Pet Spending Hits Record Levels
It’s hard to say enough good things about indulgent pet owners who are willing to whip out their credit cards for beauty and spa products, designer apparel and a whole slew of other upscale items that pamper pets. After all, they will help boost pet industry sales 5.6 percent this year to a record $43.4 billion, according to the American Pet Products Manufacturers Association (Greenwich, Conn.).
Total pet spending was $41.2 billion in 2007, APPMA said.
“We’re noticing more baby boomers are pet owners, and they are treating their pets like members of the family,” said Bob Vetere, president of APPMA. “For empty-nesters, pets are filling a void in their lives, and they’re showing their appreciation to their pets.”
Spending on pet insurance also will contribute to industry growth. According to APPMA, more than 2 million owners currently subscribe to pet insurance, and 5 percent to 7 percent of all pet owners are expected to follow suit in 2010.
“Pet owners want to protect themselves and their pets against unexpected medical expenses. This category is rising fast,” Vetere said.
APPMA also expects increased revenue from high-end grooming services, such as pet hotels, pet spas and doggie day cares.
Other factors contributing to overall sales growth include a rise in high-end products, gift giving and new product introductions and innovation. [May 2008 PET AGE]
U.S. PET INDUSTRY SALES
Sales of pet products and services will grow nearly 6 percent this year. |
|
2007
(ACTUAL) |
2008 (PROJECTED) |
GROWTH |
Food |
$16.2 billion |
$16.9 billion |
4.2% |
Veterinary care |
$10.1 billion |
$10.9 billion |
8.5% |
Supplies/OTC medications |
$9.8 billion |
$10.3 billion |
5.5% |
Other services |
$3 billion |
$3.2 billion |
6.9% |
Live animals |
$2.1 billion |
$2.1 billion |
2.2% |
Total |
$41.2 billion |
$43.4 billion |
5.6% |
Source: American Pet Products Manufacturers Association |
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