Pet Franchise Industry Report 2010
Pet Industry Overview
Size of Market
According to the 2009/2010 National Pet Owners Survey, 62% of households in the U.S. own at least one pet, which equates to 71.4 million homes across the U.S1. The pet owning population grew from 51.7 million households to 71.4 million households between 1998 and 2008. This growth of 38 % means the population of pet owners has outpaced the population of US households.
The following depicts the number of people in the U.S. that own a pet over the last 10 years (in millions)2:
There has been strong growth across the pet industry as pets are playing a more important role in peoples’ lives. Pets are a source of love and comfort that many people desire. In this fast paced society more people focus on their careers and less on having children or are waiting until later in life to have them. Pets are taking the place of children and their owners are generally referred to as “pet parents”. Also, as the baby boomer generation ages, pets are filling the gap left by departing children.
Bob Vetere, American Pet Products Manufacturers Association COO and Managing Director said:
"The strong growth in the [pet-care] industry demonstrates what an important role pets are playing in the lives of Americans. They have become a part of the family. Spending across all sectors, from pet food and veterinarian care to toys and treats, reflects what lengths we are willing to go to for our pets. "
The graph depicts the number of U.S. households that own a pet (in millions)3:
The following graph depicts the total number of pets owned in the U.S. (in millions)4:
According to the U.S. Census Bureau 2007 Economic Census5, which was released in August, 2010 there are over 32, 000 pet related employer establishments in the U.S., employing nearly 250,000 people. The following table shows the revenue, the number of employer establishments and the number of paid employees broken into three separate sectors of the pet industry.
|Employer sales, shipments, receipts, revenue, or business done (in thousands)||Number of employer establishments||Number of paid employees for pay period including March 12|
|Pet and Pet Supply >Stores||$11,410,952||8,782||101,538|
|Pet Care (except veterinary) Services||$2,346,025||11,353||52,509|
|Exterminating and Pest Control Services||$8,692,683||12,642||95,764|
Despite the economic situation of recent times the pet industry remains strong. For 2010, it is estimated that $47.7 billion will be spent on pets in the U.S. Thirty-eight percent of this is estimated to be spent on food, 23% on supplies and over-the-counter medicine, 27% on vet care, 5% on live animal purchases and 7% on pet services such as grooming and boarding6.
According to a report released in July, 2009 by market research publisher Packaged Facts entitled “Pet Care Services in the U.S. 3rd edition: Riding the Multiservice, Premium/Luxury and Corporate Waves” the pet industry sales increased by 5% in 2009. Packaged Facts also reported that sales for pet care services in the U.S. will experience a compound annual growth rate of 9% over the next five years7.
The following table offers a breakdown of the sales of the U.S. pet industry for 2009 and the estimated breakdown for 20108:
|Actual Sales within the U.S. Market in 2009||In 2009, $45.5 billion was spent on pets in the U.S.||Estimated 2010 Sales within the U.S. Market.|
|For 2010, it is estimated that $47.7 billion will be spent on pets in the U.S.|
|Food||$17.56 billion||Food||$18.28 billion|
|Supplies/OTC Medicine||$10.41 billion||Supplies/OTC Medicine||$11.01 billion|
|Vet Care||$12.04 billion||Vet Care||$12.79 billion|
|Live Animal Purchases||$2.21 billion||Live animal purchases||$2.21 billion|
|Pet Services: Grooming & Boarding||$3.36 billion||Pet Services: grooming & boarding||$3.45 billion|
The following graph depicts the total U.S. Pet Industry Expenditure since 19949:
The following graph depicts estimated of the expenditure in the U.S. pet industry based on data from the last 16 years:
1American Pet Products Association, 2009-2010 APPA National Pet Owners Survey, Statistics and Trends, www.americanpetproducts.org
5U.S. Census Bureau, 2007 Economic Census, 2007 Economic Census of Island Areas, and 2007 Nonemployer Statistics. Released 8/27/2010
6American Pet Products Association, 2009-2010 APPA National Pet Owners Survey, Statistics and Trends, www.americanpetproducts.org
7Pet Care Services in the U.S., 3rd Edition: Riding the Multiservice, Premium/Luxury and Corporate Waves, Packaged Facts, July 1, 2009.
8American Pet Products Association, 2009-2010 APPA National Pet Owners Survey, Statistics and Trends, www.americanpetproducts.org
10U.S. Census Bureau, 2007 Economic Census, 2007 Economic Census of Island Areas, and 2007 Nonemployer Statistics. Released 8/27/2010