Saturday, March 3, 2012
Pet Owners Spent More Than $50 Billion in 2011
APPA also projects a steady 3.8 percent growth rate through 2012, with nearly $53 billion in overall pet spending.
Reported categories include: food, supplies/over-the-counter (OTC) medications, veterinary care, and other services such as grooming, boarding, and pet-sitting.
Pet services experienced the largest growth last year rising 7.9 percent and totaling $3.79 billion. Pet services are also expected to see the largest growth in 2012 at 8.4 percent, an estimated $4.11 billion.
Supplies and OTC medications also demonstrated significant growth in 2011 with an impressive $11.77 billion in spending. Up 7.6 percent, the increased use of OTC medications as an alternative to veterinary care has driven the supply segment higher.
Demonstrating a slower but steady increase was the food category, which exhibited a 5.8 percent growth. Food is estimated to rise by 3.1 percent in 2012.
APPA President, Bob Vetere notes two reasons for the slower growth of food sales. Pet sales and adoptions are flattening, according to APPA’s National Pet Owners Survey, meaning the total money spent is spread over virtually the same number of animals. In addition, most of the polarization to high-end foods has already taken place so this segment is reverting back to a more traditional model of growth.
“On the flip side, the service category continues to flourish and is expected to do so in 2012 as well,” stated Vetere. “We are seeing a boom in this category as people continue to work and require services such as pet-sitting, boarding and walking to care for their pets at home.”
Pet insurance is also expected to increase in 2012. Included in veterinary care figures, pet insurance is estimated at $450 million and projected to grow to more than $500 million in 2012.
“As the total pet population continues to grow, we still see the overall industry expanding year after year,” noted Vetere. “As pet owners continue to pamper pets and treat them like members of the family, we see positive growth and a response to consumer demand for more products and services.”
Image via MorgueFile.com