Trends in the Pet Industry

While the ongoing recession has dampened prospects and heightened anxieties in many U.S. industries, the pet supplies sector, while not exactly recession-proof, has weathered recent and current economic difficulties with enviable financial returns, demonstrating resourcefulness in marketing, product development, and responses to public concerns. Pets are so important to people that they would rather cut back on their own consumption than reduce the necessities and indulgences which keep the family pooch and/or kitty healthy and happy. Clever marketing plays to the emotional pet-to-owner bond. New products boast a local tie, or a "green" or natural element, or tackle a typical ownership issue like feeding convenience, waste clean-up, or behavioral problems.

Quick moves to investigate and to resolve the contaminated food scare of 2007, an unprecedented event which resulted in the deaths of many pets, perhaps thousands, in the U.S. and Canada, salvaged public confidence in the pet food industry. The culprit was at last pinpointed in China where unregulated food additives or non-food ingredients were produced and then exported to North American plants responsible for manufacturing many popular brands of pet food. On the U.S. side, the owners of importer ChemNutra of Las Vegas were recently sentenced for distributing the suspect additives. However, while that sad case may appear closed, the lasting impact of the event is evident in the closer attention paid to ingredients listed on packaging by consumers, in the updated and more careful wording of advertising copy, and in the listing of contact information, including websites and phone numbers, for the manufacturers. An emerging fad for making dog biscuits and other pet cuisine at home is gaining in popularity as well.

Retailing pet products is a big business, with a wide variety of shopping venues available, including the local supermarket, drugstore, and hardware outlet, agricultural feed stores, discount chains like Wal-Mart and Target, some convenience stores, independent pet stores, and national pet superstores like PetSmart and Petco. The range of pet food options is probably broadest in the independent stores and the superstores, but the best bargains are usually found in the big-box discount outlets. If you must keep to a budget but have large dogs to feed, you probably visit Wal-Mart on a regular basis. If your wallet is a little fuller and your cat is the finicky type, a type that retailers everywhere adore, then you probably will try anything new or newly packaged that appears on your grocer's shelves in the pets aisle. New leashes, bedding options, shampoos, preventive medicines, and toys just for pets are often displayed near the bags of kibbles or kitty-litter containers.

One downside of the recession is an uptick in numbers of animals delivered to shelters in cities and small towns all across the country. While many people think that they would never give up their pet, when they find that they have lost a job or a house or both, then they have to look at all options, even the previously unthinkable ones. In public-spirited moves, PetSmart and Petco have sponsored pet adoption drives in many urban centers, and some supermarket chains have set up permanent collection boxes for donations of pet items, especially food. Some food banks have started distributing pet supplies as needed, and some meals-on-wheels nutritional services also provide pet food to senior citizens with four-footed companions.

Other topical issues for the pet care industry include a growing interest in pet health insurance, including pet dental insurance; a fascination with pet fashion accessories, especially clothing items thanks in part to the popularity of the recent movie "Beverly Hills Chihuahua"; some concerns over dog-sitting and dog-walking services, whether these should be regulated somehow; and controversy over allowing small pets to travel in the passenger compartments of airplanes. Some relief for pet-owning taxpayers may be possible if Michigan Congressman McCotter's proposed bill to allow deductions for pet-care costs passes this year.

M.S. Enkoji, "Pet stores fetching profits in economy of extremes", Modesto Bee

"Charges in Melamine Pet Food Recall", Cat Watch Newsletter

"Natural trend has an impact", BNet/MMR

Tara Sullivan, "Friendship Center Helps seniors care for their pets", Houston Chronicle

Greg Jonsson, "St. Louis cats, dogs feeling foreclosure pinch", St. Louis Post-Dispatch/AP

Julie Gallagher, "Pet Projects", Supermarket News

"Daily Buzz: A $3,500 Tax Deduction For Your Pet!", Woman's Day