Excerpt: Pet Industry Trends for 2009
The 2009 economics for pet-related small businesses will be dominated by the impact of the recession on consumer spending and attitudes. It has long been thought that pet-related spending is recession proof; however, we believe this assertion will be tested in 2009. We estimate the size of the US pet insurance market to be $271 million in premium in 2008, up from approximately $220 million in 2007 (a 23% increase) and we expect 2009 premium to reach $328 million. We project that the market will grow to $500 million by 2012. There are 11 pet insurance companies in the US selling under 15 brands. Two new companies arrived on the scene in 2008, including the Purina Pet Insurance brand underwritten by AIG. New entrants with money is good news for the industry as bigger marketing budgets means increasing awareness for pet insurance in general. It appears that some of the largest big box non-pet retailers have backed off from plans to jump on the pet insurance bandwagon but watch for Petco to relaunch its pet insurance partnership in early 2009.
Source: http://smallbiztrends.com/2009/01/pet-industry-trends-2009.html
-------------------------------------------------------------
Excerpt:
Bear Market Can’t Dog Pet Industry’s Numbers Other pet-focused companies and private store owners are also likely to benefit from the industry's semi-impervious standing, says Bob Vetere, president of the American Pet Products Association. APPA estimated that in 2009, Americans will spend an approximate $45.4 billion on their pets -- a $2.2 billion increase from what pet owners shelled out in 2008. It released these findings at the Global Pet Expo in Orlando, Fla., an annual pet industry showcase event held from Feb. 12-14."I hate to use the word 'recession proof,' but the industry has certainly shown resistance in its performance up until this point," Vetere said. "People are cutting back on a lot of areas, but are not cutting back on their pets. They are postponing those vacations or downgrading their cars just to make sure that Fido and Fluffy are well taken care of." Given the constant influx of negative news on the economy, it can be hard to believe that the pet industry is faring as well as it is, Vetere concedes. Yet he cites an increasing number of empty-nest baby boomers, in addition to society's overall humanization of pets, as contributing factors behind the trend."Baby boomers have had their children leave home and move on, and they are looking for something else to care for," Vetere said. "Lo and behold, there's Spike. He never talks back and doesn't take the car out late at night, and it's like, 'I love you, Spike.' This is a new child to hover over." Especially in stressful times, focusing on pets can make people feel more at ease, Vetere says of why people care about their pets now more than ever before.
Source: http://www.zootoo.com/petnews/bearmarketcantdogpetindustrysn-1231
-------------------------------------------------------------
Excerpt:
NCVEI issues pet insurance guide The National Commission on Veterinary Economic Issues on Jan. 19 released the first in a series of position papers concerning major business and economic issues facing the veterinary profession. In a user guide published for distribution at the 2009 North American Veterinary Conference, the Brakke Veterinary Practice Management Group concludes that an insured clientele has a beneficial economic impact. The paper, "A Veterinarian's Guide to Pet Health Insurance," provides a balanced overview of the pet health insurance industry, explains benefits pet health insurance can bring to a practice, and gives tips for proactively promoting the use of pet health insurance among clients.
The guide was developed in response to the recent and rapid growth of the pet insurance industry, which grew 20 percent annually from 2003 to 2007, with total growth at 107 percent. During that time, the number of companies offering pet insurance increased from three to 10. This rapid growth means more pet insurance literature in veterinary hospital reception areas and more questions for veterinarians and their staff.
Despite the increase, insured pets still represent a small minority of the total U.S. pet population. Estimates place the number of insured pets in North America near 850,000, according to the NCVEI. The guide contends that one inhibiting factor to the growth of pet insurance is a prevailing fear among veterinarians that widespread use of insurance will result in a managed care system. The paper outlines the differences between the managed care model of human health insurance and the indemnity model of pet health insurance.
Source: http://www.avma.org/onlnews/javma/mar09/090301g.asp
-------------------------------------------------------------
Excerpt:
PetFirst: Pet Insurance To Be More Popular in 2008
The insurance industry is going to the dogs ... and cats. Officials with PetFirst Healthcare say more and more pet owners are insuring their furry friends and the growth trends for pet insurance are only going to accelerate in 2008. As a nationwide provider of health insurance policies for dogs and cats, PetFirst expects the $250 million pet insurance industry to double by 2012. Pet insurance works similarly to human health insurance, covering the costs associated with veterinary expenses. PetFirst plans include routine care such as annual exams, vaccinations, flea control and spay/neuter services, as well as surgeries, x-rays or hospitalization that result from illness or injury. Hinton said other trends in pet insurance are mirroring human health care. Obesity, for instance, is a growing problem for dogs and cats. In 2007, PetFirst saw a 19 percent increase in claims related to obesity, including conditions such as cardiac arrest, hypertension and hypothyroidism.
Source: http://www.bio-medicine.org/medicine-news-1/PetFirst-3A-Pet-Insurance-To-Be-More-Popular-in-2008-11240-1/
|
