Animal Magnetism

American Demographics, May 1, 2002 by Rebecca Gardyn

Byline: REBECCA GARDYN

On her wedding day last summer, 31-year-old Ericka Tullis knew that despite the disapproving looks she might receive from her guests, she wanted her best friend, Daisy, by her side. As it turned out, Daisy, a 7-year-old black Labrador retriever outfitted with a wreath of flowers around her collar, made a well-behaved bridesmaid at Tullis's Napa, Calif., nuptials. Afterward, while the newlyweds honeymooned in Italy, Daisy embarked on a two-week stay at the luxurious Paradise Ranch Country Club for Dogs in Sun Valley, Calif., complete with swimming pool and a bedroom with TV, for $45 a night. Says Tullis, "Daisy is my best buddy, and she deserves the best. She's like the daughter I haven't had yet."

Tullis and her husband, Paul, 33, are among the more than half of all U.S. households (62 percent) that include at least one pet, up from 56 percent in 1988, according to the annual Pet Owner Survey published by the Greenwich, Conn.-based American Pet Products Manufacturers Association (APPMA). And, like Tullis, pet owners overwhelmingly consider their furry friends to be members of the family - 92 percent do, according to a February Yankelovich poll. Last year, Americans spent an estimated $29 billion on their pets, up from $17 billion in 1994. Pet industry analyst Julia Dvorko, of Norwalk, Conn.-based Business Communications Co., expects the market to grow to $34 billion by 2005. Says Dvorko: "Trends in consumer expenditures show that owners tend to pamper their pets even when they have to cut back on [household] spending. After all, even during economic downturns, people give gifts to family members and buy special treats for their children."

Traditionally, the pet industry has catered primarily to the married-with-children set, and rightly so, as this group has consistently spent the most on pets. But changing lifestyles and demographic shifts are creating new consumer pockets for pet-related businesses. Only a third of all pet owners today are married with children, according to New York City-based Mediamark Research, Inc. An increase in cohabitating couples, and longer waiting periods before becoming parents, have led to a growing niche of pet lovers: young couples who acquire pets as a means of testing the waters of parenthood. At the same time, married Baby Boomers are filling their empty nests with dogs, cats and birds. Single households, primarily those headed by Boomer divorcees and seniors, are also on the rise, with many of them finding comfort in furry companionship.

These shifts have helped create what experts say is one of the most prominent attitudinal drivers of pet industry growth: the increasing anthropomorphism, or humanization, of pets by their owners. Because today's pet owners view themselves as their pets' parents - 83 percent call themselves "Mommy" or "Daddy," compared with just 55 percent who did so in 1995 - they're on the lookout for pet products and services that meet high standards.

One of the fastest growing segments of the market is the pet supplies category, as more consumers demand better quality as well as more aesthetically pleasing products and accessories for their pets, industry experts say. Veterinary services and health-care products will also flourish, as will nonessential services such as pet-sitting, day-care centers and boarding. And just as "convenient," "customized" and "healthful" have become buzzwords in the development of human products and services, so too are they the primary shapers of the pet industry, from functional foods tailored to pets' special health needs to in-home services that make life easier for these "parents" on-the-go. Here is a look at the leading trends in pet products, foods, veterinary care and special services that are poised for growth over the next decade.

Pooch Products

Pet products are becoming increasingly more convenient, educational, technological and easy to use. For example, since pet owners have little patience for poop, companies have begun to introduce automatic, self-cleaning kitty litter boxes, such as the Litter-Free Self-Washing Cat Box by Pet-Centric, Inc. (retail price $299.99), and even doggie litter for smaller dogs, which makes dog-walking an obsolete chore.

"Products that make it easier for pet owners to solve pet care problems quickly and easily are taking off," says David Goldberg, president of Marina Del Rey, Calif.-based Petkin, a manufacturer of pet washing products called DoggyWipes and KittyWipes, similar to human baby wipes.

Other convenience products aim at owners loath to leave Fluffy alone. For example, Newport, R.I.-based Travel Meals offers what are essentially bag lunches for dogs and cats. Costing about $4 to $5, each "mobile feeding bowl" comes with a meal and drinking water, and either a disposable foldout kitty litter box or doggie scoop bag "for easy cleanup."

As for toys, product manufacturers that recognize the parental attitude of today's pet owners are looking to human children's playthings for inspiration, says Funda Alp, spokeswoman for the APPMA. Last year, toy giant Hasbro teamed up with pet superstore PetSmart to launch a line of products called Paws 'N More, which includes such toys as Puppy's First Key Teether and Catch-a-Fish Mobile for Cats. And like many children's toys today, playthings for pets are becoming more technological and educational. The Talk To Me Treatball, by Chesterfield, Mo.-based Marketing and Creative Sales, is a rolling food dispenser that plays a recorded personal message each time an animal nudges the ball. The product, which retails for $16.99 to $19.99, depending on the model, is touted as a training toy that can also help cure pets' separation anxiety.