Pet Owner Spending Remains Steady in a 'Ruff' Economy

While most owners say they do not spoil their pets, they certainly don't skimp on them either. In tough economic times, people will find a way to manage their expenses in effort to continue to provide for pets. Although some spend modestly on their pets, a large group of Americans are still willing to spend a little extra on trendy outfits, brand-name treats and organic foods because pets are considered important members of the family and they deserve the best! As we have "humanized" our pets in so many ways, it is important for us to reward them in meaningful human terms rather than just pet terms.

The American Pet Products Association's (APPA) annual release of comprehensive industry information shows total pet spending in 2008 topping $43 billion, with no declines in any category from 2007. That's more than the gross domestic product of all but 64 countries in the world and almost double the amount shelled out on pets just a decade ago. And, where most retail 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 $45.4 billion in 2009.

Purchasing higher quality products and services is justified by consumers because it contributes to their pet's well-being. This is why the health and wellness sector of the pet industry is the most powerful trend in 2009. Veterinary care leads the way in the health-care related pet spending categories because of evolving medical advancements in pet care including cat scans, root canals and cancer surgery. Pet health care offers pet owners more medical choices and leads to anticipated growth of nearly 10% in this category for 2009. With the added costs of pet health care comes an increase in pet veterinary insurance, currently estimated at $271 million and projected to grow to $500 million by 2012. 

The growing craze of doggy hotels and day spas makes pet services the next fastest growing category. Service-based businesses like dog walkers, pooper-scoopers, trainers and even massage-therapists are booming and here's a look at how the costs break down.

 

 

 

The pet industry continues to grow despite the tough economic times we're facing. As pet ownership and pet quality of life continues to rise, so will the pet industry!

Comments

[Steven Morris]

Do you have any idea of the actual pet apparel market in US? I'm desperately searching for stats about that. The $43B market is divided in general in 4 major markets (as shown in your spreadsheet), but there's never any reference to the dog apparel market... Any idea of annual sales made by branded or licensed products such as Paris Hilton dog collections, Ralph Lauren for dogs, Barbie for dogs, Christian Audigier, Betty Boop etc... all these products hit the market through national retail stores, yet no figures on what this market could possible represent. How can they even launch a collection with no business plan whatsoever, since there's no estimate of the market?
Or at least do you know the number of so-called high-end pet boutiques in US? Any help would be very welcome, as my wife and I are trying to launch our own collection but are having difficulties with the banks to get financing because of lack of sales projections since we simply can't estimate the market...
many thanks in advance!