Greenwich, Conn. – Pet-industry spending will top $40 billion in 2007, and the top market movers include animal health.
GREENWICH, CONN. – Pet-industry spending will top $40 billion in 2007, and the top market movers include animal health.
The results, from an industry survey by the American Pet Products Manufacturers Association (APPMA), show that total spending in 2006 reached $38.5 billion, up from $21 billion a decade ago.
The veterinary market is expected to grow by 6.7 percent this year, swelling to $9.8 billion. (See Table 1.)
The survey predicts growth in live-animal purchases, nutritional products and over-the-counter medicines.
"A strong desire to protect the health of our pets and a surge in services is driving one of the country's fastest-growing industries," the association reports in a prepared statement.
Increases in pet-health spending is the most powerful trend across the industry, and it has driven growth for pet food stores with a plethora of weight- management foods, sports drinks, energy treats, treatments and supplements, as well as an increase in organic and all-natural offerings, APPMA reports.
Veterinary care, pet insurance and pharmaceuticals remain strong and continue to see healthy growth, the trade group adds.
"People consider pets as part of the family and as health becomes a more pressing issue in our country, people are putting extra thought and care into their pets' health as well," says Bob Vetere, president of APPMA.
The report reflects a positive outlook for growth, based on a fast pace of product approvals. Pet services are growing just as quickly, with a boom in pet hotels, doggie day cares, high-end groomers, trainers, yard cleaners, walkers, dieticians and massage therapists. Retail industry leaders such as Petsmart and Petco are reporting double-digit growth in services.
"In today's busy society, convenience drives much of the innovation. Most of these rapidly-budding services make owning a pet easier," Vetere says.
Other areas of note include continued growth of gift giving, continued consolidation of product manufacturers and retailers and an increasing number of human-product companies expanding their lines to include pet products.
The sector growth, Vetere adds, will continue for the next three to five years. Market expansion will be fueled by baby boomers and young professionals "who have turned to pet ownership in record numbers."