Pets provide solace during difficult year; pet supplies, food, treats, vet care and products see largest increases with predictions up for 2021-22
The American Pet Products Association (APPA) announced the industry has reached over $100 billion in annual sales, the highest level in industry history. The milestone was released in APPA’s 2020 State of the Industry Report during Global Pet Expo Digital Access.
“We have reached a critical milestone, generating $103.6 billion in sales,” said Steve King, President and CEO of APPA. “We are bullish for the coming year, projecting growth of 5.8% – well above the historical average of 3 to 4%. This past year presented a host of challenges that resulted in consumers across the country turning to their pets for comfort and companionship. Interestingly, the product trends we are seeing in the pet care community mirror those of consumers – a desire for a healthier lifestyle, increased focus on fitness, turning to supplements for improved well-being, and technology playing a larger role in everyday life.”
The State of the Industry Report was revealed at today’s Global Pet Expo Digital Access, the pet industry’s premier event, during the keynote presented by APPA and the Pet Industry Distributors Association (PIDA). Trends from the report included:
- $22.1 billion was spent on supplies, live animals and OTC meds, a 15.1% increase from 2019.
- $42 billion was spent on pet food and treats, a 9.7% increase.
- $31.4 billion was spent on vet care and product sales, a 7.2% increase.
While $8.1 billion was spent on other services such as grooming, dog walking and boarding, this was a 21.4% decline from the previous year. As quarantines are lifted and consumers venture out the use of these services is expected to rise.
From a retail perspective, every channel showed an increase, especially e-commerce, which is consistent with consumer shopping trends overall:
- Total retail sales increased by 6.7% from 2019 to 2020.
- 47% of pet owners reported they increased the number of times they purchased online.
- Pet specialty and independent retailers experienced solid growth.
- 30% of pet owners spent more on their pet/pet supplies in the past year with only 10% saying they spent less.
For more information about APPA and its annual State of the Industry Report, visit americanpetproducts.org/press_industrytrends.asp.