Second Chance: Pet Industry Prospers

02 Nov Second Chance: Pet Industry Prospers

According to data from a comprehensive annual report, the American Pet Products Association (APPA) announced that overall spending for 2015 came in at a record $60.28 billion. The document covered pet spending in market categories of food, supplies/over-the-counter (OTC) medications, veterinary care, and other services.

The increase is accredited to the growing anthropomorphizing trend or “pet humanization” that continues to drive growth at the premium end of the market. Bob Vetere, president and CEO of APPA, stated:

“Increases in spending are being led by both ends of the pet owning spectrum- aging baby boomers paying more to provide care for their pets and younger Gen Y owners who prefer the conveniences of high-tech and pampering products and services.”

As millennials prepare to take the reins from the Boomer generation as the primary demographic of pet owners, they stand to further develop this trend:

“And, with increased research on the health benefits of pet ownership, we anticipate even higher industry sales in the years to come,” continued Vetere.

Pet services, which includes grooming, boarding, walking, training, pet sitting, exercise, and yard services for our pampered furry friends, saw the largest growth this year – more than tripling the growth percentage of any other category. Coming in at an 11.8% growth from 2014 to 2015, we are now spending $5.41 billion on pet-related services.

Second in growth is spending on supplies/OTC meds (3.9% growth to $14.28 billion).

“The use of pet medications and supplements to ensure longer, healthier lives for pets is increasing, thus somewhat offsetting any lower income growth for vet services (which only grew 2.5% from 2014, although it remains the second highest source of spending),”  added Vetere.

The food category still remains by far the leading source of dollars spent within the industry. Pet owners have begun to scrutinize the treats they buy even more closely, and interest in natural, locally sourced ingredients has never been higher. Along with quality, value continues to be a driving factor in the form of treats that provide additional health benefits such as dental care or joint care.

The reason I thought all this information was important to share in today’s Second Chance Pet Column was not to make you think that pet ownership is costly – in fact with an estimated 180 million household pets in the US, $60B only equates to about $375 per pet in annual spending – or a mere $1 per day– but to emphasize the growing importance of pets in people’s lives: $60B of importance.

For a homeless cat like me that is promising and exciting news.

My name is Kella a two-ish Torti with a laid back demeanor and extra digits on my paws to help me with typing on this computer keyboard. I also give good massages and enjoy the company of other pets. Consider investing $1 per day for me to enrich your life – priceless…