Analysis of Pet Care Spending: Implications for Emerging Pet Insurance Markets

Loading...

View/Download File

Poster_Yuying.pdf (827.73 KB)

Persistent link to this item

https://hdl.handle.net/11299/202744

Statistics

View Statistics

Journal Title

Journal ISSN

Volume Title

Title

Analysis of Pet Care Spending: Implications for Emerging Pet Insurance Markets

Authors

Shan, Yuying

Published Date

2019-05

Publisher

Type

Presentation

Abstract

Pet insurance is an emerging growing market. The industry has grown by 13.4% over the past five years and reached a revenue of $1billion in 2018. By analyzing patterns of consumer expenditures for all pet care, I investigate changing market prospects for the pet insurance industry. This analysis examines the microdata files in the Consumer Expenditure Surveys (CES) from 2003 to 2017 across household types and income groups. I found that compared to the average household, couples without children, couples with the oldest child aged between 6 and 17, and single households spent more on pet care. The average household pet expenditure increased from 2003 to 2017 at all income levels, and the increasing pet expenditure along income levels (which decelerated quickly in 2003) became more linear in 2017. Thus, pet care appears to be going through a transition from a “necessity” to a spending category that grows strongly with household income. At the average-household income level, median pet care spenders and high spenders (i.e., 50th and 75th percentiles of the distribution respectively) exhibited increased income elasticities in 2017, which suggests that pet care spending grew faster among higher spending households, mirroring the spending pattern on human healthcare.

Keywords

pet insurance

pet care market

Description

Related to

Replaces

License

Collections

UMTC Undergraduate Research Presentations and Papers (UROP)

Series/Report Number

Funding information

This research was supported by the Undergraduate Research Opportunities Program (UROP).

Isbn identifier

Doi identifier

Previously Published Citation

Suggested citation

Shan, Yuying. (2019). Analysis of Pet Care Spending: Implications for Emerging Pet Insurance Markets. Retrieved from the University Digital Conservancy, https://hdl.handle.net/11299/202744.

Content distributed via the University Digital Conservancy may be subject to additional license and use restrictions applied by the depositor. By using these files, users agree to the Terms of Use. Materials in the UDC may contain content that is disturbing and/or harmful. For more information, please see our statement on harmful content in digital repositories.