Dog Breeding Business Overview
Dog breeding businesses work to supply families, show dog owners, and even working dog owners with well-bred dogs who are suited for their purpose. Breeders often specialize in one certain breed of dog, and they carefully select pairings to pass on the best qualities to the puppies.
Most professional breeders invest significant time in researching bloodlines, understanding inherited traits, and maintaining detailed records of their breeding programs. A breeding operation also involves coordinating veterinary care, managing proper nutrition, and creating suitable environments for pregnant dogs and newborn puppies. Breeders also screen potential buyers, provide health certifications, and often offer ongoing support to families who purchase their puppies.
The common business models for breeding operations include:
- Home-Based Breeder: One or two breeding pairs maintained at a private residence, focusing on a single breed
- Multi-Breed Operation: Several breeding pairs of different breeds are housed in dedicated facilities
- Show Dog Specialist: Breeding show-quality dogs with documented pedigrees and champion bloodlines
Related: Checklist To Start A Business
How Do Dog Breeders Make Money?
The main source of income for dog breeders comes from selling puppies to individuals, families, and sometimes other breeders. The price of puppies varies based on breed, pedigree, and market demand.
Additional revenue sources for dog breeding businesses include:
- Stud Services: Offering male dogs for breeding with females owned by other breeders, typically charging a fee or pick of the litter
- Training Services: Providing basic puppy training or specialized behavior training before selling to new owners
- Health Testing: DNA testing and health certifications for other breeders’ dogs
- Show Handling: Presenting client dogs at breed shows and competitions
Media influence can create significant shifts in breed popularity. TV shows and movies have historically driven demand for specific breeds – the “101 Dalmatians” movies increased interest in Dalmatians, while “Game of Thrones” boosted demand for Huskies. While these trends can last up to a decade, they eventually decline. Successful breeders often balance capitalizing on current popular breeds while maintaining a sustainable long-term breeding program.
Industry Statistics
Dog breeding operations fall under NAICS code 112990 – all other animal production, including companion animals like dogs and cats. Let’s examine some statistics that will help you understand the size and scope of this industry.
Dog Breeding Industry Size & Growth: The dog breeding industry generates $3.1 billion in annual revenue. Over the past five years, the industry has grown by 2.6% annually. However, the industry is expected to decline in the coming years as more consumers choose pet adoption over purchasing from breeders. This decline stems from changing consumer preferences and increased awareness of shelter pets. (IBISWorld)
Number of Dog Breeders: There are approximately 313,000 dog breeding businesses operating today. The industry is highly fragmented, with no single breeder controlling a significant portion of the market. Most operations are small, independently owned businesses rather than large commercial facilities. (IBISWorld)
Dog Breeding Profit Margin: Dog breeding businesses see average profit margins of 16.5%. These margins account for operating costs, including veterinary care, food, supplies, and facility maintenance. (IRS)
Startup Stories
Costs To Start a Dog Breeding Business
Starting a dog breeding business typically costs between $5,000 and $50,000. The actual amount depends on the number of breeding dogs, facility requirements, and equipment needs. Here are some of the bigger expenses to plan for when getting started.
Breeding Dogs: Quality breeding dogs from established bloodlines cost between $2,000 and $10,000 each. This price includes registration papers and initial health certifications. Most breeders start with at least two to four dogs.
Facility Setup: Building or modifying kennels, whelping areas, and exercise spaces range from $1,000 to $20,000. This includes proper ventilation systems, temperature control, drainage, and separate areas for different stages of breeding and puppy care.
Medical Equipment: Basic veterinary supplies and monitoring equipment for birthing and puppy care cost $2,000 to $8,000. This includes whelping boxes, incubators, medical supplies, and health testing equipment.
These estimates represent general ranges, and actual costs will vary based on location, scale of operations, and breed selection.
Resources:
American Kennel Club
International Working Dog Breeding Association
Natural Rearing Breeders Association