The party goes on

Notwithstanding the fragile state of the US economy as a whole, the party mood still prevails in the pet supplies sector. Last year the pet products industry once again achieved a substantial growth in sales - a remarkable result that is the envy of other sectors of the economy. This was revealed by the annual comprehensive spending and data report by the APPA for 2012. This year an increase in growth of as much as 4.9 per cent over 2013 to $58.51 bn is expected. According to Vetere, 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 per cent from 2012, putting spending in that category at $4.41 bn. With grooming, training, boarding and other services on the rise, it is estimated for highest category growth again over the next year at $4.73 bn in spending. Veterinary care demonstrated significant growth in 2013, with $14.37 bn 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 mio and projected to grow to over $870 mio by next year.

The food category is expected to reach an all-time high in 2014 with $22.62 bn in estimated spending. Surpassing previous estimated growth in 2013, food sales prove yet again to be consistently increasing with growth of 4.5 per cent. This category remains the highest spending segment of the pet industry as pet food trends continue to follow human food and diet trends. "Growing interest in healthcare" "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…