In 2025, the U.S. pet industry is projected to top $157 billion—a staggering climb from roughly $90 billion in 2018. Yet while the headline number captures attention, the real story lies beneath: what’s fueling this continued growth, and what does it mean for pet owners, brands and the broader economy?
This article unpacks the drivers behind the pet‑spending boom, examines the rising categories, explores generational and service‑trends, and assesses the sustainability and risks of a market still expanding so rapidly.
1. The Numbers: Just How Big Is “Big”?
According to the American Pet Products Association (APPA), total U.S. pet‑industry expenditures reached $151.9 billion in 2024, and are projected at $157 billion for 2025.
Breaking it down:
-
In 2024, food and treats alone accounted for approximately $65.8 billion.
-
Veterinary care and product sales were around $39.8 billion in 2024.
-
Services such as grooming, boarding, training and insurance are also growing steadily.
These figures underscore that pet spending is not just large—it is multi‑faceted, expanding across food, health, lifestyle, and services.
2. Why Is Pet Spending Growing?
Several converging trends explain why this market continues to rise—even amid broader economic uncertainty:
A. Pet Humanization
More pet owners treat their animals as full family members, not just companions or accessory pets. This means higher willingness to spend on premium food, wellness, and experiences. Industry sources note that younger generations (Millennials and Gen Z) especially are driving this behavior.
B. Wellness & Premiumization
Pet owners increasingly demand “better” food (organic, human‑grade, freeze‑dried), preventive health services, and tech‑enabled accessories. With higher spending per pet, average annual expenditures are rising.
C. Growth in Service Segments
It’s not just food and vet care. Services like pet daycare, grooming, boarding, pet insurance and subscription boxes are expanding. These repeat‑use categories contribute to ongoing spend growth rather than one‑time purchases.
D. E‑commerce & Direct‑to‑Consumer Models
Online purchase adoption is high among pet owners, enabling easier access to premium and niche products, boosting spend growth.
E. Increased Pet‑Ownership & Multiple Pets
More U.S. households own pets than ever before—APPA data shows about 94 million households will own a pet by 2025. With more pets per household, total spending naturally rises.
3. Where the Money Goes: Key Spending Categories
Food & Treats
The largest single category. Premium and specialty pet foods are growing faster than standard diets. For 2025, dog food sales alone are projected at ~$40.9 billion and cat food at ~$18.1 billion.
Veterinary Care & Health Products
As pets live longer and receive more advanced care, expenditures increase. Vet care sales were already near $39.8 billion in 2024.
Services & Experiences
Grooming, boarding, training, pet insurance, pet travel and other lifestyle services are gaining traction. Subscription models and pet‑centric experiences contribute to higher recurring spending.
Supplies, Live Animals & OTC Medications
Beyond essentials, owners spend on accessories, live‑animal purchases, toys and over‑the‑counter medications. These add to the breadth of expenditures.
4. Who’s Fueling the Growth?
Younger Generations Lead
Millennials and Gen Z are now significant drivers in pet spending. Their pet‑ownership rates, online purchasing preferences and premium orientation make them key contributors to growth. For example: one study found Gen Z households spending on pets averaged substantially higher than older generations.
Multi‑Pet Households
With pet parents sometimes owning multiple animals, the cumulative spend per household increases. One report estimates that younger owners with multiple pets spend more on food, insurance, wellness and services.
Urban & Lifestyle Pet Owners
Many newer pet owners live in urban settings, rent homes, and treat pets as emotional or lifestyle companions. They often spend on convenience—pet sitters, subscription boxes, premium diets—which expands the market further.
5. Why the Growth Continues Despite Economic Pressure
You might expect pet spend to shrink when economic conditions tighten—but not so. A few factors explain the resilience:
-
Emotional value overrides budgets: Owners often prioritize their pets even when cutting other expenses.
-
Recurring spend vs. one‑time shrinkage: Much pet spending is ongoing (food, vet) rather than discretionary.
-
Premium segments partially insulated: While budget products may take pressure, premium, wellness‑oriented purchases remain strong.
-
Innovation keeps spending fresh: New product categories (e.g., pet tech, subscriptions, functional treats) deliver novel spend opportunities.
Indeed, although growth has moderated from peak pandemic levels, the sector remains steady with ~3–4% year‑over‑year growth projected for 2024‑25.
6. Future Outlook & Emerging Themes
-
Sustainability and ethics matter: Brands are responding to pet owners’ concern for eco‑friendly, ethical sourcing.
-
Personalization and health data: Pet nutrition, health monitoring and subscription services will continue to expand.
-
E‑commerce and omnichannel: Online and hybrid purchasing models will keep expanding access and spend.
-
Globalization of pet spending: While the U.S. is the largest market (~40% of global), other regions are rising rapidly, influencing product availability and pricing.
Additionally, projection models indicate the U.S. pet market could approach ~$200 billion by 2030 under current trends.
7. What It Means for Pet Owners and Businesses
For Pet Owners
-
Expect higher baseline costs: Pet ownership is more expensive than ever—budgeting for food, health and services is essential.
-
Be selective with premium spend: Just because a product is high‑priced doesn’t guarantee value—review nutrition, services and outcomes.
-
Evaluate recurring services carefully: Subscriptions and wellness services can offer convenience, but check terms and value.
For Businesses
-
Innovate beyond basics: New brands must differentiate—wellness, sustainability, personalization, tech integration all matter.
-
Leverage data and subscriptions: Customer lifetime value is rising; brands can build loyalty via recurring models.
-
Adopt omnichannel strategy: Online, mobile and in‑store experiences must integrate as younger owners expect seamless access.
-
Navigate margin pressure: Even as spend rises, competition and pricing pressures (e.g., tariffs, supply changes) challenge profitability.
8. The Risks and Why Growth May Slow
Though the trajectory is still positive, some caution flags merit attention:
-
Category saturation: Some segments (premium food, accessories) may plateau as owners consolidate spend.
-
Economic downturn vulnerability: While resilient, deeper recessions could cut discretionary spend on high‑end pet services.
-
Supply chain and cost inflation: Raw‑material inflation, tariffs and logistic costs can squeeze margins and force price hikes.
-
Shifting consumer priorities: Oversaturation of subscriptions or novelty pet‑products may see owner fatigue and consolidation.
9. Final Thoughts: A Market Fueled by Love, Lifestyle & Innovation
The $150 billion+ pet‑industry market in the U.S. isn’t just big—it’s dynamic. Growth is driven by owners who see pets as family, demand premium lifestyle experiences, and embrace new services and technologies. It’s a market rooted in emotional investment as much as rational spending.
For pet‑owners, that means more options, higher expectations and higher costs. For businesses, it means big opportunities—but also big challenges, requiring innovation, agility and authenticity.
Ultimately, this is less about “buying for my pet” and more about “investing in a lifestyle with my pet”. And as long as that mindset holds, the pet‑spending wave isn’t likely to crest anytime soon.