Conventional wisdom says the U.S. pet market is either recession-proof or recession-resistant. That wisdom is being put to an unprecedented test right now—but it’s still holding true, according to Packaged Facts, a division of MarketResearch.com (New York).

Total U.S. retail sales rose just 1.4 percent overall in 2008, according to the National Retail Federation, but several leading pet stores, veterinary hospitals chains and pet food marketers reported gains of 6 percent or more at the end of 2008.

Specifically, PetSmart (Phoenix) reported a net sales increase of 2.3 percent for the fourth quarter but an 8.4 percent sales increase for the fiscal year. VCA Antech, the Los Angeles-based veterinary hospital operator, posted a 6.7 percent revenue increase for its fourth quarter.

Net sales for Del Monte Pet Products (Pittsburgh) were up 15.1 percent for its fiscal third quarter, ending Jan. 25. Revenues for Hill’s Pet Nutrition Inc. (Topeka, Kan.) were up 13.5 percent for its fourth quarter. Online merchant PetMed Express reported a 16 percent increase in net sales during its fourth quarter.

The future looks encouraging for the overall pet market, which should rebound nicely from expected slowdowns as the economy begins to recover, according to “U.S. Pet Market Outlook 2009-2010: Surviving and Thriving in Challenging Economic Times,” published by Packaged Facts.

“Packaged Facts views pet humanization as a dynamic, multifaceted shift that virtually guarantees steady pet market sales not just in 2009 and 2010, but well beyond,” said Tatjana Meerman, publisher of Packaged Facts. “Many pet owners view their pets as full-fledged members of the family, and would take no more lightly any serious cutbacks on spending for non-discretionary products and services than they would for their kids. In most cases, such cutbacks would only seriously be considered after owners have reduced spending on their own less essential needs.”

The report is based partly on a February 2009 pet owner survey that polled 2,600 adults. Packaged Facts forecasts that the pet market will grow 6 percent, to about $53 billion, this year but reach $57 billion in 2010.

Pet supplies other than food and pet services other than veterinary care probably will take the biggest hit during the current recession, according to the report.

Health-related pet products, from high-grade foods to preventive veterinary care, are likely to emerge among the most recession-resistant because consumers typically consider them less expensive than the alternative—treatments for long-term health conditions that can result from poor nutrition or inadequate medical care.
To purchase the full report, go to www.packagedfacts.com/Pet-Outlook-Surviving-2154192. [May 2009 PET AGE]