Are you spending too much money on your pets?

First of all, most pet owners consider their cats or dogs a bona fide member of the family. This is especially true with millennials. In fact, 1/3 of millennial-aged Americans (ages 18 to 36) who purchased their first home say the desire to have a better space or yard for a dog influenced their decision to purchase their first home. This is according to a 2017 survey from SunTrust Mortgage, a division of SunTrust Banks, Inc. Dogs ranked among the top three motivators for first-time home purchasers and were cited by more millennials than marriage/upcoming marriage, 25 %, or the birth/expected birth of a child, 19 %.

“Millennials have strong bonds with their dogs, so it makes sense that their furry family members are driving home-buying decisions,” says Dorinda Smith, SunTrust Mortgage President and CEO. “For those with dogs, renting can be more expensive and a hassle; home ownership takes some of the stress off by providing a better living situation.”

Also, the sheer numbers explain our obsession with our pets. According to the 2017-2018 American Pet Products Association National Pet Owners Survey, 68 percent of U.S. households own a pet, which equates to 84.6 millions homes. Of those pets, dogs are number one, with more than 60 million households having a dog, followed by a cat—47 million households.

Given how highly we regard our pets, it makes sense that so many of us want to pamper our pets. I know from my online business how many Americans celebrate their dog’s birthday each year and want to be able to throw them a birthday party with a dog-themed cake and dog bone shaped birthday candles. The ornate cake at the top of this article was made using our pit bull cake pan and professionally baked and decorated by one of our dog bakery customers, the Happy Dog Barkery in Downers Grove, Illinois. Soon our online store will introduce cat-themed cake pans and birthday candles for those 47 million households with cats that might want to celebrate their cat’s birthday. This will be part of our Kittieware line.

This is part of the reason that dog bakeries—or barkeries—are popping up all over the place and chowing down the profits. In a recent Voice of America article, Nicki Dobson of Three Dog Bakery in Kansas City, Missouri, explains how pet owners buy treats for their pups as they might ice cream for their children—and, by the way, there is dog ice cream on the market: “We have dogs come in every week,” Dobson said in that article. “Their dog needs a cookie every night. We have people who drop $50 to $75 on [dog] pastries every week.”

In addition to pet-themed bakeries, there are pet spas, pet-oriented restaurant franchises, hotels with pet programs and cat-friendly AirBnB locations. Even automotive brands are marketing to pet lovers, with vehicles with pet-specific features.

I can tell you that in some instances, when we choose brands that we give our business to as a family, we might base our decision on how pet-facing a business is. For example, if a bank doesn’t give out treats at the drive-through window, I find myself thinking, Why not?

Do you love your subscription boxes? Well, dogs and puppies can get them now. You can even dress your pup up in your favorite college or professional team’s sports gear so your pet is in the spirit when you sit down to watch the big game.

And many pet parents include their pups in Halloween celebrations, too. According to Pet Products News, millions will dress their pets up for Halloween. One statistic said that for every $3 parents spend on costumes for children, they’ll spend $1 on a costume for their pet. PARADE



More and more American families own pets.

A recent study says that 85 million families in the United States own a pet.

The American Pet Products Association’s study for the years 2017-2018 says that represents 68 percent of all families in the U.S.

Thirty years ago, when the study was first done, 56 percent of families owned a pet.

The survey found dogs are the most popular pets. Sixty-point-two percent of homes own one. Cats are the second most popular with 47.1 percent of families reporting they had a cat. Freshwater fish came in third with 12.5 percent.

Nicki Dobson is head of marketing and communication for Three Dog Bakery. The business calls itself the "original bakery for dogs." She said pets have become especially popular among Americans in the past 10 years.

She said, "People are having more pets and less children. People are concerned about what they eat. Our whole premise was trying to make things with human-grade ingredients and a focus on nutrition. They look like human food, but they're meant for pets."

Another company, Posh Puppy Boutique, sells clothes, jewelry and other items for dogs.

There are also pet hotels and pet health centers. One study found that Americans spend about $126 each month on their pets.

Three Dog Bakery opened in 1989. Dobson says there are now 45 bakeries around the world, including in Canada and China. She said cakes are the most popular item. She added that some people pay $50-75 on baked goods each week for their pets.


Pets rather than children?

Some younger Americans seem to be choosing pets over having children. Some are making big life decisions, such as buying a home, around the lives of their pets.

The SunTrust banking company did a study in 2017 of people under the age of 40 buying their first home. The study found that 33 percent said a good yard or good space for their pets influenced them to buy a new home. Only 25 percent said marriage was a reason, and 19 percent said the birth of a child.

Some companies now offer pet benefits such as pet insurance. They are also offering "pawternity" leave, which gives workers free time to spend with their new pets.

Dobson noted that taking dogs to work is now popular in places that permit it.

Americans' love for their pets is even influencing their travel plans. A recent survey found that 49 percent of pet owners have not left the country since owning their pet. Sixty-eight percent of those said it was because they feel guilty leaving their pets alone.

Health experts say pets can improve the health of their owners. The American-based Centers for Disease Control and Prevention says pets can reduce blood pressure, cholesterol levels and feelings of loneliness.

The CDC adds that pets also offer chances for outdoor exercise and socialization with other people.

Article Credit:  Americans Spending and Doing More for Their Pets

The American Pet Products Association (APPA) provides periodic updates on how much money U.S. citizens spend on their beloved pets each year. While spending for 2017 was estimated to reach $69.35 billion, Americans surpassed that estimate by a few million dollars.

 According to new annual industry-wide spending figures announced at this year’s Global Pet Expo held in Orlando, Florida, Americans spent a total of $69.51 billion on their pets in 2017.

 These statistics mean that 2017 pet spending outpaced 2016 pet spending by nearly $3 billion, showing 4 percent growth in the pet market.

 "Talk to any pet owner and they'll tell you how difficult it is to put a dollar limit on what they'd spend to give their loyal companion a happy life,” APPA president and CEO Bob Vetere said, “and it's this outlook that continues to drive growth."

 When it comes to what pet owners are spending their hard-earned dollars on, though, pet food reigned supreme, followed by pet supplies and over-the-counter medications, veterinary care, live animal purchases and other miscellaneous services.

Over the course of one year, growth was experienced in each of these five categories except for live animal purchases — which remained the same between 2016 and 2017.

"It's incredible to not only see growth for the pet industry in general but to experience growth across all categories with the exception of 'live animal purchases,’" Vetere said.

The good news is that veterinary care spending continues to grow year-over-year, showing a 7 percent increase from 2016. According to APPA analysts, this category is expected to continue on the same upward trajectory with 6.9 percent growth projected for 2018.

 The category that experienced the most growth between 2016 and 2017 was ‘other services,’ which includes grooming, boarding, walking, training, pet sitting, yard services and more. This grouping is up 6.9 percent from 2016, coming in at $6.16 billion spent in 2017.

 "The industry is moving beyond simply the humanization of pets to where they are now widely accepted as part of the pet owner's lifestyle," Vetere said. "No matter the primary cause of increased spending on pets, be it enhanced nutrition, better healthcare, increased pampering, or greater technology, the one thing we know for sure is that pet owners have a top priority in pursuing longer, healthier lives for their pets.”

Article Credit:  American Pet Spending Reaches New High

Should you get pet insurance? Probably a good idea.....

As Veterinary Bills Add Up, More Pet Owners Opt for Insurance

Annual premiums last year totaled $1 billion, with 1.83 million pets insured


Insurers tend to focus on the two most popular companion animals, dogs and cats, though more exotic animals may also be covered.
Insurers tend to focus on the two most popular companion animals, dogs and cats, though more exotic animals may also be covered.

Two out of three American households—or about 85 million homes—own pets, and those lovable little roommates don’t come cheap.

Americans spent $17 billion last year on veterinary care alone, according to figures published by the American Pet Product Association. Per pet, that included $257 for the routine care of dogs and $182 for cats.

But accidents or illness can balloon costs, and to offset the expense, more households have turned to pet insurance, a niche product that for the first time last year grossed $1 billion in annual premiums.


Compared with auto, home and human health coverage, pet insurance is the runt of the litter. But that puppy’s growing.

Last year’s gross annual premiums were 23% higher than the previous year, when the total was $837 million, according to the North American Pet Health Insurance Association. The number of insured pets also increased, climbing to 1.83 million last year, up about 16% from the previous year.

That’s only 1% of dogs and cats, but insurers expect the expansion to continue.

“Twelve million puppies and kittens come into the world every year,” said Rob Jackson, chief executive officer of the pet insurer Healthy Paws. “There’s still great room to grow.”

One yardstick to assess the potential is the United Kingdom., where a quarter of cats and dogs are insured, according to Laura Bennett, a pet insurance actuary and fellow of the Society of Actuaries.

Although animals that are more exotic than cats and dogs may be covered, insurers tend to focus on the two most popular companion animals.

In 2017, Americans owned 94.2 million cats and 89.7 million dogs, accounting for nearly half of all household pets, according to the pet product association.

(America’s 393 million pets also included other small animals, horses, birds, reptiles and fish. At 139 million, freshwater fish was the single largest category, accounting for 35% of the total. But come on. If you can’t cuddle it, is it really a pet?)


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Insurance to offset the cost of veterinary care is a hybrid product. Like health insurance, it typically covers accidents and illnesses, but because pets are possessions, it is technically property and casualty insurance.

That’s the kind that’s purchased for homes and cars, but there’s a wrinkle: With car insurance, drivers don’t assume it’s OK to get into more accidents. Pet insurance may inspire a different response.

“If I go out and adopt a dog and buy an insurance policy, you don’t know how I’m going to behave,” Ms. Bennett said. “Will I go to the vet every time the dog coughs? You don’t know.”

About a dozen companies sell pet insurance in the U.S. The largest, in order of market share, are Nationwide, Trupanion and Healthy Paws.

Each is relatively new to the scene. Trupanion began selling pet insurance in the U.S. in 2008. In 2009, Nationwide acquired Veterinary Pet Insurance, which had been around since 1980. And Healthy Paws started in 2010.

There are no standardized actuarial tables to guide pet insurers in setting premiums. Each group crafts its own, often with the help of pet actuaries.

Trupanion, which insures 472,000 pets and employs four credentialed actuaries, bases its rates on characteristics such as pet breed and age—like other companies—along with details gleaned from the 1 million-plus claims the company has processed.

Among the lessons it has learned over the years is that different breeds have different health concerns.

“Golden retrievers are prone to cancers more so than other dogs that are otherwise comparable,” said T.J. Houk, Trupanion’s chief data officer and actuary. “Other breeds of a similar size have their own issues.”

That kind of information influences premiums, as does a pet’s place of residence.

“In New York there’s a very different level of available care than in most of the rest of country,” Mr. Houk said. “You see significantly higher prices there.”

With a $200 deductible, premiums for a mixed breed puppy in Manhattan would cost $76, Mr. Houk said. In Mobile, Ala., the same pet with the same coverage would cost $34.

Premiums also vary depending on a policy’s deductible, but in general, monthly pet insurance payments range from $25 to $150.

One reason for the growing appeal of pet insurance is the availability of increasingly sophisticated and expensive treatments.

“The cost of routine care is not going up,” Mr. Jackson said. “Where you find increases is in specialty care. That’s where you get the sticker shock.”

A torn cranial cruciate ligament, which is often referred to as a dog’s ACL, is an example of a common ailment that now has a variety of advanced treatment options with price tags to match.

“The old treatment was to repair the ligament for around $1,200,” Mr. Jackson said. “Now, you can set the bone, put a plate in there, and for $4,500, the knee is as good as new. It’s the same condition but a new way to treat it.”

And, if you choose to buy pet insurance, a new way to pay for it.

Article Credit:  Wall Street Journal