PPB December 2017

by Terry Ramsay Pe t Pr oduc t s Bet On Pets R oughly 65 percent of households in the U.S. own at least one pet, which equates to more than 81 million homes. The American Pet Products Association is projecting over $69 billion in pet industry expenditures in 2017, with an average annual growth rate over the last 15 years of 5.4 percent. With these strong spending predictions and ample opportunities for innovation, there’s a huge market for products that cater to pet owners. It is not a coincidence that the demand for pet specialty products is increasing as the Baby Boomer generation reaches retirement. Many of the Boomer households are “empty nests,” and with their children gone, they are lavishing attention on their pets. Pet spending reaches its peak (at ages 55-64) as consumers focus on their “fur babies,” according to John Gibbons at petbusinessprofessor.com. Even better news for the industry is that Millennials are embracing the trend. This generation was raised treating their pets as part of the family, so it is natural for them to splurge on luxury pet goods too. Many products and services that would have seemed extravagant to prior generations— doggie day cares, organic foods, high-end grooming services, expensive medical treatments and apparel—are now the norm. And as Millennials earn more disposable income, expect to see them spending more of it on their pets. As the market for niche products and high-end services for pets expands, so do the opportunities to reach this audience through promotional products. “We’ve been successful selling to veterinarian offices, groomers, pet day care centers and dog treat companies,” says Charles Huang, vice president of sales and marketing for supplier Minya International Corporation (PPAI 112523). “There are also many channels and baking shows on YouTube that specialize in animal treats—and they sell merchandise to their followers. In addition, we’ve worked with animal shelters, rescue groups and breeder organizations for fundraisers.” Humanization, the modern impulse to treat animals like people, drives the universal appeal of pet-themed products. Even among people who don't own pets, who can resist heart-melting images of puppies and kittens? “Our ‘Best Friends’ The pet industry explosion shows no signs of slowing down. 34 | DECEMBER 2017 | GROW