Americans spent $36.3 billion on their pets in 2005, slightly more than APPMA had projected. Spending on veterinary care increased nearly 8 percent from the year before, spurred by additional services such as joint replacement surgeries, delicate eye procedures and senior health care. In addition, services such as pet spas and hotels, grooming and pet therapy continue to penetrate new markets.

“Both of these segments should maintain strong performances this year as pet ownership continues to increase, especially among key demographic sectors, including baby boomers and young professional couples,” said Bob Vetere, president of APPMA.

As forecasted by APPMA, spending in the pet food sector grew 3.5 percent over 2004.

“It is interesting to note that food continues to show growth not only in the expected high-end areas with vitamin-fortified formulas, gourmet lines and natural/organic food but with the value-priced portion of the segment as well,” Vetere said.

Spending in the pet supplies segment grew 7 percent over 2004, falling short of original projections due to the impact of hurricanes and rising gas prices. APPMA anticipates comparable growth in this category in 2006, based on late 2005 and early 2006 activity.

The trend toward humanizing pet products is expected to fuel further growth in pet retail. “Both baby boomers whose children have moved on with their lives and young professionals who are delaying having families in favor of careers are turning to pets to fill the void at home,” said Vetere. “With these families’ higher-than-average disposable incomes, their pets are enjoying elaborate high-end and high-tech products as well as innovative devices designed for convenience for the pet owner.” [June 2006 PET AGE]