Friday, May 18, 2012

Pet Spending Decline Has Begun

A recent AP article noted that boomers will be less likely to own pets as they get older, which could lead to a decline in spending on pets. In fact, the decline has already begun. The average household spent $480 on pets in 2010, down from $552 in 2009--a 13 percent decline, after adjusting for inflation.

Households cut their spending on every pet category, including food (down 4 percent), supplies and medicines (also down 4 percent), and services (down 12 percent). Average household spending on veterinary service fell the most, a 32 percent decline in just one year.

Pet ownership costs have grown enormously in the past decade as the medical and pharmaceutical industries made inroads into pet care. Average household spending on pets more than doubled between 2000 and 2009. Consumers are tapped out.

Source: Bureau of Labor Statistics, Consumer Expenditure Surveys

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