Americans’ spending on pets is at an all time high. In the last 17 years, the amount of money spent annually on caring for domestic animals has tripled.
With a rising human population in the United States there is an accompanying rise in the pet population. In fact the percentage of households with pets is on the rise, which may indicate that the pet population is growing even faster than the human population.
The Big Number
The APPA estimates that spending on pets in America will reach nearly $51 billion in 20111. Despite economic woes, despite high unemployment, despite rising utility and food costs, people are finding ways to spend more on their dogs and cats than ever before.
In 1994, the annual spending on pets in America was $17 billion. A steady spending increase of about $2 billion annually has brought that number to where it is today. That’s a three-fold increase in less than two decades.
Last year, Americans spent $48.35 billion on their pets’ food, vet visits and grooming. Could this be an economic bubble? Could this be a fad? Statistics suggest otherwise.
The Economy of Pet-dom
Without an economics degree, it’s hard to say whether the increase in spending is fueling a burgeoning pet-related economy filled with new goods and services targeted at pet owners or if it’s the other way around. Maybe more money is being spent on pets because there are more ways to spend money on pets.
According to the American Pet Products Association (APPA), a number of large companies are now offering lines of pet products, including Paul Mitchell, Omaha Steaks, Origins, Harley Davidson and Old Navy.
Dog spas and dog cafes and pet friendly hotels are cropping up across the United States as part of this growing economic niche. Pet surgeries are increasingly common as well, though they often come with a hefty price tag.
If the Growing Pet Ownership Trend is a Fad…
If the growing pet ownership trend is a fad, it’s one that will live on for a while. There are approximately 75 million dogs in the United States and more than 80 million cats. Across the country, 62 percent of American households own a pet. That is up from 56 percent in 19881.
As long as we have pets in America, we will spend money on them. The question then is not one of whether or not the “pet economy” will survive. It’s a question of the shape it will take.
Can we expect the spas, the organic pet food and the dog cafes to continue to blossom as products and as markets? As pet owners increasingly bring their pets into the public, should we expect that pets will be accepted and assimilated into spaces that do not currently allow our furry friends?
Sources:
1American Pet Products Association
2 Mutts 4 Us