Making sense of the pet marketplace with the latest facts, figures, and data.

$770

What (and who) is driving the pet spending boom? The pandemic came on the tail end of a three-decade-long growth run in which pet spending nearly doubled relative to other spending. According to the Bureau of Labor Statistics, average annual household spending on pets rose from $460 in 2013 to $770 in 2021. That figure would be substantially higher if it excluded households with no pets. The Washington Post breaks down what’s contributing to the rise in pet spending – it seems to be a mix of increased pet ownership and people devoting more attention to their pets – and the demographics of pet ownership. Childless married couples are the fastest-growing group of pet owners, and they’re among the biggest spenders on pets relative to their income, data shows.

50%

Nearly 50% of baby boomers consider their dogs as children, while 34% of Generation Z think of their pet as a best friend, according to a survey commissioned by the pet services marketplace Wag. The survey included 1,000 U.S. adults between the ages of 18 and 65 who had at least one dog. Dog owners across all generations said they spend an average of $50 to $100 monthly on food and nutrition. Younger pet owners “overall are less budget-conscious and willing to spend premiums in areas like grooming materials and services, fashion and accessories, and pet insurance,” according to Wag.

$30.7 billion

E-commerce sales of pet products reached an estimated $30.7 billion in 2022, or 36% of total pet product sales, up from 16% in 2017, according to a report from Packaged Facts. The report said that the e-commerce share is projected to reach 45% of the total by 2026, with in-store sales accounting for a decreasing majority of pet product sales, the report says. While pet specialty retailers took an estimated 40% share of pet product sales in 2022 and have seen some gains in recent years, retailers outside the specialty space will likely have an edge in sales growth going forward.

$525.10

U.S. pet owners felt they spent more money on their pets in 2022, part of a trend of “petflation,” Insuranks said in a recent report. According to the online insurance comparison marketplace, U.S. pet owners spend an average of $109.12 each month on pet necessities. They also spend an average of $525.10 each year on veterinary bills. The top expenses for U.S. pet owners are veterinary bills, food, initial adoption costs, medications, and grooming, according to the company. Pet Food Processing reports.

$123.6 billion

Global pet food sales reached an estimated $123.6 billion in 2022, up 45% since 2017, according to market research by Euromonitor International. In the United States, pet food and treat sales reached an estimated $45.4 billion, up 43% since 2017. This mirrors sharp growth in the pet care industry overall in recent years: In 2020, U.S. pet care sales surpassed $100 billion for the first time ever, according to the American Pet Products Association, followed by $123.6 billion in sales in 2021. Morgan Stanley analysts expect the U.S. pet industry to reach $275 billion by 2030, reflecting anticipated growth in the number of pet owners. Pet Food Processing reports.

82%

Eighty-two percent of Americans with pets who are planning to buy a home within the next year consider their pets’ needs just as important, if not more so, than their own needs or those of their family, according to a survey by Realtor.com and HarrisX. Seventy-seven percent of U.S. homeowners say they have a pet at home, and 79% of pet owners say they factored their pet in when choosing which home or apartment to live in, according to the survey of 3,001 U.S. adults. Seventy-two percent of prospective buyers with pets say they would forgo buying their dream home if it didn’t accommodate their pets, while 62% of current homeowners with pets say they would, the survey found.

$14 billion

A new study commissioned by the Animal Health Institute details the growth of the animal health industry over the past three years and documents the value and role that companies that produce animal medicines play in the U.S. economy. With nearly $14 billion in sales of medicines at home and abroad, the U.S. animal health industry directly supports 24,094 jobs and accounts for more than $1.6 billion in wages and $1.5 billion in taxes, according to the report. Animal health products also contribute to the economic activity of other industries, such as veterinary services, animal production, meat and dairy production, and pet services.

15.2%

While pet owners often say they’ll cut down on their food before their pets’, steep inflation makes that commitment more challenging, The Wall Street Journal reported. In February, pet food prices were 15.2% above year-ago prices, far more than the 10.1% inflation seen in the human food-at-home category, according to U.S. Bureau of Labor Statistics. Pet owners are cutting back on nonessential items. Petco said it saw sales of higher-margin discretionary items fall 7.8% in the quarter ending January 28, and both Petco and Chewy expect slowing revenue growth this fiscal year.

$1,188

U.S. dog owners spend an average of about $1,188 on their dogs each year, although the costs can range quite a bit, according to a new survey by Rover. According to Rover’s analysis, upfront costs for new dog owners in 2023 range from $1,135 to $5,155. Annual costs for essentials such as dog food, toys, and flea medicine range from $610 to $3,555. “Optional extras” such as emergency veterinary bills, dog walking, and an apartment pet deposit cost dog owners between $1,390 and $4,095 annually. More information is in the analysis by Rover.

Total U.S. Pet Industry Expenditures

Year Billions of dollars

2021 $123.6 Actual
2020 $103.6
2019 $97.1
2018 $90.5

In 2021, $123.6 billion was spent on our pets in the U.S. Breakdown:

Pet Food & Treats: $50 billion
Vet Care and Product Sales: $34.3 billion
Supplies, Live Animals & OTC Medicine: $29.8 billion
Other Services: $9.5 billion
(Other Services include boarding, grooming, insurance, training, pet sitting and walking, and all services outside of veterinary care)

Source: Pet Industry Market Size, Trends & Ownership Statistics, APPA

Photo credit: istockphoto.com/FG Trade

Pet Owner Spending Trends