THE YEAR IN REVIEW
The end of the year is taking stock time, looking back at what was important over the past twelve months, as well as looking ahead at what we can envision for the near future. In the pet industry, there is plenty to talk about.

As the books close on the anticipated $41 billion dollars in pet-related sales for the year, the amount we have spent on our pets will have doubled in just 10 short years. If you have trouble realizing just how much $41 billion is, it's more than we spend on movies, playing video games and listening to recorded music (around $33 million combined), and more than the gross national product of most countries in the world. After consumer electronics, pet care is the fastest-growing category in retail, experiencing about 6 percent growth each year.

There are a multitude of reasons why this market is so hot. No longer considered just a piece of farm equipment or a kid sidekick, the companion animal has wide appeal to a variety of demographic groups, including young professionals, couples with no children, empty nesters and, of course, families. The positive benefits of having a pet are well documented. A pet can be an anchor in our mobile and high-tech world, and, for those with the time and resources, can provide a focus for activities and nurturing.

Nationally, about 35 percent of our retail dollar is spent on pet food, which is consistent with the spending patterns in my own shop. Food, however, has changed from the one-size-fits-all dry kibble to a retailer's nightmare involving hundreds of formulas. Age, size and breed-specific options compete with foods containing organic, human grade ingredients, visible vegetables and yummy names. Nutritional concerns are now at an all-time high, partly due to the massive pet food recall earlier this year that had pet owners up in arms.

Pet parents are spending more on pet medicines and veterinary care than in years past. Advances in technology from the human world apply to our animals as well. Highend diagnostics, such as MRIs, are more commonplace, and alternative therapies such as acuptuncture, massage or supplement regimes are more widely prescribed and available. Dental visits have become routine, while root canals, cosmetic surgeries and elective procedures such as braces or rhinoplasty are becoming more popular.

Big drug companies that are known for people medicine have realized the growth potential in pet meds and have branched out into animal health. Within the last year, two major companies, Johnson & Johnson's and Pfizer, have received approval for drugs to manage dog obesity. With as many as 40 percent of our pets estimated to be overweight or obese, there is increased interest in diet foods, and in certain circles, pet liposuction is quite the "in" thing.

In 2007, more than $2.9 billion dollars will be spent on pet services, with an expected increase of 7 percent next year. Mobile groomers, pet sitters, day care centers, pet insurance companies, pet hotels and pet waste services cater to those pet owners who have limited time to spend caring for their pet or who want to provide a quality lifestyle and have the resources to do so.

The world's largest pet specialty retailer, PetSmart, Inc., has changed its mission from pet food seller to helping consumers be better pet parents. As leases for old store fronts expire, PetSmart reevaluates store locations, revamps to a homier look and adds pet hotels. In-store service amenities such as grooming, training and lodging encourage customer loyalty and one-stop shopping while adding $450 million to overall sales.

The phenomenal success of high fashion in the pet business is a dramatic example of pet owners who are more influenced by passion and emotion than by the cost of pet ownership. Sparked by the popularity of the small, personal pet, the boutique charisma has spawned specialty items from elaborate pet clothing and jewelry to footwear to home furnishings and has been the inspiration for a spate of glamorous pet fashion shows. Glossy trade publications feature a plethora of products and relay the latest buzz about current styles and trends.

E-commerce has unlimited potential. For the savvy small business, increased availability and sophistication of user-friendly online shopping cart programs provides an opportunity to manage its own website to take advantage of the unprecedented exposure through the vast markets of the Internet.

As our pet population continues to increase, the pet industry should show continued strength in the short-term and a long-range healthy

growth pattern. I

Jan Jaeger is owner of Geronimo's, Ltd., Nantucket's pet supply and gift shop, and is a member of DWAA and CWA (Dog and Cat Writer's Associations of America). Her pets at home are Junior, a Chesapeake Bay Retriever, and three cats. At the shop are cats Messrs. Fish and Chips, Flower bunny, Millie guinea pig and two budgies. Send e-mail to jan@geronimos. com.