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Pet Industry Spending Exceeds $66B — 3 Takeaways

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It’s a 10.7 percent increase.

Pet industry spending for 2016 came in at $66.75 billion, up from $60.28 billion in 2015, according to a new report.

The 10.7 percent increase means spending reached a record high, according to the American Pet Products Association, which released the figures at the recent Global Pet Expo.

The report covers pet spending in the market categories of food, supplies/over-the-counter medications, veterinary care, live animal purchases and other services.

Here’s a chart from APPA:PETS SpendingChart

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And here are three takeaways from the report:

1. It’s not quite as good as it sounds. “While this shows a significant increase over last year, it is more reflective of an adjustment in data reporting than actual growth,” said Bob Vetere, CEO of the APPA. “Actual growth when compared to previous reporting methods is closer to 4 percent.” The increase in pet food spending of 22.6 percent in 2016 is primarily due to APPA accounting for new data from the U.S. Bureau of Labor Statistics, which indicated that previous spending figures released may have been too conservative. With $28.23 billion spent, the increase in this category now accurately reflects the steady growth the pet food industry has experienced all along, according to an APPA press release. Interest in high-end, premium pet food and treats continues to be a key driver for increased spending in the pet food category.

2. Health is huge. Veterinary care spending remains the second source of spending in the pet industry at $15.95 billion. While routine veterinary visits have not necessarily increased, new advances in health care and services available may be contributing to the 3.4 percent growth. Additionally, there is growing research on the human health benefits of pets and research from the Human Animal Bond Research Institute shows that the more pet owners become aware of the health benefits of their pets, the more likely they are to take care of them.

3. There’s major growth in “other.” Other services such as grooming, boarding, walking, training, pet sitting, yard services and more saw significant growth from 2015, second only to pet food category growth. While spending on pet services is behind the next closest spending segment by nearly $9 billion, category growth for the past few years is something to take note of, according to the release. It is estimated to grow another 6 percent in 2017, higher than expected growth percentage for any other spending segment.

“Now that millennials have officially taken the reins as primary demographic of pet owners, they stand to further develop the humanization of pets trend,” Vetere said. “We’ve been anxious to see how this new group of pet owners will affect the industry, and now that they’re here and the industry spending is higher than ever, it’s a promising sign that our country’s pets are in good hands.”

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Video: No, Those Aren’t Bugs on Your Dog … or Your Husband

This pet owner was a bit confused about anatomy.

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A video about a vet tech’s experience with a slightly confused dog owner has gone viral on social media.

The dog owner thought her pet was covered in bugs. But the tech could find no sign of an infestation.

The supposed bugs turned out to be something else altogether.

But convincing the headstrong owner of that fact was no easy task.

The video by Tik Tok user @hoops0926 has racked up 4.4 million views and 993,000 likes.

Watch the video:

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More than 70 Chinese Exhibitors Cancel Their Booths at Global Pet Expo

Instead of sending U.S.-based representatives, the companies have opted out of the annual show.

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According to a report from John Gibbons, AKA the Pet Business Professor, more than 70 Chinese exhibitors have cancelled their booths at Global Pet Expo due to the travel restrictions relating to coronavirus.

Since we first shared a statement on the issue from Global Pet Expo Officials, the show has updated its website with the following:

“With less than 14 days until Global Pet Expo, we are gearing up for another amazing event! Currently, we have more than 1,000 companies from 28 countries around the world planning to exhibit. Buyer registration is strong and we’re expecting over 7,000 buyers from 80 countries. Two weeks from today, Global Pet Expo opens its doors and we can’t wait to welcome you to our world.

As we eagerly prepare for the Show, we are confident that Global Pet Expo will deliver a successful business experience for all participants. However, we want to take a moment to address how the Coronavirus (COVID-19) will impact some of our exhibitors. We have been in contact with exhibitors from China. The vast majority have notified us that they will not be exhibiting and will not have outside representation available to take their place at this year’s Show. Moreover, any foreign nationals that have visited China within the last 14 days are barred from entering the United States. Therefore, these attendees will not be able to participate in this year’s Global Pet Expo.

The health and safety of all Show participants are paramount. The Global Pet Expo management team is working closely with the Orange County Convention Center and surrounding hotels to stay apprised of developing precautionary measures to further reduce potential health risks at the Show. Additionally, we will continue to follow the guidance of the World Health Organization (WHO) and Centers for Disease Control (CDC) and Prevention, and will provide emerging information accordingly.

Over the next two weeks leading up to the Show, we will continue to keep you updated as new information becomes available. We look forward to seeing you in Orlando!”

We’ll keep an eye on the situation, and you can also look for updates on the Global Pet Expo website.

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C.J. Foods to Acquire American Nutrition

ANI operates five manufacturing facilities throughout the US.

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BERN, KS — C.J. Foods Inc., a custom manufacturer of specialty dry pet food, announced an agreement to acquire American Nutrition Inc., a supplier of dry, canned and baked pet food and treats.

This transaction creates “the largest independent manufacturer of super premium pet food in the country, producing a total of one billion pounds of pet food annually,” according to a press release. It is expected to close by April.

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Financial terms of the deal were not disclosed.

The acquisition of ANI will enable CJF to offer a full portfolio of pet food and treats with national and international distribution, according to the release. David McLain, CEO, C.J. Foods, will join the board of directors. Tod Morgan remains chairman of the board and Bill Behnken, current president and CEO, ANI, will serve as board member.

“This acquisition creates the leading manufacturer of super premium pet food with a national footprint, focused on producing and delivering the highest quality products to our customers,” said Morgan.

C.J. Foods “has a rich 35-year history in super premium pet food manufacturing with a wide range of international capabilities serving the leading super premium brand owners and retailers,” acccording to the release.

ANI operates five manufacturing facilities throughout the U.S.

“C.J. Foods and ANI are two world-class manufacturers with complementary capabilities that make the combination a win for our customers,” said Behnken. “It truly enhances our ability to provide higher levels of innovation to meet the ever-evolving opportunities in premium pet nutrition.”

“CJF is thrilled to be moving forward with ANI to strengthen our customer value proposition with a continued singular focus on innovation and food safety, leading the industry with on-trend products,” said McLain.

C.J. Foods is a portfolio company of J. H. Whitney Capital Partners, a Connecticut based private equity firm that has owned C.J. Foods since 2014 and acquired Lortscher’s Animal Nutrition (LANI) in 2018.

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