Consumer spending on pets to reach $31.7 billion in 2016
US spending on pet health products and services at the consumer level is
expected to reach $31.7 billion in 2016. Manufacturers' level pet health
product demand is forecast to increase 4.6 percent annually to $5.6 billion
that year. Advances in expenditures will be encouraged by the continuing trend
of humanizing companion animals and their perception as family members, as
well as by growth in the overall pet population. Veterinary technology will
continue to adapt diagnostic and treatment techniques from human health care,
stimulating value gains for newer, more costly procedures.
Revenues for pet insurance to continue double-digit growth
While the US pet health industry has traditionally been regarded as being
"recession-resistant," spending was somewhat impacted by the 2007-2009 US
economic recession. However, demand did not experience declines during this
time, as health care is a necessary -- and, to some degree, expected --
expenditure for pet owning households. Uncertain economic conditions led to
especially strong growth in demand for services such as pet insurance and for
products, including dietary supplements, intended to prevent medical
conditions. Among products, pharmaceuticals will retain the leading share of
sales, following trends in human medical treatment.
As spending on pet health has increased over the last several decades, so have
the average expected lifespans of many companion animal species. Accordingly,
incidences of age-related medical conditions (e.g., arthritis, cancer) have
also grown. Increasingly prevalent weightrelated conditions (e.g., diabetes,
heart disease) will further lead to increasing demand for products and
services, as a significant number of pets are overweight or obese. In order to
better afford these treatments, more owners will purchase pet insurance
policies, with revenues expected to continue to grow at doubledigit annual
rates.
Health care expenditures on products for cats to increase
While cats have long represented the largest segment of the pet population,
spending on health care products for dogs accounted for a disproportionate 69
percent of the total in 2011. Dogs' greater time spent outdoors raises their
exposure to environmental hazards, and dogs are more susceptible to certain
medical conditions, such as heart disease. However, research and development
into more catspecific health products will incrementally increase cats' share
of the pet health product market going forward.
Study coverage
This upcoming Freedonia industry study, Pet Health: Products & Services,
presents historical demand data (2001, 2006 and 2011) plus forecasts for 2016
and 2021 by pet health product, service, medical condition and animal. The
study also considers market environment factors, evaluates company market
share, and profiles 41 US industry producers (such as Bayer, Merck, Merial,
Novartis and Pfizer) and insurers (such as Embrace, Hartville Group and
Pethealth).
Table of Contents
Table of Contents
INTRODUCTION
I. EXECUTIVE SUMMARY
II. MARKET ENVIRONMENT
General
Macroeconomic Outlook
Consumer Income & Spending Trends
Demographic Trends
Population
Household Formation
Pet Demographic Trends
Cats
Dogs
Other Pets
Pet Health Service Provider Overview
Veterinary Practices & Employment
Non-Veterinary Pet Care
Pet & Pet Supply Stores
Pet Insurance
Medical Conditions
Pet Health Spending Overview
Nontraditional Health Care
Regulatory & Environmental Issues
Center for Veterinary Medicine
Animal & Plant Health Inspection Service
Environmental Protection Agency
Other Regulations
World Pet Health Care Market
III. SERVICES
General
Veterinary Care
Surgery
Growth Removal
Orthopedic
Gastrointestinal
Declawing & Other Cosmetic Procedures
Neutering/Spaying
Other Surgical Procedures
Non-Surgical Revenues
Non-Veterinary Pet Care
Pet Insurance
Available Plans
Market Share
IV. PRODUCTS
General
Pharmaceuticals
Systemic Agents
Hormones & Insulin
Pain Control
Anti-Inflammatory Agents
Gastrointestinal Systemic Agents
Cardiovascular Systemic Agents
Respiratory Systemic Agents
Other Systemic Agents
Antibiotics
Other Pharmaceuticals
Anesthetic Agents
Euthanasia Agents
All Other Pharmaceuticals
Parasiticides
Flea & Tick
Heartworm
Other Parasiticides
Prescription Food
Dietary Supplements
Vaccines
Diagnostics
Other Pet Health Products
V. CONDITIONS
General
Skin Conditions
Heart Conditions
Gastrointestinal Conditions
Renal Conditions
Arthritis
Diabetes
Other Conditions
Respiratory Conditions
Cancer
All Other
VI. ANIMALS
General
Dogs
Cats
Other
Birds
Small Animals
Reptiles & Amphibians
VII. INDUSTRY STRUCTURE
General
Market Share
Industry Restructuring
Competitive Strategies
Cooperative Agreements
Marketing
Distribution Channels
COMPANY PROFILES
Abbott Laboratories
ADER Enterprises Incorporated
Bayer AG
Beefeaters Holding Company Incorporated
Boehringer Ingelheim GmbH
Central Garden & Pet Company
Colgate-Palmolive Company
Embrace Pet Insurance Agency LLC
Farnam Companies, see Central Garden & Pet
Four Paws Products, see Central Garden & Pet
FURminator, see Spectrum Brands
Hartville Group Incorporated
Hartz Mountain, see Sumitomo
Heska Corporation
Hill's Pet Nutrition, see Colgate-Palmolive
IDEXX Laboratories Incorporated
Intervet/Schering-Plough Animal Health, see Merck
Mars Incorporated
Merck & Company Incorporated
Merial, see Sanofi
Natura Pet Products, see Procter & Gamble
Nestle SA
Novartis AG
Nutri-Vet, see Beefeaters
Nylabone Products, see Central Garden & Pet
PBI/Gordon Corporation
Pegasus Laboratories, see PBI/Gordon
PetAg Incorporated
Pethealth Incorporated
Pfizer Incorporated
Procter & Gamble Company
PTZ, see Pethealth
PurinaCare Insurance Services, see Nestle
Royal Canin, see Mars
Sanofi
Sergeant's Pet Care Products Incorporated
Spectrum Brands Holdings Incorporated
Sumitomo Corporation
Synbiotics, see Pfizer
Trophy Animal Health Care, see PBI/Gordon
United Pet Group, see Spectrum Brands
VCA Antech Incorporated
Veterinary Pet Insurance Company
Virbac SA
Wellmark International, see Central Garden & Pet
LIST OF TABLES
SECTION I -- EXECUTIVE SUMMARY
Summary Table
SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators
2 Personal Consumption Expenditures
3 Population & Households
4 Households & Pet Ownership
5 Pet Population
6 Pet Health Service Providers
7 Selected Pet Medical Conditions
8 Pet Health Sales & Services Revenues
SECTION III -- SERVICES
1 Pet Health Service Revenues by Type
2 Veterinary Care Service Revenues by Type
3 Surgery Revenues by Type
4 Non-Surgical Revenues by Type
5 Non-Veterinary Pet Care Revenues
6 Pet Insurance Revenues
SECTION IV -- PRODUCTS
1 Pet Health Product Demand by Type
2 Pharmaceutical Demand by Type & Animal
3 Systemic Agent Demand by Type & Animal
4 Antibiotic Demand by Type & Animal
5 Other Pharmaceutical Demand by Product & Animal
6 Parasiticide Demand by Type & Animal
7 Flea & Tick Treatment Demand by Type & Animal
8 Heartworm Treatment Demand by Animal
9 Other Parasiticide Demand by Animal
10 Prescription Pet Food Demand by Animal
11 Dietary Supplement Demand by Type & Animal
12 Vaccine Demand by Animal
13 Diagnostics Demand by Animal
14 Other Pet Health Product Demand by Type & Animal
SECTION V -- CONDITIONS
1 Pet Health Product Demand by Condition
2 Skin Conditions: Pet Health Product Demand by Type & Animal
3 Heart Conditions: Pet Health Product Demand by Type & Animal
4 Gastrointestinal Conditions: Pet Health Product Demand by Type & Animal
5 Renal Conditions: Pet Health Product Demand by Type & Animal
6 Arthritis: Pet Health Product Demand by Type & Animal
7 Diabetes: Pet Health Product Demand by Type & Animal
8 Other Conditions: Pet Health Product Demand by Type, Condition, & Animal
SECTION VI -- ANIMALS
1 Pet Health Product Demand by Animal
2 Dog Health Product Demand by Type
3 Cat Health Product Demand by Type
4 Other Pet Health Product Demand by Type
SECTION VII -- INDUSTRY STRUCTURE
1 Pet Health Product Sales by Company, 2011
2 Selected Acquisitions & Divestitures
3 Selected Cooperative Agreements
LIST OF CHARTS
SECTION II -- MARKET ENVIRONMENT
1 World Pet Health Product & Service Demand, 2011
SECTION III -- SERVICES
1 Pet Insurance Market Share, 2011
SECTION IV -- PRODUCTS
1 Pet Health Product Demand by Type, 2011
SECTION V -- CONDITIONS
1 Pet Health Product Demand by Condition, 2011
SECTION VI -- ANIMALS
1 Pet Health Product Demand by Animal, 2011
SECTION VII -- INDUSTRY STRUCTURE
1 Pet Health Product Market Share, 2011
Pet Health: Products & Services published by The Freedonia Group in August 2, 2012. This report consists of 262 Pages and the price starts from US $ 5100.
The contents of this page may be different from the latest version. Please contact us for details.
Press Release
US Consumer Spending on Pet Health Products
and Services to Exceed $30 Billion in 2016
August 10th, 2012
Global Information Inc. would like to present a new market research report, "Pet Health: Products & Services" by The Freedonia Group.
US consumer spending on pet health products and services is expected to reach $30.9 billion in 2016, with over three-fifths of expenditures accounted for by services. The overall pet population is expected to approach 218 million animals, with 62 percent of US households owning pets. Advances in pet health expenditures will be encouraged by the continuing "humanization" of companion animals and their treatment as family members. Veterinary technology will also continue to adapt diagnostic and treatment techniques from human health care, driving value gains for newer, more costly procedures.
The fastest gains in pet health service spending will remain in pet insurance, with revenues expected to advance more than 11 percent annually through 2016 to $680 million. While penetration rates will remain low, rising spending on veterinary procedures will encourage more pet owners to select insurance coverage to help mitigate costs. Surgical and non-surgical veterinary care will continue to dominate pet health services, accounting for close to three-quarters of spending. Surgical revenues will remain the larger segment, as these more costly procedures increasingly see technology transfer from human medicine, such as in dialysis and organ transplants. Newly available services typically cost significantly more than established procedures, adding to revenue gains. However, non-veterinary pet care, including boarding and grooming, accounts for significant spending as pet owners opt for services such as "doggy day care" to tend to pets while owners are away at work or on vacation.
At the retail level, consumers are forecast to spend $11.5 billion on pet health products in 2016, supporting $5.6 billion in manufacturers level sales. Online pharmacies, pet superstores, and large retailers such as Wal-Mart will continue to gain market share over veterinary practices due to significant cost savings, and major retail centers will dedicate more floor space to pet products. Pharmaceuticals and parasiticides will continue to dominate spending on pet health products, accounting for a combined 63 percent of the market in 2016. While these two product categories will see the largest gains in demand, they will be outpaced by advances for less mature preventive products such as dietary supplements, diagnostics, and prescription food.
