statistic paper.docx - Running head IMPACT OF HOUSEHOLD INCOME ON ANNUAL SALES Impact of Household Income on Annual Sales in the U.S Pet Industry Meina

statistic paper.docx - Running head IMPACT OF HOUSEHOLD...

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Running head: IMPACT OF HOUSEHOLD INCOME ON ANNUAL SALES 1 Impact of Household Income on Annual Sales in the U.S. Pet Industry Meina Piao Monroe College
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IMPACT OF HOUSEHOLD INCOME ON ANNUAL SALES 2 Impact of Household Income on Annual Sales in the U.S. Pet Industry 1.Introduction This section provides a brief background of the study, describes the scope of the study, explains the purpose of the study, as well as state the research question that the study hoped to answer. The global pet industry is one of the fastest growing market segments in the world. The industry, growing with a compound annual growth rate (CAGR) of 4.9 percent, is expected to grow from US$131.7 billion to US$202.6 billion between 2016 and 2025 (Khanal, 2019). Increased adoption of pet and rising demand for premium pet care products are just some of the factors that have been identified as possible drivers of the global pet industry (Khanal, 2019). The last five years have seen a significant upsurge in the adoption of pets across the world. People from across the globe have continued to adopt pets at an unprecedented rate, a phenomenon that has led to significant growth in various segments of the pet industry, including the pet food industry. Pets are no longer brought home merely for purposes of security. Individuals and households have emotional and empathetic valueattachment on pets, demonstrating their willingness to spend even more on pet care(Khanal, 2019). Factors such as globalization, humanization of pets, and increased advocacy for animal rights have been identified as some of the contributors to the steady growth and development of the global pet industry (Matchock, 2015). In the U.S. for instance, the emergence of “pet parents” has seen a rise in the humanization of pets, and the consideration of pets as special members of the households. Besides, the pet parents have continued to spend their household incomes on purchasing quality food products with similar nutritional standards as the food products consumed by the traditional family members. Spending on pet food and pet care has increasingly
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IMPACT OF HOUSEHOLD INCOME ON ANNUAL SALES 3 become an additional component of household expenditure for most households across the globe, a phenomenon that has been seen as an essential contributor to the increase in the sales in and growth of the global pet industry. The pet food industry, for instance, has maintained steady growth during the 2012-2017 period, even though fluctuating growth trends characterized the rest of consumer packaged goods (CPG) industries during the same period(Khanal, 2019). The North American segment of the global pet market has been characterized by the most substantial spending on pet and pet care products that the rest of the global market segments. For instance, in 2017, the North American segment of the global pet market accounted for US$350 per household sales, and which was a 7 percent growth from the previous year. In the U.S., the household spending on pets has increased significantly in the last decade and is projected to reach US$100 billion by 2025. According to the American Pet Products Association (APPA),
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