New Strategist
4
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EDITION
for Pets
THEWHO’SBUYINGSERIES BYTHENEWSTRATEGISTEDITORS
Wh
for Pets 3rdEDITI...
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New Strategist
4
th
EDITION
for Pets
THEWHO’SBUYINGSERIES BYTHENEWSTRATEGISTEDITORS
Wh
for Pets 3rdEDITION 4thEDITION
New Strategist Publications, Inc. P.O. Box 242, Ithaca, New York 14851 800/848-0842; 607/273-0913 www.newstrategist.com
Copyright 2006. NEW STRATEGIST PUBLICATIONS, INC.
All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming, recording, or otherwise without written permission from the Publisher.
ISBN 978-1-933588-17-9 Printed in the United States of America
Contents About the Data in “Who’s Buying for Pets” ..................................................................................................................5 1.
Percent Reporting Expenditure and Amount Spent, Average Week or Quarter 2004 ...............7
Household Spending Trends: 2000 to 2004 .................................................................................................................10 2.
Household Spending Trends, 2000 to 2004 .................................................................................... 11
Household Spending on Pets, 2004 ..........................................................................................................................14 3.
Pet Spending, 2000 to 2004 ...............................................................................................................16
Household Spending on Pets by Demographic Characteristic, 2004 4.
Pets: Average Spending by Age, 2004 .............................................................................................17
5.
Pets: Indexed Spending by Age, 2004 .............................................................................................18
6.
Pets: Total Spending by Age, 2004 ..................................................................................................19
7.
Pets: Market Shares by Age, 2004 ....................................................................................................20
8.
Pets: Average Spending by Income, 2004 .......................................................................................21
9.
Pets: Indexed Spending by Income, 2004 .......................................................................................22
10.
Pets: Total Spending by Income, 2004 ............................................................................................23
11.
Pets: Market Shares by Income, 2004 ..............................................................................................24
12.
Pets: Average Spending by High-Income Consumer Units, 2004 ..............................................25
13.
Pets: Indexed Spending by High-Income Consumer Units, 2004 ..............................................26
14.
Pets: Total Spending by High-Income Consumer Units, 2004 ....................................................27
15.
Pets: Market Shares by High-Income Consumer Units, 2004 .....................................................28
16.
Pets: Average Spending by Household Type, 2004 ......................................................................29
17.
Pets: Indexed Spending by Household Type, 2004 ......................................................................30
18.
Pets: Total Spending by Household Type, 2004 ............................................................................31
19.
Pets: Market Shares by Household Type, 2004 .............................................................................32
20.
Pets: Average Spending by Race and Hispanic Origin, 2004 ......................................................33
21.
Pets: Indexed Spending by Race and Hispanic Origin, 2004 ......................................................34
22.
Pets: Total Spending by Race and Hispanic Origin, 2004 ............................................................35
23.
Pets: Market Shares by Race and Hispanic Origin, 2004 .............................................................36
24.
Pets: Average Spending by Region, 2004 .......................................................................................37
25.
Pets: Indexed Spending by Region, 2004 .......................................................................................38
26.
Pets: Total Spending by Region, 2004 .............................................................................................39
27.
Pets: Market Shares by Region, 2004 ..............................................................................................40
28.
Pets: Average Spending by Education, 2004 ..................................................................................41
29.
Pets: Indexed Spending by Education, 2004 ..................................................................................42
30.
Pets: Total Spending by Education, 2004 .......................................................................................43
31.
Pets: Market Shares by Education, 2004 ........................................................................................44
WHO’S BUYING FOR PETS 3
Household Spending on Pets by Product Category, 2004 32.
Pet Food ...............................................................................................................................................46
33.
Pet Purchase, Supplies, Medicines ...................................................................................................48
34.
Pet Services ..........................................................................................................................................50
35.
Veterinary Services .............................................................................................................................52
Appendix: Spending by Product and Service Ranked by Amount Spent, 2004 ......................................................................54 Glossary ............................................................................................................................................................60
4 WHO’S BUYING FOR PETS
About the Data in “Who’s Buying for Pets” Introduction The spending data in Who’s Buying for Pets are based on the Bureau of Labor Statistics’ Consumer Expenditure Survey, an ongoing, nationwide survey of household spending. The Consumer Expenditure Survey is a complete accounting of household expenditures, including everything from big-ticket items, such as homes and cars, to small purchases like laundry detergent and videos. The survey does not include expenditures by government, business, or institutions. The lag time between data collection and dissemination is about two years. The data in this report are from the 2004 Consumer Expenditure Survey, unless otherwise noted. To produce this report, New Strategist Publications analyzed the Consumer Expenditure Survey’s average household spending data in a variety of ways, calculating household spending indexes, aggregate (or total) household spending, and market shares. Spending data by age, household income, household type, race, Hispanic origin, region of residence, and education are shown in this report. These analyses are presented in two formats— for all product categories by demographic characteristic and for all demographic characteristics by product category.
Definition of consumer unit The Consumer Expenditure Survey uses consumer unit rather than household as the sampling unit. The term “household” is used interchangeably with the term “consumer unit” in this report for convenience, although they are not exactly the same. Some households contain more than one consumer unit. The Bureau of Labor Statistics defines consumer unit as either: (1) members of a household who are related by blood, marriage, adoption, or other legal arrangements; (2) a person living alone or sharing a household with others or living as a roomer in a private home or lodging house or in permanent living quarters in a hotel or motel, but who is financially independent; or (3) two or more persons living together who pool their income to make joint expenditure decisions. The bureau defines financial independence in terms of “the three major expenses categories: housing, food, and other living expenses. To be considered financially independent, at least two of the three major expense categories have to be provided by the respondent.” The Census Bureau uses household as its sampling unit in the decennial census and in the monthly Current Population Survey. The Census Bureau’s household “consists of all persons who occupy a housing unit. A house, an apartment or other groups of rooms, or a single room is regarded as a housing unit when it is occupied or intended for occupancy as separate living quarters; that is, when the occupants do not live and eat with any other persons in the structure and there is direct access from the outside or through a common hall.” The definition goes on to specify that “a household includes the related family members and all the unrelated persons, if any, such as lodgers, foster children, wards, or employees who share the housing unit. A person living alone in a housing unit or a group of unrelated persons sharing a housing unit as partners is also counted as a household. The count of households excludes group quarters.” Because there can be more than one consumer unit in a household, consumer units outnumber households by several million. Young adults under age 25 head most of the additional consumer units.
WHO’S BUYING FOR PETS 5
How to use the tables in this report The starting point for all calculations are the unpublished, detailed average household spending data collected by the Consumer Expenditure Survey. These numbers are shown on the report’s average spending tables and on each of the product-specific tables. New Strategist’s editors calculated the other figures in the report based on the average figures. The indexed spending tables and the indexed spending column (Best Customers) on the product-specific tables reveal whether spending by households in a given segment is above or below the average for all households and by how much. The total (or aggregate) spending tables show the overall size of the market. The market share tables and market share column (Biggest Customers) on the product-specific tables reveal how much spending each household segment controls. These analyses are described in detail below. • Average Spending The average spending figures show the average annual spending of households on pets in 2004. The Consumer Expenditure Survey produces average spending data for all households in a segment, e.g., all households with a householder aged 25 to 34, not just those who purchased an item. When examining spending data, it is important to remember that by including both purchasers and nonpurchasers in the calculation, the average is less than the amount spent on the item by buyers. (See table 1 for the percentage of households spending on pets in 2004 and how much those purchasers spent.) Because average spending figures include both buyers and nonbuyers, they reveal spending patterns by demographic characteristic. By knowing who is most likely to spend on an item, marketers can target their advertising and promotions more efficiently, and businesses can determine the market potential of a product or service in a city or neighborhood. By multiplying the average amount households spend on veterinary services by the number of households in an area, for example, the owners of a veterinary clinic can determine where to site their business. • Indexed Spending (Best Customers) The indexed spending figures compare the spending of each household segment with that of the average household. To compute the indexes, New Strategist divides the average amount each household segment spends on an item by average household spending and multiplies the resulting figure by 100. An index of 100 is the average for all households. An index of 125 means the spending of a household segment is 25 percent above average (100 plus 25). An index of 75 indicates spending that is 25 percent below the average for all households (100 minus 25). Indexed spending figures identify the best customers for a product or service. Households with an index of 178 for pet food, for example, are a strong market for the product. Those with an index below 100 are either a weak or an underserved market. Spending indexes can reveal hidden markets—household segments with a high propensity to buy a particular product or service but which are overshadowed by larger household segments that account for a bigger share of the total market. Householders aged 55 to 64, for example, account for 18 percent of the pet services market (such as dog grooming) versus a larger 22 percent share accounted for by householders aged 35 to 44. But a look at the indexed spending figures reveals that, in fact, the older householders are the better customers. Householders aged 55 to 64 spend 22 percent more than average on pet services compared with only 5 percent above average spending by householders aged 35 to 44. The marketers of pet services can use this information to target their best customers. Note that because of sampling errors, small differences in index values may not be significant. But the broader patterns revealed by indexes can guide marketers to their best customers.
6 WHO’S BUYING FOR PETS
Table 1. Percent Reporting Expenditure and Amount Spent,
Average Week or Quarter 2004 (percentofconsumerunitsreportingexpenditureandamountspentbypurchasers duringanaverageweekorquarter,2004) average week percent reporting expenditure
Pets Pet food Pet purchase, supplies, and medicines
amount spent by purchasers
18.4% 15.7 6.2
$17.52 13.49 18.05
average quarter percent reporting expenditure
Pets Pet purchase, supplies, and medicines Pet services Veterinary services
27.7% 22.5 5.0 8.4
amount spent by purchasers
$174.03 99.55 126.36 234.39
Note:Householdswereaskedabouttheirtotalspendingon“pets”andon“pet purchasesupplies,andmedicines”onboththediarysurvey(weeklyamount)and interviewsurvey(quarterlyamount). Source:CalculationsbyNewStrategistbasedonthe2004ConsumerExpenditureSurvey
• Total (Aggregate) Spending To produce the total (aggregate) spending figures, New Strategist multiplies average spending by the number of households in a segment. The result is the dollar size of the total household market and of each market segment. All totals are shown in thousands of dollars. To convert the numbers in the total spending tables to dollars, you must append “000” to the number. For example, households headed by married couples without children at home spent more than $9 billion ($9,509,945,000) on pets in 2004. When comparing the total spending figures in this report with total spending estimates from the Bureau of Economic Analysis, other government agencies, or trade associations, keep in mind that the Consumer Expenditure Survey includes only household spending, not spending by businesses or institutions. Sales data also will differ from household spending totals because sales figures for consumer products include the value of goods sold to industries, government, and foreign markets, which may be a significant proportion of sales. • Market Shares (Biggest Customers) New Strategist produces market share figures by converting total (aggregate) spending data into percentages. To calculate the percentage of total spending on an item that is controlled by each demographic segment—i.e., its market share—each segment’s total spending on an item is divided by aggregate household spending on the item. Market shares reveal the biggest customers—the demographic segments that account for the largest share of spending on a particular product or service. In 2004, for example, households headed by people
WHO’S BUYING FOR PETS 7
aged 35 to 54 accounted for 57 percent of spending on pet food. By targeting only these consumers, pet food manufacturers could reach the majority of their customers. There is a danger here, however. By single-mindedly targeting the biggest customers, businesses cannot nurture potential growth markets. With competition for customers more heated than ever, targeting potential markets is increasingly important to business survival. • Product-Specific Tables The product-specific tables reveal at a glance the demographic characteristics of spending by individual product category. These tables show average spending, indexed spending (Best Customers), and market shares (Biggest Customers) by age, income, household type, race and Hispanic origin, region of residence, and education. If you want to see the spending pattern for an individual product at a glance, these are the tables for you.
History and methodology of the Consumer Expenditure Survey The Consumer Expenditure Survey is an ongoing study of the day-to-day spending of American households. In taking the survey, government interviewers collect spending data on products and services as well as the amount and sources of household income, changes in savings and debt, and demographic and economic characteristics of household members. The Bureau of the Census collects data for the CEX under contract with the Bureau of Labor Statistics, which is responsible for analysis and release of the survey data. Since the late nineteenth century, the federal government has conducted expenditure surveys about every ten years. Although the results have been used for a variety of purposes, their primary application is to track consumer prices. In 1980 the CEX became a continuous survey with annual release of data (with a lag time of about two years between data collection and release). The survey is used to update prices for the market basket of products and services used in calculating the Consumer Price Index. The CEX consists of two separate surveys: an interview survey and a diary survey. In the interview portion of the survey, respondents are asked each quarter for five consecutive quarters to report their expenditures for the previous three months. The purchase of big-ticket items such as houses, cars, and major appliances, or recurring expenses such as insurance premiums, utility payments, and rent are recorded by the interview survey. The interview component covers about 95 percent of all expenditures. Expenditures on small, frequently purchased items are recorded during a two-week period by the diary survey. These detailed records include expenses for food and beverages purchased in grocery stores and at restaurants, as well as other items such as tobacco, housekeeping supplies, nonprescription drugs, and personal care products and services. The diary survey is intended to capture expenditures respondents are likely to forget or recall incorrectly over longer periods of time. Two separate, nationally representative samples are used for the interview and diary surveys. For the interview survey, about 7,500 consumer units are interviewed on a rotating panel basis each quarter for five consecutive quarters. Another 7,500 consumer units keep weekly diaries of spending for two consecutive weeks. Data collection is carried out in 105 areas of the country. The Bureau of Labor Statistics reviews, audits, and cleans the data, and then weights them to reflect the number and characteristics of all U.S. consumer units. Like any sample survey, the CEX is subject to two major types of error. Nonsampling error occurs when respondents misinterpret questions or interviewers are inconsistent in the way they ask questions or record answers. Respondents may forget items, recall expenses incorrectly, or deliberately give wrong answers. A respondent may remember how much he or she spent at the grocery store but forget the items picked up at a local convenience store. Nonsampling error can also be caused by mistakes during the various stages of data processing and refinement.
8 WHO’S BUYING FOR PETS
Sampling error occurs when a sample does not accurately represent the population it is supposed to represent. This kind of error is present in every sample-based survey and is minimized by using a proper sampling procedure. Standard error tables documenting the extent of sampling error in the CEX are available from the Bureau of Labor Statistics at http://www.bls.gov/cex/csxstnderror.htm. Although the CEX is the best source of information about the spending behavior of American households, it should be treated with caution because of the above problems.
For more information To find out more about the CEX, contact the specialists at the Bureau of Labor Statistics at (202) 6916900, or visit the Consumer Expenditure Survey home page at http://www.bls.gov/cex/. The web site includes news releases, technical documentation, and current and historical summary-level CEX data. The detailed average spending data shown in this report are available from the Bureau of Labor Statistics only by special request. For a comprehensive look at detailed household spending data for all products and services, see the 11th edition of Household Spending: Who Spends How Much on What. To see the best and biggest customers for the complete array of products and services examined by the CEX, see the fourth edition of Best Customers: Demographics of Consumer Demand. To download spending reports for individual product and service categories, visit nSpend, the instant-answer service, at http://www.nspend.com. New Strategist’s books are available in hardcopy or as downloads by visiting http://www .newstrategist.com or by calling 1-800-848-0842.
WHO’S BUYING FOR PETS 9
Household Spending Trends: 2000 to 2004 Between 2000 and 2004, spending by the average household rose 4 percent, to $43,395, after adjusting for inflation. At the same time, average household income grew by a larger 11 percent. The considerable gap between income growth and spending growth reveals consumer caution, despite the improving economy. The pundits might accuse Americans of spending beyond their means, but in fact the steady rise in consumer spending at the national level primarily is the result of demographic change—population growth and the aging of the baby-boom generation into the peak earning and spending years. Much of the growth in household spending between 2000 and 2004 was involuntary, brought about by the ever-larger claim of necessities on the household budget. After adjusting for inflation, the average household spent 11 percent more on property taxes in 2004 than in 2000. Spending on gasoline rose 13 percent during those years. Spending on vehicle insurance also grew 13 percent. Out-of-pocket spending on health insurance increased by an enormous 24 percent. Spending on education rose an even greater 31 percent. Declines in discretionary spending are evident in the 2000 to 2004 trends. Spending on “other lodging,” a category that includes hotel and motel expenses, fell 10 percent, after adjusting for inflation. Spending on furniture declined 3 percent, women’s apparel fell 5 percent, and shoes lost an even larger 13 percent. Spending on public transportation (a category dominated by airline fares) declined 6 percent. Households cut their spending on fees and admissions to entertainment events by 7 percent and reading material by 19 percent. Contrary to popular perception, Americans are cautious spenders at the individual household level. The recession of 2001 followed by the lackluster recovery forced households to spend less on many discretionary items to make ends meet. Rapidly rising energy costs are now reducing discretionary spending even further. With the aging baby-boom generation entering its sixties and leaving the peak spending years behind, average household spending is not likely to grow much in the years ahead. American businesses will have to adapt to a new economic landscape, one in which affluence is becoming less common and the middle class is struggling to stay afloat. The globalization of the workforce coupled with rising energy prices and an increasingly troubled health insurance system will make our future very different from our past.
10 WHO’S BUYING FOR PETS
Table 2. Household Spending Trends, 2000 to 2004 (averageannualspendingoftotalconsumerunits,2000and2004;percentchange, 2000–04;in2004dollars) percent change 2000–04
2004
2000
116,282 $54,453
109,367 $48,975
6.3% 11.2
43,395
41,731
4.0
FOOD Food at home Cereals and bakery products Cereals and cereal products Bakery products Meats, poultry, fish, and eggs Beef Pork Other meats Poultry Fish and seafood Eggs Dairy products Fresh milk and cream Other dairy products Fruits and vegetables Fresh fruits Fresh vegetables Processed fruits Processed vegetables Other food at home Sugar and other sweets Fats and oils Miscellaneous foods Nonalcoholic beverages Food prepared by consumer unit on trips
5,781 3,347 461 154 307 880 265 181 108 156 128 42 371 144 226 561 187 183 110 82 1,075 128 89 527 290 41
5,658 3,314 497 171 326 872 261 183 111 159 121 37 356 144 212 571 179 174 126 92 1,017 128 91 479 274 44
2.2 1.0 –7.2 –10.0 –5.8 0.9 1.5 –1.2 –2.5 –1.9 6.1 12.6 4.1 0.2 6.8 –1.8 4.6 4.9 –12.8 –11.0 5.7 –0.3 –2.2 9.9 5.8 –6.6
Food away from home
2,434
2,344
3.8
Number of consumer units (in 000s) Average before-tax income Average annual spending
ALCOHOLIC BEVERAGES HOUSING Shelter Owned dwellings Mortgage interest and charges Property taxes Maintenance, repair, insurance, other expenses Rented dwellings Other lodging Utilities, fuels, and public services Natural gas Electricity
459
408
12.5
13,918 7,998 5,324 2,936 1,391
13,513 7,803 5,048 2,895 1,249
3.0 2.5 5.5 1.4 11.3
997 2,201 473
905 2,231 524
10.2 –1.3 –9.8
2,927 424 1,064
2,730 337 999
7.2 25.9 6.5
WHO’S BUYING FOR PETS 11
2000
Fuel oil and other fuels Telephone Water and other public services Household services Personal services Other household services
$121 990 327 753 300 453
$106 962 325 750 358 393
13.7% 2.9 0.7 0.4 –16.1 15.4
Housekeeping supplies Laundry and cleaning supplies Other household products Postage and stationery
594 149 290 155
529 144 248 138
12.4 3.7 17.0 12.1
Household furnishings and equipment 1,646 Household textiles 158 Furniture 417 Floor coverings 52 Major appliances 204 Small appliances, miscellaneous housewares 105 Miscellaneous household equipment 711
1,699 116 429 48 207 95 802
–3.1 35.9 –2.8 7.7 –1.6 10.0 –11.3
APPAREL AND RELATED SERVICES Men and boys Men, aged 16 or older Boys, aged 2 to 15
1,816 406 317 89
2,036 483 377 105
–10.8 –15.9 –16.0 –15.5
739 631 108
795 666 129
–7.1 –5.2 –16.6
79
90
–12.2
Footwear
329
376
–12.6
Other apparel products and services
264
292
–9.5
TRANSPORTATION Vehicle purchases Cars and trucks, new Cars and trucks, used
7,801 3,397 1,748 1,582
8,136 3,749 1,761 1,941
–4.1 –9.4 –0.7 –18.5
Gasoline and motor oil
1,598
1,416
12.8
Other vehicle expenses 2,365 Vehicle finance charges 323 Maintenance and repairs 652 Vehicle insurance 964 Vehicle rentals, leases, licenses, other charges 426
2,502 360 684 853 604
–5.5 –10.2 –4.7 13.0 –29.5
441
468
–5.8
HEALTH CARE Health insurance Medical services Drugs Medical supplies
2,574 1,332 648 480 114
2,266 1,078 623 456 109
13.6 23.5 4.0 5.2 5.0
ENTERTAINMENT Fees and admissions Television, radio, and sound equipment Pets, toys, and playground equipment Other entertainment products and services
2,218 528 788 381 522
2,044 565 682 366 431
8.5 –6.5 15.5 4.0 21.1
Women and girls Women, aged 16 or older Girls, aged 2 to 15 Children under age 2
Public transportation
12 WHO’S BUYING FOR PETS
percent change 2000–04
2004
PERSONAL CARE PRODUCTS AND SERVICES
2004
2000
percent change 2000–04
$581
$619
READING
130
160
–18.8
EDUCATION
905
693
30.5
TOBACCO PRODUCTS AND SMOKING SUPPLIES
288
350
–17.7
MISCELLANEOUS
–6.1%
690
851
–18.9
CASH CONTRIBUTIONS
1,408
1,307
7.7
PERSONAL INSURANCE AND PENSIONS Life and other personal insurance Pensions and Social Security
4,823 390 4,433
3,691 438 3,253
30.7 –10.9 36.3
PERSONAL TAXES Federal income taxes State and local income taxes Other taxes
2,166 1,519 472 175
3,419 2,642 616 160
–36.6 –42.5 –23.4 9.3
GIFTS FOR NONHOUSEHOLD MEMBERS
1,215
1,188
2.3
Note:Averagespendingisroundedtothenearestdollar.Thepercentchangecalculationis basedonunroundedfigures.TheBureauofLaborStatisticsusesconsumerunitratherthan householdasthesamplingunitintheConsumerExpenditureSurvey. For the definition of consumerunit,seetheglossary.Spendingongiftsisalsoincludedintheprecedingproduct andservicecategories. Source:BureauofLaborStatistics,2000and2004ConsumerExpenditureSurveys,Internet sitehttp://www.bls.gov/cex/;calculationsbyNewStrategist
WHO’S BUYING FOR PETS 13
Household Spending on Pets, 2004 Between 2000 and 2004, average household spending on pets rose 18 percent, after adjusting for inflation. Spending on pet purchase, supplies, and medicines saw the biggest gain during those years, climbing a substantial 38 percent as the application of flea, tick, and heartworm medications became routine for many pet owners. Spending on pet food rose 17 percent. Spending on pet services (such as grooming and dog walking) was up 18 percent. The average household boosted its spending on veterinary services by 8 percent between 2000 and 2004. The average household spent $272 on pets in 2004. This figure is an average for all households, including those without pets. The Bureau of Labor Statistics reports that during an average week of 2004, 18 percent of households spent on pets and that the spenders devoted an average of $17.52 per week to pet food, veterinary care, and other pet products and services. During an average quarter of 2004, the 28 percent of households that spent on pets devoted an average $174.03 to pets, pet products, and pet services. Most spending in the pet category is for pet food (41 percent), followed by veterinary services (29 percent). Pet purchase, supplies, and medicines absorb another 21 percent of the money spent by the average household on pets, while pet services account for the remaining 9 percent.
Spending by age The biggest spenders on pets are, not surprisingly, the most affluent householders—those aged 45 to 54. This age group spends 43 percent more than the average household on pets. Householders aged 45 to 54 spend more than other age groups on pet food, pet services, and veterinary services.
Spending by household income Spending on pets rises directly with income. Households with incomes of $100,000 or more spend twice the average on pets. They control 34 percent of the market for pet services. Spending on pets is below average for households with incomes of less than $50,000.
Spending by household type By household type, the biggest spenders on pets are married couples without children at home (many of them empty-nesters) and couples with adult children at home (also older couples). They spend 37 to 40 percent more than average on pets. These householders, because they are older, are more likely to have older pets requiring greater care. Married couples without children at home and those with adult children at home spend 30 to 50 percent more than the average household on veterinary care.
Spending by race and Hispanic origin Asians, blacks, and Hispanics spend much less than the average household on pets. Blacks spend the least—just 19 percent as much as the average household. Asians spend 33 percent of the average, and Hispanics spend 51 percent as much as the average household. In contrast, non-Hispanic whites and others spend 19 percent more than the average household on pets.
14 WHO’S BUYING FOR PETS
Spending by region Households in the West spend 16 percent more than the average household on pets, while those in the other regions spend about an average amount. Households in the West are the best customers of pet services, and they spend 35 percent more than average on this item.
Spending by education Households headed by college graduates spend more on pets than those with less education, in part because their incomes are higher. College graduates spend only 6 percent more than average on pet food, but 76 percent more than average on pet services—accounting for nearly half the market.
WHO’S BUYING FOR PETS 15
Table 3. Pet Spending, 2000 to 2004 (averageannualandpercentdistributionofhouseholdspendingonpets,2000to2004;percentchangeinspending,2000–04;in2004dollars) 2004
average household spending Average household spending on pets Pet food Veterinary services Pet purchase, supplies, and medicines Pet services
$271.61 110.31 78.38 57.85 25.07
2000
percent distribution 100.0% 40.6 28.9 21.3 9.2
average household spending (in 2004$)
percent distribution
$229.74 94.31 72.40 41.80 21.24
Source:BureauofLaborStatistics,2000and2004ConsumerExpenditureSurveys;calculationsbyNewStrategist
16 WHO’S BUYING FOR PETS
percent change 2000–04
100.0% 41.0 31.5 18.2 9.2
18.2% 17.0 8.3 38.4 18.0
Table 4. Pets: Average spending by age, 2004 (averageannualspendingofconsumerunits(CU)onpets,byageofconsumerunitreferenceperson,2004)
Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 116,282 2.5 $54,453.00 43,394.87
under 25 8,817 1.9 $22,840.00 24,534.56
25 to 34 19,439 2.9 $52,484.00 42,700.54
35 to 44 24,070 3.2 $65,515.00 50,401.62
45 to 54 23,712 2.7 $70,434.00 52,764.36
55 to 64 17,479 2.1 $61,031.00 47,298.58
65 to 74 11,230 1.9 $42,137.00 36,511.98
75+ 11,536 1.5 $28,028.00 25,763.32
271.61 110.31 57.85 25.07 78.38
165.28 48.83 70.40 8.76 37.29
232.14 70.63 62.34 20.38 78.79
306.02 125.07 66.74 26.36 87.85
387.61 181.69 68.27 36.18 101.47
307.98 120.12 62.75 30.61 94.50
195.57 86.58 19.82 21.81 67.37
128.18 56.22 29.04 14.70 28.21
Source:BureauofLaborStatistics,unpublishedtablesfromthe2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 17
Table 5. Pets: Indexed spending by age, 2004 (indexedaverageannualspendingofconsumerunits(CU)onpets,byageofconsumerunitreferenceperson,2004;indexdefinition:anindexof100isthe averageforallconsumerunits;anindexof132meansthatspendingbyconsumerunitsinthatgroupis32percentabovetheaverageforallconsumerunits; anindexof68indicatesspendingthatis32percentbelowtheaverageforallconsumerunits)
Average spending of CU, total Average spending of CU, index Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units $43,395 100
under 25 $24,535 57
25 to 34 $42,701 98
35 to 44 $50,402 116
45 to 54 $52,764 122
55 to 64 $47,299 109
65 to 74 $36,512 84
75+ $25,763 59
100 100 100 100 100
61 44 122 35 48
85 64 108 81 101
113 113 115 105 112
143 165 118 144 129
113 109 108 122 121
72 78 34 87 86
47 51 50 59 36
Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
18 WHO’S BUYING FOR PETS
Table 6. Pets: Total spending by age, 2004 (totalannualspendingonpets,byconsumerunit(CU)agegroup,2004;consumerunitsanddollarsinthousands)
Number of consumer units Total spending of all CUs Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 116,282 $5,046,042,273
under 25 8,817 $216,321,216
31,583,354 12,827,067 6,726,914 2,915,190 9,114,183
1,457,274 430,534 620,717 77,237 328,786
25 to 34 35 to 44 45 to 54 19,439 24,070 23,712 $830,055,797 $1,213,166,993 $1,251,148,504 4,512,569 1,372,977 1,211,827 396,167 1,531,599
7,365,901 3,010,435 1,606,432 634,485 2,114,550
9,191,008 4,308,233 1,618,818 857,900 2,406,057
55 to 64 17,479 $826,731,880
65 to 74 11,230 $410,029,535
75+ 11,536 $297,205,660
5,383,182 2,099,577 1,096,807 535,032 1,651,766
2,196,251 972,293 222,579 244,926 756,565
1,478,684 648,554 335,005 169,579 325,431
Note:Numbersmaynotaddtototalbecauseofrounding. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 19
Table 7. Pets: Market shares by age, 2004 (percentageoftotalannualspendingonpetsaccountedforbyconsumerunitagegroups,2004)
Share of total consumer units Share of total before-tax income Share of total spending Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0
under 25 7.6% 3.2 4.3
25 to 34 16.7% 16.1 16.4
35 to 44 20.7% 24.9 24.0
45 to 54 20.4% 26.4 24.8
55 to 64 15.0% 16.8 16.4
65 to 74 9.7% 7.5 8.1
4.6 3.4 9.2 2.6 3.6
14.3 10.7 18.0 13.6 16.8
23.3 23.5 23.9 21.8 23.2
29.1 33.6 24.1 29.4 26.4
17.0 16.4 16.3 18.4 18.1
7.0 7.6 3.3 8.4 8.3
Note:Numbersmaynotaddtototalbecauseofrounding. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
20 WHO’S BUYING FOR PETS
75+ 9.9% 5.1 5.9 4.7 5.1 5.0 5.8 3.6
Table 8. Pets: Average spending by income, 2004 (averageannualspendingonpets,bybefore-taxincomeofconsumerunits(CU),2004)
Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 116,282 2.5 $54,453.00 43,394.87
under $20,000 28,898 1.8 $10,923.47 18,865.37
$20,000– $39,999 27,297 2.3 $29,561.76 30,400.94
$40,000– $49,999 11,374 2.6 $44,645.00 38,204.07
$50,000– $69,999 18,069 2.8 $59,259.00 47,750.13
$70,000– $79,999 6,461 3.0 $74,437.00 55,012.03
$80,000– $99,999 9,246 3.1 $88,811.00 65,446.39
$100,000 or more 14,937 3.2 $155,901.00 93,525.67
271.61 110.31 57.85 25.07 78.38
106.77 52.63 22.81 8.07 23.26
205.03 87.02 54.37 13.50 50.14
219.08 101.04 35.54 16.99 65.51
289.04 110.07 64.05 28.48 86.44
407.30 154.25 95.48 33.82 123.74
425.27 154.47 82.05 41.68 147.07
554.93 211.44 101.82 67.09 174.57
Source:BureauofLaborStatistics,unpublishedtablesfromthe2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 21
Table 9. Pets: Indexed spending by income, 2004 (indexedaverageannualspendingofconsumerunits(CU)onpets,bybefore-taxincomeofconsumerunit,2004;indexdefinition:anindexof100isthe averageforallconsumerunits;anindexof132meansthatspendingbyconsumerunitsinthatgroupis32percentabovetheaverageforallconsumerunits; anindexof68indicatesspendingthatis32percentbelowtheaverageforallconsumerunits)
Average spending of CU, total Average spending of CU, index Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units $43,395 100
under $20,000 $18,865 43
$20,000– $39,999 $30,401 70
$40,000– $49,999 $38,204 88
$50,000– $69,999 $47,750 110
$70,000– $79,999 $55,012 127
$80,000– $99,999 $65,446 151
$100,000 or more $93,526 216
100 100 100 100 100
39 48 39 32 30
75 79 94 54 64
81 92 61 68 84
106 100 111 114 110
150 140 165 135 158
157 140 142 166 188
204 192 176 268 223
Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
22 WHO’S BUYING FOR PETS
Table 10. Pets: Total spending by income, 2004 (totalannualspendingonpets,bybefore-taxincomegroupofconsumerunits(CU),2004;consumerunitsanddollarsinthousands)
Number of consumer units Total spending of all CUs Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 116,282 $5,046,042,273
under $20,000 28,898 $545,171,431
$20,000– $39,999 27,297 $829,854,379
$40,000– $49,999 11,374 $434,533,092
$50,000– $69,999 18,069 $862,797,099
$70,000– $79,999 6,461 $355,432,726
31,583,354 12,827,067 6,726,914 2,915,190 9,114,183
3,085,310 1,520,817 659,285 233,087 672,075
5,596,696 2,375,448 1,484,085 368,376 1,368,654
2,491,816 1,149,228 404,232 193,244 745,111
5,222,664 1,988,854 1,157,319 514,605 1,561,884
2,631,565 996,609 616,896 218,511 799,484
$80,000– $100,000 $99,999 or more 9,246 14,937 $605,117,322 $1,396,992,933 3,932,046 1,428,229 758,634 385,373 1,359,809
8,288,989 3,158,279 1,520,885 1,002,123 2,607,552
Note:Numbersmaynotaddtototalbecauseofrounding. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 23
Table 11. Pets: Market shares by income, 2004 (percentageoftotalannualspendingonpetsaccountedforbybefore-taxincomegroupofconsumerunits,2004)
Share of total consumer units Share of total before-tax income Share of total spending Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0
under $20,000 24.9% 5.0 10.8
$20,000– $39,999 23.5% 12.7 16.4
$40,000– $49,999 9.8% 8.0 8.6
$50,000– $69,999 15.5% 16.9 17.1
$70,000– $79,999 5.6% 7.6 7.0
$80,000– $99,999 8.0% 13.0 12.0
$100,000 or more 12.8% 36.8 27.7
9.8 11.9 9.8 8.0 7.4
17.7 18.5 22.1 12.6 15.0
7.9 9.0 6.0 6.6 8.2
16.5 15.5 17.2 17.7 17.1
8.3 7.8 9.2 7.5 8.8
12.4 11.1 11.3 13.2 14.9
26.2 24.6 22.6 34.4 28.6
Note:Numbersmaynotaddtototalbecauseofrounding. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
24 WHO’S BUYING FOR PETS
Table 12. Pets: Average spending by high-income consumer units, 2004 (averageannualspendingonpets,bybefore-taxincomeofconsumerunits(CU)withhighincomes,2004)
Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 116,282 2.5 $54,453.00 43,394.87
$100,000 or more 14,937 3.2 $155,901.00 93,525.67
$100,000– $119,999 5,625 3.1 $108,751.00 75,213.14
$120,000– $149,999 4,245 3.3 $132,292.00 87,298.57
$150,000 or more 5,067 3.2 $228,021.00 119,448.79
271.61 110.31 57.85 25.07 78.38
554.93 211.44 101.82 67.09 174.57
424.42 143.42 95.63 44.45 140.92
626.01 284.99 91.47 65.64 183.92
638.18 220.73 119.91 93.44 204.10
Source:BureauofLaborStatistics,unpublishedtablesfromthe2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 25
Table 13. Pets: Indexed spending by high-income consumer units, 2004 (indexedaverageannualspendingofconsumerunits(CU)withhighincomesonpets,bybefore-taxincomeofconsumerunit,2004;indexdefinition:an indexof100istheaverageforallconsumerunits;anindexof132meansthatspendingbyconsumerunitsinthatgroupis32percentabovetheaveragefor allconsumerunits;anindexof68indicatesspendingthatis32percentbelowtheaverageforallconsumerunits)
Average spending of CU, total Average spending of CU, index Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units $43,395 100
$100,000 or more $93,526 216
$100,000– $119,999 $75,213 173
$120,000– $149,999 $87,299 201
$150,000 or more $119,449 275
100 100 100 100 100
204 192 176 268 223
156 130 165 177 180
230 258 158 262 235
235 200 207 373 260
Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
26 WHO’S BUYING FOR PETS
Table 14. Pets: Total spending by high-income consumer units, 2004 (totalannualspendingonpets,bybefore-taxincomegroupofconsumerunits(CU)withhighincomes,2004;consumerunitsanddollarsinthousands)
Number of consumer units Total spending of all CUs Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 116,282 $5,046,042,273
$100,000 or more 14,937 $1,396,992,933
$100,000– $119,999 5,625 $423,073,913
$120,000– $149,999 4,245 $370,582,430
$150,000 or more 5,067 $605,247,019
31,583,354 12,827,067 6,726,914 2,915,190 9,114,183
8,288,989 3,158,279 1,520,885 1,002,123 2,607,552
2,387,363 806,738 537,919 250,031 792,675
2,657,412 1,209,783 388,290 278,642 780,740
3,233,658 1,118,439 607,584 473,460 1,034,175
Note:Numbersmaynotaddtototalbecauseofrounding. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 27
Table 15. Pets: Market shares by high-income consumer units, 2004 (percentageoftotalannualspendingonpetsaccountedforbybefore-taxincomegroupofconsumerunitswithhighincomes,2004)
Share of total consumer units Share of total before-tax income Share of total spending Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0
$100,000 or more 12.8% 36.8 27.7 26.2 24.6 22.6 34.4 28.6
$100,000– $119,999 4.8% 9.7 8.4 7.6 6.3 8.0 8.6 8.7
Note:Numbersmaynotaddtototalbecauseofrounding. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
28 WHO’S BUYING FOR PETS
$120,000– $149,999 3.7% 8.9 7.3 8.4 9.4 5.8 9.6 8.6
$150,000 or more 4.4% 18.2 12.0 10.2 8.7 9.0 16.2 11.3
Table 16. Pets: Average spending by household type, 2004 (averageannualspendingofconsumerunits(CU)onpets,bytypeofconsumerunit,2004)
Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units
total married couples
married couples, no children
116,282 2.5 $54,453.00 43,394.87
59,797 3.2 $73,001.00 55,606.57
271.61 110.31 57.85 25.07 78.38
343.11 145.11 65.31 32.01 100.68
married couples with children total
oldest child under 6
oldest child 6 to 17
oldest child 18 or older
single parent, at least one child <18
single person
25,585 2.0 $64,434.00 49,690.43
29,279 3.9 $79,764.00 60,660.88
5,604 3.5 $75,293.00 55,981.04
15,376 4.1 $78,508.00 60,577.88
8,300 3.9 $85,109.00 64,161.69
6,892 2.9 $31,055.00 32,824.46
33,686 1.0 $28,143.00 25,423.35
371.70 150.30 66.06 37.53 117.81
328.04 143.04 65.25 28.57 91.18
216.09 59.89 43.68 25.06 87.46
346.08 153.08 73.59 32.78 86.62
379.27 188.83 65.17 23.13 102.14
150.46 69.34 22.48 14.23 44.41
155.42 57.71 33.30 18.91 45.50
Source:BureauofLaborStatistics,unpublishedtablesfromthe2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 29
Table 17. Pets: Indexed spending by household type, 2004 (indexedaverageannualspendingofconsumerunits(CU)onpets,bytypeofconsumerunit,2004;indexdefinition:anindexof100istheaverageforall consumerunits;anindexof132meansthatspendingbyconsumerunitsinthatgroupis32percentabovetheaverageforallconsumerunits;anindexof 68indicatesspendingthatis32percentbelowtheaverageforallconsumerunits)
Average spending of CU, total Average spending of CU, index Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units
total married couples
married couples, no children
$43,395 100
$55,607 128
100 100 100 100 100
126 132 113 128 128
married couples with children total
oldest child under 6
oldest child 6 to 17
oldest child 18 or older
single parent, at least one child <18
single person
$49,690 115
$60,661 140
$55,981 129
$60,578 140
$64,162 148
$32,824 76
$25,423 59
137 136 114 150 150
121 130 113 114 116
80 54 76 100 112
127 139 127 131 111
140 171 113 92 130
55 63 39 57 57
57 52 58 75 58
Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
30 WHO’S BUYING FOR PETS
Table 18. Pets: Total spending by household type, 2004 (totalannualspendingonpets,byconsumerunit(CU)type,2002;consumerunitsanddollarsinthousands)
Number of consumer units Total spending of all CUs Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total 29,279
oldest child 6 to 17 15,376
oldest child 18 or older 8,300
single parent, at least one child <18 6,892
single person 33,686
$5,046,042,273 $3,325,106,066 $1,271,329,652 $1,776,089,906
$313,717,748
$931,445,483
$532,542,027
$226,226,178
$856,410,968
1,210,968 335,624 244,783 140,436 490,126
5,321,326 2,353,758 1,131,520 504,025 1,331,869
3,147,941 1,567,289 540,911 191,979 847,762
1,036,970 477,891 154,932 98,073 306,074
5,235,478 1,944,019 1,121,744 637,002 1,532,713
31,583,354 12,827,067 6,726,914 2,915,190 9,114,183
total married couples 59,797
20,516,949 8,677,143 3,905,342 1,914,102 6,020,362
married couples, no children 25,585
married couples with children oldest child under 6 5,604
total consumer units 116,282
9,509,945 3,845,426 1,690,145 960,205 3,014,169
9,604,683 4,188,068 1,910,455 836,501 2,669,659
Note:Numberswillnotaddtototalbecausenotalltypesofconsumerunitsareshown. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 31
Table 19. Pets: Market shares by household type, 2004 (percentageoftotalannualspendingonpetsaccountedforbytypesofconsumerunits,2004)
total consumer units
total married couples
married couples, no children
married couples with children total
oldest child under 6
oldest child 6 to 17
oldest child 18 or older
single parent, at least one child <18
single person
Share of total consumer units Share of total before-tax income Share of total spending
100.0% 100.0 100.0
51.4% 68.9 65.9
22.0% 26.0 25.2
25.2% 36.9 35.2
4.8% 6.7 6.2
13.2% 19.1 18.5
7.1% 11.2 10.6
5.9% 3.4 4.5
29.0% 15.0 17.0
Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
100.0 100.0 100.0 100.0 100.0
65.0 67.6 58.1 65.7 66.1
30.1 30.0 25.1 32.9 33.1
30.4 32.7 28.4 28.7 29.3
3.8 2.6 3.6 4.8 5.4
16.8 18.3 16.8 17.3 14.6
10.0 12.2 8.0 6.6 9.3
3.3 3.7 2.3 3.4 3.4
16.6 15.2 16.7 21.9 16.8
Note:Marketsharesbytypeofconsumerunitwillnotaddtototalbecausenotalltypesofconsumerunitsareshown. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
32 WHO’S BUYING FOR PETS
Table 20. Pets: Average spending by race and Hispanic origin, 2004 (averageannualspendingofconsumerunits(CU)onpets,byraceandHispanicoriginofconsumerunitreferenceperson,2004)
Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 116,282 2.5 $54,453.00 43,394.87
Asian 3,957 2.8 $67,705.00 49,458.68
black 13,773 2.6 $38,503.00 30,481.49
Hispanic 12,298 3.3 $43,693.00 37,578.03
non-Hispanic white and other 90,424 2.3 $58,314.00 46,163.26
271.61 110.31 57.85 25.07 78.38
90.67 39.60 16.76 5.60 28.72
51.27 26.60 12.46 3.67 8.53
139.13 68.53 36.41 6.33 27.86
323.38 129.01 67.82 30.84 95.71
Note:“Asian”and“black”includeHispanicsandnon-Hispanicswhoidentifythemselvesasbeingoftherespectiveracealone.“Hispanic”includespeople ofanyracewhoidentifythemselvesasHispanic.“Other”includespeoplewhoidentifythemselvesasnon-HispanicandasAlaskaNative,AmericanIndian, Asian(whoarealsoincludedinthe“Asian”column),NativeHawaiianorotherPacificIslander,aswellasnon-Hispanicsreportingmorethanonerace. Source:BureauofLaborStatistics,unpublishedtablesfromthe2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 33
Table 21. Pets: Indexed spending by race and Hispanic origin, 2004 (indexedaverageannualspendingofconsumerunits(CU)onpets,byraceandHispanicoriginofconsumerunitreferenceperson,2004;indexdefinition: anindexof100istheaverageforallconsumerunits;anindexof132meansthatspendingbyconsumerunitsinthatgroupis32percentabovetheaverage forallconsumerunits;anindexof68indicatesspendingthatis32percentbelowtheaverageforallconsumerunits)
Average spending of CU, total Average spending of CU, index Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units $43,395 100
Asian $49,459 114
black $30,481 70
Hispanic $37,578 87
non-Hispanic white and other $46,163 106
100 100 100 100 100
33 36 29 22 37
19 24 22 15 11
51 62 63 25 36
119 117 117 123 122
Note:“Asian”and“black”includeHispanicsandnon-Hispanicswhoidentifythemselvesasbeingoftherespectiveracealone.“Hispanic”includespeople ofanyracewhoidentifythemselvesasHispanic.“Other”includespeoplewhoidentifythemselvesasnon-HispanicandasAlaskaNative,AmericanIndian, Asian(whoarealsoincludedinthe“Asian”column),NativeHawaiianorotherPacificIslander,aswellasnon-Hispanicsreportingmorethanonerace. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
34 WHO’S BUYING FOR PETS
Table 22. Pets: Total spending by race and Hispanic origin, 2004 (totalannualspendingonpets,byconsumerunitraceandHispanicorigingroups,2004;consumerunitsanddollarsinthousands)
Number of consumer units Total spending of all consumer units Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 116,282 $5,046,042,273
Asian 3,957 $195,707,997
black 13,773 $419,821,562
Hispanic 12,298 $462,134,613
non-Hispanic white and other 90,424 $4,174,266,622
31,583,354 12,827,067 6,726,914 2,915,190 9,114,183
358,781 156,697 66,319 22,159 113,645
706,142 366,362 171,612 50,547 117,484
1,711,021 842,782 447,770 77,846 342,622
29,241,313 11,665,600 6,132,556 2,788,676 8,654,481
Note:“Asian”and“black”includeHispanicsandnon-Hispanicswhoidentifythemselvesasbeingoftherespectiveracealone.“Hispanic”includespeople ofanyracewhoidentifythemselvesasHispanic.“Other”includespeoplewhoidentifythemselvesasnon-HispanicandasAlaskaNative,AmericanIndian, Asian(whoarealsoincludedinthe“Asian”column),NativeHawaiianorotherPacificIslander,aswellasnon-Hispanicsreportingmorethanonerace. Numbersmaynotaddtototalbecauseofrounding. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 35
Table 23. Pets: Market shares by race and Hispanic origin, 2004 (percentageoftotalannualspendingonpetsaccountedforbyconsumerunitraceandHispanicorigingroups,2004)
Share of total consumer units Share of total before-tax income Share of total spending Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Asian 3.4% 4.2 3.9 1.1 1.2 1.0 0.8 1.2
black 11.8% 8.4 8.3 2.2 2.9 2.6 1.7 1.3
Hispanic 10.6% 8.5 9.2 5.4 6.6 6.7 2.7 3.8
non-Hispanic white and other 77.8% 83.3 82.7 92.6 90.9 91.2 95.7 95.0
Note:“Asian”and“black”includeHispanicsandnon-Hispanicswhoidentifythemselvesasbeingoftherespectiveracealone.“Hispanic”includespeople ofanyracewhoidentifythemselvesasHispanic.“Other”includespeoplewhoidentifythemselvesasnon-HispanicandasAlaskaNative,AmericanIndian, Asian(whoarealsoincludedinthe“Asian”column),NativeHawaiianorotherPacificIslander,aswellasnon-Hispanicsreportingmorethanonerace. Source:CalculationsbyNewStrategistbasedonthe2002ConsumerExpenditureSurvey
36 WHO’S BUYING FOR PETS
Table 24. Pets: Average spending by region, 2004 (averageannualspendingofconsumerunits(CU)onpets,byregioninwhichconsumerunitlives,2004)
Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 116,282 2.5 $54,453.00 43,394.87
Northeast 22,051 2.4 $61,050.00 46,114.89
Midwest 26,539 2.4 $53,567.00 43,370.77
South 41,801 2.5 $50,775.00 39,173.65
West 25,891 2.6 $55,682.00 47,921.74
271.61 110.31 57.85 25.07 78.38
259.12 98.18 43.51 23.03 94.40
258.48 103.90 59.42 24.43 70.73
259.60 106.54 62.70 21.09 69.26
315.61 133.67 60.72 33.90 87.32
Source:BureauofLaborStatistics,unpublishedtablesfromthe2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 37
Table 25. Pets: Indexed spending by region, 2004 (indexedaverageannualspendingofconsumerunits(CU)onpets,byregioninwhichconsumerunitlives,2004;indexdefinition:anindexof100isthe averageforallconsumerunits;anindexof132meansthatspendingbyconsumerunitsinthatgroupis32percentabovetheaverageforallconsumerunits; anindexof68indicatesspendingthatis32percentbelowtheaverageforallconsumerunits)
Average spending of CU, total Average spending of CU, index Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units $43,395 100
Northeast $46,115 106
Midwest $43,371 100
South $39,174 90
West $47,922 110
100 100 100 100 100
95 89 75 92 120
95 94 103 97 90
96 97 108 84 88
116 121 105 135 111
Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
38 WHO’S BUYING FOR PETS
Table 26. Pets: Total spending by region, 2004 (totalannualspendingonpets,byregioninwhichconsumerunitlives,2004;consumerunitsanddollarsinthousands)
Number of consumer units Total spending of all consumer units Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 116,282 $5,046,042,273
Northeast 22,051 $1,016,879,439
Midwest 26,539 $1,151,016,865
South 41,801 $1,637,497,744
West 25,891 $1,240,741,770
31,583,354 12,827,067 6,726,914 2,915,190 9,114,183
5,713,855 2,164,967 959,439 507,835 2,081,614
6,859,801 2,757,402 1,576,947 648,348 1,877,103
10,851,540 4,453,479 2,620,923 881,583 2,895,137
8,171,459 3,460,850 1,572,102 877,705 2,260,802
Note:Numbersmaynotaddtototalbecauseofrounding. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 39
Table 27. Pets: Market shares by region, 2004 (percentageoftotalannualspendingonpetsaccountedforbyconsumerunitsbyregion,2004)
Share of total consumer units Share of total before-tax income Share of total spending Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Northeast 19.0% 21.3 20.2
Midwest 22.8% 22.5 22.8
18.1 16.9 14.3 17.4 22.8
21.7 21.5 23.4 22.2 20.6
Note:Numbersmaynotaddtototalbecauseofrounding. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
40 WHO’S BUYING FOR PETS
South 35.9% 33.5 32.5
West 22.3% 22.8 24.6
34.4 34.7 39.0 30.2 31.8
25.9 27.0 23.4 30.1 24.8
Table 28. Pets: Average spending by education, 2004 (averageannualspendingofconsumerunits(CU)onpets,byeducationofconsumerunitreferenceperson,2004) college graduate
Number of consumer units (000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 116,282 2.5 $54,453.00 43,394.87
less than high school graduate 16,829 2.7 $29,094.00 25,421.18
high school graduate 31,005 2.5 $42,334.00 35,438.55
some college 25,317 2.3 $46,756.00 40,877.68
associate’s degree 10,678 2.6 $58,593.00 48,177.36
271.61 110.31 57.85 25.07 78.38
120.45 65.39 19.76 7.24 28.05
234.14 110.05 60.16 14.53 49.40
243.97 96.63 54.48 25.25 67.61
403.54 196.96 89.28 25.28 92.02
Source:BureauofLaborStatistics,unpublishedtablesfromthe2004ConsumerExpenditureSurvey
total 32,452 2.5 $83,825.00 60,712.28
bachelor’s degree 20,684 2.4 $75,647.00 56,728.41
master’s, professional, doctorate 11,768 2.5 $98,201.00 67,801.38
365.59 117.26 68.04 44.19 136.10
361.46 109.02 67.86 42.55 142.03
374.12 132.99 68.38 47.07 125.67
WHO’S BUYING FOR PETS 41
Table 29. Pets: Indexed spending by education, 2004 (indexedaverageannualspendingofconsumerunits(CU)onpets,byeducationofconsumerunitreferenceperson,2004;indexdefinition:anindexof100 istheaverageforallconsumerunits;anindexof132meansthatspendingbyconsumerunitsinthatgroupis32percentabovetheaverageforallconsumer units;anindexof68indicatesspendingthatis32percentbelowtheaverageforallconsumerunits) college graduate
Average spending of CU, total Average spending of CU, index Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units
less than high school graduate
high school graduate
some college
associate’s degree
$43,395 100
$25,421 59
$35,439 82
$40,878 94
$48,177 111
100 100 100 100 100
44 59 34 29 36
86 100 104 58 63
90 88 94 101 86
149 179 154 101 117
total
bachelor’s degree
master’s, professional, doctorate
$60,712 140
$56,728 131
$67,801 156
135 106 118 176 174
133 99 117 170 181
138 121 118 188 160
Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
42 WHO’S BUYING FOR PETS
Table 30. Pets: Total spending by education, 2004 (totalannualspendingonpets,byeducationofconsumerunit(CU)referenceperson,2004;consumerunitsanddollarsinthousands) college graduate
Number of consumer units Total spending of all CUs Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
total consumer units 116,282 $5,046,042,273 31,583,354 12,827,067 6,726,914 2,915,190 9,114,183
less than high school high school some graduate graduate college 16,829 31,005 25,317 $427,813,038 $1,098,772,243 $1,034,900,225 2,027,053 1,100,448 332,541 121,842 472,053
7,259,511 3,412,100 1,865,261 450,503 1,531,647
6,176,588 2,446,382 1,379,270 639,254 1,711,682
master’s, professional, doctorate 11,768 $797,886,640
associate’s bachelor’s degree total degree 10,678 32,452 20,684 $514,437,850 $1,970,234,911 $1,173,370,432 4,309,000 2,103,139 953,332 269,940 982,590
11,864,127 3,805,322 2,208,034 1,434,054 4,416,717
Note:Numbersmaynotaddtototalbecauseofrounding. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
7,476,439 2,254,970 1,403,616 880,104 2,937,749
4,402,644 1,565,026 804,696 553,920 1,478,885
WHO’S BUYING FOR PETS 43
Table 31. Pets: Market shares by education, 2004 (percentageoftotalannualspendingonpetsaccountedforbyeducationofconsumerunitreferenceperson,2004) college graduate total consumer units Share of total consumer units Share of total before-tax income Share of total spending
100.0% 100.0 100.0
Pets Pet food Pet purchase, supplies, and medicines Pet services Veterinary services
100.0 100.0 100.0 100.0 100.0
less than high school graduate 14.5% 7.7 8.5 6.4 8.6 4.9 4.2 5.2
high school graduate
some college
associate’s degree
total
26.7% 20.7 21.8
21.8% 18.7 20.5
9.2% 9.9 10.2
27.9% 43.0 39.0
17.8% 24.7 23.3
10.1% 18.3 15.8
23.0 26.6 27.7 15.5 16.8
19.6 19.1 20.5 21.9 18.8
13.6 16.4 14.2 9.3 10.8
37.6 29.7 32.8 49.2 48.5
23.7 17.6 20.9 30.2 32.2
13.9 12.2 12.0 19.0 16.2
Note:Numbersmaynotaddtototalbecauseofrounding. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
44 WHO’S BUYING FOR PETS
master’s, professional, doctorate
bachelor’s degree
WHO’S BUYING FOR PETS 45
Pet Food Best customers:
Householders aged 45 to 54 Married couples with school-aged or older children Married couples without children at home
Customer trends:
Spending will continue to rise as boomers become empty-nesters and devote more attention to their pets.
Pet food is one of the biggest entertainment categories, ranking fourth in importance after cable television service, recreational vehicles, and movie tickets. The best customers of pet food are middle-aged married couples. Many acquire pets when their children are young and care for them long after their children have grown up and left home. Householders aged 45 to 54 spend 65 percent more than the average household on pet food. Married couples with school aged or older children at home spend 39 to 71 percent more than average on this item, while couples without children at home (many of them empty-nesters) spend 36 percent more. Average household spending on pet food rose 17 percent between 2000 and 2004, after adjusting for inflation. Pet food is one of the few entertainment categories on which households boosted their spending during those years. Spending on pet food should continue to climb as boomers become empty-nesters and devote more of their attention to their pets.
Table 32. Pet food Total household spending Average household spends
AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older
46 WHO’S BUYING FOR PETS
$12,827,067,420.00 110.31 AVERAGE HOUSEHOLD SPENDING
BEST CUSTOMERS (index)
$110.31 48.83 70.63 125.07 181.69 120.12 86.58 56.22
100 44 64 113 165 109 78 51
BIGGEST CUSTOMERS (market share)
100.0% 3.4 10.7 23.5 33.6 16.4 7.6 5.1
AVERAGE HOUSEHOLD SPENDING
BEST CUSTOMERS (index)
$110.31 52.63 87.02 101.04 110.07 154.25 154.47 211.44
100 48 79 92 100 140 140 192
100.0% 11.9 18.5 9.0 15.5 7.8 11.1 24.6
HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person
110.31 145.11 150.30 143.04 59.89 153.08 188.83 69.34 57.71
100 132 136 130 54 139 171 63 52
100.0 67.6 30.0 32.7 2.6 18.3 12.2 3.7 15.2
RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other
110.31 39.60 26.60 68.53 129.01
100 36 24 62 117
100.0 1.2 2.9 6.6 90.9
REGION Average household Northeast Midwest South West
110.31 98.18 103.90 106.54 133.67
100 89 94 97 121
100.0 16.9 21.5 34.7 27.0
EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree
110.31 65.39 110.05 96.63 196.96 117.26 109.02 132.99
100 59 100 88 179 106 99 121
100.0 8.6 26.6 19.1 16.4 29.7 17.6 12.2
HOUSEHOLD INCOME Average household Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more
BIGGEST CUSTOMERS (market share)
Note:Marketsharesmaynotsumto100.0becauseofroundingandmissingcategoriesby householdtype.“Asian”and“black”includeHispanicsandnon-Hispanicswhoidentify themselvesasbeingoftherespectiveracealone.“Hispanic”includespeopleofanyrace whoidentifythemselvesasHispanic.“Other”includespeoplewhoidentifythemselvesas non-HispanicandasAlaskaNative,AmericanIndian,Asian(whoarealsoincludedinthe “Asian”row),NativeHawaiianorotherPacificIslander,aswellasnon-Hispanicsreportingmorethanonerace. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 47
Pet Purchase, Supplies, Medicines Best customers:
Householders under age 65 Married couples
Customer trends:
Spending is likely to rise as empty-nesters devote more attention to their pets and as the pet industry offers a greater variety of supplies and medicines.
Pets are so popular in the United States that spending on pets, pet supplies, and pet medicines does not vary much by demographic characteristic. Every age group under age 65 spends more than average on pets, pet supplies, and pet medicines. Married couples spend 13 percent more, and the figure peaks at 27 percent among couples with school-aged children. To understand the market, it is almost more helpful to know who is least likely to spend on pets—married couples with preschoolers, single parents, and the lowest-income households. Average household spending on pets, pet supplies, and pet medicines rose by a substantial 38 percent between 2000 and 2004, after adjusting for inflation. The category will continue to grow as boomers become emptynesters and devote more attention to their pets. Spending will also rise as the pet industry offers a greater variety of pet supplies and medicines.
Table 33. Pet purchase, supplies, medicines Total household spending Average household spends
AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older
48 WHO’S BUYING FOR PETS
$6,726,913,700.00 57.85 AVERAGE HOUSEHOLD SPENDING
BEST CUSTOMERS (index)
$57.85 70.40 62.34 66.74 68.27 62.75 19.82 29.04
100 122 108 115 118 108 34 50
BIGGEST CUSTOMERS (market share)
100.0% 9.2 18.0 23.9 24.1 16.3 3.3 5.0
AVERAGE HOUSEHOLD SPENDING
BEST CUSTOMERS (index)
$57.85 22.81 54.37 35.54 64.05 95.48 82.05 101.82
100 39 94 61 111 165 142 176
100.0% 9.8 22.1 6.0 17.2 9.2 11.3 22.6
HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person
57.85 65.31 66.06 65.25 43.68 73.59 65.17 22.48 33.30
100 113 114 113 76 127 113 39 58
100.0 58.1 25.1 28.4 3.6 16.8 8.0 2.3 16.7
RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other
57.85 16.76 12.46 36.41 67.82
100 29 22 63 117
100.0 1.0 2.6 6.7 91.2
REGION Average household Northeast Midwest South West
57.85 43.51 59.42 62.70 60.72
100 75 103 108 105
100.0 14.3 23.4 39.0 23.4
EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree
57.85 19.76 60.16 54.48 89.28 68.04 67.86 68.38
100 34 104 94 154 118 117 118
100.0 4.9 27.7 20.5 14.2 32.8 20.9 12.0
HOUSEHOLD INCOME Average household Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more
BIGGEST CUSTOMERS (market share)
Note:Marketsharesmaynotsumto100.0becauseofroundingandmissingcategoriesby householdtype.“Asian”and“black”includeHispanicsandnon-Hispanicswhoidentify themselvesasbeingoftherespectiveracealone.“Hispanic”includespeopleofanyrace whoidentifythemselvesasHispanic.“Other”includespeoplewhoidentifythemselvesas non-HispanicandasAlaskaNative,AmericanIndian,Asian(whoarealsoincludedinthe “Asian”row),NativeHawaiianorotherPacificIslander,aswellasnon-Hispanicsreportingmorethanonerace. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 49
Pet Services Best customers:
Householders aged 45 to 64 Married couples without children at home Married couples with school-aged children Households in the West
Customer trends:
Spending is likely to rise as baby-boom empty-nesters devote more attention to their pets.
The best customers of pet services—such as grooming and dog walking—are older married couples. Householders aged 45 to 64 spend 22 to 44 percent more than average on this item. Married couples with school-aged children and couples without children at home spend 31 to 50 percent more than average on this item. Households in the West spend 35 percent more than average. Average household spending on pet services rose 18 percent between 2000 and 2004, after adjusting for inflation. Spending on pet services will continue to grow as boomers become empty-nesters and devote more attention to their pets.
Table 34. Pet services Total household spending Average household spends
AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older
50 WHO’S BUYING FOR PETS
$2,915,189,740.00 25.07 AVERAGE HOUSEHOLD SPENDING
BEST CUSTOMERS (index)
$25.07 8.76 20.38 26.36 36.18 30.61 21.81 14.70
100 35 81 105 144 122 87 59
BIGGEST CUSTOMERS (market share)
100.0% 2.6 13.6 21.8 29.4 18.4 8.4 5.8
AVERAGE HOUSEHOLD SPENDING
BEST CUSTOMERS (index)
$25.07 8.07 13.50 16.99 28.48 33.82 41.68 67.09
100 32 54 68 114 135 166 268
100.0% 8.0 12.6 6.6 17.7 7.5 13.2 34.4
HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person
25.07 32.01 37.53 28.57 25.06 32.78 23.13 14.23 18.91
100 128 150 114 100 131 92 57 75
100.0 65.7 32.9 28.7 4.8 17.3 6.6 3.4 21.9
RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other
25.07 5.60 3.67 6.33 30.84
100 22 15 25 123
100.0 0.8 1.7 2.7 95.7
REGION Average household Northeast Midwest South West
25.07 23.03 24.43 21.09 33.90
100 92 97 84 135
100.0 17.4 22.2 30.2 30.1
EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree
25.07 7.24 14.53 25.25 25.28 44.19 42.55 47.07
100 29 58 101 101 176 170 188
100.0 4.2 15.5 21.9 9.3 49.2 30.2 19.0
HOUSEHOLD INCOME Average household Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more
BIGGEST CUSTOMERS (market share)
Note:Marketsharesmaynotsumto100.0becauseofroundingandmissingcategoriesby householdtype.“Asian”and“black”includeHispanicsandnon-Hispanicswhoidentify themselvesasbeingoftherespectiveracealone.“Hispanic”includespeopleofanyrace whoidentifythemselvesasHispanic.“Other”includespeoplewhoidentifythemselvesas non-HispanicandasAlaskaNative,AmericanIndian,Asian(whoarealsoincludedinthe “Asian”row),NativeHawaiianorotherPacificIslander,aswellasnon-Hispanicsreportingmorethanonerace. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 51
Veterinary Services Best customers:
Householders aged 45 to 64 Married couples without children at home Married couples with adult children at home
Customer trends:
Spending will continue to rise as more boomers become empty-nesters and devote a larger share of their discretionary income to their pets.
The best customers of veterinary services are middle-aged and older married couples, many of whom have older pets requiring extensive veterinary care. Householders aged 45 to 64 spend 21 to 29 percent more than average on this item. Married couples without children at home (most of them empty-nesters) spend 50 percent more than average on this item and control one-third of the market. Couples with adult children at home spend 30 percent more. Average household spending on veterinary services rose 8 percent between 2000 and 2004, after adjusting for inflation. Spending on this category will continue to grow as more boomers become empty-nesters and devote a larger share of their discretionary income to their pets.
Table 35. Veterinary services Total household spending Average household spends
AGE OF HOUSEHOLDER Average household Under age 25 Aged 25 to 34 Aged 35 to 44 Aged 45 to 54 Aged 55 to 64 Aged 65 to 74 Aged 75 or older
52 WHO’S BUYING FOR PETS
$9,114,183,160.00 78.38 AVERAGE HOUSEHOLD SPENDING
BEST CUSTOMERS (index)
$78.38 37.29 78.79 87.85 101.47 94.50 67.37 28.21
100 48 101 112 129 121 86 36
BIGGEST CUSTOMERS (market share)
100.0% 3.6 16.8 23.2 26.4 18.1 8.3 3.6
AVERAGE HOUSEHOLD SPENDING
BEST CUSTOMERS (index)
HOUSEHOLD INCOME Average household Under $20,000 $20,000 to $39,999 $40,000 to $49,999 $50,000 to $69,999 $70,000 to $79,999 $80,000 to $99,999 $100,000 or more
$78.38 23.26 50.14 65.51 86.44 123.74 147.07 174.57
100 30 64 84 110 158 188 223
100.0% 7.4 15.0 8.2 17.1 8.8 14.9 28.6
HOUSEHOLD TYPE Average household Married couples Married couples, no children Married couples, with children Oldest child under 6 Oldest child 6 to 17 Oldest child 18 or older Single parent with child under 18 Single person
78.38 100.68 117.81 91.18 87.46 86.62 102.14 44.41 45.50
100 128 150 116 112 111 130 57 58
100.0 66.1 33.1 29.3 5.4 14.6 9.3 3.4 16.8
RACE AND HISPANIC ORIGIN Average household Asian Black Hispanic Non-Hispanic white and other
78.38 28.72 8.53 27.86 95.71
100 37 11 36 122
100.0 1.2 1.3 3.8 95.0
REGION Average household Northeast Midwest South West
78.38 94.40 70.73 69.26 87.32
100 120 90 88 111
100.0 22.8 20.6 31.8 24.8
78.38 28.05 49.40 67.61 92.02 136.10 142.03 125.67
100 36 63 86 117 174 181 160
100.0 5.2 16.8 18.8 10.8 48.5 32.2 16.2
EDUCATION Average household Less than high school graduate High school graduate Some college Associate’s degree College graduate Bachelor’s degree Master’s, professional, doctoral degree
BIGGEST CUSTOMERS (market share)
Note:Marketsharesmaynotsumto100.0becauseofroundingandmissingcategoriesby householdtype.“Asian”and“black”includeHispanicsandnon-Hispanicswhoidentify themselvesasbeingoftherespectiveracealone.“Hispanic”includespeopleofanyrace whoidentifythemselvesasHispanic.“Other”includespeoplewhoidentifythemselvesas non-HispanicandasAlaskaNative,AmericanIndian,Asian(whoarealsoincludedinthe “Asian”row),NativeHawaiianorotherPacificIslander,aswellasnon-Hispanicsreportingmorethanonerace. Source:CalculationsbyNewStrategistbasedontheBureauofLaborStatistics2004ConsumerExpenditureSurvey
WHO’S BUYING FOR PETS 53
Appendix: Spending by Product and Service
Ranked by Amount Spent, 2004 (averageannualspendingofconsumerunitsonproductsandservices,ranked byamountspent,2004) Deductions for Social Security Vehicle purchases (net outlay) Groceries (also shown by individual category) Mortgage interest Restaurants (also shown by meal category) Rent Gasoline and motor oil Federal income taxes Property taxes Health insurance Electricity Vehicle insurance Restaurant dinners Restaurant lunches Vehicle maintenance and repairs Women’s clothes Residential phone service Cash contributions to church, religious organizations College tuition Maintenance and repair services, owned homes Deductions for private pensions Cable TV or community antenna Alcoholic beverages (beer and wine also shown separately) Natural gas Nonpayroll deposit to retirement plans State and local income taxes Life and other personal insurance Cellular phone service Prescription drugs Vehicle finance charges Men’s clothes Homeowner’s insurance Cash gifts to nonhousehold members Restaurant snacks Lodging on trips Airline fares Beef Personal care services Cigarettes Water and sewerage maintenance Dental services Motorized recreational vehicles Leased vehicles Restaurant breakfasts Beer Day care centers, nurseries, and preschools Fresh fruits Fresh vegetables Pork Child support Finance charges other than mortgage and vehicle Decorative items for the home Cash contributions to charities Poultry
54 WHO’S BUYING FOR PETS
$3,432.61 3,397.07 3,346.82 2,785.37 2,259.72 2,125.93 1,597.56 1,518.95 1,391.17 1,331.71 1,064.41 964.37 795.59 725.07 651.66 631.01 592.31 565.11 541.35 530.63 518.59 471.01 459.27 424.02 400.54 397.82 390.34 378.39 349.41 323.41 317.28 314.75 302.93 297.45 277.89 275.94 265.34 264.09 264.05 242.54 240.60 229.60 216.58 210.06 207.63 193.51 186.74 182.94 181.14 165.10 158.18 158.10 157.51 155.61
Women’s footwear Interest paid, home equity loan/line of credit Laundry and cleaning supplies Cosmetics, perfume, bath preparations Physician’s services Taxes except federal, state, local, personal property, and property Elementary and high school tuition Carbonated drinks Movie, theater, opera, and ballet tickets Computer information services (Internet) Owned vacation homes Computers and computer hardware, nonbusiness use Fresh milk Fish and seafood Legal fees School expenses (except tuition, books, supplies) Wine Jewelry Cheese Men’s footwear Pet food Girls’ (2 to 15) clothes Prepared food except frozen, salads, and desserts Fees for participant sports Toys, games, arts and crafts, and tricycles Social, recreation, civic club membership Gardening, lawn care service Sofas Television sets Expenses for other properties Boys’ (2 to 15) clothes Housekeeping services Ready-to-eat and cooked cereals Potato chips and other snacks Cleansing and toilet tissue, paper towels and napkins Bedroom linens Lawn and garden supplies Candy and chewing gum Trash and garbage collection Support for college students Fees for recreational lessons Bedroom furniture except mattresses and springs Vehicle registration, state Nonprescription drugs Infants’ (under age 2) clothes Deductions for government retirement Veterinary services Frozen prepared foods, except meals Stationery, stationery supplies, giftwrap Postage Home maintenance and repair materials, owned homes Lunch meats (cold cuts) Nonalcoholic beverages (except carbonated, coffee, fruit-flavored drinks, and tea) and ice Lotteries and gambling losses Funeral expenses Wall units, cabinets, and other occasional furniture Fuel oil Hair care products School lunches Babysitting and child care Ice cream products
$153.81 150.62 148.56 147.41 146.58 146.39 142.80 141.89 140.49 139.46 137.22 134.57 128.94 127.80 127.50 119.39 116.84 113.72 113.67 110.67 110.31 107.60 102.74 100.70 99.21 98.19 95.08 94.74 92.75 91.63 88.88 88.85 86.69 86.06 85.84 85.72 83.44 83.13 82.77 82.49 82.42 81.32 80.92 80.31 78.51 78.45 78.38 78.11 74.86 74.12 73.33 72.99 70.10 66.54 65.78 65.05 64.19 63.90 63.39 63.21 60.22
WHO’S BUYING FOR PETS 55
Professional laundry and dry cleaning School books, supplies, equipment for college Catered affairs Pet purchase, supplies, medicine Housing while attending school Unmotored recreational vehicles Books, except for school Canned and bottled fruit juice Mattresses and springs Athletic gear, game tables, and exercise equipment Bread other than white Ship fares Admission to sporting events Refrigerators, freezers Accounting fees Hospital services other than room Nonprescription vitamins Lawn and garden equipment Eyeglasses and contact lenses Alimony Cookies Intracity mass transit fares Cash contributions to educational institutions Bottled gas Occupational expenses Video cassettes, tapes, and discs Biscuits and rolls Eggs Newspaper subscriptions Living room chairs Indoor plants, fresh flowers Care in convalescent or nursing home Kitchen and dining room furniture Sauces and gravies Groceries on trips Ground rent Hospital room Medical services by professionals other than physician Coffee Cakes and cupcakes Eyecare services Alcoholic beverages purchased on trips Rented vehicles Canned and packaged soups Rent as pay Outdoor equipment Boys’ footwear Rental of video cassettes, tapes, films, and discs CDs, audio tapes, records White bread Care for elderly, invalids, handicapped Coin-operated apparel laundry and dry cleaning Oral hygiene products Canned vegetables Deodorants, feminine hygiene, miscellaneous personal care Moving, storage, freight express Power tools Photographic equipment and supplies (except film) Film and film processing Cooking stoves, ovens Hunting and fishing equipment Frozen meals Topicals and dressings Personal property taxes
56 WHO’S BUYING FOR PETS
$60.18 58.86 58.56 57.85 57.73 55.39 55.19 55.05 53.56 53.07 52.59 52.10 52.06 51.27 51.22 51.20 50.57 48.79 47.56 47.29 46.57 46.32 46.06 45.20 43.10 42.63 42.11 41.84 41.76 41.65 41.52 41.33 41.26 40.94 40.86 40.10 40.01 39.54 39.12 39.04 38.89 38.37 38.27 36.50 36.08 35.99 35.92 35.61 35.26 35.04 34.96 34.86 34.63 34.49 34.33 33.91 33.44 33.16 32.49 32.42 31.82 31.79 31.53 31.17
Nuts Washing machines Baby food Parking fees Taxi fares and limousine services Fats and oils Property management, owned home Frozen vegetables Girls’ footwear Wall-to-wall carpeting Food or board at school Electric floor-cleaning equipment Salad dressings School tuition (except college, elementary, high school) Maintenance and repair services, rented home Telephones and accessories Lab tests, X-rays Pasta, cornmeal, and other cereal products Frozen and refrigerated bakery products Prepared salads Pet services Gift of stocks, bonds, and mutual funds to nonhousehold members Crackers Meals as pay VCRs and video disc players Floor coverings, nonpermanent Sweetrolls, coffee cakes, doughnuts Window coverings Sound equipment Frankfurters Salt, spices, other seasonings Tableware, nonelectric kitchenware Fresh fruit juice Tobacco products except cigarettes Jams, preserves, other sweets Clothes dryers Butter Watches Bathroom linens Glassware Musical instruments and accessories Baking needs Noncarbonated fruit-flavored drinks Tolls Curtains and draperies Computer software and accessories for nonbusiness use Shaving needs Checking accounts, other bank service charges Phone cards Rice Video game hardware and software Nonelectric cookware Intercity train fares Closet and storage items Tea Small electric kitchen appliances Cash contributions to political organizations Lamps and lighting fixtures Photographer fees Canned fruits Outdoor furniture Sugar Laundry and cleaning equipment Home security system service fee
$31.01 30.65 30.08 29.41 29.05 28.56 28.55 28.50 28.34 27.98 27.89 27.71 27.44 27.13 26.94 26.83 26.75 26.55 26.32 25.43 25.07 24.97 24.60 24.45 24.05 24.00 23.59 23.47 23.39 22.52 22.22 22.20 22.07 22.07 22.04 22.03 21.81 21.51 21.26 20.88 20.06 19.97 19.79 19.23 19.22 19.06 18.71 18.70 18.51 18.46 18.34 18.10 17.84 17.83 17.63 17.27 16.58 16.40 16.23 16.19 16.18 16.10 15.72 15.57
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Cream Hearing aids Magazine subscriptions Living room tables Appliance repair, including service center Dishwashers (built-in), garbage disposals, range hoods Pies, tarts, turnovers Prepared flour mixes School books, supplies, equipment for elementary, high school Camping equipment Cemetery lots, vaults, maintenance fees China and other dinnerware Automobile service clubs Material for making clothes Peanut butter Lamb, organ meats Services for termite/pest control Office furniture for home use Bicycles Sewing materials for household items (except clothes) Prepared desserts Nondairy cream and imitation milk Wood Olives, pickles, relishes Local transportation on trips Kitchen and dining room linens Electric personal care appliances Tape recorders and players Dried vegetables Margarine Newspapers, nonsubscriptions Intercity bus fares Vehicle inspection Slipcovers, decorative pillows Vegetable juice Infants’ furniture Microwave ovens Magazines, nonsubscriptions Flour Adult day care centers Infants’ equipment Sewing patterns and notions Clocks Reupholstering, furniture repair Repairs/rentals of household equipment Driver’s license Supportive and convalescent medical equipment Tenant’s insurance Vehicle registration, local Artificial sweeteners Medical equipment for general use Luggage Delivery services Frozen fruit juice Hair accessories Management and upkeep for security, owned home Dried fruit Hand tools Shopping club membership fees Docking and landing fees Alteration, repair and tailoring of apparel and accessories Towing charges Maintenance and repair materials, rented home Portable heating and cooling equipment
58 WHO’S BUYING FOR PETS
$15.39 15.21 14.88 14.77 14.53 14.34 13.99 13.78 13.56 13.48 13.48 13.47 13.12 13.05 12.52 12.48 12.04 11.37 11.34 11.20 10.91 10.80 10.61 10.52 10.00 9.84 9.74 9.71 9.58 9.57 9.44 9.35 9.29 9.12 9.06 8.44 8.43 8.36 8.32 8.03 7.86 7.82 7.64 7.35 7.29 7.16 7.16 7.06 6.90 6.85 6.75 6.63 6.52 6.44 6.37 6.36 6.35 6.11 5.72 5.62 5.12 5.08 5.07 4.83
Water sports equipment Window air conditioners Winter sports equipment Compact disc, tape, record, and video mail order clubs Repair of computer systems for nonbusiness use Flatware Watch and jewelry repair Fireworks Rental of supportive, convalescent medical equipment Coin-operated household laundry and dry cleaning (nonclothing) Radios Sewing machines Frozen fruits Parking at owned home Playground equipment Bread and cracker products Safe deposit box rental Water softening service Repair of TV, radio, and sound equipment Deductions for railroad retirement Rental and repair of sports equipment Credit card memberships School books, supplies, equipment for day care, nursery, other Clothing rental Rental and repair of musical instruments Rental of furniture Septic tank cleaning Visual goods Smoking accessories Wigs and hairpieces Rental of medical equipment Plastic dinnerware Appliance rental Termite/pest control products Pinball, electronic video games Calculators Portable dishwasher Shoe repair and other shoe service Smoke alarms Pager service Repair and rental of photographic equipment Professional laundry and dry cleaning, sent out (nonclothing) Business equipment for home use Rental of television ets Satellite dishes School bus Telephone answering devices Repair of miscellaneous household equipment and furnishings Clothing storage Silver serving pieces Rental of VCR, radio, and sound equipment
$4.65 4.36 4.17 4.15 4.03 4.02 3.82 3.75 3.74 3.71 3.67 3.59 3.53 3.43 3.33 3.25 3.22 3.06 3.02 2.67 2.49 2.41 2.32 2.28 2.28 2.22 2.16 2.10 2.02 1.90 1.88 1.82 1.75 1.53 1.51 1.44 1.22 1.12 1.03 1.01 0.99 0.94 0.94 0.81 0.77 0.74 0.62 0.54 0.47 0.30 0.11
Source:CalculationsbyNewStrategistbasedonthe2004Consumer ExpenditureSurvey
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Glossary age The age of the reference person. average spending The average amount spent per household. The Bureau of Labor Statistics calculates the average for all households in a segment, not just for those who purchased an item. For items purchased by most households—such as bread—average spending figures are an accurate account of actual spending. For products and services purchased by few households during a year’s time—such as cars—the average amount spent is much less than what purchasers spend. See Table 1 for the percentage of consumer units reporting an expenditure and the average amount spent by purchasers. baby boom Generation born from 1946 through 1964. baby bust Generation born from 1965 through 1976. Also known as generation X. consumer unit Defined as follows: • All members of a household who are related by blood, marriage, adoption, or other legal arrangements. • A person living alone or sharing a household with others or living as a roomer in a private home or lodging house or in permanent living quarters in a hotel or motel, but who is financially independent. • Two or more persons living together who pool their income to make joint expenditure decisions. Financial independence is determined by the three major expense categories: housing, food, and other living expenses. To be considered financially independent, at least two of the three major expense categories have to be provided by the respondent. For convenience, called household in the text of this book. consumer unit, composition of The classification of interview households by type according to (1) relationship of other household members to the reference person; (2) age of the children to the reference person; and (3) combination of relationship to the reference person and age of the children. Stepchildren and adopted children are included with the reference person’s own children. education of reference person The number of years of formal education of the reference person based on the highest grade completed. If the respondent was enrolled at the time of interview, the grade being attended is the one recorded. Those not reporting their education are classified under no school or not reported. expenditure The transaction cost including excise and sales taxes of goods and services acquired during the survey period. The full cost of each purchase is recorded even though full payment may not have been made at the date of purchase. Expenditure estimates include gifts. Excluded from expenditures are purchases or portions of purchases directly assignable to business purposes and periodic credit or installment payments on goods and services already acquired. generation X Generation born from 1965 through 1976. Also known as the baby bust.
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Hispanic origin The self-identified Hispanic origin of the consumer unit reference person. All consumer units are included in one of two Hispanic origin groups based on the reference person’s Hispanic origin: Hispanic or non-Hispanic. Hispanics may be of any race. household According to the Census Bureau, all the people who occupy a household. A group of unrelated people who share a housing unit as roommates or unmarried partners is also counted as a household. Households do not include group quarters such as college dormitories, prisons, or nursing homes. A household may contain more than one consumer unit. The terms “household” and “consumer unit” are used interchangeably in this book. income before taxes The total money earnings and selected money receipts accruing to a consumer unit during the 12 months prior to the interview date. Income includes the following components: • wages and salaries Includes total money earnings for all members of the consumer unit aged 14 or older from all jobs, including civilian wages and salaries, Armed Forces pay and allowances, piece-rate payments, commissions, tips, National Guard or Reserve pay (received for training periods), and cash bonuses before deductions for taxes, pensions, union dues, etc. • self-employment income Includes net business and farm income, which consists of net income (gross receipts minus operating expenses) from a profession or unincorporated business or from the operation of a farm by an owner, tenant, or sharecropper. If the business or farm is a partnership, only an appropriate share of net income is recorded. Losses are also recorded. • Social Security, private and government retirement Includes payments by the federal government made under retirement, survivor, and disability insurance programs to retired persons, dependents of deceased insured workers, or to disabled workers; and private pensions or retirement benefits received by retired persons or their survivors, either directly or through an insurance company. • interest, dividends, rental income, and other property income Includes interest income on savings or bonds; payments made by a corporation to its stockholders, periodic receipts from estates or trust funds; net income or loss from the rental of property, real estate, or farms, and net income or loss from roomers or boarders. • unemployment and workers’ compensation and veterans’ benefits Includes income from unemployment compensation and workers’ compensation, and veterans’ payments including educational benefits, but excluding military retirement. • public assistance, supplemental security income, and food stamps Includes public assistance or welfare, including that received from job training grants; supplemental security income paid by federal, state, and local welfare agencies to low-income persons who are aged 65 or older, blind, or disabled; and the value of food stamps obtained.
• regular contributions for support Includes alimony and child support as well as any regular contributions from persons outside the consumer unit. • other income Includes money income from care of foster children, cash scholarships, fellowships, or stipends not based on working; and meals and rent as pay. indexed spending Indexed spending figures compare the spending of particular demographic segments with that of the average household. To compute an index, the amount spent on an item by a demographic segment is divided by the amount spent on the item by the average household. That figure is then multiplied by 100. An index of 100 is the average for all households. An index of 132 means average spending by households in a segment is 32 percent above average (100 plus 32). An index of 75 means average spending by households in a segment is 25 percent below average (100 minus 25). Indexed spending figures identify the consumer units that spend the most on a product or service.
• South: Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia. • West: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.
market share The market share is the percentage of total household spending on an item that is accounted for by a demographic segment. Market shares are calculated by dividing a demographic segment’s total spending on an item by the total spending of all households on the item. Total spending on an item for all households is calculated by multiplying average spending by the total number of households. Total spending on an item for a demographic segment is calculated by multiplying the segment’s average spending by the number of households in the segment. Market shares reveal the demographic segments that account for the largest share of spending on a product or service. millennials Generation born from 1977 through 1994. race The self-identified race of the consumer unit reference person. All consumer units are included in one of three racial groups: Asian, black, or “white and other.” “Other” includes Alaska Natives, American Indians, Native Hawaiians, other Pacific Islanders, and persons reporting more than one race. Hispanics may be of any race. reference person The first member mentioned by the respondent when asked to “Start with the name of the person or one of the persons who owns or rents the home.” It is with respect to this person that the relationship of other consumer unit members is determined. Also called the householder or head of household. region Consumer units are classified according to their address at the time of their participation in the survey. The four major census regions of the United States are the following state groupings: • Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. • Midwest: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
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