1、OC&CPerspectivesOctober2024OpportunitiesinUSPet2|OC&CStrategyConsultants2022WhyInvestorsLikePetPetremainsanattractivecategoryforinvestors,especiallyintimesofeconomicturbulenceResiliencethrougheconomicdownturnsHighmargins(relativetootherconsumergoodscategories)Continued
2、premiumisation,drivenbyhumanisationPetownershipsurgeExpandabilityintonewproductsandsubcategoriesPrevalenceofdisruptivemodels2OCC_ConsumerPerspectives_USPet_July2024v23|OC&CStrategyConsultants2022Therearethreekeyattractiveareasforinvestors:foodandtreats,contractmanufactu
3、ringandbeyondfoode.g.services,techBrandedFood&TreatsPetContractManufacturingBeyondFoodInsummary:Large,growingandresilientcategory,withsignificantheadroominpremiumandanumberofhighgrowthsegmentsInsummary:StrongunderlyinggrowthwithdemandfrombothCPGsandnichedisruptors,
4、andanumberofclearvaluecreationleversInsummary:Emergingplatformsthatrepresentinterestinginvestmentopportunities,alongsideanumberofotherfragmentedspacesthathavescopeforprofessionalizationSource:OC&CanalysisKeyOpportunitiesforInvestors3OCC_ConsumerPerspectives_USPet_July
5、2024v24|OC&CStrategyConsultants2022AgendaPetContractManufacturingBeyondFoodOC&CExperienceBrandedFood&Treats45|OC&CStrategyConsultants2022TheUSDog&CatFood&TreatsmarketislargeandthemarketoutlookisstrongwithpremiumheadroomremainingtogoafterTotalUSDog&CatFoodMarket(201
6、6-2028F)Source:Nielsen,Euromonitor,OC&CMarketModel,OC&CanalysisBrandedFood&TreatsValue($bn)OCC_ConsumerPerspectives_USPet_July2024v22019202320282016$26bn$31bn$50bn$65bn+6%+12%+6%MarketDynamicsUSDog&CatFood&Treatsisac.$50bnmarketwithDogaccountingforaroundtwo-thirdsofspend,but
7、CatgrowingfasterinrecentyearsLong-rungrowthhasbeenprimarilydrivenbypremiumisation,whileCovid-drivenvolumegrowthfollowedbyhighinflationhavedrivenacceleratedvaluegrowthsince2019(althoughvolumegrowthhasslowedinlast2years)Growthisexpectedtoreturntonormal,pre-Covi
8、dlevelsoverthenextc.3-5years,drivenbypremiumisationresumingWhilstthepremiumsegmentisnowwell-developed(c.30%ofvolumeinDog,c.10-15%inCat),thereisfurtherheadroomexpectedtocomefrominnovationinsuper-premium6|OC&CStrategyConsultants2022Thereareanumberofattractivearea
9、sandhigh-growthsegmentsofthemarket1Rapidgrowthofminimallyprocessedfreshorrawpetfood(historicallydrivenbyretail-firststrategyofmarketincumbentse.g.Freshpet)typicallysoldrefrigeratedorfrozenandmadewithnaturalorhuman-gradeingredientsGrowthexpectedtocontinuesuppo
10、rtedbyDTCunlockinganewcustomersegment2Prevalenceofambientsuper-premiumformats,e.g.freeze-dried,raw-coated,andslow-cooked,whichprovideaconvenientrouteintosuperpremiumincludingco-manufacturersfocusinginfreeze-dried3Growthofmixers/toppersandexplicitmixedfeedingcuesoffe
11、ringaccessibletrade-upoptions4Functionalnaturalfoodblurringtheboundariesbetweennaturalandscientificsegments,offeringnaturalproductswithspecifichealthbenefitclaimswithoutbeing“vetrecommended”andatalowerpricepoint7Growthofsingleingredienttreatsplayingintobothprote
12、in(e.g.emphasizingshareofproteinonpackaging)andcleaningredienttrends6EmergenceofESG-led/plant-basedpropositions,particularlyoutsidecorefoode.g.intreats,supplements,toys,packaginghasspurredanumberofsuccessfulESGpioneers(e.g.Jiminys,NaturalBalance)5Significantgrowthinthe
13、premiumcatfoodspace,especiallysoftnaturalpropositionsthatleveragenaturalcueswithemotivepositioning(e.g.TikiandWeruva)KeyTrendsinHighGrowthSegmentsSource:OC&Canalysis7OCC_ConsumerPerspectives_USPet_July2024v27|OC&CStrategyConsultants2022LargestPlayerinRefrigeratedPet
14、Foodwithfocuson100%naturalingredientsPremiumDistributione.g.WholefoodsSustainableBrandmarketingfocusonESGcredentials,e.g.100%wind-poweredkitchensGrowingShareinPremiumgrewfrom9%to16%ofpremiumwetdogfoodfrom2016-21Freshis10-15%ofthepremiumsegment,withgrowthdrivenb
15、yretail-firststrategyofmarketincumbents(e.g.,FreshPet)ThepresenceofFreshPetproductsinretailsettingswaskeytodrivingmarketawarenessandearlyadoptionintheUShigherthaninEuropeanmarkets,whichwereDTC-ledExpertsexpectfreshdogfoodtoreach30-40%penetrationatmaturityDTC
16、willaccelerategrowthasitunlocksnewcustomersegments(onlineshoppers)anddrivescustomerloyaltyviasubscriptionmodelThefreshsegmenthasseenrapidgrowthwithplayersinthisspaceemphasizingnaturalorhuman-gradeingredients1Fresh/RawPetFoodFreshhasseenrapidgrowth,withsignifica
17、ntheadroomforgrowthPlayersemphasizenaturalorhuman-gradeingredientsFreshPetFoodSource:ExpertInterviews,FreshPetsinvestorpresentation,Euromonitor,Deskresearch,OC&Canalysis201720222027c.0.2-0.5bnc.1-2bnc.3-5bn+50%c.+20%USFreshDogFoodMarket2017-2027($bn)Emphasisoningredientquality
18、andhealth-forwardfocusFreshPetCaseStudy8OCC_ConsumerPerspectives_USPet_July2024v28|OC&CStrategyConsultants2022Ambientsuper-premiumformatsarehighlydevelopedintheUS,includingfocusherefromcontractmanufacturersRiseofAmbientSuper-PremiumPetFoodSource:OC&Canalysis1.Topperref
19、erstoproductthatisaddedontopofapetsregularmeal,usuallytoenhanceitsflavor,nutritionalvalueorappealMerrickFreezeDriedPackagingPetCoStoreChecksRaw-coatedproductshavelowermeatcontentthanpure-raw,thusisamoreaccessibleroutetosuper-premium2AmbientSuper-PremiumAmbient
20、productshavelongershelf-lifeduetolowermoisturecontentandthusdoesnotrequirerefrigerationSignificantshelfspacededicatedtofreeze-driedproductsincludingprivatelabelfreeze-driedrangeKeyImplicationsAmbientsuper-premiumprovidesaconvenientandcheaperrouteintosuper-premium
21、Somebrandsofferbothfrozen-rawandfreeze-driedproducts,providingaconvenientoptionalongsideasuper-premiumoptionMajorspecialists(incl.Petco,andPetSmart)commitsignificantspacetofreeze-driedbrandsandoffertheirownprivatelabelrange9OCC_ConsumerPerspectives_USPet_July2024v29|
22、OC&CStrategyConsultants2022Mixedfeedingandtopperproductsisafastgrowthspace,presentingopportunitiestoconsumersforaccessibletrade-upMixedFeedingSource:Nielsen,OC&CanalysisClearmixedfeedingcuesonpackagingFunctionalbenefitsofrawclearlyhighlightedPalatabilityenhancement-Add
23、moisturetoyourcatsdiet,FlavorboosterMixedfeedingandtopperproductsaredesignedtobeaddedtodrykibbletoimprovetheirtasteandnutritionalprofileManytoppersofferanexplicitfunctionalbenefit(e.g.healthorlifestageangle)orimprovepalatabilityBrandsareincreasinglyusingtoppe
24、rsandexplicitmixedfeedingcuesasanaccessiblewaytobringconsumerstopremiumMixofmeatpiecesoffersnutritionandtasteenhancementMoreaccessibleprice-pointthanpurefreeze-driedc.$5/lbvsc.$34/lbInstinctProductPackagingPetcureanandTikiPackagingMealtopperwithfunctionalbenefi
25、ts(e.g.jointcare)clearlyhighlightedinproductnameTikitopperrangehasToptheirmealwithfunctionalbenefitstaglinee.g.skin&coat,fussy,baby,silver,etc.PetcureanandTikiPackaging3MixedFeeding/ToppersFDMsalesofGeneralMillslinesofflavor-enhancingproductsgrewbymorethan27%pabetwe
26、en19-23vs.overallbrandgrowthof13%paIngredientsincludeactiveingredientse.g.glucosamine10OCC_ConsumerPerspectives_USPet_July2024v210|OC&CStrategyConsultants2022Functionalnaturalisgrowingfast;hybridbrandsplayhere,straddling(andblurringtheboundariesof)thenaturalandscientif
27、iccategoriesFunctionalNaturalFunctionalnaturalproductsaddressabroaderrangeofpetparentneedsinasingleproductdeliveringonhealthbenefitswhilstmaintainingthehumanisationofnaturalfoodLeadingbrandsplayacrossbothwetanddryformulasSource:OC&CanalysisClaimsPriceChannelFormat
28、Leveragefunctionalandhealthbenefitclaims(e.g.skin/coat)withaddedvitamins,mineralsandnutrientsunlikelytobefoundinmorenaturalbrands,whilemaintainingnaturalcuesUnabletoclaimvetrecommendationLimitedmainstreambrandswithfunctionalnaturalleaningpremiumoutsideofafewscale
29、mainstreamplayers(e.g.PurinaOne)However,playsatalowerpricepointvsscientificFunctionalnaturalpresenceacrossbothFDMandpetspecialtychannelspremiumbrandsskewtowardspetspecialty,whilemoremainstreamwithinFDMDryisthelargestformat(90%volume,75%value);However,winningbrandsp
30、layeffectivelyacrosswetanddryformatsProductExamplesfromSelectBrandsPlaybookforFunctionalNaturalBrandsDryFormulationsWetFormulations4FunctionalNaturalRecentsalesoffunctionalnaturalcatfoodhaveoutperformedtheoverallcatfoodmarket,growingatc.15%pa19-23vs.10%paoverallma
31、rketgrowth11OCC_ConsumerPerspectives_USPet_July2024v211|OC&CStrategyConsultants2022USpremiumcatfoodisdrivinggrowthofthemarket,withsoftnaturalthewinningpropositionherePremiumCatFood&SoftNaturalSource:Nielson,Euromonitor,OC&CMarketModel,OC&Canalysis2016201920232028F$2bn$3b
32、n$5bn$6bn+8%+14%+7%Premiumcatpropositionsareexpectedtogrowat+7%CAGRforthenext5YSoftvsHardNaturalPremiumCatFoodMarket,US2016-28($)5PremiumCat/SoftNaturalNaturalmakes60%ofthepremiumcatsegmentWithinthis,softnaturalaccountsforthemajorityofconsumerspend(70%ofnatural),
33、asitdeliversoncatparentexpectationsofbothqualityandpalatability/emotionSoftNaturalHardNaturalDefinitionBrandExamplesDefinitionBrandExamplesNaturalcuesbutnoexplicitclaims,typicallymoreemotiveIngredientfocused,explicitlyclaimsnaturalSoftnaturalisthepredominantnaturalform
34、atandhasseenstronggrowthBrightcolorsandplayfulillustrations,withemotive“natural”claims(e.g.“Grain-free”)Prominentingredienttransparencyandnaturalclaims(e.g.necessaryingredientsonly)Premium%ofTotalCatFood25%25-30%25-30%30%12OCC_ConsumerPerspectives_USPet_July2024v212|OC&CStra
35、tegyConsultants2022Withinsoftnaturalcatfood,thereareanumberofpotentiallyattractiveassetsSource:OC&CanalysisCaseStudiesPremiumSoftNaturalPlayersOverviewWhitebridgeownsaportfolioofpetbrandsincl.Tiki,afastgrowingwet-ledsoftnaturalbrandWeruvaisafamily-ownedcat-firstb
36、randspecializinginwetsoftnaturalfoodMPMisarapidlygrowingPE-backedportfolioofwet-ledcat-firstnaturalfoodbrandsGeoFocusScaleNorthAmericanpresencethroughTikiwithEuropeanpresenceunderSchesir;50-65%ofrevenueconcentratedinUSScaleNorthAmericanpresencewithsomeexposure
37、toANZInternationalfocus(60-70%non-NorthAmerica),withRevealbrandUS-focusedUSCatFoodSales(2023)c.$125-150mc.$110-115mc.$75-100mChannelsKeyBrands&CategoriesTiki:ScaleUScat-first(95%volume)wet-ledpremiumsoftnaturalbrand(c.$125-150m)Schesir:TikiEuropeanequivalent(c.$100-200m)PetiteCu
38、isine:USpremiumwetcatfoodbrand(c.$2-5m)Otherdogtreatsandpetsupplementbrands(e.g.CloudStarandGrizzly)Cat(c.70%ofsales):Weruva,CatsintheKitchen,BestFelineFriend,Truluxe,PumpkinPatchUpDog(c.30%ofsales):DogsintheKitchen,DogsMealsnMoreReveal:Wet-ledpremiumsoftnatural(US&C
39、Aonly;35-50m)Encore:Wet-ledhardnaturalrealmeatplay(UK/EUfocus)Applaws:Wethardnaturalwithover95%incat(40-50minUS;sig.globalpresence)NaturesCalling:Natural,biodegradablecatlitter(EUfocus)5PremiumCat/SoftNatural+50%19-22SalesGrowth1PetSpeciality:70-75%Online:25-30%FDM:-1.Sales
40、growthforUSCatFoodbrandsonly+10%19-22SalesGrowth1+50%19-22SalesGrowth1PetSpeciality:45-50%Online:10-15%FDM:35-40%PetSpeciality:70-75%Online:25-30%FDM:-Illustrative13OCC_ConsumerPerspectives_USPet_July2024v213|OC&CStrategyConsultants2022Plant-basedremainsasmall,butnotinsignifi
41、cant,segmentofthepetfoodmarket,withbrandsdevelopingpropositionstoplayhereThishasspurredafewsuccessfulESGpioneersthataredevelopingsustainableveganproductswhilealsodeliveringonhealthandtastePlant-BasedPropositions58%45%39%29%46%35%31%21%Purchasedproductswithenvironme
42、ntallyfriendlypackagingSwitchedtobrandwithbetterenvironmentalcredentialsSwitchedtobrandwithbetterethical/socialcredentialsPurchasedmoreplant/insectbasedfoodActionstakentoImproveSustainabilityofPurchases1,2(%ofRespondentsWhoHaveSwitched)ESGChampionsTotalSampleSource:Consum
43、erSurvey2022,OC&Canalysis1.Which,ifany,ofthefollowinghaveyoudonespecificallytotrytomakeyourpetpurchasesmoresustainable2.ESGChampionsdefinedasconsumersthatanswered“AddressingsustainabilityisveryimportanttomeitisacorepartofwhoIamtoday.”Leadson“Plantpowered”,
44、then“Vegetarian”Andretailersarestockingabroadrangeofplant-basedSKUsinthetreatscategoryreflectinghigherpropensityfortrailingPlant-BasedTreatsExamplesinUSPetcoandPetSmart6Plant-BasedUsesinsect-basedproteinandlocalsourcingtoreduceenv.footprintReinforcesnutritionalbene
45、fitsofkeyingredientsFocusonnutritionalbalanceandcompletenessofmeal20%ofconsumershaveeitherpartiallyorcompletelyswitchedtoveganpetfoodtoimprovethesustainabilityoftheirpurchases14OCC_ConsumerPerspectives_USPet_July2024v214|OC&CStrategyConsultants2022Thegrowthofsin
46、gle-ingredientproductformats,notablyintreats,playsintobroaderproteinandcleaningredienttrendsSingleIngredientFormatSource:OC&CanalysisSingle-ingredientproducts,particularlyinpettreats,arerisinginpopularityRisingpopularityinsingle-ingredientstemfromincreasedconsumerdemand
47、fortransparency,simplicityandhealth-consciousoptionsinpetnutrition,drivenbyhumanizationandattitudestowardspetsAlignscloselywithothertrends,e.g.:High-proteindiets:single-ingredientmeat-basedtreatsactasgoodsourcesofproteinCleanlabel:single-ingredientproductsaretypicall
48、yminimallyprocessedandareconsideredcleanSimple-ingredienttreatsthataredevoidoffillers,preservativesorartificialadditives(“100%all-natural”)offerasenseofincreasedqualityandpurity/safety7SingleIngredientFormatsNachoEatssaleshavegrownat60%pa21-2315OCC_ConsumerPerspectiv
49、es_USPet_July2024v215|OC&CStrategyConsultants2022AgendaPetContractManufacturingBeyondFoodOC&CExperienceBrandedFood&Treats1616|OC&CStrategyConsultants2022WhyInvestorsLikeContractManufacturingCo-manufacturingisanattractivespaceforinvestment,withanumberofclearvaluecreation
50、leversStrongunderlyinggrowth,as1)CPGsincreasinglylooktooptimizetheirownfootprintandfocusinvestmentonareasofstrengthanddifferentiationand2)nichedisruptorsgainpresencebutdonothavethevolumeorcapitaltowarrantownedmanufacturing,resultinginincreaseddemandandappeti
51、teforoutsourcingtothebestcontractmanufacturersAttractivewaytogetintoacategorywithunderlyingtailwinds,butwherebrandsarevaluedatveryhighmultiples,whilealsoprovidingriskmitigationpotentialasindividualbrandscomeandgo,butthecategorytrendismoreenduringForPrivateE
52、quityForContractManufacturersForPrivateLabelManufacturersM&Aopportunitiesareplentiful,withafragmentedlandscapeacrossmanycategoriesandmaterialopportunitytodrivesynergiesandscalebenefitacrossthevaluechain,withnumerousroll-up/platformstrategysuccessstories(typicallydriv
53、enbyPEowners)OpportunitytotransitionintoanattractiveadjacentspacethatenablesPLplayerstoleveragetheircoremanufacturingexpertisewhilebuildingexposuretohighergrowthbrand-ledspacesandbenefitfromgreatersecurityindemand(e.g.longer-termcontractsandnoannualre-tenderin
54、gprocess)Source:OC&Canalysis17OCC_ConsumerPerspectives_USPet_July2024v217|OC&CStrategyConsultants2022DescriptionPetFoodRev.($m)#ofFaci-litiesOwner-shipFormatsServedBrightPetLeadingdeveloperandcontractmfg.ofpremiumandsuper-premiumpetfood$50m4Alvarez&MarsalDry,wet,raw/frozen/refr
55、igeratedandtreatsacrossdogandcatRawAdvantageProcessingCo-manufactureroffreeze-driedandfrozenrawpetfoodbasedinORn.a.n.a.Alvarez&MarsalRaw/frozen/refrigeratedandtreatsacrossdogandcatShepheardBoyFarmsCo-manufacturerofpremiumfreeze-driedsingle-ingredientpetfoodc.$5mn.a.Pr
56、ivate(Family-owned)Frozen,freeze-driedandtreatsfordogsandcatsVitalEssentialsCo-manufacturerofpremiumfreeze-driedandfrozenrawpetfoodc.$5mn.a.CarnivoreMeatCompanyFrozenandfreeze-driedpetfoodacrossdogandcatWithinPet,thereareanumberofco-manufacturerswithahandfulplaying
57、innicheandinnovativepartsofthemarketMainstreamContractManufacturersServingTraditionalFoodTypes&FormatsInnovativeContractManufacturersServingNicheandDisruptivePlayersSupplierLandscapeCo-ManufacturersSource:Deskresearch,Companywebsites,OC&CanalysisNon-ExhaustiveRawAdvantage
58、Processing11.AcquiredbyBrightPetinJune2023ExamplesofCo-ManufacturersbyFormatTypeListofInnovativeCo-Manufacturers18OCC_ConsumerPerspectives_USPet_July2024v218|OC&CStrategyConsultants2022AgendaPetContractManufacturingBeyondFoodOC&CExperienceBrandedFood&Treats1919|OC&CStrateg
59、yConsultants2022DryCatPetToysProductsLitterVetTreats&MixersTrainers/BehavioristsWetDogGroomingSuperPremium2InsuranceOther3Food&Treats1DaycareSupplementsHealthPetHygeine4Services6OtherPetProductsWetCatDryDogTech/WearablesTherearelarge,growingsegmentsinPetbeyondfood-whilemanyarefra
60、gmented,platformsareemergingthatofferinvestmentopportunities10%p.a.7-10%p.a.5-7%p.a.20%p.a,2019-23)Significantheadroomforfurthercustomerpenetrationvsotherdevelopedmarkets(0.5%vs1.1-1.3%,respectively)21OCC_ConsumerPerspectives_USPet_July2024v221|OC&CStrategyConsultants2022Thev
61、etmarketislargeandgrowingwithasteadilygrowingnumberofvetpractices(+1-2%p.a)andgrowthinspendonvets(+9%p.a)$389$439$491$522$5562019202020212022F2023F+9%Avg.AnnualUSVeterinaryExpenditure,PerPet-OwningHousehold2($)201920202021F2022F2023F31.7k32.0k32.3k32.5k32.8k+1%Est.USVetPrac
62、tices1VetMarketDrivers,2019-23(F)Source:USBureauofLaborStatistics,APPANationalPetOwnersSurvey,AmericanVeterinaryMedicalAssociation,OC&CanalysisUSVeterinarians20192020202120222023116k119k121k124k127k+2%VetTech11.2021to2023valueswereforecastedfrom2020usinghistorical(2017-21)CA
63、GR2.BasedonUSBureauofLaborStatistics.2022and2023valueswereforecastedfrom2021usinghistorical(2017-21)CAGRInaddition,thenumberofpet-owninghouseholdshaveincreasedoverthelastdecade,from62%in2011to66%in2023SupplyGrowthDemandGrowth22OCC_ConsumerPerspectives_USPet_July20
64、24v222|OC&CStrategyConsultants2022Vetscanutilizevarioussoftwaretoolstohelpimproverevenuestreams,eg:UsingadirectschedulingsystemcanincreaseconvenienceforpetownerswhilereducingadminburdenonstaffUsingdatafromCRMtoolstocreatetargetedmarketingcampaignforspecific
65、servicesbasedonpetshealthhistoryorpreviousvisitsManageotherrevenuestreams(egprescriptiondrugsalesviaonlinepharmacies)CurrentITspendwithinthevetindustryismuchlowerthaninadjacentindustriesITspendtypicallyamountsto15%foroptometrypracticesITspendfordoctorshav
66、egoneup40%since2009Techspendistypically1-2%ofpracticerev.,whichisminimalcomparedtoothercosts,incl.thec.40%spentonadmin/wageswhichtheuseoftechplatformsaimstoreduceVeterinarytechrepresentsanattractiveinvestmentarea,givenitskeyroleinoperationsandsignificanthe
67、adroomopportunitySource:Interviews,Deskresearch,OC&CanalysisRoleofTechinVetEcosystemCostBreakdownofAveragePractice110-15%1-2%1-2%10-15%10-15%20-25%35-40%ProfitITandTelecomSpend2MarketingPurchases3Back-OfficeWages4VetWages4OtherCosts$1m1.Assumesanaveragepracticesizewith2.5vets;2
68、.Includesmedications(someofwhicharere-soldthroughinternalpharmacies);3.IncludesUtilities,Depreciation,Rent,Taxes,Maintenance,etc.;4.Assumes$95kavg.DVMannualsalary;given$27kavg.vetreceptionistsalary,weassume5.4back-officestaffperpractice.25-30%20-25%15-20%15-20%10-15%1-2%3-5%Nons
69、urgicaltreatmentsRoutineexaminationsLabServicesSurgicaltreatmentsMerchandisesalesPetgroomingservicesOther100%RevenueBreakdownofaTypicalVeterinaryPracticeThemajorityofvetrevenuestreamscanbeaugmentedbytechofferingsMostpracticesspend1-2%ofrevenueontechtodaythereissignificant
70、headroomcomparedtoadjacentindustriesOtherAreasAreastouchedbytechtodayThevettechmarkethasgrownc.2-5%pafrom2017-2021,withleadingplayersachievinggrowthofc.25-30%paduringthesametimeperiod23OCC_ConsumerPerspectives_USPet_July2024v2VetTech123|OC&CStrategyConsultants202
71、2Manypetownersareusingpetsitterservicestodayonlineplatformsarealargeandfast-growingportionofthemarketPetSittingProviderUsed(MillionsofPetOwnersThatUsePetSittingServices,%)USPetOwnersbyUseofPetSittingServices(MillionsofPetOwners,%)10-20%80-90%2023OnlineLocal/I
72、n-PersonProviders100%12mPetSitting&Daycare2Source:ExpertInterviews,Deskresearch,APPANationalPetOwnersSurvey,OC&CanalysisUSPetSittingServiceUsage,202315%85%2023UsePetSittingServicesDoNotUsePetSittingServices87mTrustedHousesittersAvg.ofLeadingPlayersWag!RoverExpertEst.50-60%30-
73、40%20-30%20-30%10-20%OnlinePetSitterPlatformGrowthRate(2019-22,%)24OCC_ConsumerPerspectives_USPet_July2024v224|OC&CStrategyConsultants2022Thespaceishighlyfragmented,withanopportunitytoprofessionalizesomeplayersareseeinghighgrowthOverviewofKeyPlayersKeyCompetitorArchety
74、pes&ExamplePlayersCompetitorOverviewOnlineSpecialistsOnlineGeneralistsLocalProvidersRangeofsmall,localproviders2023Revenue#GeosCAGR(19-22)TotalRevenue($m)USRevenue($m)%inPetSittingTrustedHousesitters$30m$12m4100%130+41%Rover$218m1$168m15%10+22%Wag!$79m1$79m20%1+25%C$329m2$280m50%ofour
75、business)StrategyandM&A-45%ofourbusinessistransactionsupport30+yearsheritage1.AffiliateofficesinIndia,TheBCorpcertificationdoesnotextendtoouralliancewithAdvisiaOC&CStrategyConsultantsinBrazilorRedseerinIndiaShanghaiHongKongLondonParisMunichWarsawBeloHorizonteSoPau
76、loMilanBengaluruSydneyBostonNewYorkDelhiMumbaiMelbourneRotterdam31F31|OC&CStrategyConsultants2022LeadingmultinationalsChallengersanddisruptorsNationalchampionsOurClientsOC&CsIndustryCoverageFood&BeverageBeauty&WellnessIngredients&ManufacturingBeer,Wine&SpiritsConsumerGoodsGroceryApparel
77、Multi-categorySpecialty&LuxuryDisruptiveDigitalModelsRetailAccommodation,Parks&ResortsFood&BeverageEntertainmentGambling&GamingTravelHospitality&LeisureCommunications&TechnologyBusinessInformationMediaEntertainment&ConsumerMediaTMTConstruction&InfrastructureServicesIndustrialProductsAutomotiv
78、e&MobilityInsuranceOutsourcingTesting,Inspection&CertificationB2BProducts&ServicesWeworkwithawide-rangeofplayersacrossindustriesconsumer/retailstrategyis50%ofourworkPrivateequityandinvestors31OCC_ConsumerPerspectives_USPet_July2024v232|OC&CStrategyConsultants2022OC&Cspropos
79、itionisanchoredaroundourfirm-widesectordepth,domainexpertiseinspecificverticals,anduniqueworkingapproachTheOC&CWayHowWeAreDifferentfromCompetitionSubstantialpartnertimeatleast2partnersoneachproject,withahigherPartner:ConsultantratiothantheBig3Deepdomainexpert
80、iseinourselectedsweetspotsectorswhereweofferunrivalledexperienceBestteamintheroomprojectteamsarefullytailoredtoclientspecificneeds(sectors,functionalexpertiseandlanguageskills)regardlessofhomecountryandthereforehitthegroundrunningonday1SameteamsforStrategyvsTransactionSupportworkwhichmeansbetterqualityworkforbothourcorporateandPEclients32OCC_ConsumerPerspectives_USPet_July2024v2