US pet owners' expenditure continues to rise each year, according to the American Pet Products Association (APPA).

In 2019, spending reached $95.7 billion - a 5% year-on-year increase. This outlay covers pet food, treats, over-the-counter medicine, vet care, animal health products and other services (include boarding, grooming, insurance, training, pet sitting and walking).

The ongoing humanization of companion animals, coupled with rising disposable incomes, is fueling a greater spend on pet products. The animal health industry has reacted to higher consumer interest in pet products with innovation and investment.

Last year, around $36.9bn was spent on pet food and treats. Veterinary care and medicines accounted for $29.3bn, while spending on supplies, live animals and over-the-counter medicines totaled $19.2bn. Other services contributed $10.3bn.

APPA forecasted spending to reach $99bn in 2020. If this figure is met, it would represent a yearly increase in expenditure of around 3%. This would be lower than the average yearly growth rate since 2007, which is around 5%. The latest estimate did not factor in any reduction in spending linked to the COVID-19 pandemic.

From 2019 to 2020, the biggest increase in spending will be for pet food and treats (an estimated $38.4bn this year). APPA expects: veterinary care and medicines to reach $30.2bn in 2020; supplies, live animals and over-the-counter medicines to be $19.8bn; and other services to go up to $10.7bn.

APPA sources its data from "analysis of the most recent data from the top three research firms studying the pet industry - Nielsen, Euromonitor and Packaged Facts - combined with insight from industry experts and leading pet retailers, confirming underlying data".   

APPA also noted approximately 67% of US households own a pet - the equivalent of 84.9 million homes. This is up 11% on 1988, which was the first year the association conducted its annual pet owner survey. Around 63.4 million homes own a dog, while 42.7 million own a cat.

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Posted 20 April 2020 by Joseph Harvey, Head of Animal Health, S&P Global Commodity Insights

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.