According to the United States Bureau of Labor Statistics, $6.77 billion was spent on pet services in the United States last year. This represents a 1% decrease from 2016’s $6.84 billion and the first drop in pet services spending since 2010.
While the decrease may not seem significant on the surface, Pet Age’s John Gibbons suggests that the drop may be a sign of a hotter market with more competition and better deals for consumers.
“Lower prices and “deals” can attract new users or encourage existing customers to buy more or more often. Both of these increase revenue. However, it can also result in regular users spending less for the same services.”
— John Gibbons, Pet Age
Even with the drop in overall spend, it seems that more consumers are making more purchases more often. Gibbons also notes that Consumer Price Index for pet services jumped a staggering 2.5% in early 2018, suggesting that 2017’s modest, nominal drop in spending may be a sign of even greater growth to come.