Research firm: Pet industry to grow in 2009

The pet industry is expected to generate $51.6 billion this year, an increase of 1.3%from 2008, according to US industry research firm IBISWorld.
The firm predicted petfood production, which makes up 30% of the pet industry, to generate $15.2 billion this year and grow steadily in the next five years.
Over half of all pet owners have shown concern in what their pets are eating, according to IBISWorld, causing a shift in demand for premium, natural and organic petfood.
“Americans consider their pets as members of the family, making businesses that cater to our four-legged friends a stable, growing market,” said George Van Horn, senior analyst at IBISWorld.

Petfood manufacturers combat price increases

Manufacturers and distributors are in a difficult position as customers mistakenly blame them for intentionally increasing petfood prices when in reality production costs are going up, according to an article from The Greeley Tribune.
“People kept attacking us, but our markup is the same. We’re not increasing our prices — it’s the companies we buy from,” said Josh Saunders, of Poudre Pet & Feed Supply.
Several brands, including Nutro and Hill’s, have turned to cutting reward programs, downsizing packages, levying fuel surcharges, and/or increasing prices in the final product order to balance the increased production costs.

Unicharm Petcare Corp. stock prices rise

Japan-based Unicharm Petcare Corp. stock prices rose 5.5% after the petfood maker reported 27.4% growth in its operating profit for the year that ended in March, according to an article from Forbes.
The demand for the company’s products increased with more people in Japan owning pets, causing Unicharm’s operating profit to rise 6.6 billion yen (US$68 million) in 2008.
Unicharm expects its operating profit for this financial year to increase another 6.2%.

Petfood sector still hot in sluggish economy

Marco Giannini's Los Angeles-based Dogswell LLC is poised to hit sales of $20 million this year, which is more than double its sales from 2007, according to a story from Reuters.
Amid the struggling US economy, the American Pet Products Association says the US pet industry grew to about $43.2 billion in 2008, up from $34.4 billion in 2004, with sales for 2009 expected to hit $45.4 billion.
The key to success in the industry? Giannini says for his company, quality control, knowing the supply chain, product testing and good customer service all factor in.