Pet Industry Spending Higher Than Ever with an Estimated $58.5 Billion in Spending in 2014

Bob Vetere, president and CEO of the American Pet Products Association (APPA), is pleased to announce overall spending in the pet industry for 2013 exceeded early estimates coming in at an all-time high of more than $55.7 billion, a 4.5 percent growth over spending in 2012. Continuing to demonstrate its resilience, the pet industry is positioned positively once again as this year’s annual comprehensive spending and data report estimates overall spending for 2014 at $58.51 billion, a 4.9 percent growth over 2013. Helping fuel the growth, the pet marketplace continues to attract a stream of entrepreneurs introducing new products and investors infusing money into new and existing companies. Industry segments covered in the report include; food, supplies/over-the-counter (OTC) medications, veterinary care, live animal purchases and other services such as grooming, boarding, training and pet sitting.

Pet services showed the largest percentage of growth last year, rising 6.1 percent from 2012, putting spending in that category at $4.41 billion.  With grooming, training, boarding and other services on the rise, it’s estimated for highest category growth again over the next year at $4.73 billion in spending.

Veterinary Care demonstrated significant growth in 2013, with $14.37 billion in spending, second only to food category spending. While the number of veterinary visits is down, spending on care is rising. Pet insurance is also expected to increase in 2014. Included in the veterinary care figures, pet insurance is estimated at $650 million and projected to grow to over $870 million by next year.

The food category is expected to reach an all-time high in 2014 with $22.62 million in estimated spending. Surpassing previous estimated growth in 2013, food sales proves yet again to be consistently increasing with a growth of 4.5 percent. This category remains the highest spending segment of the pet industry as pet food trends continue to follow human food and diet trends.

“Both food and veterinary care are strongly influenced by consumers’ growing interest in improved healthcare for their pets,” said Vetere. “Health and wellness-related themes represent the most powerful trends across all segments of the industry and will continue to do so again this year.”

Further demonstrating a demand for health and wellness products, supplies and over-the-counter medications experienced a significant leap in 2012, with a 7.4 percent growth over 2011. Expectations fell slightly short in 2013 with growth of 3.9 percent.  Category spending, however, is still on the rise and expected to be once again the third highest segment in the industry behind food and veterinary care.

The only area expected to see a decline in sales is that of live animal purchases which is forecast to be down just under two percent this year.

“We have seen a slight slow-down in growth rates over the past few years of all pet types except dog and cat,” explained Vetere. “That is contributing to the overall decline in live animal purchases as well as the threat of pet sales bans in some communities,” said Vetere.  “That said there are enough other positive influences to keep industry sales strong.”

In addition to pet owners’ increased emphasis on pet health, Vetere points to a recovering economy and the continuation of the humanization of pets as two leading forces behind increased growth in overall spending.

“People are pampering their pets more than ever and manufacturers and businesses are offering new products, services and opportunities to meet their needs and wants from interactive and innovative toys to dog walking, doggy day-care and pet-friendly hotels, restaurants and airlines.”

Vetere says the positive impact of pet ownership on human health will also help grow pet ownership in years to come.

“The body of science validating that pets are good for us is growing with strong research in numerous areas of health. Studies now exist that show pets can help improve our cardiovascular health, improve immunity in young children and assist with therapy for autistic children and people suffering from PTSD. Our desire to take better care of our pets and the joys and benefits they provide us will continue to work together to grow pet ownership and keep this great industry strong.”

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Posted by chesliepickett on Mar 24 2014. Filed under The Buzz. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.