Boom in the service category

“Overall spending in the pet industry was at an all-time high in 2011, surpassing $ 50 billion,” said Bob Vetere at the Global Pet Expo in Orlando. The APPA president is optimistic for the future too: “We project a steady 3.8 per cent growth rate through 2012, with nearly $ 53 billion in overall pet spending.” The behaviour of many Americans also suggested that the level of affection for pets remained high, with the new market data indicating that many Americans would rather economise on holidays than on their pets, he said. Total sales rose last year by 5.3 per cent to $ 50.96 billion. The service sector in particular has helped to fuel the growth; sales in this category grew by 7.9 per cent in 2011. As pet owners continue to pamper pets, their spending on services alone was $ 3.79 billion. This includes grooming, boarding, pet hotels, pet sitting, day care and other services. According to Bob Vetere, it is anticipated that pet services will see the largest solid growth of all categories in 2012 at 8.4 per cent, an estimated $ 4.11 billion in spending. OTC medication on the rise OTC medication and supplies also demonstrated significant growth in 2011, with an impressive $ 11.77 billion spent in this category. Up 7.6 per cent from 2010, the increased use of OTC medication as an alternative to veterinary care has driven the supply segment higher, commented Bob Vetere. The use of OTC medication and supplies is expected to rise through­out 2012 as well. Pet sales are flattening The food category demonstrated a slower but steady increase in 2011. Forecast to rise by 4.1 per cent in 2011, the food category exhibited 5.8 per cent growth and is estimated to rise by 3.1 per cent in 2012. APPA president Bob Vetere noted two reasons for the slower growth of food sales. Pet sales and adoptions are flatten­ing, according to APPA’s National Pet Owners Survey and others, meaning the total money spent is spread over virtually the same number of animals. In addition, most of the polarisation 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. According to Bob Vetere, pet insurance…