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The ongoing coronavirus pandemic has brought in a dramatic change in people’s lives. Since the onset of the crisis, people have been subjected to stringent government regulations, including stay-at-home, work-from-home, learn-at-home, dine-at-home, and shop-from-home trends. Although limited gatherings are now being allowed following social distancing, continued consciousness about health and safety has kept people in forceful isolation. This has given way to increased anxiousness and loneliness among people. As a result, pets have emerged as new companions, becoming an integral part of people’s lives.

Keeping in these lines, pet owners are doing it all to ensure the well-being of their loyal companions by preferring natural products with quality ingredients and better packaging. Apart from food, sales of other pet essentials such as toys, litter, and bedding, harnesses, and leashes as well as waste management supplies are gaining traction. Moving on, technology advancement is another factor that is reshaping the pet industry. Notably, automated-feeders, pet “fitbits”, automated pet toys, and pet cams have flooded the market recently. Going ahead, automation is likely to emerge as a gamechanger for pet retail.

Per eMarketer, pet supplies have emerged to be the fifth largest purchase category for Amazon Prime customers. In fact, retail pet supply sales are anticipated to reach $99 billion in 2020, per the American Pet Products Association, reported by CNBC.

According to a CNBC report, as per Jefferies, the U.S. pet market, which is now worth roughly $53 billion, is estimated to grow to $64 billion in the next four years.

Key Gainers

Given the rising interest in pet adoption, several companies have been looking to grab a share of the lucrative pet industry by bumping up investments.

Spectrum Brands (SPB - Free Report) has strengthened its presence in the pet and animal businesses by acquiring Omega Sea LLC and Armitage Pet Care, which will be accretive to its Global Pet Care portfolio. This Zacks Rank #2 (Buy) company’s top line is set to gain from Omega Sea’s premium fish food products and Armitage’s dominance in the chews category. The Zacks Consensus Estimate for its current fiscal 2020 sales suggests growth of 5% from the year-ago period.

Tractor Supply Company (TSCO - Free Report) is looking to make a fortune in this industry with its pet products. The company expanded its pet product line with the addition of the VICTOR Super Premium Pet Food (“VICTOR”) brand to its quality dog food range. This follows the introduction of VICTOR’s top-performing product, Hi-Pro Plus, to all stores in July. This makes Tractor Supply the first retailer in the United States to feature a diverse range of formulas within the dog food product line. Notably, VICTOR Super Premium Pet Food is one of the best dry foods for dogs, providing a complete and balanced diet. The introduction of this renowned brand in its dog food line highlights this Zacks Rank #3 (Hold) stock’s efforts to capitalize on the recent spike in pet adoption. The Zacks Consensus Estimate for its 2020 sales suggests growth of 24.7% from the year-ago period.

Chewy (CHWY - Free Report), an online retailer, is on its way to carve its niche in the pet space. Notably, the company is offering more than 1,600 pet specialist customer representatives for customized pet services. Also, it recently launched Medication Compounding and Connect with the Vet programs for pet health and wellness. Topping it, this Zacks Rank #3 (Hold) company’s subscription-based model acts as a key growth driver. The Zacks Consensus Estimate for its fiscal 2020 sales suggests growth of 45.8% from the year-ago period.

Colgate-Palmolive’s (CL - Free Report) initiative to offer home delivery of Hill’s products comes as a boon for pet parents, as they can now purchase prescription diet products directly from their veterinarians. Notably, the brand boasts an exclusive Healthy Advantage product line, which along with its Prescription Diet and Science Diet lines is often suggested by veterinary professionals for animals with certain health problems. The Zacks Consensus Estimate for its 2020 sales suggests growth of 3.9% from the year-ago period. We note that the company has a Zacks Rank #3 (Hold).