Editors' Picks: Bet On Pets
Roughly 65 percent of households in the U.S. own at least one pet, which equates to more than 81 million homes. The American Pet Products Association is projecting over $69 billion in pet industry expenditures in 2017, with an average annual growth rate over the last 15 years of 5.4 percent. With these strong spending predictions and ample opportunities for innovation, there’s a huge market for products that cater to pet owners.
It is not a coincidence that the demand for pet specialty products is increasing as the Baby Boomer generation reaches retirement. Many of the Boomer households are “empty nests,” and with their children gone, they are lavishing attention on their pets. Pet spending reaches its peak (at ages 55-64) as consumers focus on their “fur babies,” according to John Gibbons at petbusinessprofessor.com.
Even better news for the industry is that Millennials are embracing the trend. This generation was raised treating their pets as part of the family, so it is natural for them to splurge on luxury pet goods too. Many products and services that would have seemed extravagant to prior generations—doggie day cares, organic foods, high-end grooming services, expensive medical treatments and apparel—are now the norm. And as Millennials earn more disposable income, expect to see them spending more of it on their pets.
As the market for niche products and high-end services for pets expands, so do the opportunities to reach this audience through promotional products. “We’ve been successful selling to veterinarian offices, groomers, pet day care centers and dog treat companies,” says Charles Huang, vice president of sales and marketing for supplier Minya International Corporation (PPAI 112523). “There are also many channels and baking shows on YouTube that specialize in animal treats—and they sell merchandise to their followers. In addition, we’ve worked with animal shelters, rescue groups and breeder organizations for fundraisers.”
Humanization, the modern impulse to treat animals like people, drives the universal appeal of pet-themed products. Even among people who don't own pets, who can resist heart-melting images of puppies and kittens? “Our ‘Best Friends’ calendars are appropriate for nearly any business serving consumers because pets are such a big part of family life now,” says Jerome Hoxton, president of Tru Art Advertising Calendars (PPAI 113720). “The primary buyers are veterinarians and veterinarian clinics, but other frequent buyer categories are banks, hardware retailers, dentists, tire service retailers, feed stores and auto dealers.”
With research pointing to increased health benefits associated with pet ownership, more and more consumers are following the craze. The U.S. Public Health Service touts pet ownership as beneficial to obesity prevention and helpful for those who are trying to quit smoking. In addition, the Human Animal Bond Research Initiative Foundation states, “People are happier and healthier in the presence of animals. Scientifically documented benefits … include decreased blood pressure, reduced anxiety and enhanced feelings of well being.”
Pet Trends to Watch
toxin-free materials and organic food
spa treatments, mobile grooming, portrait photography, pet sitting
Superior health care
including health insurance
so that Spot isn't left at home
wearable health trackers, monitors and interactive devices
Have Pet, Will Travel
While on the go, pet owners are increasingly reluctant to put their animals in kennels. Numerous travel and hospitality organizations have responded, with airlines expanding their policies allowing pets on board, and many hotels and restaurants shifting to a more pet-friendly model.
Nowhere is this more apparent than at New York’s JFK Airport, where The ARK, the world’s first animal airport terminal, recently opened. The state-of-the-art center offers veterinary care, microchipping, and custom reports on individual animals. When complete, the terminal will unveil a Paradise 4 Paws pet resort that includes a bone-shaped dog pool and a jungle gym for cats. Although the terminal has only rolled out stage one of three so far, The ARK has raised the bar for travelers expecting quality care for their pets.
Even for less glamorous types of travel, including biking, going for a run or simply running errands, enthusiasm for mobile pet products is high and expected to rise.
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Terry Ramsay is associate editor of PPB.