• New pet services. As more people consider their pet part of the family, they are more likely to consider mental, physical and behavioral issues facing their faithful companions. This has helped fuel a new breed of service providers, including behaviorists who treat unruly behavior, butlers, sitters, massage therapists, communicators and travel agents.
• Licensed pet products. The licensing of popular American icons has crossed over into the world of pets. Today’s licensed pet products include such well-known names as Nickelodeon SpongeBob SquarePants, Blue’s Clues, Clifford The Big Red Dog, Peanuts, Dr. Seuss, Jeep, Coleman, American Kennel Club and Barbie.
• Private labeling. Not just for big-box retailers any more, private labeling is an increasingly viable option for independent retailers who want to differentiate themselves through value-priced or premium-priced product strategies. Store brands now account for 21 percent of cat litter, 13 percent of pet supplies, 12 percent of dog food and 11 percent of cat food, according to the Private Label Manufacturers Association (New York).
• Advances in pet medical care. A growing number of veterinarians are being trained to provide highly specialized medical services such as dialysis, brain surgery, hip replacements, cancer treatments, teeth correction with braces and cataract surgery. Human health technologies, including ultrasounds, MRIs and CAT scans, are quickly becoming part of the routine to diagnose pet ailments.
More people are using nutritional supplements and medications for pets. According to the “2005-2006 APPMA National Pet Owners Survey,” 52 percent of dogs, 36 percent of saltwater fish, 24 percent of cats, 15 percent of freshwater fish, 11 percent of small animals, 8 percent of reptiles and 5 percent of birds are given medications and/or drugs.
• Animal-assisted therapy. Science is catching up with dozens of studies that show pets help promote learning, reduce stress, lower blood pressure and reduce the risk of heart attacks. As a result, companion animals are increasingly being used to assist with everything from detecting cancer in humans to comforting Alzheimer’s patients. Pets are being introduced into the therapeutic regimens of many health care institutions, including nursing homes, hospitals, rehabilitation centers and psychiatric institutions.
• Mergers and acquisitions. Growth and innovation continues to spur mergers and acquisitions within the pet industry. Currently, corporations acquiring pet product manufacturing companies are paying higher valuations than they were just one year ago.

“We anticipate there will be significant growth in these types of acquisitions over the next year,” said Bob Vetere, managing director and chief operating officer of APPMA. “This trend demonstrates the industry is maturing, while an influx of smaller startup companies also indicates healthy growth.”