Interest in the pet industry has surged during the COVID-19 pandemic, but there are a lot of reasons to invest in pet stocks. In fact, if you were to make a list of the top qualities in consumer-facing stocks, the pet food industry would check virtually every box.
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Pet products are repeat purchases, and pet owners tend to buy products such as dog food at regular intervals. This gives pet food companies both a reliable revenue stream and loyal customers who are reluctant to switch their animal’s diet. Additionally, pet food is a recession-proof sector; sales of pet products actually rose during the 2008 financial crisis and the early stages of the pandemic. Pet owners are willing to spend on their furry friends in good times and bad, placing pet products in the broader category of consumer staples, although they aren’t usually thought of that way.
Other trends favor growth in the pet food segment….
