A stabilisation in rehoming of pets, but breeders are facing more challenging times than pre-pandemic

After the COVID-19 pandemic, the world has begun to embrace the “new normal”. As of December 2022, the current pet market is stable, with numbers returning to their pre-pandemic state, leading to more and more pets that are left looking for a forever home.

The demand in the pet industry greatly represents similarities with the demand experienced in 2019. In 2022, the UK began to face the Cost of Living Crisis, which significantly impacted the demand for a pet. There has been a greater demand for breeders to meet buyer needs, despite buyer research and knowledge remaining relatively low.  

So, how has the demand for pets changed since the Cost of Living Crisis in the UK in the post-pandemic world, and what does this mean for prospective pet owners? 

Read more by reviewing the pet market assessment conducted by Pets4Homes on The UK Pet Industry Report Vol.4, which includes, among other things, exclusive statistics on the future sales of pets within the UK.  

Return to normal pet sales at a glance

• Demand stabilises to pre-pandemic rates with 2M weekly visitors and 80 potential buyers per pet, compared to 420 buyers per pet in the pandemic. 
• The Cost of Living Crisis has resulted in many pet owners (25%) being unable to meet veterinarian costs. Despite the raise in inflation and living costs, 80% of pet owners mentioned in a user study that they would put pets first, despite the cost of living crisis.
• In 2019, 22% of rescue centres had 100% occupancy compared to 2022, when 42% reached 100% occupancy. Due to financial hardships, there has been an increase of 26% in pets placed in rescue centres. 
• Prices of pets have declined by 52% for dogs and 28% for cats; however, these prices are still above the pre-pandemic cost for pets. 
• In 2022, 22% of sellers have been active breeders for four years, with licensed sellers increasing from 22.1% to 28% in December 2022. 
• Despite the increase in unethical sellers, Pets4Homes has used advanced technology and strategies to combat this, resulting in less than 1.0% of adverts being reported as fake or suspicious. 

Demand returns to pre-pandemic levels

During January-November 2022, there was a 27% decrease in demand for pets compared to the previous year, resulting in 80 potential buyers per pet, with 2M households searching for pets every week. In 2020, there were 420 potential buyers per pet, and in 2021, 3.7M households searched for pets weekly.

The pandemic spurred demand for pets as companions during harsh lockdowns and restrictions. Still, the post-pandemic UK saw a gradual decline as many of these sanctions began lifting, and stabilisation as markets returned to 2019, also known as the pre-pandemic demand. 

The impact of the cost of living crisis on pet ownership 

The cost of living crisis is creating an additional strain on pet owners facing rising housing, heating, gas and food prices. According to a user survey, 8% of pet owners consider giving up their pet, with one-quarter (25%) of owners reporting that they cannot cover vet bills, as 18% of them have fallen into debt. 

Despite the cost of living crisis, 80% of pet owners would prioritise their pets if they had to choose between two expenses. 

The cost of living crisis influenced pet purchasing, adoption, and pets' lifestyles, with 38% of pet owners switching to cheaper food brands. In 2019, 22% of rescue centres had 100% occupancy, and by 2022, 42% of shelters will be full, with financial reasons accounting for 26% of the reasons people give up their pets.

The current cost of living crisis has put a hold on the willingness to buy or adopt pets. In a user study, 60% of owners mentioned that they’re less likely to adopt or buy a new pet due to the cost of living crisis. When assessing the main animal welfare issues for 2023, most respondents said dog abandonment was due to the cost of living crisis.

Cost of living crisis effect on pet prices

Pre-pandemic prices of pets were generally £876 on average for a dog or puppy, which soared to £2,237 during the pandemic, and as of November 22, the average price of a puppy or dog is £1,083. Overall, there has been a 28% decrease in dog prices between January and November 2022 compared to the previous year. 

Despite the decrease in prices, prices are still slightly above pre-pandemic levels. Price variations differ significantly by breed; for example, the Schnoodle had a significant price decline of 85% in 2022 compared to 2021. 

When it comes to areas to buy a pet in, Telford prices decreased by 57%, while prices in Glasgow only decreased by 15% in 2022. 

There was a significant decrease in prices for cats in 2022 as prices decreased by 32% from the previous year. For example, there was a 23% decrease  in the Savannah breed average price, a 13% decrease in the Maine Coon breed average price and a 16% decrease in the Siberian breed average price from 2021.

Pets purchased in the pandemic

A common misconception about the Covid-19 surge in pet ownership is that people are now abandoning their "pandemic puppies" by reselling or giving them up for adoption. However, according to our data, the increase in advertisements on Pets4Homes so far can be attributed to new litters rather than reselling. 

In response to increased demand, we see a significant increase in puppy litter from our breeders, while non-puppy dogs for sale, which make up the majority of resold dogs, remained largely unchanged in 2022 as in 2021. 

Pet types and breeds

Dogs' demand continues to be the most popular pet in 2022, attracting 76% of all pet buyers, a slight decrease from 77% last year. Cats are in second place with 16%, nearly the same as the previous year's 15%. Cats, rabbits, rodents, and birds are among the growing pet categories.

There is a significant gap between pet availability and the demand from prospective pet owners. The disparity is greatest for dogs, which attracted 125 potential buyers per dog in November 2022 compared to 75 buyers per cat and around 23 buyers per advertised listing of rodents, birds and rabbits.

During the first six months of 2022, the dog supply was comparable to the high levels seen in 2021, while supply fell below 2020 levels in the second half of 2022. By the middle of November 2022, 11k dogs and puppies were being advertised for sale every week. In previous years, the figure for the same period was 15k in 2020 and 17k in 2021.

Breeders in the market

Data was assessed in a study conducted with >1K breeders, which found that 41.6% of breeders have been breeding puppies for longer than ten years, whereas only 11.6% are new. 30% of breeders were motivated by the love of a particular breed or just dogs in general(21%). Only 2% of breeders on site started breeding as a financial opportunity. 

Most licensed breeders (55%) breed four or more litters per year, with 53% breeding a single type of breed. 

A large majority of 3 out of 4 (75%) breeders take steps to ensure puppies' health by screenings, taking pets for health tests, and vaccinations. When purchasing a puppy, they are almost always accompanied by documentation and additional items.

Painpoints as a breeder

The cost of breeding is certainly not cheap. When evaluating the expenses of breeders, it was found that the two largest expenses for breeding pets were pet food (48%) and veterinary care (43%). 

When assessing the difficulties of breeding, it was mentioned that being unable to leave home, the costs involved, and the time consumed were some of the largest difficulties in being a breeder. 

Is Pets4Homes a good place to purchase a pet on?

While buyer research and knowledge remain low, Pets4Homes has several policies to ensure a smooth transition for pets to be rehomed. 

Pets4Homes has implemented stricter verification measures and the UK's first deposit scheme to mitigate puppy smugglers and unethical sellers.

More than 40% of ads submitted to Pets4Homes do not meet the pre-screening criteria and advertisement rules and are, therefore, not published on the website. Compared to last year's period, the share of reported advertisements suspected of being fake or misleading decreased from 1.5% to less than 1% in 2022 as technological improvements on the site improved. Fortunately, the proportion of reported animal welfare concerns and fake advertisements has nearly halved as the proportion of total advertisements.

In addition, the Safety Deposit Service, implemented on Pets4Homes, ensures a safer payment experience for buyers. A bank-grade ID verification is required before posting an advertisement to ensure that the seller matches the identity of the account holder to avoid cases of fraud. 

Animal Welfare policies that align with PAAG and UK legislation enable the process to remove unscrupulous sellers, who perform any modifications to pets, including but not limited to cropped ears and dock tails, or species that are unsuitable for domestic sales. There are upcoming regulations to mitigate better animal welfare, which is only said to greatly improve the safety and well-being of pets on-site. 

How to avoid scams on Pets4Homes

To avoid any scams, keep communication on Pets4Homes and seek support from our Trust & Safety department, which can further assist you. In addition, be sure to make use of the Safe Deposit functionality to ensure a safe and seamless payment experience. Avoid sending any money outside the site to the seller directly, and report this conduct where applicable. 

As a prospective owner, you should:

• Do your research on your breed and understand the responsibilities involved with the particular breed. 
• Confirm the advertiser is authentic by arranging a visit to the premises where the pet is. 
• All viewings of puppies or kittens must be conducted in the presence of their mother - ensure that you see the puppy interact with its mother. 
• Ensure that your puppy or kitten is at least eight weeks before collection. 
• Take your pet to the veterinarian after collection to do a routine health check, and return the pet within 48 hours if there are any health issues. 
• Breeders love to answer questions about their pets. Make sure to take the opportunity to learn as much as possible about the pet you are rehoming, incl. about the pet's parents.

Lastly, be sure to research your pet's breed before purchase and remember that pets are not seasonal presents but lifelong best friends with great responsibility for care and well-being.