• by Karlene Lukovitz  @KLmarketdaily, June 8, 2007

These days, we humans expect convenience elements to be built into virtually every product we buy for ourselves, even when it's generic or bargain-priced. But when it comes to our pets, we're being successfully trained to equate convenience with luxury-which in turn, of course, equates to paying premium prices.

The number of convenience-oriented pet product lines grew nearly 20% between 2005 and 2006, and the number specifically positioned as "upscale" increased six-fold, from seven to 41, between 2002 and 2006, according to data cited in a new report on pet travel and convenience products from the Packaged Facts division of MarketResearch.com. (Convenience products are those touted as being single-serve, disposable, quick, reusable, refillable, no-odor, instant, hand-held and/or microwaveable. Yes, microwaveable.)

Among pet product marketers, "There is no longer any question that consumers are willing to pay significantly more for products capable of enhancing their relationships with their pets, while also making pet care more fun and convenient," sums up PF.

Such products are getting a major lift from more affluent demographic groups. Households with incomes of $70,000 or greater accounted for 43% of all U.S. non-food pet supplies spending and 44% of all pet food in 2004, versus just 21% and 15%, respectively, in 1994-a function both of the increasing number of higher-income households and companies' growing emphasize on marketing to them.

But average-income pet owners are by no means immune to the urge to "humanize" Rover or Mittens and shell out for "functional pampering," which PF identifies as the most important pet-market trend in 2006 and going forward. Indeed, while not everyone may be willing to spring for a diamond-encrusted Gucci collar, canny marketers know that convenience items that also carry a whiff of luxury cachet -- including time/effort savers like auto-clean litter boxes and auto-feed/water systems -- can be readily rationalized as a no-guilt splurge. Hence, marketers using the luxury gambit are positioning their products primarily on the practical side, so as not to restrict their appeal to the affluent, observes PF.

Not surprisingly, households without children -- particularly DINKs (dual income/no kids) and empty-nest couples -- are also key demographic targets because of their growing number and greater ability/willingness to lavish discretionary bucks on premium pet products.

Last year, a whopping 65% of DINKs, and 47% of empty-nesters, owned pets (up from 59% and 42%, respectively, in 2004). Pet-owning among single-adult households rose from 33% to 36% during the same period.

The wave of aging baby boomers -- along with aging pets, thanks to better veterinary care -- is also driving the lucrative pet products/services market, which is projected to grow from $44 billion last year (including $14.4 billion in vet services, $15.2 billion in food, $9.7 billion in supplies and $5 billion in other services) to $52 billion by 2009. Boomers are more likely to own dogs or cats (ownership is above-average for households with adults between the ages of 35 and 64, and particularly high among 45-to-54 year-olds, although it drops below average at 65+). Moreover, they're giving their pets many of the same types of health-enhancing/life-extending/age-facilitating products and services they use themselves.

The "Have pet, will travel" syndrome is another boon to the category, spawning a plethora of pet carriers (including strollers, pet backpacks for bikes and scooters and car seats with seatbelts), weather-protection apparel, hands-free leashes for jogging and motion-sickness remedies. Over two thirds (67%) of pet owners travel with their pets, 43% have taken their pets to work (37% do so at least once per month), and 40% take them on errands, according to an American Animal Hospital Association owner survey.

Naturally, retailers of all types are pushing to get a piece of the pet action. Owners buy through multiple channels, with 48% buying at supermarkets, 46% at pet stores, 39% at discount stores and 5% online.

Among specialty chains, PetSmart and Petco dominate, with about 1,550 stores and $5.4 billion in sales at year-end 2006, and plans for at least 100 new stores per year for the foreseeable future. In the mass sector, Wal-Mart and Target are both expanding pet-supply departments and private-label offerings. Wal-Mart is launching a major e-tailing initiative, and Target is emphasizing "designer" supply collections, including a web site offering thousands of SKUs.

But wholesale clubs, dollar stores, convenience stores, department stores, and even home improvement/hardware, sporting goods and off-price clothing/warehouse stores are also getting into the animal act. PF estimates that pet product sales in non-traditional outlets jumped by about $684 million between 2001 and 2005, to $2.9 billion.

Further, a growing number of formerly "human-only" brands are hot on the trail. The household cleaning category, for example, has seen pet-oriented entries from such major brands as Bissell, Woolite, WD-40, S.C. Johnson & Son, P&G, 3M and Evercare, with products ranging from carpet/upholstery cleaners and deodorizers to pet hair rollers.

Meanwhile, with 29% of those traveling with pets staying in hotels/motels, and 76% of pet owners indicating they'd be more loyal to a chain that accepts pets (even when Pookikins is not along for the ride), the hospitality industry is increasingly putting out the welcome mat out for furry friends. At least 25,000 U.S. hotels and motels accommodate pets, including La Quinta Hotel, Motel 6, Sheraton, Starwood's Westin, Ritz-Carlton and The Four Seasons.

But Loews leads the pack. The "Loews Loves Pets" loyalty program in 16 North American hotels features a host of first-class pet amenities, including pet sitters, special bedding, complimentary treats and toys, food bowl placemats, pet-friendly restaurants and, for reclusive canines and kitties, room service menus offering grilled lamb and chicken, salmon and (but of course) vegetarian entrees.