American pet owners will spend $40.8 billion on their furry, finned, feathered and scaly companions this year, driven by a strong interest in protecting pets’ health and investing in pet-care services, according to new projections from the American Pet Products Manufacturers Association (Greenwich, Conn.).

Total pet spending was $38.5 billion in 2006, up from $21 billion spent in 1996, APPMA said. 

Spending on health-related products represents the most powerful trend across the industry, leading stores to stock their shelves with a plethora of weight-management foods, sports drinks, energy treats, treatments and supplements. Consumers also are showing an increased interest in organic and all-natural items, as well as pet insurance, veterinary care and pharmaceuticals.

“People consider pets part of the family, and as health becomes a more pressing issue in our country, people are putting extra thought and care into their pet’s health as well,” said Bob Vetere, president of APPMA.

While new product introductions and innovations continue at a fast pace, especially in the health category, pet services are growing just as quickly, with a boom in pet hotels, doggie day cares, high-end groomers, trainers, yard cleaners, walkers, dieticians and massage therapists. Leading pet retailers, such as PetSmart and Petco, are reporting double-digit growth in such services.

“In today’s busy society, convenience drives a lot of innovation and, with the exception of the luxury offerings, most of these rapidly-budding services make owning a pet easier,” Vetere said.

Given the continued growth of the pet population, and with baby boomers and young professionals turning to pets in record numbers, the industry should enjoy healthy growth for at least the next three to five years—and maybe longer, Vetere said. 

“It’s a great industry to be a part of, as pet owners and the companies providing pet products and services find joy in one of America’s favorite pastimes—caring for our pets,” he said. [May 2007 PET AGE]