A report released by Packaged Facts on the US pet market found that despite slow growth due to the recession in 2010, sales of petfood and pet products are expected to increase at a faster rate in 2011 and 2012.
The report, “U.S. Pet Market Outlook 2011-2012,” looks at US pet market retail sales and trends overall and in four core categories: veterinary services, petfood, non-food pet supplies and non-medical pet services. It found that sales of all pet products and services rose 4.3% in 2010 to US$55.07 billion. Sales of veterinary services increased the most in 2010, to US$19.69 billion. Non-medical pet services experienced the second largest growth increase at 5%, to reach US$6.11 billion. Sales of petfood increased 2.8% to US$18.35 billion and sales of pet supplies increased 2% to US$10.92 billion, according to the report.
Despite a recession, Packaged Facts' report says that the US pet market remains healthy, attributing this strength to factors such as the human-animal bond, an aging pet population and big-spending baby boomers. Packaged Facts expects the annual sales rate to recover to approximately 5% in 2011 and to nearly 6% in 2012, reaching US$61.4 billion.
“The market bulwark will continue to be the most health-oriented category, veterinary services,” said David Lummis, the report's author. “As the population of senior pets continues to rise and market participants continue to adapt human-style technologies and medications and develop new pet-specific ones, the veterinary category will experience a 9% compound annual growth rate, which is much higher than other segments. As a result of its faster growth, veterinary services will continue to grow as a share of the total pet market.”
Packaged Facts' pet market outlook report can be purchased online.
By Lindsay Beaton
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By Lindsay Beaton