U.S. Pet Market Outlook, 2022-2023
The U.S. pet industry continued its strong advance in 2021, surging 14% overall to $123 billion, with non-medical services – the only sector to lose ground in 2020 – rebounding almost fully. A number of factors contributed to this impressive performance, including the heightened focus on pet health and wellness among pet owners in closer contact with their pets; the fast-tracked reliance on all things digital including online shopping; and the adaptability of consumers, marketers, retailers, and service providers.
Continuing into 2022, the business saw a record number of M&A transactions as entrenched participants carved out more omnimarket and international territory and outside investors flocked into the fold. All pet industry sectors will continue to benefit from the pervasive focus on health and wellness, which provides a robust framework for ongoing premiumization in areas including alternative form pet food, direct-to-consumer marketing, autoship/subscription programs, and digital pet care.
What's in This Report?
Scope and Methodology
This report analyzes current and projects future retail sales and trends across the U.S. pet industry, factoring in the current and expected longer-term impacts of the coronavirus pandemic. The report examines collectively and separately four sectors of pet products and services – pet food, non-food pet supplies, veterinary services, and non-medical pet services – paying particular attention to the market impact of e-commerce and technology-driven market advancement.
The information contained in this report was obtained from primary and secondary research. Primary research includes national online consumer polls of U.S. adult pet owners (age 18+) conducted on an ongoing basis by Packaged Facts, to measure purchasing patterns and attitudes regarding pet products and services. With sample sizes of approximately 2,000 pet owners, these surveys are based on national online research panels that are census representative on the primary demographic measures of age, gender, geographic region, race/ethnicity, and household income.
Our consumer analysis draws mainly on two sources:
Packaged Facts’ Surveys of Pet Owners, primarily the ones conducted in January 2022 and February 2022. These surveys have a sample of 2,000 U.S. respondents age 18 or over who in aggregate are representative of the primary demographic measures of the U.S. Census Bureau including gender, age bracket, race/ethnicity, geographic region, household income bracket, and presence of children in the household.
MRI-Simmons booklet-based consumer surveys of a large and random sample of approximately 25,000 consumers through Fall 2021, who in aggregate represent a statistically accurate cross-section of the U.S. population. Note that MRI-Simmons releases correspond to an approximately 12-month roll-up of survey fielding ending in the quarter indicated; the respondents and results for adjacent surveys are therefor partially overlapping, rather than mutually exclusive.
Our primary research also includes interviews with pet market experts and participation in pet industry events including the American Pet Products Association’s Global Pet Expos, Petfood Industry/Watt Publishing’s Petfood Forums, and the Pet Industry Leadership Summit, which is jointly presented by The American Pet Products Association (APPA), Pet Advocacy Network(formerly Pet Industry Joint Advisory Council), Pet Industry Distributors Association (PIDA), and World Pet Association (WPA). The analysis also reflects on-site examination of retail and service provider venues and Internet canvassing.
Secondary research includes information- and data-gathering from consumer business and trade publications including Pet Age, Pet Business, Pet Product News International, Petfood Industry, and Veterinary Practice News; company profiles in trade and consumer publications; annual reports of companies in the pet market; and information culled from Packaged Facts’ extensive pet market research database and report collection. Our estimates of market size and company performance are based on reported revenues of pet product manufacturers, retailers, and pet services providers; background sales data from syndicated sales-tracking sources; surveys of independent and chain pet store retailers; government data including U.S. Bureau of Labor Statistics Consumer Expenditure Surveys; and figures from other market research sources.