Core Insights - The pet industry in the U.S. is experiencing significant growth, with spending on veterinary care and pet medications expected to approach $40 billion in 2024, making it the second-largest pet spending category after pet food and treats [1] - The overall pet market is projected to reach $173 billion by 2027, driven by an increase in veterinary care needs as pets adopted during the pandemic age [1][2] - Chewy, originally an online pet food retailer, has transformed into a $16 billion public company and the largest online pet pharmacy in the U.S., with annual sales of $1.1 billion and a 7% market share [1] Chewy's Expansion into Veterinary Services - Chewy has launched its veterinary clinic business under the Chewy Vet Care (CVC) brand, receiving positive initial feedback with an average rating of 4.8 out of 5 from over 1,000 reviews on Google [3] - The company has the potential for rapid expansion in its veterinary services, with analysts estimating that if Chewy allocates 15% of its capital expenditures to veterinary clinics, CVC could achieve $335 million in revenue by 2030, enhancing EBITDA profit margins [5] Market Potential and Competitive Landscape - The U.S. has over 34,000 veterinary clinics, with a significant portion owned by private equity and corporations, indicating that Chewy is still in the early stages of its veterinary service expansion [6] - As Chewy expands its clinic network and increases pharmacy service penetration, it is expected to generate over $1 billion in additional revenue, tapping into the growing pet health market [6]