Pet Industry and the Bite of Higher Costs

Summary

Simeon Gutman discusses the US pet economy, noting that post-pandemic growth has slowed to around 4% annually. Affordability is a key factor, with pet ownership slipping among younger consumers and spending shifting from products to services like veterinary care. The industry remains resilient but faces more mature growth dynamics.

• US pet spending growth has decelerated from ~9% annually (2019-2025) to ~4% going forward.
• Total pet spending is projected to rise from $200B in 2025 to $240B by 2030.
• Pet ownership remains above pre-COVID levels at 67%, but has slipped from its 2024 high.
• Cost is the top barrier for younger consumers, leading to trade-downs and price sensitivity.
• Services (especially veterinary care) are gaining share of wallet, surpassing 40% of pet spending in 2025.
• Cat ownership has risen relative to dogs, likely due to lower costs.
• Online pet product shopping has leveled at one-third of spending, with future growth expected via subscriptions and healthcare ecosystems.
• Pet food spending remains resilient, with most owners planning to maintain or increase spending.