Can Fido have too many toys?

Amidst all the dreary economic news of the moment I recently read that there remains at least one hot spot in the economy – businesses catering to the four-legged family member.

Spending on pets and pet products is expected to increase 6 percent in 2008 to $43.4 billion, according to the American Pet Product Manufacturers Association. This is more than double the amount pet owners spent about a decade ago. Compare this to annual retail sales, which are expected to grow 3.5 percent. The fastest growing segments are services such as spas and day care, higher priced toys and pet health insurance.

According to the ASPCA, in addition to your basic acquisition and ‘set up’ costs (leash, crate, etc), the average dog will cost from $580 to $875 a year, depending on size. They include health insurance ($225) that I don’t think many people have (which might explain why it is a fast growing product category). I think they grossly underestimate how much people spend in the toys/treats category (from $40 - $75). Overall, I think their numbers are low.

According to Pet Style News, there is a shift from mostly low-priced toys to higher priced pet toys, which range from robotic to electronic to organic. This is why the pet products industry is thriving.

I realize I’m going a bit back and forth on this, and I admit to checking out the toys aisle when I go to the pet store to see if there’s anything that Phoebe might like. It’s not like she doesn’t already have a big box full of toys, including some that haven’t been given to her yet, but something new might be fun. At the same time, I recall that when I was a kid, the dog didn’t have specially purchased toys. We would throw an old tennis ball for him, or stuff a tennis ball and an old gym sock (probably one with a hole) into another sock, tie it up and toss that now and then.

What happened? First, our four-legged friends have morphed from 'animal' to family member... and now one that often lives for much longer than versions in previous generations. Second, clearly the pet products industry is very good at identifying new product opportunities: designer accessories: outfits and furnishings; day care related services and travel related products and services. The newest trend in pet oriented products are “green” pet products” and I don’t mean the color of Jake’s favorite toy… Finally, obviously, more disposable and discretionary income -- which it seems, even in a recession, spending in this category may be recession proof. Given that this is a growth industry, one can only wonder, what’s next?