While sales of pet products is booming through pet stores like PetSmart, PETCO, Petland and others like them, they're also booming outside the pet industry.

A new report from Packaged Facts, a division of MarketResearch.com, found that sales of pet products outside of pet retail outlets (Home Depot, Walgreens, Albertsons, etc.) is expected to reach $3 billion in 2005, an 8.1% increase over 2004, and represents 12.3% of the total pet products market.

The report goes on to say that sales of pet products outside of pet retail outlets is expected to hit $4.2 billion by 2010.

As pet owner tastes become increasingly upscale, they're more likely to look outside traditional pet retail stores to purchase high-ticket luxury, gift, and human-brand products.

Spearheading the pet product influx into non-traditional outlets are gift/luxury products, such as diamond-studded collars and faux mink coats, value-priced items, convenience-oriented products, private-label and licensed fare, and human-style goods from some of the world's top fashion monikers.

"We're seeing a phenomenal trend of "humanization" in the pet industry, both in how owners treat pets as members of the family and how pet products are mirroring human products," said Don Montuori, the publisher of Packaged Facts. "There's a 'what's good enough for me is good enough for my pet' attitude driving growth in this market, particularly among affluent consumers, including aging boomers, empty nesters, seniors, singles, and gay couples, who spare no expense when it comes to premium pet supplies."