NEWS

Bundles of joy, and profit

Retailers, health providers reap benefit of pet population explosion

Paula J. Owen
Telegram & Gazette
Employee Shawn Collin checks the date on bags of dog food at BJ's Wholesale Club in Northboro. [T&G Staff/Rick Cinclair]

WORCESTER – From Halloween costumes, Christmas stockings and adorable outfits to high-tech toys, monitors and holistic products, there are myriad products on the market for consumers to care for, and spoil, their four-legged family members.

According to petfoodindustry.com, Amazon.com’s online sales of pet products in the U.S. totaled $430 million in the last quarter, higher than sales for those products in the UK, Germany and France.

And that is just Amazon. Sales of pet products and services totals more than $66 million annually, according to the American Pet Products Association, and continues to increase, and is considered “recession proof” by some in the industry.

Big box retailers such as BJs Wholesale Club and Walmart have expanded their pet product offerings, and smaller stores are also seeing an increase in sales as pet ownership increases. As the number of pets increase, so does the demand for services.

In the U.S., the pet dog population increased from 35 million in 1973 to around 72 million by 2011 and stood at around 90 million last year, according Dr. Scott R. Handler, associate medical director of operations at the Foster Hospital for Small Animals at Cummings Veterinary Medical Center at Tufts University.

That’s quite an increase.

“There are a few factors – the human-animal bond and people treating pets such as dogs and cats as part of the family and the benefits they gain from those relationships; and the economic cycle,” Mr. Handler explained. “As we continue to grow economically, people feel more comfortable taking on the responsibility of pets both financially and emotionally.”

Demographics have also changed, he said.

“As baby boomers phase into retirement and their children move out of the house, they are taking on pets that may be a replacement for their children and there are millennials not living at home taking on pets,” he said. “Those are two big demographic groups.”

At Tufts, Mr. Handler said they have seen in increase in caseloads over the past three years from 31,000 to 35,000.

“There is a segment of the population looking for the best medical care available, and because of that, they are willing to pay for that care, including MRIs, total hip replacements, dialysis — that is the level of care in the facilities we have here at Tufts,” he said. “They have the same expectations they have for family or friends undergoing certain procedures and are looking for the same level of care for their pets that they consider family members as well.”

To help meet the growing demand for veterinary services, schools are expanding their veterinary assistant programs, he said, including Montachusett Regional Vocational Technical School and Nashoba Valley Technical High School, which recently opened new vet clinics, joining Worcester Technical High School, which is partnered with Tufts.

Beyond food, water, shelter and medical care, Mr. Handler said the growing number of product lines, including nutritional supplements, interactive feeding stations and doors, pet monitoring systems and other products, are extraneous.

On average, pet owners should plan to spend about $250 out-of-pocket annually for routine veterinary care for their dog and $180 for their cat, he said, with an additional $235 a year for food, depending on the breed.

“Halloween costumes are not necessary,” he says. “They are cute and fun and it makes the animal more part of the family and increases the bonding, but they are not necessary.”

There is one additional thing he does believe pet owners should spend their money on.

“We would like to see people have pet health insurance,” Mr. Handler said. “We know that animals covered through vet health insurance policies are able to receive more care than those that aren’t, as a general rule. It is nice to see patients that are covered so financial limitations don’t come into play as much.”

As unnecessary as some products may be for a higher quality of life, sales are booming.

Cynthia S. Troller, who has worked at for Walmart 28 years and as store manager in four different locations, said the Worcester store has expanded its offerings.

“Like anywhere, people buy clothes for their animals and toys,” said Ms. Troller, who owns two dogs, Duncan and Peggy. “People used to buy milk bones for special treats. Now, there are organic treats, grain-free with more meat. … People are more conscientious about the content of food for their pets. There are also Christmas stockings for dogs and cats, filled with toys and treats, and Halloween costumes.”

Ms. Troller said she has seen the largest increase in sales in the higher-end pet food products.

“As more people get educated about their own food, that translates to the little beings that live in our homes,” she said. “What they take in matters, too. I know as my income has grown and I became more knowledgeable, I don’t buy cheap stuff anymore. I buy the good stuff.”

BJ's Wholesale Club is also expanding pet product lines across its 25 store locations in Massachusetts. The Westboro-based company is aiming to carve out a name for itself in the pet category by not only offering high-quality food at a low price, but serving as a one-stop shop for all family groceries and needs – including pets.

BJs recently expanded its Berkley Jensen pet assortment line with additional dog treats, dry dog food and wet cat food options that are grain-free with zero filler or preservatives.

“As a privately held company, we do not disclose sales figures,” said Bonnie Volpe, vice president of food, sundries, and beverages at BJs. “We can tell you that members love our expanded assortment of Berkley Jensen pet products and with even more opportunities to shop on BJs.com, our members continue to choose BJ’s Wholesale Club for their pet needs.”

Ms. Volpe said BJs also expanded its pet health and wellness offerings and added more flea/tick treatments.

Michael J. DiTullio, president and owner of Especially for Pets, which offers a “healthier diet for pets,” including natural and organic whole food and pet products, and services, including obedience training, day school, grooming and non-emergency veterinary care, opened his eighth Massachusetts store at Lakeway Commons in Shrewsbury.

Mr. DiTullio recently offered his thoughts on the increasing demand for everything pets. Increasingly, families are making better lifestyle choices for themselves and their pets, which drives annual spending, he said.

“Pets have become very much a part of the family unit,” Mr. DiTullio said. “The marketing term is called the humanization of pets. But the simple fact is, parents love their four-legged children just as much as their two-legged children and are making better, healthier choices for both. Another major factor is the rising of millennial pet parents. This demographic is hyper-focused on healthy and wholesome products and services.”

That means more jobs in the pet product sector to meet demand, he said.

“Pet spending is about $67 billion in the U.S. and is increasing every year,” he said. “Some say it is recession proof. Retailers like Especially for Pets are expanding their store counts and manufacturer product innovation is expanding at an exponential rate.”

Small businesses are also cashing in on the increase in the market.

Maria I. Rafalski, owner Shampooch Mobile Pet Groomer based in Gardner, started her business in 2010 with a few customers, she said. With 175 clients and a waiting list, she said she is considering buying another truck – if she could clone herself.

“I can’t even take on new clients,” she said. “I stopped at the beginning of this year. People like the convenience of it and like the one-on-one attention. It is less stressful, and they like the interaction with the dogs and groomer.”

If she can find someone who loves the dogs as she does, who she can trust, Ms. Rafalski will also look to expand in the growing pet industry.