Different research groups have come to different conclusions as to what’s driving the pet industry right now, but they all agree on one thing: The pet industry is still growing.

The pet business is expected to generate $51.6 billion in sales this year, up 1.3 percent from 2008, as a result of trends in the health and nutrition categories, according to IBISWorld, an industry research firm based in Los Angeles.

Veterinary services represent the largest and fastest-growing segment of the pet market, accounting for an estimated $22.3 billion in revenue this year and expected to grow an average of 4.3 percent in the next five years, said IBISWorld.

“Pet health care is a big business, as awareness in health is driving growth in this area,” said George Van Horn, senior analyst.

IBISWorld forecasts that the pet food segment will generate $15.2 billion in sales this year, and will grow steadily in the next five years.

First Research, a division of Hoover’s Inc. (Austin, Texas), offers a less optimistic opinion in its quarterly industry update on pet food manufacturing. It predicts that demand for dog food will decrease in coming years due to a decrease in new owners choosing dogs as pets; a decrease in the number of households with children, which may depress dog ownership; and increasing urbanization, which disfavors ownership of large dogs, the biggest consumers of pet food.

A report by WSL Strategic Retail (New York) has a different take on food sales: Food remains the No. 1 thing pet owners are actually spending more money on, according to “How America Shops: The Pulse of Shopping Life.” Most shoppers are cutting back in almost every category, but only 19 percent of pet owners are cutting back on animal-related spending. Reassuringly, 63 percent have maintained their spending and 18 percent have increased spending, according to the report.

For more information on these reports, go to www.ibisworld.com, www.firstresearch.com or www.wslstrategicretail.com. [September 2009 PET AGE]