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Money Still Flowing into the Pet Industry
November 8th, 2008

As retailers are worried about the worst fourth quarter in generations the pet products industry are finding themselves seemingly exempt from much of the gloom of American business. Business is up for companies that sell everything from organic dog treats to couture-inspired pet toys. Many pet owners are as dedicated to their animals as parents are to children and are willing to sacrifice on themselves before trimming back on their four-legged friends. It seems the pet industry is definitely more resilient than most categories tied to discretionary spending, however not recession proof. The American Pet Products Association estimates Americans will spend $43.4 billion this year on their pets. That’s 26 percent higher than what U.S. consumers spent in 2004. Some parts of the pet food industry, particularly gourmet and organic pet food, will likely be even more insulated than the sellers of pet carriers, clothing and outdoor gear because many pet owners, who upgraded their kibble after contaminated pet food killed or sickened thousands of animals last year, are leery of switching back and possibly causing digestive problems for their pets.

According to industry statistics, nearly one out of every three U.S. households has a pet. Here’s a breakdown of the $43.4 billion the American Pet Products Association estimates pet owners will spend this year.
- Food: $16.9 billion.
- Veterinary care: $10.9 billion.
- Supplies, toys and over-the-counter medicine: $10.3 billion.
- Pet services (Grooming, boarding, etc.): $3.2 billion.
- Live animal purchases: $2.1 billion.

 

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