SPORTS “People are increasingly treating their pets as humans, relying on them for companionship and gaining a sense of fulfilment from needing to be needed as they look after their pets. They want their pets to feel cared-for, comfortable and mentally stimulated. So there is driving demand for added-value products, often mirroring mainstream human styling and healthcare trends. As a result people are prepared to pay more for their petcare products and to replace them more often.” Jane Westgarth, Senior Market Analyst, Mintel 2015
Well over half of the households in the United States own a pet – over 80 million homes! Man’s best friend might be the most iconic, but consumer’s tastes in pets is both varied and dynamic. But whether it’s a dog, cat, horse, bird, fish, or lizard – pets need to eat. They need to be kept clean, and have a place to sleep. Pets need to be cared for – and with over 300 million pets in the US that makes for a booming business. But it’s not just the basic care requirements of our non-human family that is driving strong growth in the pet industry. Strong economic conditions, the demographics of our (human) population, and a growing body of medical research pointing to the health benefits of pet ownership are all contributing to continued strength. And perhaps as important as all of these is the fact that people do not just care for their pets – they pamper them. As of 2017, 68% of households in the US own at least one pet, and the pet industry is made up of the products and services that keep these pets alive, healthy and happy – food, toys, daycare, training, beds, cages, medical services and a lot more. And an increasing number of these products and services are licensed. Of course, the pet industry in the United States is keeping pet owners happy as well. After all, no dog feels sad without the latest
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Juicy Couture sweater – but some some of their owners might. While pets are found in households of all economic levels, high-income households account for about 60% of the total spending. According to the American Pet Products Association (APPA), revenue was over $69 billion in 2017, an increase of more than 4% over the previous year. In fact, the average annual growth rate since 2002 is 5.4%, and
revenue has been growing steadily for well over 20 years. According to the Bureau of Labor Statistics, above average job growth is expected for the industry – 11% growth between 2014 and 2024. Logically, food is the largest spending segment, followed by veterinary care. Within each segment, however, there is quite a degree of variability in the type, quality and price of
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