February 22, 2007
Tierra Griffiths / Julie Rowe
The Impetus Agency
tierra@TheImpetusAgency.com / julie@TheImpetusAgency.com
Health and Services Drive Pet Industry Sales
- The American Pet Products Manufacturers Association Releases All Time High 2007 Pet Industry Spending Forecast of $40 Billion –
(Greenwich, CT.), February 22, 2007 – 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. New figures released by The American Pet Products Manufacturers Association (APPMA) forecast pet industry spending to top $40 billion.
In 2007, Americans’ spending on pets is projected to be higher than ever at $40.8 billion. Total pet spending in 2006 was $38.5 billion, quite an increase from the $21 billion Americans spent over a decade ago in 1996.
Here’s a look at how that breaks down.
Category 2006 Actual 2007 Estimate %Growth
($ Billion) ($ Billion) 2007 v. 200
Food 15.4 16.1 4.8
Supplies/OTC M ed 9.3 9.9 6.5
Veterinary Care 9.2 9.8 6.7
Live Animal Purchases 1.9 2.1 8.4
Other Services 2.7 2.9 6.5
Total 38.5 40.8 5.9
Caring for one’s pet’s health is the most powerful trend across the industry with store shelves being lined 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. Pet insurance, veterinary care and pharmaceuticals are also strong and continue to see healthy growth.
“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,” said BobVetere, President of APPMA.
While there continues to be a fast pace of new product introductions and innovation, 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. And, 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 emerging with most of these rapidly-budding services making owning a pet easier,” said Vetere.
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.
As the pet population continues to grow, Vetere sees no end in sight in the strength of this industry.With baby boomers and young professionals turning to pet ownership in record numbers, the outlook is for continued healthy growth for at least the next 3 – 5 years – and maybe longer.
Vetere concludes, “It’s a great industry to be a part of as pet owners and the companies providing pet products and services find joy in one of America’s favorite pastimes-caring for our pets.”
The American Pet Products Manufacturer's Association (APPMA) is the leading not-for-profit trade association serving the interests of the pet products industry since 1958. APPMA membership includes more than 950 pet product manufacturers, their representatives, importers and livestock suppliers representing both large corporations and growing business enterprises. APPMA's mission is to promote, develop and advance pet ownership and the pet product industry and to provide the services necessary to help its members prosper. Visit www.appma.org for more information.