Cashing in on canines

From groomers to dog parks and boutiques, the pet industry is booming

Through a glass window in the lobby at Dogs In Paradise, visitors on a recent afternoon could see a cocker spaniel trotting between toys, a boxer stretched out near colorful play equipment and two large mixed-breeds tugging at a cloth bone.

Like most pet-related businesses in Maryland – from groomers to trainers - Dogs In Paradise has seen its business boom since it opened in the fall. Owner Terry Kehne believes Dogs In Paradise is part of a growing national trend.

‘‘We’re finding quite a lot of people need [day care for their dogs] for various reasons,” Kehne said. ‘‘Every month we get more business. Pets are like people’s kids - that’s the single [biggest] reason why the pet industry is growing.”

While the broader national economy has been slumping – from the stalled housing market to sagging automobile sales – the pet industry has thrived with an expanding array of merchandise and services.

U.S. consumers spent more than $41.2 billion on pet products and services in 2007 - more than the gross domestic product of Serbia, Bulgaria, Lithuania and 111 other countries. Spending last year was more than double the $17 billion shelled out in 1994, according to Dillon Media, a pet industry consulting firm in Berkeley, Calif.

‘‘The growth has been impressive, even through hard economic times,” said Michael Dillon. ‘‘Innovation is the key in this industry. It’s really driven by startups and entrepreneurs – thousands of mom-and-pop shops.”

From retractable leashes to global positioning system collars, pet products are becoming even more specialized, with much more room for growth, according to Dillon’s Pet Industry 2008 Strategic Outlook report. ‘‘New products are coming on the market at the rate of hundreds per year,” Dillon said.

After searching for months for a location that would tolerate the noise, Kehne opened Dogs In Paradise in a 7,150-square-foot space in an East Street plaza. The warehouse-size room has separate quarters for an office, overnight lodging area for pets, a training section and a second play area that will open as more pet owners sign on.

The client list has grown from one red beagle named Rudy to up to 18 dogs per day, including Labrador retrievers, terriers, golden retrievers and poodle mixes. Kehne said that although the business isn’t breaking even yet, she is optimistic. The center, now with three full-time and two part-time employees, plus three volunteers, can accommodate up to 60 dogs per day, at $35 per day for pet sitting and socializing.

Pet owners spent more than $2.9 billion on services such as boarding and grooming in 2007, with 7 percent growth expected this year, according to the American Pet Products Manufacturers Association.

Vicky Creamer, owner of Belquest Kennel and Cattery in Mount Airy, said her 20-acre enclosed roaming kennels are in demand and the Labrador and golden retriever puppies she breeds sell quickly. The facility also provides grooming, offers handling courses and provides day care for $15 per day.

‘‘I have to say, everything’s on the upswing,” Creamer said. ‘‘People have to take care of their animal. You have to feed them and get them looking good.”

Nearby, The Country Kennel of Mount Airy offers boarding, grooming and training at its 6-acre facility. Its indoor run is heated and air-conditioned and plays constant background music.

Pet ‘parents’ prioritize

Owners of specialty pet shops around the region – from Pet Loft in the Mount Airy Shopping Center to Two Paws Up in Frederick – are optimistic, despite the nation’s economic doldrums.

Mark and Karen Broadhurst opened Pet Loft with a variety of organic food and treats for dogs and cats, plus an array of products for pets of all kinds, from hamsters to reptiles. The shop holds regular dog training courses and offers a Suds-N-Fluff Salon at which, for $15, pet owners don rubber aprons and wash their canines with no cleanup, like a self-serve carwash.

The Pet Loft recently added a poop-scooping service, charging $20 per weekly visit to clean pet waste from up to an acre, with extra fees for larger properties, more frequent cleaning or for homes farther than five miles from the shop.

Two Paws Up on South Carroll Street in Frederick, which opened in 2004, recently opened a kiosk location at Greenbriar in Urbana and is revamping its Web site to target online sales, said owner Allison Levitt. Natural dog treats and all-natural dog beds are among the shop’s top sellers, which owners are ‘‘absolutely” buying.

‘‘People’s lifestyles are changing – their dogs are going to take that route,” Levitt said. ‘‘Pets are a member of their family.”

U.S. pet industry

Number of dogs and cats: 162 million

Households with a pet in 2007: 63 percent, or 71.1 million homes

Households with more than one pet: 45 percent

Dog owners who consider their pets members of the family: 85 percent; cat owners: 78 percent

Pet owners buying holiday or birthday gifts for their pet: 80 percent

Anticipated growth in pet industry in 2008: 5.3 percent

Spending on pets in 1994: $17 billion

Spending on pets in 2007: $41.2 billion

Pet food: $16.2 billion

Veterinary care: $10.1 billion

Supplies and medicine: $9.8 billion

Services (grooming, boarding): $2.9 billion

Animal purchases: $2.1 billion

Sources: Dillon Media LLC, Department of Labor, American Pet Products Manufacturers Association