The World of HorsesAn introduction to the consumers who live the equine lifestyle

A Brief Overview The size of the horse industry Key segments in the industry The horse owner market Horse owners as consumers What drives horse ownership The future of the horse industry

The Horse Industry

A $102 billion impact on the US economy 4.7 million Americans involved in the industry as

owners, employees, volunteers or professionals 1.4 million full-time equivalent jobs 9.2 million horses with 6.6 million used for

recreation or competition 2 million horse owners

Key Segments in the Industry

The largest segment, spectators, are most influential in the racing and rodeo worlds, but also are the least involved

Spectators

Racing fans comprise the largest group of spectators and number about 60 million

The next largest group are attendees at rodeos – 2.4 million at pro rodeo events and over 1 million at high school rodeos

Occasional Riders

About 17 million people ride at least once per year Of these, 4 million ride at least once a month and 2

million ride once a week or more

Horse OwnersBy the numbers

76% are female 66% are married The average age is 43 Average household income of $69,500 with 14% reporting incomes above $100,000

Horse ownership requires a financial commitment

The average owner spends over $2800 annually on each horse

Horse OwnersAre land owners…

89% live in areas of under 100,000 population

They own an average of 35 acres

74% own 4 or more acres

About 25% of Horse Owners Compete in One or More Events

While only 15% of all riders ride English, 40% of competitors ride English

Western riders are more likely to be recreational riders

Associations representing major competitive disciplines include

US Equestrian Federation – 87,000 members US Dressage Federation – 33,000 members US Hunter/Jumper Association – 32,000 members National Reining Horse Association – 13,000 members National Cutting Horse Association – 16,000 members US Eventing Association – 14,000 members National Barrel Horse Association – 23,000 members

Associations representing the major breeds are

American Quarter Horse Association – 3.1 million horses registered

The Jockey Club (Thoroughbreds) – 1.8 million horses

American Paint Horse Association – 795,000 horses Arabian Horse Association – 947,000 Arab and Half-

Arab horses Appaloosa Horse Club – 654,000 horses

Horse Owners are Active and Discriminating Consumers

Price/quality relationship is vital and is often defined by brand

Availability/selection often determines purchase location

Customer service is a factor in selecting specific outlet

Owners look to trainers, veterinarians and other professionals for product recommendations

Where Horse Owners Shop

Tack shops & feed stores are under pressure from other outlets

Specialty outlets – Tractor Supply, Southern States, America’s Country Store, etc. – are gaining share

Catalogs – Dover, State Line, United Vet Equine, Libertyville, etc. – continue to grow and are moving into the online market

Mass merchandisers – Wal-Mart, – are adding equine products to their extensive selection

What Drives Horse Ownership?

Demographic trends – most horse owners are between 25 and 49

Economic issues – land availability and cost, disposable income

Competition for time Awareness of horses – the horse in society Exposure to horses among youth

The Horse Industry’s Future

The future for competitive and recreational horses remains bright – increased disposable income, lifestyle appeal, cost effective

Horses on farms and ranches will continue to decline as land costs increase

More horses will be kept on smaller acreage