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March 11th, 2009, 08:50 PM #1Recession Can't Dog Pet Industry's Numbers
From the APPA
The economy might be tanking, but experts say the pet industry is not likely to go down the tubes with it -- for now, at least.
Pet-focused companies and private store owners are also likely to benefit from the industry's semi-impervious standing, says Bob Vetere, president of the American Pet Products Association.
APPA estimated that in 2009, Americans will spend an approximate $45.4 billion on their pets -- a $2.2 billion increase from what pet owners shelled out in 2008.
It released these findings at the Global Pet Expo in Orlando, Fla., an annual pet industry showcase event held from Feb. 12-14.
"I hate to use the word 'recession proof,' but the industry has certainly shown resistance in its performance up until this point," Vetere said.
"People are cutting back on a lot of areas, but are not cutting back on their pets. They are postponing those vacations or downgrading their cars just to make sure that Fido and Fluffy are well taken care of."
Given the constant influx of negative news on the economy, it can be hard to believe that the pet industry is faring as well as it is, Vetere concedes.
Yet he cites an increasing number of empty-nest baby boomers, in addition to society's overall humanization of pets, as contributing factors behind the trend.
"Baby boomers have had their children leave home and move on, and they are looking for something else to care for," Vetere said. "Lo and behold, there's Spike. He never talks back and doesn't take the car out late at night, and it's like, 'I love you, Spike.' This is a new child to hover over."
Especially in stressful times, focusing on pets can make people feel more at ease, Vetere says of why people care about their pets now more than ever before.
"People find animals comforting," he said. "It's a very compelling drive right now."
The hollow sound of an empty piggy bank is perhaps less comforting than a purring cat, or a blissfully snoring dog.
Yet as Rick Hutchens, owner of Whole Earth Pet Supply in Lady Lake, Fla., explains, the two worlds don't always coincide.
"We don't get a lot of, 'Oh I can't buy treats this week because my stocks went down.' We just don't hear that," he said.
March 11th, 2009, 08:54 PM #2
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- January 18th, 2005
- West Coast USA
March 11th, 2009, 09:11 PM #3
I also have seen far more stories about people needing to abandon their pets. So sad.[URL=http://www.investeverymonth.com]InvestEveryMonth.com[/URL] - Build Wealth
March 12th, 2009, 10:05 AM #4
We just added a whole range of pet health supplements to our catalog and it's going great. So a lot of people are still looking after their pets they way they ought to.
March 12th, 2009, 02:25 PM #5
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- December 2nd, 2008
Pet will always care for us. Sometimes they are better than other people who will just care for us in exchange of something. Especially now that we are in a crisis.
March 12th, 2009, 02:52 PM #6Originally Posted by PetsWarehouse.com
March 12th, 2009, 04:43 PM #7
We are see in the same at our site. We have our good days and bad days but all in all things are stable. I was there at the Orlando show and it was like "What Recession" We've got our paws crossed.
March 12th, 2009, 05:02 PM #8
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- May 31st, 2006
- Houston TX
March 12th, 2009, 07:48 PM #9
Eric, I believe that's the exception not the norm for about 160 million dogs and cats that are well taken care of by their caring owners.
The point here is in the down economy 80 million households (owning 72M dogs and 92M cats) will spend $40 billion on their beloved pets they chose to share their lives with.
March 31st, 2009, 05:38 AM #10
NEW YORK, NY - While other industries crumble, the U.S. pet market continues to prove its much-touted recession-resistance as several pet specialty retail chains, top pet food marketers, veterinary hospitals, and pet pharmacies have in recent months reported strong financial performance during the latter portion of 2008. According to market research publisher Packaged Facts in the brand-new report, "U.S. Pet Market Outlook 2009-2010: Surviving and Thriving in Challenging Economic Times," the pet market's foreseeable future is encouraging with the expected slow-down of 2009 ultimately being recouped as the economy begins to recover in 2010 and 2011. The report is based partly on February 2009 pet owner survey data polling 2,600 U.S. adults.
Health-related pet products, from high-grade foods to preventative veterinary care, are likely to emerge among the most recession-resistant because consumers typically view them as nondiscretionary expenditures that can be far less costly than the kinds of long-term health conditions that potentially result from poor nutrition or inadequate medical care. Packaged Facts identifies the resiliency of health-related pet products as a testament to one of the true enduring factors influencing the strength of the U.S. pet market overall: pet humanization and the human/animal bond facet associated with the trend.
"Packaged Facts views pet humanization as a dynamic, multifaceted shift that virtually guarantees steady pet market sales not just in 2009 and 2010, but well beyond," says Tatjana Meerman, publisher of Packaged Facts.
"Many pet owners view their pets as full-fledged members of the family, and would take no more lightly any serious cutbacks on spending for non-discretionary products and services than they would for their kids. In most cases, such cutbacks would only seriously be considered after owners have reduced spending on their own less essential needs."
Whereas total U.S. retail sales rose just 1.4% overall in 2008 according to the National Retail Federation, No. 1 pet specialty retailer PetSmart posted an 8.4% sales increase in fiscal year 2008; top five pet food marketers Del Monte and Hillís recently reported double-digit growth, with Del Monteís pet product net sales up 15.1%. PetMed Express reported a 16% increase in net sales during the fourth-quarter 2008.
March 31st, 2009, 07:22 AM #11
I've been in the pet industry for over 30 years. Heres my take on what I'm seeing.
The people that took good care of their pets and consider them one of the family before the recession will be the same ones to continue to take good care of their pets. They will give up dinners out, childrens activities, whatever it is they have to make sure their pets still receive quality pet care and nutrition.
The people that "say" they consider their pets one of the family but realistically didn't take that great of care for their pets before the recession will be the ones that also don't take care for them after the recession or will be the first to turn them into shelters. Its truly an excuse for them now to get rid of their burden without feeling guilty. Its always a good excuse to say I can't afford to feed them now. But come on, in reality, we know you can buy cheap dog foods and treats, it doesn't have to be the best on the market if you truly want to keep your pet. You have those that are losing their homes and say they can't find a place to rent to take them. While their choices may be more limited, they are certainly out there. People are willing to make concessions to rent out places since there are so many and not enough takers.
Its all relative to how much you truly love your pet. While its not recession proof, pet care will pretty much remain the same with each individual, you either took care of them or you didn't.
March 31st, 2009, 09:37 AM #12
I'd be more apt to farm out unwanted relatives than my cat. Not that I hate my relatives but there are a few that I could part with.<a href="http://www.buzzymultimedia.com/afpr.html"><font color="#FF0000">Buzzy Multimedia Publishing Affiliate Program</font></a>--<a href="http://www.shareasale.com/shareasale.cfm?merchantID=13023"><font color="#FF0000">SAS Sign-Up</font></a>
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March 31st, 2009, 10:16 AM #13
Originally Posted by Jorge - JRami
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