by Marisa Plumb
Animal health care procedures, consumer knowledge of pet care, the increasingly important role of animals in our families – these are some of the interrelated reasons that the pet industry in the United States is large and still growing, attracting more and more people to its professions and its products.
According to the frequently-cited American Pet Products Manufacturers Association (APPMA), Americans will spend an estimated $38.4 billion in 2006 on food, veterinary care and supplies for their pets, a 35 percent increase from $28.5 billion in 2001. In 2005, Americans spent $36.3 billion on pet care. Sixty-three percent of American households own a pet, and it is estimated that there are 60 million more pets than people in the United States.
The growth in the pet industry can be attributed to many causes. From clinics to diagnostics, it has become more precise and more specialized, and can offer more to clients and animals. From the perspective of the pet owner, the animals in their lives have become more important over the decades, making those owners more likely to spend more money on maintaining a pet’s health.
Because of a shift in medical capabilities and pet owner mentalities, clinics are seeing a need for larger and better-trained staffs. The U.S. Department of Labor names Veterinary Medicine as one of the fastest growing occupations and occupations projected to have the largest numerical increases in employment between 2004 and 2014.
In particular, the need for Veterinary Technicians is only expected to increase in the country over the next eight years, and many career and labor websites also cite its stability, since even in a declining economy, people will find a way to pay for their pet’s healthcare. The Bureau of Labor Statistics (part of the U.S. Department of Labor) says that job openings also partially stem from the need to replace veterinary technologists and technicians who will leave the occupation over the next decade or so.
The projected growth in industries employing biotech occupations ranks veterinary services to grow by 27.2 percent between 1998 and 2008, according to an Ernst & Young report and the BIO Scan database.
The State of Texas Biotechnology and Life Science Cluster Report from August 2005 states that Veterinary pharmaceutical research (Research and Development expenditures for veterinary-use pharmaceuticals) was $307.3 million in 2002, $247.6 million of which was spent in the U.S.
But what accounts for the growth in animal health services and a deepening level of commitment to pets in this country? It turns out that these reasons have been unfolding for decades, even centuries.
A recent exhibition titled “Pets in America,” which opened at the McKissick Museum in Columbia, South Carolina, and will travel to other cities through May 2008, traces the history of animals’ involvement in our lives, and explains the deep origins of how we came to see pets as members of our families. The curator of the exhibit, Katherine C. (Kasey) Grier, has researched new standards of animal welfare, the problems presented by borderline cases such as livestock pets, and the marketing of both animals and pet products.
The word “pet” has been in the English language since the 1600s, according to the exhibit. People began seeing more and more dogs as companions and not just workers during the 1800s. Grier’s work points out that our changing attitudes towards animals are tangential to our changing attitudes about childcare and community in the Western world.
The effect that these changing attitudes have on society today are significant in terms of the economy, the workforce, our homes, and our priorities.
The growing group of consumers with an interest in pets reflects the growing market in pet retail, which is continually expanding its range of products. Some companies that are not necessarily geared towards the pet industry are changing their product lines in order to benefit from the rising consumer demand. Disney, for example, opened up a line of products that includes food and collars.
One way that all these pet products are reaching audiences is through trade shows and exhibitions held nationally and internationally. They are geared towards both pet owners and animal professionals.
America’s Family Pet Expo, produced and managed by World Wide Pet Industry Association (WWPSA), is the world’s largest pet and pet product expo and was held for the 17th year this past April.
Attendance was up 24% over 2005, making it the most successful event in the history of America’s Family Pet Expo.
The 29th Interzoo, Europe’s largest trade fair for pet supplies, took place in Nürnberg from May 11-14 this year. Around 1,270 exhibitors from over 50 nations presented a global survey of the latest product trends for accessories, food, grooming aids and services for dogs, cats, mice, etc. on a display area of record size.
The share of international companies exhibiting at Interzoo 2006 rose to 75 percent. The leading exhibiting nations besides Germany with 321 companies were the People’s Republic of China with 160, the U.S. with 129, and Italy with 100 companies.
Consumer expos, WWPSA says, attempt to educate the public to be responsible pet owners.
On a smaller scale, there are many pet inventions released each week, which each claim to better the lives of our animals.
The pet industry is marked by shifting dynamics when it comes to large companies. In mid-July, Petco Animal Supplies Inc., the second-largest pet supplies retail chain after PetSmart Inc., agreed to be bought for about $1.68 billion in mid-July. Two private equity firms, the Texas Pacific Group and Leonard Green & Partners, acquired Petco, which represents the second time the two buyout firms have taken the retailer private (the first having occurred in 2000 for $600 million).
Petco investors will receive $29 a share in cash, as compared to the $19.45 price of a share before the acquisition. Petco shares had fallen 48 percent in the previous 19 months, almost double the decline at PetSmart. The private firms are credited with understanding the pet industry – in fact, they doubled Petco’s market value in the past. But regardless of whether or not Petco is a publicly or privately-held company, the inherent assumption is that investors still have faith in retail spending from American consumers.
This is reinforced by studies of pets in American culture – many people say they would spend whatever it takes on their pets’ health, and that pets have an impact on the overall happiness of humans. It looks as though the trade shows, the blogs, the luxury grooming facilities, the giant retailers, and most importantly, the veterinarians, are likely to continue their growth in the years to come.
