Opinions differ, but in general pet industry is still growing
There is little consensus among research groups on what is driving the pet industry, but one common conclusion can be made and that is that the pet industry is still growing.
The pet business is expected to generate $51.6 billion in sales in 2009 (+1.3%), as a result of trends in the health and nutrition categories, according to IBISWorld
, an industry research firm based in Los Angeles.
Veterinary services represent the largest and fastest-growing segment of the pet market, accounting for an estimated $22.3 billion in revenue this year and expected to grow an average of 4.3% in the next five years, said IBISWorld.
Billions of pet food sales
IBISWorld forecasts that the pet food segment will generate $15.2 billion in sales this year, and will grow steadily in the next five years.
, a division of Hoover’s Inc., predicts that demand for dog food will decrease in coming years due to a decrease in new owners choosing dogs as pets.
However it foresees a decrease in the number of households with children, which may depress dog ownership. Also increasing urbanization disfavours ownership of large dogs, the biggest consumers of pet food.
A report by WSL Strategic Retail
has a different take on food sales: Food remains the No. 1 thing pet owners are actually spending more money on, it said.
Most shoppers are cutting back in almost every category, but only 19% of pet owners are cutting back on animal-related spending.
Reassuringly, 63% have maintained their spending and 18% have increased spending, according to their report.
To comment, login here
Or register to be able to comment.