The American Pet Products Association (APPA) releases annual industry-wide spending figures
Americans are spending more on pets than ever before. Source: unsplash.com
According to APPA, pet care spending in 2018 reached a record-breaking high of?$72.56 billion?compared to?$69.51 billion?in 2017, an increase of over 4%. APPA’s annual industry figures cover pet spending in the market categories of food, supplies/over-the-counter (OTC) medications, veterinary care, live animal purchases, and other services.
Spending on pet food continues to make up the majority of dollars spent in the industry, with premium dog food accounting for the most frequent type of food purchased, followed by generic and natural food.
Coming in at?$18.11 billion, veterinary care remains the second highest source of spending in the pet care community, surpassing growth in any other category at a rate of 6.1%. The frequency of vet visits has likely increased as well thanks to lower prices, making care more accessible to a broader audience. As a result, the trend of pet insurance is projected to increase with pets living longer and requiring more complex and extended medical care.
|
Category |
2017 Actual |
2018 Actual |
% Growth |
2019 Estimate |
% Growth |
|
($ Billion) |
($ Billion) |
(2018 vs 2017) |
($ Billion) |
(2019 vs 2018) |
|
|
Food |
29.07 |
30.32 |
4.3 |
31.68 |
4.5 |
|
Supplies/ OTC Med |
15.11 |
16.01 |
6.0 |
16.44 |
2.7 |
|
Veterinary Care |
17.07 |
18.11 |
6.1 |
18.98 |
4.8 |
|
Live Animal Purchases |
2.1 |
2.01 |
-4.3 |
1.97 |
-2.0 |
|
Other Services |
6.16 |
6.11 |
-0.8 |
6.31 |
3.3 |
|
Total |
69.51 |
72.56 |
4.4 |
75.38 |
3.9 |
Spending on supplies and OTC medications holds the spot for the third highest source of pet spending. Up 6 percent from 2017,?$16.01 billion?was spent on items such as beds, collars, leashes, toys, travel items, clothing, food and water bowls, pet tech products, and other accessories.
The live animal purchases category experienced a 4.3% decline compared to the year before. Contributing?$2.01 billion?in 2018, this category makes up the smallest area of total pet industry spend. Acquisition of dogs varies by generation with more millennials turning to shelters and rescues, while baby boomers and Gen Xers look more to breeders. However, millennials purchase pets at an independent pet store three times more often than Boomers or Gen Xers.
Pay Space
Our editorial team delivers daily news and insights on the global payment industry, covering fintech innovations, worldwide payment methods, and modern payment options.
