Pet Age Staff //April 24, 2019//
By: The Pet Business Professor
According to John Gibbons, president of A GPS for Pet Businesses, we have seen that the key demographic factor behind increased pet spending is income. At the same time, the demographic that attracts the most broadscale interest and media attention is the spending by generation. Although we can’t bundle these two together. The U.S. BLS has again produced a report that combines the two most popular and impactful spending demographic measures – income and age group. To get the required sample size, they combined the data from 2016 and 2017. As you recall, total pet spending averaged over $70B during this period . Unfortunately, due to the complexity of this report, we only have the numbers for total pet, not for the individual industry segments.
Even this “simplified” report requires a rather complex analysis. We have endeavored to keep it as simple as possible to make it easier to visualize and comprehend. The data are segregated into the following groups:
Age Groups
Income Groups
Now let’s get to the spending. This groups pet spending by income group so we can see if age matters:
Now let’s look at the same data from the age group view:
The data in this report strongly reinforce the importance of income in pet spending. It also gives evidence that the younger groups, primarily the Gen Xers, are beginning to step up, especially in their higher income segments. The availability of disposable income results in increased pet spending for every age group. Pet spending really explodes when any group’s income meets or exceeds $100K. For the lower income groups, the amount of available disposable income varies due to circumstances. The younger groups have more pressure due to family size and building a career. The 45>64 age groups have less family pressure. The over 65 folks just need to meet some low minimum income levels. One thing is certain for everyone. When disposable income increases, one of the first places that it gets spent is on pets.
See full report here.