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Americans will spend $43.4 billion on pets in 2008, a 51⁄2 percent growth from 2007, according to the American Pet Products Manufacturers Association. That’s more than double what pet owners spent a little more than a decade ago, the group noted.
The 2008 estimate was released during a press conference at the association’s annual Global Pet Expo in San Diego, Feb. 14-16.
Fueling that growth are high-end product and services purchases, such as pet spas and day cares and luxury gifts for pets, according to the association. Another fast-growing segment is pet health insurance.
“Our pets are being treated like members of the family,” said Bob Vetere, president of APPMA. “Pet owners want to protect themselves and their pets against unexpected medical expenses.”
More than 2 million pet owners currently subscribe to pet insurance. By 2010, however, APPMA estimates that 5 to 7 percent of all pet owners will carry a pet insurance card.
An aging Baby Boomer population filling their houses with pets as grown children move out, building their own families, is also contributing to the change in the pet industry, Vetere said.
“For empty-nesters, pets are filling a void in their lives, and they’re showing their appreciation to their pets,” he said.
Despite concerns of an economic slowdown as Americans spend more cautiously, the pet industry appears somewhat insulated from recession talk, the association said.
“Pet owners and the companies providing pet products and services show no sign of letting up,” Vetere said. |