Everybody wants a Dog!

Everybody seems to “Walkin’ the Dog,” to borrow the line from the rhythm-and-blues classic. There are now more pet-owning households then there are those with children, some 84.6 million strong as compared with 52.8 million with kids, or 41.4% according to Statista.

Today nearly 70% of all U.S. households own a pet, with dogs by far the most popular pet, according to the American Pet Products Association. Some 60.2 million households own dogs, compared with 47.1 million that own cats. (Note: households that own both dogs and cats are counted in both groups.)

And for those pet-owning households, pets have really become full-fledged members of the family. According to another APPA survey, 90% of the 1,200 pet owners surveyed said, “Pets are family.” Admittedly that was a self-selected group to survey, but you get the picture.

People who own pets take their responsibilities as pet parents very seriously. That adds up to quite a lot of money, some $72.1 billion in the U.S. this year, up 8.1% from 2016. Pet food gets the lion’s share of this spending, or about 42% of the total.

But increasingly everything that people need for themselves, they also need for their pets, so they are willing to splurge on luxuries like beds, toys, clothing, travel accessories, gifts and grooming services, along with the necessities including collars, leashes, bowls, medicine and veterinary services.

The ten most popular dog products for this year are:

1. Pet Bed. This pet bed was very popular in 2019 and in 2020 we expect to see its popularity continue to rise with international sales. ...
2. Dog Seat Cover. ...
3. Multifunction Biting Toys. ...
4. Dog Toothbrush. ...
5. Pet Grooming. ...
6. Pet Painting. ...
7. Novelty Cat Beds. ...
8. Dog Jackets.

• Lazy Bones Cat Play Zone With Toy.
• Catnip Caterpillar Cat Toy.
• Cat tunnel toy.
• Wooden pet paw puzzle.
• Cheshire catnip cat toy.
• OurPets mouse chaser.
• Catit Senses food maze.
• Activity Box Cat Toy.

Pet health insurance too is booming. Though small today, only about 2.1 million pets are insured or 2% of the 89.7 million dogs owned, the North American Pet Insurance Association reports the number of pet insurance policies written grew 23% from 2016 to 2017.

While the pet-products industry has tracked modest ~4% growth over the past several years, my expectation is it will really start on a roll over the next couple of years. Why? Because of Millennials.

Millennials are the #1 pet-owning generation

Millennials have just overtaken the aging baby boomers as the biggest pet-owning generation . Some 35% of pet owners are millennials, as compared with 32% of boomers. Millennials are on their way up in terms of income and spending, while boomers are trending down.

But its not just millennial’s numbers and future spending power that will give a boost to the pet industry, it is their overwhelming passion for their pets.

A recent survey among millennial pet owners conducted by Zulily, the online retailer that is part of Qurate Retail Group that also owns HSN and QVC, uncovered some eye-opening findings that show just how devoted millennials are to their pets.