Armstrong Economics Blog/North America Re-Posted Dec 5, 2021 by Martin Armstrong
The pet industry is on the rise in the US, and consumer spending patterns show that pet owners are not reluctant to spend money on their companions. According to the American Pet Products Association (APPA), around 67% of US households have at least one pet, marking the highest level of pet ownership on record. As a result, the pet industry in America alone reached $99 billion in 2020, and analysts expect this figure to rise.
In fact, pets have become a staple in many American households to the point that one in ten pet owners are actually delaying having children to focus on their pets. Surprisingly, Zulily found that 42% of Millennials admitted that a key factor in becoming a homeowner was the desire to provide a larger space for their dog. Therefore, people are making major life decisions and purchases based on their animals’ needs. The APPA found that the average owner spends $1,380 annually per dog and $908 per cat. That amount could quickly spike if a pet falls ill or has special needs. Grooming, training, and boarding costs would also push this number higher for middle and upper-income owners.
Millennials are also driving sales for pet-related items, with 51% reportedly buying their pet a gift at least once per month. Again, online purchases are driving the trend, and experts expect a quarter of America’s pet supply purchases will be made online within the next two years.
A decade ago, Americans spent only $45.53 billion on pet supplies annually. That number has doubled and is on the rise. Consumers are willing to spend more money on their pets as they have advanced their status in American society from working domesticated animals to well-loved house pets.