2. Increased Spending for the Love of Pets
According to American Pet Product Association (APPA) data, 2016 industry sales totaled $66.75 billion, an increase of 10.7% from The APPA forecast for is $69.36 billion, which would be an increase of 3.9% over 2016.
During 2016, according to APPA, $28.23 billion, or 42.3% of the total, was spent on food; $14.71 billion (22%), supplies/OTC medicine: $15.95 billion (23.9%), vet care; $2.1 billion (3.1%), animal purchases; and $5.76 billion (8.6%), grooming & boarding.
According to the 2017–2018 APPA National Pet Owners survey, pet owners’ biggest yearly expenditure was vet services, $731 for dogs and $427 for cats, on average; followed by boarding, $322 and $164, respectively, and food, $235 for both.

3. Store Expansion and Mergers
The number of stores on Pet Business’ Top 25 Retailers list increased by more than 500 units during 2016, a 10% increase. The unit-growth rate had remained steady at 5% for the previous 10 years.
PetSmart’s 2016 revenues were $6.484 billion and Petco’s were $4.021 billion, accounting for a combined 15.7% share of the overall pet market.
During July 2016, Pet Valu merged with Pet Supermarket to create Pet Retail Brands, an entity that is expected to generate approximately $1 billion in sales in the US and Canada. Tractor Supply Company bought Petsense.

4. Unleashing Cat and Dog Ownership
Dog ownership has increased 29% during the past decade, and 105 million Americans own dogs, according to a 2017 Research and Markets report. Most dogs live in multi-dog households, which are increasing at a faster rate than the general growth rate.
Cat population has remained steady during the past decade, and there are 59 million cat owners in the US. Cat ownership among seniors has increased 43% during the past decade while Hispanic cat ownership has also increased substantially.
According to a June 2017 analysis from Hitwise, cat owners are more skeptical of advertising than dog owners, with 14% saying they are less likely to agree that product advertising is truthful, compared to 9% of dog owners who are more likely to agree.

5. Our Fishy Friends
Almost a quarter (23%) of pet owners have a pet other than a cat or dog, and 12% of Americans own fish. Nearly three-quarters (73%) of fish owners are younger than 50. Pet fish are more common in larger and more affluent households.
Millennials have 62% of saltwater fish and 43% of freshwater fish, compared to their 35% of overall pet ownership.
On average, fish pet owners spent the most on freshwater ponds during 2017, or $376, while those with saltwater fish spent the most on average on fish tanks, or $192.

6. More from the World of Pets
People acquire dogs primarily from breeders, 25%; friends or relatives, 25%; animal shelters, 22%; and rescue groups, 12%. Cats are mostly obtained as strays, 32%; shelters, 28%; or friends/relatives, 26%. Fish are purchased at pet or specialty stores.
Fewer pet owners buy premium food, for dog owners, 41% for 2016, compared to 47% during 2014; for cat owners, 39% for 2016, compared to 42% during Grain free/gluten free food sales have increased, however, +7% dogs and +6% cats.
More pet owners are giving their animals treats: dogs, 95%; cats, 80%; birds, 92%; small animals, 88%; reptiles, 54%; and horses,43%. Owners give their dog an average of 5 gifts per year, at $14 each, and their cat 4.9 gifts, at $12 each on average.

7. The Online Convenience of Pet Food Shopping
Owners of saltwater fish and birds were more likely to buy food (72% and 75%, respectively) and treats (72% and 61%, respectively) online than other pet owners, with approximately 50% of whom purchased those products online.
On average, pet owners spend 3.2 hours per day on the Internet compared to 2.8 hours watching television; however, this varies by generation.
During May 2017, PetSmart acquired Chewy.com, the nation’s leading online pet product retailer. One Click Retail reports that Amazon sold $2 billion worth of pet products in the US during 2016, including $700 million for pet food.

8. Advertising Strategies
Host fish care classes in store to attract affluent fish owners who are frequently looking for advice and recommendations.
Include a section in-store for toys and treats made in America to capitalize on this growing trend. Highlight specialty products for problems like bad breath and overweight pets.
Promote to dog owners that they bring their dog into the store to choose the toys and treats that appeal to him/her.

9. New Media Strategies
Promote a funniest or cutest dog or cat video contest and post them on your Website with promotions for dog or cat products. Imprint each video with your store’s name and Website to build your brand when users share the videos via social media.
Purchase local online advertising and make sure your city and neighborhood are in your search terms.
Post info about new products in pet owner groups on Facebook. Advertise them to owners of those specific animals on Facebook.