This is a guest post by Richard Armstrong who is an early stage investor in many startups in both SE Asia and globally. Plus Richard has cofounded several companies.
Guest Author: Richard Armstrong
One thing I’ve noticed as I walk around here in Bangkok is just how much people have fallen in love with their pets in the past decade or so.
It wasn’t like this a decade or so back.
Back then people focused on having more kids and pets were less of a thing. But that is changing and changing fast.
Thailand is very much falling into the same trend that has been occurring in the US for awhile now. Particularly with the Millennials, who are increasingly choosing pet ownership over starting families.
Let’s look at pet ownership in America
Pet ownership has rocketed in America as you can see from the graph above.
Americans just love their pets and throw tons of money at them.
Also there has been a substantial increase in pet-related expenses in recent years.
This increase is not just due to the basic necessities like food and veterinary care, but also due to the rise in spending on non-essential items such as pet clothing, specialty food, toys, and pet classes.
These expenditures reflect a trend where pets are not just animals but cherished members of the household, deserving of considerable investment.
Even during recessions, spending on pets does not decline. Instead, it typically rises, indicating the priority many Americans place on their pets’ well-being.
This underscores the emotional and psychological value pets hold for their owners, often providing companionship and comfort in times of economic and personal stress.
Shifting Social Norms and Family Structures
Marriage rates are plummeting in the US and many young adults are delaying marriage and parenthood.
So adults spend a greater portion of their early adult years single.
And pets often fill the emotional and social gaps that traditional family structures used to occupy.
For many single adults, pets provide companionship, emotional support, and a sense of stability.
Particularly in the later years you can see how after the age of about 45, pet ownership dominates having a child in the house.
This is probably also related to the fact that it is very rare that grandparents live with their grandchildren these days in America. Something that is not the case in some other cultures like Japan.
This phenomenon is also particularly pronounced among single women, who are increasingly turning to pet ownership as they navigate their personal and professional lives independently.
Pets as Companions and Family Members
The way people perceive and treat their pets has evolved.
Many pet owners, especially those who are single, view their pets as family members.
This perspective is reflected in the rising prevalence of pet insurance, pet parties, and other expenditures that signify a deep emotional bond between pet and owner.
For some, pets replace having children. After all they are a smaller investment, both in time and money.
However, it’s not just single individuals who are investing heavily in their pets. Even among married couples, particularly those without children, pets often serve as surrogates for offspring.
The Broader Implications
The rise in pet ownership and the corresponding decline in fertility reflect broader societal changes in my view.
Economic factors, such as housing costs, student loan debt, and job market instability, also play a significant role.
Additionally, cultural shifts towards greater individualism and changing gender roles also influence these trends.
The other thing to note is that all of these trends can be expected to only increase for the foreseeable future. As in everything points to pets replacing the role of children more and more in the coming years.
And so this poses a very interesting opportunity.
How this opens opportunities in tech
Well I think you can safely assume that the whole pet industry online will continue to expand rapidly.
There will be lots of new D2C food and vet care brands and products created.
Services like grooming will continue to get more sophisticated and flexible for pet owners.
Financial services like pet insurance will take off in countries like Thailand the way it has already done in the US.
And all of this points to tons of opportunities for enterprising new startups. Which is why i’ll be looking at this space with a very keen eye in the coming years.
