Cats 🐱

If you want to impress your pets with the latest happenings in their world, you’ve come to the right place. If you’re not already a subscriber, sign up and join the growing movement of people who receive our info-packed newsletter directly in their inboxes weekly. Why did we decide to cover the pet industry? Well, it’s no secret that in recent years, our pets have become more than just an extension of our family, but part of our actual family.

This growing bond has brought innovation and a boom in products and services catered to our four-legged family members, and we wanted to tell the stories of not only our best friends but of the people driving this industry forward.

There’s never been a better time to enter the pet market!

Our Main Story

Cats - the beloved gravity-defying, whiskered wonders, meme superheroes, and viral sensations that have taken the Internet by storm and won over our hearts. They are officially the internet’s favorite meme, but outside of internet culture, cats have undeniably become part of our lives. This week, let’s shift gears and take a peek into the world of our feline friends.

We love a history lesson:

The history of domesticated cats spans thousands of years, dating back to ancient times. The domestication of cats can be traced to around 4,000 years ago in ancient Egypt, where they were revered and worshiped as sacred creatures. Egyptians recognized their ability to control pests, particularly rodents, which threatened their grain stores. These feline companions became revered symbols, even earning a place in Egyptian mythology.

Over time, these skilled hunters became an integral part of maritime travel, controlling rats on ships and preventing the spread of disease.

Fun fact (not for the prey) - cats are one of the most efficient predators in the animal kingdom with a roughly 35% kill rate. This puts them in the distinguished list of the top 5 most successful hunters.

Here are a few fun cat facts you may or may not know:

• 35% of millennials own cats (55% of them see their cats as their children).

• The oldest cat lived for 38 years.

• 41% of cat owners opt for premium pet food.

• The cat litter market is expected to reach $1.42B by 2025.

• The Exotic Shorthair Cat is the most popular cat breed in the US.

Since the time of using these mythological creatures for pest and crop control, a lot has changed. Nowadays it’s not the cats that work on our behalf but quite the opposite.

Retail locations such as cat cafes, cat therapy centers, cat grooming facilities, cat-themed bars, and even cat-themed hotels have popped up all over the world and have helped cement cats and their place in popular culture.

Additionally, endless products have emerged ranging from cat food, toys, and cat litter to specialized furniture and accessories designed to enhance their comfort and well-being. From smart litter boxes that automatically clean themselves to wearable devices that monitor a cat's health in real-time, innovative hardware & software companies are providing convenience and peace of mind to pet owners on a whole new level.

As pet owners increasingly look for better products and solutions, the market responds with innovative products and services tailored specifically for cats.

The global market for cats has witnessed significant growth in recent years. The United States alone, is home to a vast population of cat lovers, with an estimated 94.2 million pet cats as of 2021. Just like dogs, our love and care for cats has spawned a massive market with a broad range of products and services.

Cat food and veterinary services are the two biggest expenses for cat owners; on average cat owners spend around $310 on food per year and around $253 on veterinary care per year.

5 companies (Mars, Purina, Hills Pet Nutrition, The JM Smucker Company & Affinity Petcare SA) account for roughly 30% global cat food market share.

Globally, the cat market has also witnessed a notable expansion. Countries such as Japan, the United Kingdom, and Germany have seen a surge in cat ownership, leading to an increased demand for cat-related products and services. Specifically, here is what we see in the US:

The increasing demand for pet companionship and the relatively low-maintenance nature and self-sufficiency of cats have made them the second most popular pet in the US (and worldwide)

As technology continues to advance, both pet owners and business owners will reap the benefits of a more connected, convenient, and enriching cat ownership experience. Whether it's improved healthcare solutions, AI-powered toys, or online platforms, the potential for the cat industry to thrive is boundless, creating a harmonious and fulfilling bond between humans and their feline companions.

Finally, as we briefly mentioned in the opening, cats have emerged as internet royalty. With their mischievous antics and adorable expressions taking the virtual world by storm, they have transcended cultural and linguistic barriers.

From Grumpy Cat to Lil Bub and Keyboard Cat, there are countless iconic cats that have gone viral and ingrained themselves in popular culture.

But even before the internet, there were cats that captivated our hearts and minds. Tom & Jerry, Garfield, Mr. Bigglesworth, The Cat in the Hat, and many more have become childhood staples and have contributed to the growing bond between humans and cats for close to a century.

Cats are forever a part of the human story.

Meme of the Week

This week’s meme of the week is brought to you by comedian/cartoonist Asher Pearlman

Business Roundup

• Best side hustle? - 28-year-old Kevin Liu made over $26,000 in 2022 from pet sitting. Making money and taking care of dogs? Sign us up!

• Big boy food - Freshpet launches new dog food specifically aimed at large dog breeds.

• Europe is experiencing a boom - Pet tech startups, especially connected hardware startups, are seeing real growth.

• Japan wants a bite of the Chinese market - The Chinese pet market is second in size only to the US, and Japanese companies are eager to capitalize.

• Starting from scratch - Mike Halligan decided to start his own dog food company after he learned how unregulated the industry is; now his company Scratch Dog Food is making millions.

• Pizza, Pasta, Pets - In 2022, 42% of Italian familias owned a pet. And with that number gradually growing, sales of products and services are increasing as well.

• Petco is up - In the first quarter of 2023, Petco delivered net revenue of $1.56 billion, up 5.4 percent versus the prior year.

• New leadership - Made By Nacho names new CEO & COO, Royal Canin names new female vice president.

Biz 101

Last week, we started talking about business planning. Specifically what categories to include and how to set up the template. A couple of more tips today to put this one in perspective and close it out:

• Review - when you finish putting this together call your best friend, partner, colleague, anyone who (I can’t believe I am about to say this) is not a pet! Talk that person through your planning process, the different categories and your assumptions. It’s really good to get someone else’s view on this and, in general, two brains are better than one. We (people) have a tendency to be overly positive when we put these kinds of plans together, so it’s important you get another pair of eyes here. This business plan may be an important part of your decision-making process to, perhaps, leave a full-time job. Don’t take this lightly - see if you can get someone else to critique it.

• Buffers - Hi, did you remember to set a margin of safety? You got all your categories lined up, the plan is looking BE-U-T-FUL… but, what about when something unexpected comes up. Did you account for that? Set up a line called “buffer” or maybe “other”. Assume that to be x% of your profit (maybe 10%? 20%? wdyt?). If you don’t end up using it, great! A nice upside coming your way. If you did, well, do you need to review your assumptions? This one is really about being a bit more conservative.

• Bananas 🍌 - ah? our attempt at being funny. Perhaps original even… So, look, at the end of the day, this is a plan. It’s a guide to help you assess direction of travel. Don’t go bananas trying to capture every single thing, particularly if you are just starting. Reality is, you can’t account for everything and at some point, planning will have diminishing returns. So be sensible, get 80% of it right, set up a buffer, and start your journey. Don’t fall into the trap of analysis paralysis. We can all do business plans until the 🐄 come home, but that’s not the point here. Go execute your plan and then iterate as necessary, lots more value in doing things that way.

• Tracking - Finally, the whole point of this exercise is to be able to go back and course-correct. This needs to be a useful tool, not just a sheet full of numbers. So, set yourself a reminder 3/6/9 months down the road and try to compare your actual performance vs. your plan. How did you do?? Did you make more money than anticipated, great! don’t forget about those taxes. Did you make less? why is that? didn't sell as much as you wanted or price was lower? what do you need to do now if you got them bills to pay… Comparing actual vs. plan is a really useful way to help you navigate your way forward and hit your goals.

That’s it from us on business planning for now. Lot more stuff coming up in the near future and some surprises as well. Hit us up if you want us to try and cover something specific.

Trending

• Pool not cool - A funny short video of a cat, a garbage bag, and a pool in Brazil.

• Breaking records - Best Friends Animal Society broke the world record for the most pet food donated in 24 hours.

• Second chances - After almost dying in the hospital, this guy decided to travel to Thailand and rescue dogs in need.

• Not all dogs are Michael Phelps - Not all dogs are natural swimmers - a few quick tips on how to properly introduce your pup to water.

• Bear Dogs to scare bears, dawg! - These Karelian Bear Dogs have been trained to reduce friction between humans and bears by scaring the bears away.

• Furcedes or Pursche? - This pet nonprofit went viral for a clever post for cat adoption mimicking Carvana and the results are purrrrfect.

• The Oscar goes to… - A Border Collie named Messi (who played Snoop in Anatomy of a Fall) recently won the Palm Dog award for his outstanding performance.

• Don’t smile, blink - Research from 2020 shows that to connect with your cat, you need to smile more. But not the human way, by showing your pearly whites, the cat way, by narrowing your eyes and blinking slowly.

• Storytime - We asked ChatGPT to write a “breaking story” about a dog finally pooping after being constipated and it did not disappoint.

Community Pic

If you want your pet (dogs, cats, hamsters, baby dragons, etc) featured, send us a picture with their name, age, breed, and a 1-2 sentence story to [email protected] and we’ll do our best to feature them.

Meet Max: A 5-year-old domestic short hair cat that still acts like a kitten. His parents got him from the SPCA in Cape Town after someone else returned him... When he was about 3 months old he swallowed a needle, which they only realized was there when he yawned and they saw this weird line in his throat. He has a penchant for feathers and dental treats. These days he spends most of his time sleeping in a window and pouncing at his parents from behind doors. Standard cat. And as you can tell from this picture, he knows he is the boss.

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Finally, what is a cat's favorite movie? The Sound of Mewsic!

See you next week!

The Woof is a weekly newsletter dedicated to covering the pet industry.