As the coronavirus pandemic continues to impede everyday life, the pet industry and sector-related exchange traded fund have thrived.

The ProShares Pet Care ETF (PAWZ), the first ETF to capture the growth in the pet care industry, increased 11.7% over the past month, advanced 18.8% over the past three months, and jumped 63.8% in the past year.

According to Euromonitor data, the global pet-care business expanded by 7%, and is expected to enjoy an annual growth rate of about 6% through 2025, the Wall Street Journal reports.

The steady outlook is based on the calculations that the coronavirus pandemic likely increased the size of the pet population in key markets, so more pet owners will continue to support the pet-care business. The numbers may have been even higher if not for supply constraints like empty shelters before the pandemic and breeder difficulty in meeting demand, which has caused a spike in prices.

Global pet-food leader Mars, which includes brands like Pedigree and Whiskas, calculated that that 85 million U.S. households owned a pet at the beginning of 2021, an increase of about 11 new million pets. British retailer Pets at Home estimated that the U.K. pet population may have expanded by 2% to 3% as well.

PAWZ 1 Year Performance

Additionally, investors may be becoming more picky with pet-care companies as some see an opportunity for businesses like Chewy to take on a bigger market share through their online retail dominance.

The trend toward premiumization has also helped support the industry, as more consumers have traded up to more expensive foodstuffs for their pets.

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