Pet Care and the Recession

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Pet Care and the Recession

The American Pet Products Association reports pet ownership has continued to grow right through the downturn. We spend big on our pets, too, recession or not. Annual pet-related expenditures soared from $43.2 billion in 2008 to nearly $53 billion this year, the association reports.

One section of this spending has drawn a lot of attention from the franchise industry — pet services. There are now more than 35 major chains in this niche, from doggy day cares, groomers, and dog-walking providers to pet stores, dog trainers, and boarding services.

Unlike the traditional hotel chains — a sector that’s under pressure — pet hotels are still growing.  Luxury-focused D Pet Hotels has 3 hotels in Hollywood, Scottsdale and Manhattan and Newcomer k-9 Resorts has hotels under construction, While spa like services, Splash and Dash for Dogs offering an Unlimited Monthly Bathing service has grown to 30 locations throughout the US and Australia in less than 18 months.

 

Pet Business coach, Dan J Barton says “No matter if you’ve been gone 5 mintues, 5 hours or 5 days, the unconditional love your dogs gives you when you walk through the door, is a feeling like no other”.

 

Here are some interesting facts surrounding the pet industry:

  •  An astounding 92% of pet owners spent the same or more on their pets during the most recent recession period. Many pet owners are even forgoing luxuries in their own lives in order to make sure their pets are living in the lap of luxury.” Financial experts now widely tout the pet industry as “apparently immune to recession.” Even from 2008 to 2010, years that saw nearly every sector of America’s retail economy crumble, pet spending was up by 11.9%.


  • The pet industry is the seventh largest retail industry in the U.S., exceeding the jewelry, candy, toy and hardware industries. Moreover, after consumer electronics, “pet care is the fastest growing category in retailing, expanding about 6% a year. Clearly, consumer demand in the pet industry is at an all-time high.”


  • The pet care industry continues to grow exponentially each year.  Studies show that even during the recession, owners still spent money on their pets, often forgoing their own luxuries.  In 2012, pet owners spent a projected $52 billion on their pets.  That is up from $48 billion in 2010. This is divided into boarding, grooming, training, veterinary care and pet supplies/food.

 

  • At this point, it seems that the pet industry is recession proof. According to the 2011-2012 APPA National Pet Owners Survey, 62% of U.S. households own a pet, which equates to 72.9 millions homes.

 

  • Not only has the pet industry grown while other industries have suffered, starting a pet-services business is relatively inexpensive.  It is important to note, however, that there is a lot of competition in this industry.  Do your research, do what you do well, and be innovative and creative.  Companies that pick up pet waste are taking off right now.  That is a niche that many didn’t know needed to be filled.

 

  • Pets are moving indoors and are becoming parts of families.   Dogs are no longer referred to as “the dog,” but by name.  Owners are also bringing different pets into the home, such as reptiles, birds, rodents, etc.

 

  • Pets are stress-busters — and we need that now more than ever. In 1994, roughly 15% of Americans reported increased anxiety in their lives. By 2009 that number had risen 49%, and it’s predicted to be even higher now.


  • When we cuddle, play with, and even just look at our pets we get a hefty boost of oxytocin, our body’s naturally occurring feel-good, stress-relieving, emotional-bonding hormone. So do our pets, by the way. Which makes all parties more relaxed and happy, and more deeply bonded.



  • Pets have more status today. Compared to previous eras, there is currently much less hierarchical distance, and more equality, between parents, kids, and pets. More than 9 in 10 owners consider their pets to be members of the family, and 81% say pets are equal members of the family. Pet lovers themselves recognize that there has been a shift in the status of pets within families: 60% of adults say they don’t remember their childhood pets as having the exalted status the pets in their lives enjoy today.


  • Still need more proof? There are one million dogs in the U.S. that have been named the primary beneficiary of their owners’ will.


  • Higher status translates to pets deserving more — be it vacation care in pet hotels rather than kennels, more toys, or better healthcare.


  • Pets fill connection and friendship vacuums. Americans have about a third fewer close friends today than they did 20 years ago — averaging two rather than the three they had, on average, in 1985. And though online connections alleviate some of that loss, we’re neurologically less satisfied by online friends than we are by personal contact. Pets provide companionship and connection that we need more than ever today. Dogs, in particular, also increase human social circles through gatherings at parks and getting out into neighborhoods more often through walks.


  • Cat owners also say they get plenty of emotional connection from their pets. In fact, nearly a third say they’d rather chat with their cat after a long day than anyone else, and 39% say their cat is more likely than a romantic partner to pick up on their current mood.


  • Almost 95% of pet owners say their pet makes them smile at least once a day. It’s no wonder that multiple studies show that pets lower blood pressure, alleviate depression, and boost mental and physical resiliency.


  • Given the emotional support, connection and happiness pets provide, it’s not surprising that people want to honor and reward them — often with goodies.


  • Pets fulfill our need to nurture. An unprecedented number of people live alone today – 1 in 7 Americans. Plus, our years without children stretch longer on both ends. Empty nesters live longer and people have children later in life. Regardless of a person’s household composition, the need to nurture is universal. Which partly explains why 78% of animal owners think of their animals as their children and themselves as pet parents, not pet owners. In fact, 58% of pet owners call themselves “mommy” or “daddy.”


  • When you’re a pet parent rather than an owner you’re more likely to want to give your pets a human experience—for example, fancy foods and treats that are fresh, organic, and look like something a human would eat.


  • There are simply more things to buy today. Undoubtedly, many pet owners would have been game to pamper their dogs and cats a decade ago. But the options were more limited. An abundance of choice gives us psychological permission to take a step toward indulgence.

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