While you may not want to add another expense to your pet care costs, you might be surprised at how affordable pet insurance can be.

The average pet insurance cost for dogs is $44 a month, and the average pet insurance cost for cats is $30 a month, based on Forbes Advisor's analysis. Having pet insurance is like putting a leash on your potential vet costs so they don't run out of control. That can leave you with more money to spend on spoiling your furry companion.

Here's a closer look at the cost of pet ownership:

Total Pet Industry Expenditures

Spending on pets is up, mirroring increases in pet ownership and pet insurance sales:

Dog Owner Regrets

There's no denying the benefits of dog ownership, but being responsible for a dog comes with challenges. These obligations can cause some to have regrets about owning a dog, a Forbes Advisor survey of 2,000 dog owners found. Messes, challenges in finding care for the dog and dog training are among the top reasons they regret getting a dog. The cost of vet bills is also a burden for some dog owners and can affect how often dogs go to the vet.

Here's more about dog owner regrets and concerns about vet bills:

3% of pet owners gave their pet away between 2021 and 2022. The top reasons cited for selling or giving a pet away were inflation (12%), the rising cost of rent (10%), inability to afford a pet's medical bills (7%) and the cost of pet deposits for apartments (5%).

Top Sacrifices Made by Dog Owners

The majority of dog owners (85%) and cat owners (76%) consider their pets to be members of the family. And a Forbes Advisor survey of 10,000 dog owners found that dog owners make professional, financial and lifestyle sacrifices for their canine companions.

The top lifestyle sacrifices made by dog owners include:

39.29% lived on a tighter budget to afford their dogs' expenses.

13.96% moved from an apartment to a house so their dog would have a yard.

7.47% stayed at a job they disliked because it allowed them to work remotely or had a dog-friendly office.

6.78% broke up with a significant other who didn't like their dog.

5.25% took a pay cut or accepted a position with fewer benefits to work remotely or have access to a dog-friendly office.

4.57% left a job they liked because another company let them work from home or had a dog-friendly office.

36% of dog owners reported that they would spend $4,000 or more out-of-pocket on life-saving medical care for their dogs.

States with the most devoted dog owners

Colorado tops the list of states with the most devoted dog owners, followed by Virginia, Georgia, Alaska and Nevada. These aren't the only states home to devoted dog owners:

Most Pet-Friendly Cities

Features like hardwood floors, stainless steel appliances and skyline views are nice, but that's not the top priority for many pet owners. More than two-thirds of Americans would pass on the perfect home if it wasn't a good fit for their pets, according to a Forbes Advisor study.

If you're a pet owner on the hunt for pet-friendly apartments with access to nearby dog parks, pet stores and affordable veterinary costs, we compared the 91 most populated cities to find the best cities for pet owners. We analyzed data across four key categories: cat and dog veterinary costs, veterinary access and pet-friendly spaces.

Sources

1. American Pet Products Association (2023-2024)

2. American Veterinary Medical Association, 2018 and 2022 Pet Ownership and Demographics Sourcebook

3. Forbes Advisor: Survey: 78% of Pet Owners Acquired Pets During Pandemic

4. Forbes Advisor: States With The Most Spoiled Dogs

5. Forbes Advisor: 54% of Dog Owners Have Regrets About Getting a Dog

6. Forbes Advisor: 42% of Pet Owners Can't Cover a Surprise Vet Bill Amid Inflation

7. Forbes Advisor: States With the Most Devoted Dog Owners, Ranked

8. North American Pet Health Insurance Association: 2022 State of the Industry Report

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Pet ownership in the U.S. has jumped significantly over the past three decades. As of 2022, 70% of U.S. households (90.5 million homes) own a pet.[1] That's up from 56% in 1988, pet ownership statistics show. From companionship to emotional support, pets are a vital part of their owners' lives.