The Pet Industry

According to the U. S. Census Bureau, the pet industry is now the seventh largest retail segment in the country. The APPMA 2007/2008 Survey revealed that in 2007, spending on pets in the USA is projected to be higher than ever; $16.2 billion for food, $9.8 billion for supplies and over the counter medications, $10.1 billion for veterinary care, $2.1 billion for live animal purchases and $3.0 billion for other services. With sales of $41.2 billion, the pet industry is 60 percent larger than the toy industry and 33 percent larger than the confectionery industry.  

The pet industry is and has been one of only a handful of industries not significantly impacted by economic recessions. Additional statistics revealed in the APPMA 2007/2008 Survey:

• The number of pet-owning households in the United States has increased by more than 15.1 million since 1992. A total of 71.1 million households reported owning a pet in 2006. This includes 88.3 million cats, 74.8 million dogs and 16 million birds.

• The average annual amount spent on food, supplies, accessories and health care per pet is $1,965 for dogs, $1,281 for cats and $602 for birds.

• Increasingly, pets are considered to be members of the family and a growing and vauable source for companionship, relaxation and stress relief, etc. Approximately 63 percent of U.S. households own a pet and of those, 45 percent own more than one.

The worldwide pet industry is estimated to be in the $50-60 billion range with the biggest markets located in the United States, Canada, Western Europe and Japan. As a result of higher rates of industrialization, improved living standards and higher disposable income, the industry is experiencing accelerated growth in other parts in the world, including Hong Kong, Australia, Taiwan, S. Korea, Eastern Europe, South America, etc.

Pet products are marketed through various channels such as pet specialty stores, mass retailers, grocery and drug chains, catalogs, E-commerce, etc. The two largest pet chains, PetSmart (PETM) and Petco (PETC) have seen their stock price rise significantly during the last two years. Both expect to surpass the 1,000 store mark within the next few years. Due to increasing demand for pet products and services, grocery chains, mass retailers and E-commerce websites are dedicating more space to this category.

In general, there is strong competition for the “retail shelf space” especially as related to non-proprietary, commodity pet products. Over eighty percent of OurPet’s products are proprietary with patents or patent pending status. OurPet’s generally avoids non-proprietary, commodity products where price is the major consideration and copying is common. OurPet’s products are perceived as innovative, quality, upscale products selling at affordable prices.


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