After tracking pet industry statistics for more than a decade, the American Pet Products Manufacturers Association (APPMA) released new figures today proving the pet industry is leading the pack. Pet spending has more than doubled from $17 billion in 1994 to a projected $35.9 billion for 2005. And, according to the U.S. Census Bureau, the pet industry is now the seventh largest retail segment in the country.(1)
In 2005, Americans' spending on pets is projected to be higher than ever:
-- $14.5 billion for food
-- $8.8 billion for supplies and O-T-C medications
-- $8.6 billion for veterinarian care
-- $1.6 billion for live animal purchases
-- $2.4 billion for other services
Pet spending in 2004 was even more successful than projected, with total sales coming in at $34.4 billion. This positions the pet industry 60 percent larger than the toy industry ($20 billion) and 33 percent larger than the candy industry ($24 billion).
According to the APPMA National Pet Owners Survey, basic annual expenses for dog and cat owners in dollars include:
Dogs Cats -- Surgical Vet Visits 574 337 -- Food 241 185 -- Kennel Boarding 202 119 -- Routine Vet 211 179 -- Groomer/Grooming Aids 107 24 -- Vitamins 123 32 -- Treats 68 43 -- Toys 45 29
"The strong growth in the industry demonstrates what an important role pets are playing in the lives of Americans," said Bob Vetere, APPMA COO and managing director. "They have become a part of the family. Spending across all sectors from pet food and veterinarian care to toys and treats reflects what lengths we are willing to go to for our pets."
Vetere said several factors are likely driving the increase in spending. For one, an increase in pet ownership across the country. He also points to numerous studies confirming what many people have long suspected -- pets are good for our health. An increasing amount of new research has helped make considering pets a part of the family more widely socially acceptable. The media has also assisted in this arena with daily entertainment reports depicting stars and role models interacting with their pets and taking them wherever they go.
"Marketers have also picked up on the fact that pets help drive product sales, so we are seeing an increase in the number of advertisements for even non-pet products that include pets," Vetere said.
Vetere added that baby boomers filling empty nests with pets is contributing to the growth within the industry. Young couples postponing starting families and spoiling the family pet is another factor. Technology in the form of timed feeders and high-tech restraint systems also enable a larger cross-section of individuals to have pets.
"The innovative thinking of entrepreneurs has made owning and spending time with pets more enjoyable and easier than ever before," said Vetere.
Pet spending does not appear to be slowing. Most industry estimates indicate at least 5 to 6 percent growth in the foreseeable future.
"We are at the beginning of this trend," said Vetere. "At this point there are still plenty of untapped areas for growth in the pet industry."
(1) APPMA's national pet industry sales figure does not include equine or pet prescription medications.
Founded in 1958, the American Pet Products Manufacturers Association is the nation's leading not-for-profit trade organization serving the interests of the pet product industry and educating the public on the many joys and health benefits associated with pet ownership. APPMA's membership consists of nearly 850 companies, which include both small businesses, as well as the nation's leading pet product companies. Every year APPMA does extensive research utilizing a number of industry and affiliated sources to track the overall size of the pet industry and also conducts a comprehensive survey of pet owners every two years. Visit APPMA online at www.appma.org.