Pampering pets is more popular than ever nationally owners spent more than $40 billion last year and Los Angeles is a leader of the posh pooch pack.

In fact, Los Angeles dog owners eager to lavish luxury on Fido are creating a mini-boom of businesses that cater to boutique bowsers. Hundreds of small businesses, along with bigger retailers from Fred Segal to Wal-Mart and Target stores and a slew of signature luxury brands, have climbed aboard the rich bitch bandwagon.

“L.A. and New York are the two strongest markets in the boutique and high-end area,” said Bob Vetere, president of the American Pet Product Manufacturers Association. “That is where you will find the highest concentration of pet hotels, spas, daycare centers and operations.”

Vetere’s organization has more than 1,000 members nationally and the majority of the 216 businesses that joined last year were boutique shops, he said. The array of services and products for dogs is mind-boggling and, in the eyes of some, bordering on the absurd, as are some of the prices. Among the amenities available around L.A.:

-A French-made doggie cologne for $3,000

-A leather Gucci pet carrier for $2,700

-Louis Vuitton collars with Swarovski crystals for $500

-Natural grass-covered indoor porta-potties for $300

And then there are the services, which include luxury grooming, pet dyeing, “pawdicures,” massages and hydrotherapy and canine cosmetic surgery, like liposuction or implants. There is dog therapy, catering, holistic medicine, yoga, chauffeurs, and such facilities as Hollywood Hounds that specialize in canine ceremonies like doggie nuptials, “bark-mitzvahs” and puppy showers. Doggie overnight retreats now offer human “bed buddies” who will sleep with Fido to keep him from getting lonely while his owner is away. There is even a downtown rooftop doggie bar SkyBark, which has expanded from L.A. to New York and Boston.

As with most L.A. trends “people are not doing this in Middle America,” said Vetere celebrities are playing a part.

Paris Hilton, Jessica Simpson and Hillary Duff all keep their designer pets the latest trend in Hollywood accessories on display. Famed TV “Dog Whisperer” Cesar Millan and his wife Ilusion are establishing a pricey new headquarters for their foundation and Dog Psychology Center on a 40-acre ranch near Santa Clarita. (Proceeds from classes and training offered go to dog rescue organizations.) The couple will live on the property, which will include dog trails, exercise runs, an obstacle course, a small lake, swimming pools, recreation areas and a host of kennels.

Ahead of the pack

Some veterans of the L.A. dog business scene have added services and amenities to keep pace or stay ahead of the growing market.

Paradise Ranch, a full-service dog boarding, daycare and grooming facility in Sun Valley, opened 10 years ago. At the time, demand for anything but boarding was just a fraction of what it is today, said founder Kristyn Goddard.

“Now, people spend more money on their pets than they do their kids,” she said. “Twenty years ago a dog was something you put in the backyard. Now pets are really part of the family.”

Her facility offers bed buddies, dog spas, massages, birthday parties and one-on-one playtime, as well as hosting 24-hour-a-day Web cams in each room so owners can watch their dogs.

“The trends you see in the human side of the retail market you see in the pet side of the market in about three to five months; low-fat, low-carb, vitamin-enhanced, organic and natural,” Vetere said. “It makes sense, because the same person is making both purchases.”

The latest fad to spread from humans to canines is the organic and natural diet trend, and Goddard said she’s been asked to accommodate specialized menus for her furry guests with items like organic rice, steak, chicken, yogurt and cottage cheese.

“One client said that she had an emergency helicopter service on standby that would fly her dog to a hospital if anything were to go wrong,” Goddard said. “We fulfill any request as long as they are willing to pay for it, and people really go all out.”

There’s certainly a market for it. About 44 million American households include dogs (about 38 million have cats).

Statistics indicate that empty nesters, as well as the “dink” (dual income, no kids) households are the driving force in the pet pampering parade.

Author Kimberly Schlegel Whitman recently released a book on hosting dog parties. She throws an elaborate garden soiree each year for her 9-year-old Chihuahua, Lola, and hundreds of her pooch pals. She said the tab for a catered spread with decorations easily rivals that of an upscale people party, with hundreds of dollars shelled out for the food alone. Whitman admits the party idea wasn’t Lola’s.

“It’s people who are really doing these things,” said Whitman.

It’s possible to pamper a pet without going overboard. Chateau Marmutt, a high-end full service dog grooming salon and daycare facility in Los Angeles, sells a broad range of merchandise clothes, bowls, toys, treat jars, pillows, and toothpaste. Collars go for anywhere between $15 and $100.

“What I’ve found is that most people don’t go way, way over the top but do like to spoil their pets,” owner Michelle Rivera said. “There are an awful lot more vendors on the market these days.”

Rivera said she’s seen a lot more competition, too three new dog boutiques have opened up near her store recently. The key to survival has been diversifying, she said. Rivera has brought in business via a combination of grooming, retail and daycare services, but the bulk of her work comes from her regular doggie day care customers $35 per dog per day.

Going to the dogs

Malibu-based toy manufacturer Jakks Pacific Inc. started a pet division last year. Now Jakks has more than a dozen lines of pet products sold at retailers like Target and Wal-Mart, including Bratz-licensed dog gear (think of a pink fur bustier for dogs), a Disney Nostalgia line, rapper Snoop Dogg’s pet products and the American Kennel Club line that includes cable-knit sweaters.

“We’re trying to follow premium product trends but make things more affordable,” said Jakks spokeswoman Genna Rosenberg. “We produce in such large quantities that we are able to keep the prices low.”

The company more than doubled sales of pet products in 2006 over 2005, Rosenberg said.

But as pet pampering goes mainstream, a lot of the niche providers that got the party started may find it tough to stay in business.

“I’ve seen a ton of boutiques come in over the past couple years, to the point where it’s oversaturated and stupidly done,” Rivera said.

“You can make money and it is fun and it is great but I don’t think that the industry can support that many small boutiques. You can only do the same thing so many different ways.”