Posted: Feb. 22, 2012, 4:50 p.m. EST
Anemic growth of American consumers’ per capita disposable income during the recent economic downturn did not adversely affect dog and cat ownership—or the pet sector’s bottom line—according to a February 2012 special report by Santa Monica, Calif.-based market research firm IBISWorld.
Per capita disposable income increased by 1.5 percent from $32,713 in 2007 to $33,197 in 2008; however, it took a 3.2 percent dive in 2009, according to the United States Department of Commerce’s Bureau of Economic Analysis. That was followed by 0.9 percent growth in 2010, and 0.5 percent growth in 2011.
Despite the slow-down in growth, the American Pet Product Association reported the number of dogs and cats owned as pets rose from 163 million in 2007 to 180 million in 2011. The APPA, a Greenwich, Conn.-based trade group, projects dog and cat ownership to rise 2.2 percent this year to 184 million.
IBISWorld expects revenue from pet stores, groomers and boarders, veterinarians and sales from online suppliers to total $51.6 billion in 2012. For comparison, the market research firm projects the wedding services sector to bring in $49.4 billion in 2012.
Looking past this year, IBISWorld forecasts demand for pet products and services to grow through 2017 as per capita disposable income grows. It points to food production, breeding, insurance and funerals as some areas of potential growth.
The market report stated that high adoption rates from 2003 until 2005 helped spur enough demand for pet products and services to keep the pet sector out of the red during the recession.
Pet boarding businesses posted the highest growth in the sector with an annualized rate of 4.1 percent, according to the report. Pet store revenue grew at an annualized rate of 2.8 percent.
The report also stated online sales of pet food and supplies—especially premium foods and pharmaceuticals—have increased since 2007. Veterinarian services saw slow growth, but those businesses that managed costs well had positive revenue growth, the report stated. <HOME>
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