Editors' pick: Originally published June 30.
Rattled by Brexit? It might be a good idea to turn to pets for support.
And not just emotional support, but financial support as well. The pet industry is one of the most steady in the world, with the market size growing consistently every year this century. And the market stability makes it particularly warm and fuzzy to investors. For example, the store sales for Idexx Laboratories (IDXX) , a corporation that creates and distributes animal products and services, saw a positive rate of growth even in the aftermath of the Great Recession.
"We're seeing this industry continue through good times and bad times," said Seth Mendelson, group publisher at the magazine Pet Business. "It's recession-proof." Perhaps even in bad times, consumers rely on the comfort of their pets and spend accordingly to spoil the creatures who provide them with such support.
Americans spent $60.28 billion on pets in 2015. In 2016, that number is estimated to rise to $62.75 billion.
Does that forecasted growth mean more pets will be bought this year? Not necessarily. It may have more to do with a higher standard-of-living for pets.
"Pets are living longer, and they've been upgraded to children status in households," says Philip Cooper, president of the consulting firm Pet Industry Expert. "We've seen people habits crossing over to the pet side become entirely normal."
The proliferation of pet products that meet human standards proves Cooper's point. In recent times, everything from pet fitness merchandise to gourmet dog food has landed in the marketplace. And these products have done well, as the standards of the family and the standards of the pet increasingly align.