Americans spent nearly $30 billion, (£18.8 bn), on pet related products and services in 2002, according to a new research study, Why People Buy Things For Their Pets, from Unity Marketing. More than half (55%) of US households own one or more cats and dogs.

Consumer expenditures are divided into pet foods and supplies, which totalled $18 billion, (£11.3 bn), in 2002, and pet and veterinary services, at $12 billion, (£7.5 bn).

"As consumers lavish spending on their pets, increasing amounts are allocated to special services like exercise, pet sitting, grooming, even spa services. The nation's two leading pet specialty chains, PETsMART and Petco, both view services as a key growth driver," says luxury marketing expert Pam Danziger, president of Unity Marketing and author of Why People Buy Things They Don't Need.

Market segmentation points to market opportunities

Unity Marketing's Why People Buy Things For Their Pets report analyzes the purchase behavior of pet-owners for 'necessities', including food, leashes and collars, litter and curbing needs, cages, crates and outdoor housing, as well as 'extras,' such as toys, bath and grooming products, dining bowls, vitamin supplements, furniture and beds, gifts, travel accessories and wearables.

In this latest survey of 1,000 U.S. households about purchases of pet accessories and extras, the same percentage of households, 41%, bought pet extras as did in 2001. But the amount of money consumers spent annually on pet accessories more than doubled since 2001, from $97, (£61), to $215, (£135).

"While the percentage of consumers who buy extras for their pets remained constant, pet owners are showering more money on treats for their pets today than ever before," Danziger said.

Where consumers shop for pet accessories is also shifting from grocery stores to discount department stores, such as Wal-Mart, and to pet specialty stores like PetSmart. In the most recent survey, conducted between 26 June and 29 June 2003, about half of consumers that had purchased pet accessories used either of these stores in the past year. Only 16% of pet-accessory consumers had purchased pet accessories in food and grocery stores in that period.

Connecting with pet 'parents' who splurge on luxuries

A psychographic study of pet owners revealed three distinct pet-owning segments, each with a different motivation toward ownership and different purchase behaviors. The 'parents' segment comprises just over one-third of pet owners and represents the prime market for pet manufacturers and retailers who cater to the carriage trade.

"These consumers have given their pets a central position in the family. Demographically they have the lowest incidence of children at home and are more likely to be single, so the pet becomes the 'baby' of the family. They spend between 50-66% more annually on pet extras and are more likely to shop at specialty pet food stores for the more exclusive luxury brands of pet food.

"Today's pampered pet is the beneficiary of all kinds of luxury indulgences. As Time magazine recently reported, '...the dog has emerged — above expensive restaurants, home furnishings and even security — as the status symbol of the times.' It is the pet 'parents' segment that is turning to Gucci, Burberry and Chanel for luxe accessories and shopping in luxury pet boutiques like Los Angeles' Fifi & Romeo for $150 cashmere wool doggy sweaters," Danziger explains.

About Unity Marketing

Founded in 1992 , Unity Marketing is a market research and consulting firm that specializes in consumer insights for luxury marketers. Pam Danziger is company founder and author of Why People Buy Things They Don't Need

To order copy of the new report, click here.

Submitted by: Steve O'Malley      

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