Opulent lodgings arise in Boston strictly for pets - The Boston Globe

Opulent digs arise in Hub strictly for the 4-legged set

The Boston Globe | Beth Teitell | 13 Apr 2011

With 91 percent of owners calling their pet a member of the family and with the economic downturn easing, there is increasing demand for luxury pet lodging, according to a report by Packaged Facts, a Maryland research firm. Many facilities have added upscale amenities, such as customized suites with individualized decor or advanced air purification systems, according to the company’s most recent report.

Unlike the kennels of the past, with their chain-link fences and concrete floors, luxury pet hotels offer more than just flat-screen televisions. There are webcams, spas, airy rooms, and, increasingly, cage-free sleeping arrangements that allow pets to sleep on a bed with a hotel employee or engage in slumber parties with other (well behaved) animals.

Learn more about the 2011 - 2012 Pet Market Outlook

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Trends in OTC and veterinary-dispensed pet supplements usage vs. usage of special-purpose nutritional formula pet foods and treats

Pet Supplements and Nutraceutical Treats Trends in OTC and veterinary-dispensed pet supplements usage vs. usage of special-purpose nutritional formula pet foods and treats are featured in Packaged Facts' latest pet market study. Based on proprietary survey data, the report breaks the market into two categories—supplements and nutraceutical treats—with a primary focus on products for dogs, cats and horses. Exclusive Insights Include: New Product Trends - Spot emerging opportunities and understand the underlying market forces impacting the pet supplement and nutraceutical treat market today. Competitive Trends - Benchmark your competitors with a detailed look at the companies making a mark on the industry. Market Forecast - Leverage our comprehensive sales coverage to strengthen your position and identify area for growth. Consumer Trends - Position your product to match the shopping patterns of your targeted clients. Using proprietary survey data from Packaged Facts’ fall 2010 pet owner survey, we charted the OTC usage trends and veterinary-dispensed pet supplements. More information: Price/Info   |   Table of Contents   |   Place an Order

LA Times: Small pet stores see healthy growth of organic food sales

Sales of premium-priced organic and natural pet food are expected to grow three times as fast as pet food sales overall through 2015.

Lance Castro, left, and Guy Miracle, owners of the Modern Dog in Venice, sell several brands of freeze-dried raw food and premium kibble. “It’s done wonders for our business,” Castro says. (Ricardo DeAratanha, Los Angeles Times)

By Cyndia Zwahlen

February 7, 2011

Organic, raw and even gluten-free food choices aren't just for people anymore.

These options are showing up at local pet shops that are looking to distinguish themselves from big-box competitors. After a slowdown in sales of premium-priced food during the recession, independent pet shops said the sector was recovering.

At the Modern Dog, a boutique in a Venice bungalow, co-owner Lance Castro was looking to add two new brands of freeze-dried raw food and premium kibble to the seven he already sells.
"It's done wonders for our business," said Castro, who opened the Abbot Kinney Boulevard store with Guy Miracle five years ago.

The store's popular Sojos dehydrated dog food mix of sweet potatoes, turkey, apples and flax meal, among other ingredients, costs $21.99 for a 2-pound bag, to which water is added to make 10 pounds of food.

Castro said he was looking at sites for a second location where he plans to have a refrigeration unit for fresh and frozen raw-food brands.

Nationwide, annual retail sales of organic and natural pet food are expected to grow three times as fast as pet food sales overall through 2015, according to an industry report to be released this week by the Packaged Facts market research company.

Industry analyst David Lummis, who wrote the report, estimated that natural and organics would grow 12% a year on average, hitting $2.8 billion in 2015. By comparison, he expects an average 4% annual growth rate for the entire pet food market over the same period. Overall pet food sales will reach $22.1 billion in 2015, Lummis said.

"People are treating their dog food like some people are treating their baby food," said Todd Martin, vice president of marketing for Castor & Pollux Pet Works, a Clackamas, Ore., company that makes organic pet food and treats. "They want to know it's safe, and they want to know it's quality."

Still, organic pet food — which costs as much as 30% more than non-organic — remains a tiny part of the overall market.

Many independent shops, which are in the vanguard of the organic food sector, got a boost in business in 2007 when pets died from eating food that contained imported wheat gluten and rice protein contaminated with melamine. The poisonous contaminant even showed up in some brands sold as being natural.

As with food for people, there are no regulations governing the word "natural" on pet food labels. But pet foods marketed as organic must meet the same U.S. Department of Agriculture standards as human food in the category, according to USDA spokesperson Soo Kim.

Annual sales of organic pet food increased tenfold from 2002 to 2009, when sales hit $84 million, according to the Organic Trade Assn.

Now that organics are becoming more popular, some large pet store chains are also carrying them, said Joan Storms, an analyst at Wedbush Securities in Los Angeles.

But the more exotic raw and organic pet food is still mostly the province of independent shops.

Neal Massa is co-owner of My Pet Naturally in West Los Angeles, where customers can find raw elk meat for $7.49 a pound and raw chicken and lamb for Fido for about $4 a pound.

"My clientele are probably mostly single, more single women than not, and what I am finding is that these are their kids," Massa said, referring to his customers' pets. "So you are going to spend a little bit more money for pet food."

Full Article: Pet food: Independent pet stores see growing sales of organic and natural pet food - latimes.com

Sales of Pet Supplements for Dogs and Cats Not Recession Resistant, but Nevertheless Resilient

Sales of Pet Supplements for Dogs and Cats Not "Recession Resistant," but Nevertheless Resilient

New York, January 11, 2011 — Making good on its famed "recession resistance," the overall U.S. pet industry has fared well during the recession relative to many other consumer packaged goods industries, but pet owners have not been immune to the economic downturn. As a result, certain industry segments saw growth stall in 2009, including the pet supplements industry. However, Pet Supplements and Nutraceutical Treats in the U.S., 3rd Edition by market research publisher Packaged Facts forecasts a return to strength for supplement sales as the optimism of pet owners gradually recovers in harmony with the general economy.

"As the economy improves, so should all things pet, but that recovery continues to appear modest," says David Lummis, senior pet market analyst for Packaged Facts. "Spending on supplements will increase but ‘restraint’ will likely continue to characterize how pet owners shop and what they buy during 2011 and even 2012, making value appeals based on pet health, safety, professionalism, practicality, and yes, pricing, more important than ever."

Packaged Facts estimates total U.S. retail sales of pet supplements and nutraceutical treats at more than $1 billion in 2010, reflecting a compound annual growth rate (CAGR) of 4% during the five–year period beginning in 2006. Sales growth stalled in 2009 and 2010 as the recession took hold and held on, a slow–down attributable almost entirely to a downturn on the equine side. As a result, the small animal category–including products for dogs and cats–gained ground between 2006 and 2010, increasing from 45% to 52% of the market and surpassing equine as the larger category last year.

U.S. retail sales of pet supplements and nutraceutical treats are expected to begin to pick back up in 2011, with the annual sales growth regaining steam through 2015. By this account, the annual percentage increases will rise from more than 2% in 2011 to almost 7% in 2015, lifting sales to an estimated $2 billion. Growth will be considerably faster on the small animal side than on the equine side. For both animal classifications, the pace will be faster in nutraceutical treats, which will continue to gain ground because of their indulgence advantage and a steady influx of more heavily marketed products. Ultimately, small animals will account for 58% of the market by 2015.

Pet Supplements and Nutraceutical Treats in the U.S., 3rd Edition segments the market into two categories–supplements and nutraceutical treats (i.e., those containing supplements or novel botanical ingredients addressing specific health conditions, such as glucosamine for joint health)–with a primary focus on products for dogs and cats, but also extending to horses and other types of companion animals including birds, small mammals, and reptiles. The report provides a forward–looking examination of the market from every angle, including breakouts by supplement type and retail channel, analysis of the complex and evolving regulatory situation, competitive structure and marketing trends, new product tracking, and consumer profiling. For further information, please visit: http://www.packagedfacts.com/Pet-Supplements-Nutraceutical-2588715/.


About Packaged Facts —Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products. Packaged Facts also offers a full range of custom research services. To learn more, visit: www.packagedfacts.com. Follow us on Facebook, LinkedIn and Twitter.

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Contact:
Jenn Tekin
Packagedfacts.com
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jtekin@packagedfacts.com

The $20,000 Pet

by Nancy Keates, published December 22, 2010, Smart Money

For Mary Cotter, the first sign of concern came when her 7-year-old, Logan, appeared dizzy. His regular doctor said everything was fine, but Cotter insisted Logan be seen by a neurologist, who after an MRI found a tumor in his inner ear. An operation followed, and for the next month Cotter took Logan on a four-hour round-trip trek every day from her home in Ledyard, Conn., to a specialty hospital in Boston for radiation therapy.

A new CT scanner at New York's Animal Medical Center boasts shorter scan time and higher-quality images.

The total bill for the tests, blood work, surgery and radiation came to $14,000 — not surprising in this age of sky-high medical costs. Except for one thing. Logan is a golden retriever. After another surgery for an unrelated illness, the total cost of Logan's care is approaching $20,000. Today Logan is healthy, but he has a new nickname: "20K."

It's no secret that Americans love their pets. But these days, all that love is leading to an unprecedented level of expense for millions of owners, who are only beginning to understand the pet-world concept of sticker shock. Caught up in a wave of new medical options and lured by an increasingly sophisticated cadre of veterinarians, pet owners across the country are forking over thousands — and even tens of thousands — of dollars to treat illnesses that would have gone undiagnosed or untreated just a few years ago. And then doing it again if they have to. Of course, pet owners and most vets have the animals' best interest in mind. But that doesn't make it any easier: With health insurance covering the humans in many families, it's not unusual for pet owners to spend far more money on health care for their cats and dogs than for their sons and daughters. Even the Great Recession failed to take a bite out of Fido's health care tab. According to a report by market-research company Packaged Facts, Americans spent $20 billion on veterinary bills in 2010 — an 8.5% increase from a year earlier and more than double the amount spent just a decade ago.

Much of that money is being spent on new medical technology. With some of the advances in human health care spreading to the animal kingdom, pet owners have many more options for treatment—and many more chances to fork over money to cure their pets or at least prolong their pets' lives. Dogs and cats can have pacemakers implanted at a cost of $1,000 to $1,500, while pets with kidney failure can get a kidney-clearing procedure that runs $20,000 to $25,000 for just the first few weeks. Not long ago a vet would most likely have recommended euthanasia for a cat or dog diagnosed with cancer or another serious illness. Today high-tech procedures and equipment, such as chemotherapy and MRIs — and yes, CAT scans — allow for better diagnosis and more-advanced treatment.

They also require highly trained specialists. In the past three years, the percentage of veterinarians who are board certified for small-animal surgery has more than doubled, according to the American Veterinary Medical Association. Until the late 1980s, there were no board-certified veterinary oncologists, for a simple reason: There was no program for certification. Now vet schools offer oncology-specialization programs and have full-fledged cancer centers, while dozens of private centers have opened across the country with board-certified staff. At the Animal Cancer Center at Colorado State University, 14 veterinarians specialize in medical, surgical and radiation oncology. They're supported by a full nursing staff, residents and even a clinical-trials team focusing on diseases from canine lymphoma to feline sarcoma. Add it all up and "it's a revolution," says Stephen Withrow, the center's associate


Read more: The $20,000 Pet - SmartMoney.com http://www.smartmoney.com/personal-finance/health-care/the-20000-pet-1292884111206/#ixzz19yyRj7HW

Pet Insurance in North America, 4th Edition—Blog Entry



David Lummis



As the pet market analyst for Packaged Facts, I started covering this market in 2003.  Wow.  Talk about a market that’s come a long way—and yet still has a long way to go.  Back in 2000, the market was valued at under $50 million, with almost all of those sales coming from a single company, Veterinary Pet Insurance (which founded the market in 1980).  In the fourth edition of our report, released on Monday October 18, 2010, sales were at $354 million, with a dozen companies established in the North American market.

If that sounds like phenomenal 10-year growth it’s because it is, at approximately 600%.  But get this:  This figure still represents less than 1% of the 180 million-plus dogs and cats in North America.  That means (doing a little very rough math) that if the level rises to 10%, we’ll be looking at a market worth $3.5 billion, and with 25% of dogs and cats insured, a market worth nearly $9 billion.  This isn’t out of the question, since about one-quarter and one-half of dogs and cats are insured in the United Kingdom and Sweden, respectively.  There’s a lot going in the North American market right now too, including major insurance companies weighing in as underwriters, such as Aon with Healthy Paws, Aetna with Pets Best, and Berkshire Hathaway subsidiary Central States Indemnity Co. of Omaha with PurinaCare.

Still, marketers have their work cut out for them in dealing with the lingering impact of the recession.  In Packaged Facts’ September 2010 consumer survey, among those who did not have pet insurance, 42% cited as the reason “don’t want additional bill” and 37% said they “don’t want to spend the money for it.”  With economic recovery slow at best, this reticence does not seem likely to change overnight.  Packaged Facts does not expect consumers to throw open their pocketbooks any time soon, but rather to continue to practice moderation.  Thus value will remain a major marketing theme in 2011 and 2012 as pet insurance companies strive to communicate the benefits of their products and keep the pricing options as attractive as possible.  Expect to see more zero- (and other very low) deductible plans, following in the footsteps of Trupanion and, more recently, VPI (via its new Feline Select Plan).

That said, the level of competitive activity is at an all-time high, and with so many irons in the fire I’m not ruling out a “big boom” in the North American pet insurance market.  Such growth will, however, depend on the ability of marketers to move from what appears to be a stage of market cannibalization (and perhaps some retrenchment, even) to one of more uniform growth via an expanded consumer base.  One possible catalyst to higher-level growth would be the entry into the market of another mega-retailer, such as PetSmart (via its Banfield units) or Walmart, the latter of which is reportedly planning a Canadian launch as a Western Financial white label (although neither company could confirm this).

One thing’s for sure, given the currently very low level of pet insurance penetration and very high level of competitive activity—about a half dozen companies have entered the field just since 2004, including PetFirst, Pets Best, Embrace, Fetch/Petplan USA, Trupanion, PurinaCare, and Healthy Paws—the North American pet insurance party is likely just getting started.

~David Lummis, Senior Pet Market Analyst, Packaged Facts