Pet Industry Insight

Pet Industry Insight

The Pet Industry in a Changing Economy

As an industry we have been extremely lucky with huge growth over the past decade, even during former tough economic times. But, for the first time since most of us can remember, today’s climate is affecting even our beloved industry. Fortunately, not as heavily as other industries such as travel. But, nonetheless, it has people thinking and examining their own spending and business strategies.

The changing economy on the pet industry is a mixed bag. For retailers, prices are finally reaching a point where even the most resilient in our country are starting to rethink each trip to the store. People aren’t just hopping into the car to run out for a single item or two, they’re waiting until a whole list can be generated and handled in a single trip. For a person to go specifically to a pet store, they need to get something they can’t find anywhere else. And, if they’re at a grocery store, they are more likely now to get their pet products there and save an additional trip. As a result, we see more non-traditional outlets carry pet supplies. This puts new pressure on pet stores to find compelling and creative ways to attract customers such as adding specialty services such as grooming or boarding. An added challenge to these stores is the rise in the use of the internet to shop as those purchases enable consumers to avoid the cost of gas altogether.

For manufacturers, this economy is also a mixed bag. Because the pet industry is such a fragmented industry, in some cases the smaller companies are finding it easier to thrive than some of the larger, multi-product/multi-animal companies. Even higher end boutiques and products are feeling less of a direct impact because their consumer is less likely to feel the pinch of rising prices. But, we’re seeing a migration away from middle of the pack items as those consumers are now looking for value priced products. This polarization is causing many companies to rethink where they are putting their emphasis.

Even with these changes, thankfully because we consider pets part of the family, we will tend to cut back or stop spending in most areas before we cut back on our pets. While many are feeling pressure, the industry as a whole continues to grow. Pet specialty services, veterinary services and high end products are flourishing and driving the overall industry in an upward direction. I am confident that the pet industry and the US economy will survive even this current bind. Things will change for sure - some of them permanently - but we will still move ahead. Today's successful business will respond quickly to these coming changes and take advantage of their strengths to become strong competitors.

 

Pet Industry Insight

Eco-friendly tips for you and your pets

As the world commemorates this week in honor of our Earth, don’t forget to include your pets in the celebration. Earth Day should serve as a reminder to pet owners the need to learn more about eco-friendly pet products and environmentally favorable practices.

The “Going Green” idea has seemingly infiltrated a new market, raising awareness about eco-friendly practices that affect some very special members in our lives - our pets! The green’ lifestyle decisions we make, should carry over to our pet's lifestyle as well. Here are some tips to make your pet more environmentally friendly:

• Does the pollution from our pet’s waste bags have you down in the dumps? Scoop your doggie doo in biodegradable poop bags. Biodegradable bags help cut greenhouse gas emissions, using materials from renewable, sustainable sources of agricultural origin.

• Reduce. Re-use. Recycle. This timeless practice reduces pollution and preserves our environment. Utilize cat litter made of recycled materials produced nearby. Strips of newspaper or shredded paper works for many cats. Otherwise, make sure the brand of litter you buy isn’t hauled from across the country.

• Your furry friends will have a lot of fun with toys made from recycled materials or sustainable fibers such as hemp. Hemp fibers are one of the most durable in nature and are environmentally friendly. Who knew this stuff would make such a strong comeback from the 70s!

• Ditch the junk food for a healthier pet and environment. Natural and organic pet foods use meats that are raised in sustainable, humane ways without the hormones or drugs. Certified-organic pet foods must meet strict USDA standards that specify how the ingredients are produced and processed.

So there you have it, a few eco-friendly tips that will help you and your pets lead a sustainable life that supports the well being of our planet.

Pet Industry Insight

 

President of the American Pet Products Manufacturers Association (APPMA) Enters the Blogosphere

As president of the largest trade association of one of the largest industries, I have been quoted in CNN< The Wall Street Journal and USA Today. I have appeared on CNBC, World News Tonight and was just in New York last week for tapings of Good Morning America and Martha Stewart. I even write a quarterly article for a high tech online magazine. But, I must admit, the world of 'new' media is just that, new to me. But, if presidential candidacies are being announced on You Tube, I can have a blog! (My sons will be so proud of their 57 year old dad!). So, here it is, the inaugural 'Pet Industry Insight'!

If you've stumbled upon this blog, you are probably involved in or researching the pet industry. So you are likely aware that as a country we have gone to the dogs – and the cats and birds and fish and hamsters. We are a society in love with our pets. More than 70 million households have a pet, and most of these households have more than one pet. In fact, these 71 million pet households are home to more than 350 million dogs, cats, hamsters, horses, snakes, birds, fish and lizards. There are more pets in the United States than there are people. We have made spending on pets the eighth­-largest retail segment. We spent more than $40 billion on our pets last year!

The pet industry is growing by leaps and bounds, and hundreds of new companies pop up every year in this booming business. Americans are intrinsically interested in businesses that boom, especially those that directly impact their daily lives. Hence, this blog that I’m hoping will fill a void in the blogosphere. No current blogs authoritatively look at trends in the pet industry, discuss successful products or companies or analyze where the marketplace is heading. In my blog, I’ll talk about the breadth of influence that this increasing pet ownership is having on many diverse segments of the economy. That perspective should make this blog unique. I’ll explore how businesses grow by intelligently reading the American psyche and understanding what makes us bond with animals, project our own lives and thoughts onto them, and essentially recast them in our image. The blog will serve as a cross-industry overview linking what we know about our growing affinity for pets with the rise of pet products. Weekly, I’ll talk about the fastest-growing pet trends in the U.S., the newest needs of pet owners, and how entrepreneurs are filling those needs. I’ll explore the nuances of one of America’s most interesting and unique industries by providing perspective from one of the pet industry’s leading authorities.

Yes, I’m referring to myself. To give you a little background, I’m president of the American Pet Products Manufacturers Association or APPMA as it’s commonly called. APPMA is the largest trade association in the industry and has been around for fifty years. We represent more than 1,000 companies that make pet products and put on the world’s largest annual pet products trade show, Global Pet Expo. I’ve been in the pet industry for 30 years working at a variety of multi-million dollar companies serving in positions ranging from industrial engineer to general counsel to president. I live in Connecticut with my wife and golden retriever Dakota. For more information on me or APPMA, you can check out our website at www.appma.org. In the meantime, I’ll be writing next week’s Pet Industry Insight, and you can expect to hear from me every week. Until then, go pet your pet!

Posted by Bob Vetere, American Pet Products Manufacturers Association