Pet Supplements, Nutraceuticals Market Shows Healthy Growh

It's no secret that Americans are increasingly treating their pets like humans, but as the trend continues, spending on their health and well-being--particularly when it comes to supplements and nutraceutical products--is expected to increase nearly 40% over the next four years.

According to Packaged Facts, spending on supplements and nutraceutical treats is expected to hit $1.7 billion by 2012. And that number could move even higher if supplements gain further legitimacy through a formal, governmental regulatory status. "It would be a real seal of approval," David Lummis, senior pet market analyst for Packaged Facts, tells Marketing Daily. "It would imply an efficacy of products."

Even though a growing number of families are seeking out supplements and nutraceuticals for their pets, there are still 20 million families that buy them for themselves, but do not yet buy them for their pets, Lummis says. "They're the top prospects for expanding supplemental usage to pets," he says.

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Currently, supplements, such as glucosamine in pill form, account for the majority (74%) of these purchases. And while nutraceuticals, which add these supplements to pet treats, are a growing segment--possibly reaching 30% by 2012--it's unlikely that they'll command a larger share of the market than supplements, Lummis says. "The traditional [supplemental] forms have advantages, like being able to monitor them and whether they're consumed," Lummis says.

The increase in pet supplement and nutraceutical spending is driven by what Lummis calls the "humanization" of pets. Indeed, the American Pet Products Manufacturers Association last March projected spending on pet products would increase to $40 billion in 2007--up from $38.5 billion in 2006. Perhaps not surprisingly, that growth was driven by health-oriented products and services.

"Because of better veterinary care and better living trends, pets are living longer," leading to an increased interest in health care and supplements, Lummis says. The supplement and nutraceutical categories are also given a boost thanks to increased acceptance of them by the veterinary community. "Because pet supplements have come along later in the curve [than human supplements], they're having an easier time for acceptance," Lummis says. "If you look at the vets specifically, the supplemental trend is creeping into the mainstream."

More than half--57%--of small-animal supplement purchase are made through veterinary offices, health and natural food stores and mass-market outlets. The remaining 43% are made through pet specialty shops.

About half of all pet product purchases are from higher wage earners--those making more than $70,000 a year or more, according to Dillon Media LLC, a pet consulting firm. The more affluent buyers also account for another large driver of pet supplements and nutraceuticals: the equine market.

"Equine is a huge component of the market," Lummis says. While the percentage of people owning horses is relatively small when compared with dogs, cats and other small animals, the amount of supplements a horse eats ("literally bucketfuls," says Lummis) and the tendency toward affluence of horse owners, accounts for this market driver, according to Lummis.

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