"The industry continues to prosper"

"The pet humanisation trend is alive and well and continues to drive growth at the premium end of the market," said Bob Vetere, president and CEO of the American Pet Products Association (APPA), at the American pet supplies trade show Global Pet Expo in Orlando. "As millennials prepare to take the reins from the baby boomer generation as the primary demographic of pet owners, they stand to further develop this trend."

Pet services, which include grooming, boarding, walking, training, pet sitting, exercise and yard services for pets, saw the largest growth again and more than tripled the growth percentage of any other category. Experiencing 11.8 per cent growth from 2014 to 2015, spending by Americans on pet-related services is now $5.41 bn. Second only to pet services growth is spending on supplies/OTC meds (3.9 per cent growth to $14.28 bn).
"The use of pet medications and supplements to ensure longer, healthier lives for pets is increasing, thus somewhat offsetting any lower income growth for veterinary services," added Vetere. "The market for these medications has entered a period of redefinition and renewal including considerable investment action; they are now being offered in a variety of channels such as mass market outlets as well."Spending on supplies/OTC meds is heading towards an estimated $14.98 bn for 2016, making it the third highest spending category behind food and narrowing the gap on veterinary care spending. Pet supplies in this category may include such items as beds, collars, leashes, toys, litter, bedding, food and water bowls, clothing and other accessories.
The food category still remains by far the leading source of dollars spent within the industry. Pet owners have begun to scrutinise the treats they buy even more closely, and interest in natural, locally sourced ingredients has never been higher. Along with quality, value continues to be a driving factor, with pet owners looking for more value for their dollar in the form of treats that provide additional health benefits such as dental care or joint care. Although the aforementioned highlights consumer behaviour trends, ongoing category growth comes mainly from rising prices and not from a larger volume of pet food being sold.

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