Animal Acupuncture and Chiropractics - Big Business

71 Million Pet Owners And 382 Million Pets Equal A $43 Billion Industry That Shows No Signs Of Slowing

Devoted pet owners are investing thousands of dollars on animal acupuncture, kitty chiropractics, doggie dentistry, and other alternative therapies in an effort to improve the lives of their feathered and furry friends, and vets are cashing in, according to an industry report released today by IBISWorld, inc. IBISWorld, Inc (www.ibisworld.com) is recognized as one of the nation’s most respected independent publishers of business intelligence research, including more than 700 industry reports on virtually every segment of the U.S. economy.

The Big Business of Pampering Pets

“Around 63 percent of all U.S. households (71.1 million) are proud pet owners, and more than half of half of these households have more than one animal,” said Mr. Van Horn, a Senior Analyst with IBISWorld.  “It all adds up to big money when your consider 382.2 million pets,” said Mr. Van Horn, who estimates Americans will spend an incredible $43.4 billion on their furry companions, feathered friends, reptiles, and a varied assortment of other types of pets this year.  According to one of IBISWorld’s latest industry reports, the $43-plus billion Americans spend on their pets has become big business.  Here is what consumers are buying for their furry companions:

* $16.1 billion will go towards food and treats,
* $9.8 billion on veterinarian care and pet insurance,
* $9.9 billion on supplies and over the counter (OTC) medicine,
* $2.1 billion on buying live animals,
* $2.9 billion on other pet services, including training and grooming; and,
* $2.6 billion on pet products purchased at supermarkets and mass merchandisers that cater specifically to pets with toys, clothing for pets, and even pet jewelry.

“Add to this are the areas of alternative therapy, doggie daycare, hotel style accommodation, specialty pet foods, and designer clothing,” and Mr. Van Horn predicts that pets will increasingly become major investments in years to come.
        
Pet Healthcare And New Age Vets            

“Perhaps the hottest trend in pet care right now is alternative therapy to alleviate our four legged friend’s aches and pains, with procedures such as acupuncture and chiropractics,” said Mr. Van Horn.  “Preventative care and elective surgeries are gaining in popularity year after year, while clever veterinarians are diversifying their practices and undergoing additional training to incorporate new age treatment regimes.”

”We are also seeing a surge in the number of animal specialists who offer pricey services ranging from canine homeopaths to behavioral therapists,” said Mr. Van Horn, adding “The number of companion animal hospitals is also increasing too with are more than 22,000 establishments across the country.  While many veterinarians are small offices with one or two practitioners, the pet healthcare is maturing into big business.  For example, VCA Antech, Inc. (NASDAQ: Global Select Market: WOOF) is the largest network of freestanding veterinary hospitals and veterinary-exclusive clinical laboratories with 450 locations in 39 states, which employ 1,800 veterinarians, of which more than 200 are board-certified specialists.

Mr. Van Horn explained that the proliferation of animal health programs on television and radio is fuelling the trend by boosting consumer awareness of animal health issues, and the latest treatment options.” 

“Another growth area for veterinarians is offering dentistry services, as well as oncology expertise for companion animals,” said Mr. Van Horn.  “This in turn, has driven growth in associated diagnostic fields, animal pathology, and radiology services.  Pets now have access to pet healthcare virtually on par with the healthcare available to their human companions.” 

And the growing demand for alternative animal therapies is crossing also over into the human health arena, with qualified human chiropractors currently delivering kitty chiropractics rather than veterinarians.
Premier Pet Services.

IBISWorld research reveals that today’s savvy consumers don’t just want to care for their pets, they want to indulge them, a trend which is driving suppliers to put an extravagant spin on grooming, training, boarding services, and even shuttle services to the vet or to the groomer. 

Taking ‘doggie school’ to the next level, value added training schools focus on developing a relationship between the animal and its owner, with customized programs designed to engage and motivate both ’master’ and pet alike, said Mr. Van Horn, adding “Pet and owner weight loss classes are one area experiencing considerable growth.” 

Another area undergoing a luxury makeover is boarding kennels, with a number of five-star pet hotels launched during the past decade.  “With PetSmart’s (NASDAQ: PETM) newly-launched PetsHotel, and Pet Sitters International, the family’s precious pooch need never to be left alone at home again,” Mr. Van Horn said. “PetsHotel is not only a boarding center, but the company also offers a day care service with a range of special care options, special diet meals, including video-call facilities that allow owners to have face-to-face contact with their pet while they are away.  

"Pet Sitters International on the other hand, offers a ‘nanny for pets’ service to provide pet care in the comfort of your own home,” said Mr. Van Horn.  “In larger cities across the U.S. professional dog walkers make a full time living by exercising and allowing pet owners’ pets to have a ‘bathroom break’ for those pet owners who keep long hours, or travel, but prefer to keep their pets in safe surroundings.”
Specialty Pet Products.

While the pet product, and specifically pet food industry has been traditionally dominated by supermarkets, specialty pet superstores such as PetSmart, which operates more than 1,000 retail stores in North America, and PETCO which has 850 stores in 49 states, are both gaining market share by offering natural pet food lines for animals with sensitive skin, delicate stomachs and discerning tastes.  According to IBISWorld, specialty brands, and targeted pet foods designed for indoor or outdoor cats, certain breeds of dogs, or animals with medical conditions are overtaking the more traditional pet products. 

“The development of focused and targeted products for different pets is a trend that is occurring throughout the pet supplies segment, with a huge increase in the number of innovative and specialty pet products available, including specialty beds, collars, leashes, food bowls, jerseys, pest control agents, decorations and toys,” said Mr. Van Horn.  “In just one year in 2004, more than 600 new products were released by 600 companies.  By 2006, more than half of the new pet products introduced that year were considered ‘upscale.’”  

These products include PetSmart’s “Doggles” – goggles to protect pooch’s eyes from ultraviolet rays, as well as sleeping bags with built-in playthings, lavender scented poop-mitts, pet car seats, and more innovative products are in the pipeline. 

“And while IBISWorld believes the current trend towards medium and high-density housing, coupled with government regulations restricting pet ownership has had a slightly adverse effect on the number of people purchasing cats and dogs.  Mr. Van Horn said, “The rising popularity of other creatures, such as birds, fish, and reptiles, would largely offset this, ensuring that vets and specialty pet suppliers will enjoy a growing client base and realize rising profit margins for years to come.”

About IBISWorld

Founded in 1971, IBISWorld provides a unique and extensive online portfolio of business research and analysis products designed to serve a range of business, professional service and government organizations.  Delivered through enterprise subscriptions, the company publishes in-depth reports on more than 700 industries and offers profiles on more than 8,000 U.S. companies.  In addition, the company provides databases of economic analysis, demographic data, and risk assessment reports relevant to virtually every business sector. IBISWorld's materials are valued for the breadth and depth of the research and analysis covering the entire U.S. economy, incorporating both financial and non-financial information impacting tracked industries and companies. IBISWorld Business Information is well known for its accuracy, consistency and timeliness. This is why almost all online information aggregators seek us out to include our reports as part of their global databases.   Current IBISWorld partners include Hoovers, Valuation Resources, Superfactory and American Small Business Development Centers.  With U.S headquarters located in Los Angeles, IBISWorld has offices in New York, Melbourne, and Sydney.  For more information, visit www.ibisworld.com or call 1-800-330-3772

PHOTO:  Two dogs awaiting Todd's water therapy session.