Wealthier pet owners are increasingly driving the dog and cat market, with pet-owning households with annual incomes of at least $70,000 now accounting for more than half (51 percent in 2005, compared to 35 percent in 2000 and 28 percent in 1995) the dollars spent on pet products and services ($47 billion), according to an August 2007 report from MarketResearch.com’s Packaged Facts division.
Between 1995 and 2005, the $70,000-plus households, which comprise less than one-third of overall pet-owning households, tripled their household expenditures from $5.2 billion to $18.6 billion and now account for more than half of spending for pet supplies, pet services and veterinary services, according to the Packaged Facts report “Market Trends: Premium Pet Demographics and Product Purchasing Preferences.” During that time, these households more than doubled their market share of overall pet supplies spending and now account for more than 60 percent of pet services bought. Those are three of four pet market categories tracked by the U.S. Bureau of Labor Statistics’ Consumer Expenditure Survey. These households also accounted for 42.7 percent of pet food expenditures, the fourth and largest category.
Although some of the growth in this segment’s market share can be attributed to a general increase in upper income households, it also signified the success of marketers tapping into the premium pet household’s willingness and ability to pamper their pets, Packaged Facts reported.
Market Share by Category: $70,000-Plus Income Households
Pet Food 23.8% 42.7%
Pet Supplies 22.8% 50.1%
Pet Services 51.1% 61.7%
Sources: Packaged Facts, based on U.S. Bureau of Labor Statistics