Do I Hear $55 Billion
by Michael Schaffer

Back in February, when the American Pet Products Association rolled out its latest annual sales numbers and reported that the pet industry would grow, despite the lousy economy, to $45 billion in 2009, I have to admit I was relieved. After all, I’d just finished a book about how pets had become part of America’s families and that, as a result, we’d seen pet spending nearly triple in 15 years. But because of the publishing industry’s long lag times, there had been an economic implosion between when I filed my book and when it was published. Would everything I’d written be disproved?

As it happened, no: Just as in the recession of 2001–and pretty much every downturn stretching back to the 1970s–pet spending proved more resilient than other sectors of the economy. People who have a choice will scrimp for themselves before demoting the family dog or cat.

Now comes IBISworld, an independent market-research firm, which predicts that the industry will top $50 billion this year. The dollars-and-cents numbers, of course, are irrelevant, because so much pet spending is under the table, the $10 you slip to the kid who walks your dog. What is interesting is the trend lines, and they all suggest that something significant has changed in how Americans see and treat their pets.

For an example of where some of the money goes, check out this Chicago Tribune article about a new pet-hotel chain with a killer app: Its facilities are located next to airports, making it easier for travellers to drop off and pick up. Never mind the great travel bust of 2008: Business, the paper reports, is booming:

At $47 a night, dogs get a private room, plenty of playtime and round-the-clock care. The facility also is open for doggy day care any time of day or night, for $25 to $32 per day. With many customers watching their budget, Nadeem has created promotions, such as discounts for longer reservations, additional pets or frequent users.