Pet goods and athleisure have long-term market potential, according to Nasdaq.
The pet goods market is expected to grow 6.54% globally from 2022 to 2027, according to Mordor Intelligence. Grandview Research’s projections show that the growth rate is even higher, at 8.6% between 2021 and 2028. Companies in the pet goods market include Chewy, Freshpet, and Petco Health and Wellness. However, Nasdaq also recommends keeping an eye on big box companies that sell pet goods and other services, such as Target, Casey’s General Store, and Walmart.
As for why pet goods will rise in popularity, Nasdaq tells consumers that younger generations have created a high demand for companion animals to stave off loneliness. Additionally, pet-related content on social media is driving consumers to acquire pets. This means that pet food, care, and services such as grooming or veterinary businesses are in higher demand. Many pet goods can also be acquired through online shopping, increasing the convenience of pet ownership.
Athleisure is another category that will continue to grow in popularity. Nasdaq reports that the sportswear brand Columbia’s earnings estimate for 2022 is up 8.1% throughout the last two months. While they’re trading at nearly their lowest point of the year, they received a Growth Score of A from Zacks Style Scores.
Nasdaq reports that athleisure is trending because the market has expanded. Consumers are now working from home, wearing athleisure, which has also become acceptable to wear for social occasions. Consumers are looking for more from their athleisure, Nasdaq said, as they value sustainability, durability, quality of materials, and the ethical treatment of factory workers. This is a global trend, as leading brands are also becoming popular in developing nations that are experiencing increased levels of disposable income.