We’ve just released the annual comprehensive review of spending data and reports which shows overall spending in the pet industry (including food, supplies, veterinary care, live animal purchases and other services such as grooming, boarding, and pet sitting) grew by 5.4% from $43.2 billion in 2008 to a little over $45.5 billion in 2009, with no declines in any category from 2007.
The
US Census Bureau study of the retail segment of the economy showed 2009 down
overall versus 2008, but the pet industry itself remained up yet again. Where most sectors are struggling to
simply stay afloat, the pet industry is one of the fastest-growing with a
projected 4.9% increase in spending to $47.74 billion in 2010.
Leading the way in the health-care related pet spending categories is veterinary care with an 8.5% growth from 2008, as medical advances have helped pets live longer and made for a much broader and more elaborate menu of services. From CAT scans, root canals and cancer surgery to antibiotics, anti-depressants and even grief counseling, pet owners have more medical choices and spending options than ever before. This leads to an anticipated growth of another 6% in this category for 2010.
Pet services continues to be a growing category as they become more closely modeled after those offered to people. What used to be a dog bath in the home tub has since evolved into self-service dog washes. Service-based businesses like dog walkers, pooper-scoopers, trainers and even massage-therapists are booming, with new ones entering the industry all the time. In 2009, more people worked longer hours resulting in a greater need for doggie day care, pet sitting/walking and similar services. There has also been an increase in pet friendly destinations for those pet owners taking more budget-friendly vacations but want to bring their furry companions along.
Supplies and over-the-counter medications showed steady growth of about 4% for 2009, and the 2009 holiday selling season was also up slightly over 5% from 2008 closely reflecting overall industry growth.
Here’s a look at how the costs breakdown.
Due to the humanization of pets the gap in quality of life between humans and their pet companions is quickly disappearing in all categories from food and clothing to health care and services.
These higher quality products and services combined with a strong consumer focus on their pets’ well-being, make health and wellness the most powerful trend in 2009 across the entire pet industry. We feel our pets give us so much it is no longer enough to simply give them a treat. We want to keep our pets healthier, longer, and are willing to spend what it takes to make it happen.
People become more attached to their pets in times of uncertainty and stress so we continue to reward them for their unconditional love and companionship. Couple this with the trend of humanizing products and services for our pets, and the result is an overall increase in spending so we can strengthen that human-animal bond.
A tipping point was reached in 2005/2006 confirming the humanization trend which continues to intensify with pet food trends quickly following human food and diet trends and continuous increase in the levels of expectations for quality pet products.
While the pet industry has appeared resilient during the recession, I believe the industry will get a boost even above its current performance as the economy recovers and pet owners become among the first to return to previous spending patterns in an effort to make up for the times they have not been able to buy all of the items they have wanted for their pets.
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