We’ve all heard the term “recession-resistant” applied to the pet industry a lot over the past year, particularly in relation to an otherwise challenged global economy. It sounds good, but just how true is it?

Early in 2009, at Global Pet Expo, I asked many exhibitors and buyers how things were going for their businesses, and I generally heard the following answer: “Well, I heard other companies are struggling, but we are doing fine.” No matter whom I spoke with, it was a challenge to find the “other companies”–the ones that were struggling.  Don’t get me wrong, there were certainly companies fighting an uphill battle, but compared to the numbers we were seeing for the overall economy and other retail sectors, the pet industry was doing well.

Thanks to the most recent reports from Packaged Facts, BCC Research, Fountain Agricounsel, Euromonitor, the U.S. Census Bureau Monthly Retail Sales, the Mercanti Group, Dillon Media and other returns for 2009 performance, the prospects for 2010 look good. This research provided the basis for the American Pet Product Association’s (APPA) annual projections of pet industry spending. Although the APPA numbers are more conservative than many of the reports cited above, I am going to refer to those projections here.

Overall spending in the pet industry (including food, supplies, veterinary care, live animal purchases and other services such as grooming, boarding and pet sitting) grew by 5.4 percent in 2009–from $43.2 billion in 2008 to a little over $45.5 billion. 

The fastest growing sector continues to be the veterinary care arena, as people are keeping their pets longer and are more concerned with their pets’ quality of life, whether it means providing preventative care to avoid long-term problems or addressing aging problems as they occur. Both Packaged Facts and Fountain Agricounsel are much more aggressive in their growth figures for vet care than others, but suffice to say that this is a strong growth area and should continue that way through 2010.

Pet services also continue to show strength, as more people worked longer hours in 2009, resulting in a greater demand for doggie day care, pet sitting/walking and similar services. Also, there continues to be an increase in pet-friendly destinations to accommodate those of us who have had to cut back in the types of vacations we take. Because people are driving to closer destinations rather than flying to exotic retreats, many pet owners are more inclined to bring companion animals along.

Supplies and over-the-counter medications showed a comfortable growth of about four percent in 2009. Many of the projections for 2010 say that if the economy continues to recover in 2010, pet owners will be among the first to return to previous spending patterns in an effort to make up for the period  they were not able to buy all of the items they want for their pet. As a result, most projections for 2010 are stronger than 2008 or 2009. For 2010, we are looking at growth in supplies and OTC medications of about 5.8 percent, to over $12 billion.

When taken all together, prospects for 2010 look promising.  Projections for growth in the overall industry ranged from extremely optimistic to just reasonably optimistic. In light of the movement of the overall economy (at least at this point), I think, conservatively speaking, that 2010 should see growth of about five percent, to over $47.7 billion.

Another factor that makes me feel confident about most of these projections and reports is a marked upswing in interest in the 2010 Global Pet Expo. This began in late 2009 and continued right up until the show. All of the specialty areas (The Boutique, Everything Aquatic, The Natural and What’s New) completely sold out more than two months before the show.  The show floor is completely full. Buyer registration is up over even historic levels. 

Optimism continues to run strong. The resilience of the pet industry in such challenging times only goes to reaffirm the human-animal bond that has been formed and strengthened with the humanization of our pets.  We should all be happy we are a part of this wonderful, feel-good industry. 


Bob Vetere is president of the American Pet Products Association.