KEY POINTS:
NEW YORK - Leading a dog's life could be a good thing in the United States this year with spending on pets forecast to hit a new high despite fears of a recession and a crimp on consumer spending.
The American Pet Products Manufacturers Association released figures on Tuesday showing pet owners spent an estimated US$41 billion on their animal friends last year which was almost double the US$21 billion spent in 1996.
But the non-profit industry group projected this would rise by nearly six per cent to US$43.4 billion in 2008 as pet owners treated their animals to spas, designer clothing, and other high-end goods as well as gourmet foods.
APPMA President Bob Vetere said an increase in pampering and gift giving has fueled the industry as more pet parents continued to treat their pets like members of the family.
"We're noticing more baby boomers are pet owners and they are treating their pets like members of the family," said Vetere in a statement.
"For empty-nesters, pets are filling a void in their lives and they're showing their appreciation to their pets."
About 71 million homes in the United States - or about 63 per cent of households - are estimated to have pets, with dogs, cats, and fish the most popular pets. This has led to a vibrant market in pet products, services and health insurance.
Vetere said spending on pet health insurance was a growth area and there was also a marked increase in spending on grooming services such as pet hotels, pet spas and doggie day cares.
"High end products in general are on the rise, as is gift giving and new product introductions and innovation," said Vetere who estimated six per cent of dog owners bought their four-legged friend a Valentine's Day gift.
"The pet industry continues to grow at a record pace and the future is no exception. Pet owners and the companies providing pet products and services show no sign of letting up."
- REUTERS
