The Hustle Daily Show The Veterinary industry coughs up $38B
Apr 30, 2024
Private equity firms are heavily investing in the veterinary industry, banking on pet owners spending large sums on healthcare. Amazon's impressive next-day shipping and Tesla's resurgence are also discussed. The podcast explores the financial impact of corporate acquisitions on veterinary care, the rapid growth in the industry, and regulatory concerns affecting the market dynamics.
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Massive Investment in Veterinary Care
- The veterinary industry has attracted massive private equity investments since 2017, signaling its profitability.
- Americans spent over $38 billion on pet health care in 2023, demonstrating high consumer spending in this sector.
Why Vet Costs Soar
- Private equity firms put $51.6 billion into vets from 2017 to 2023, and $9.3 billion more in early 2024.
- Pet owners' strong willingness to spend or go into debt for pet care fuels this investment boom.
Corporate Vet Clinic Ownership Surge
- Big corporations now own 25–30% of US vet clinics, up from 8% in 2011.
- Companies like Mars and JAB Holding, linked to candy and coffee, are large vet clinic owners, pushing prices higher.