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.