US Pet Market Outlook, 2025-2026

Report Overview

Economic Uncertainty Adds to Pet Industry Challenges in 2025

The policies of the new Trump administration have cast a cloud of uncertainty over the US economy that makes navigating the pet industry waters – already uncertain due to high prices and stagnant pet population growth – all the more challenging in 2025.

Key pet market outlook trends discussed in the report:

• Economic upheaval clouds market prospects
• Flat growth in the US pet population
• E-commerce continues to outperform other channels
• More deal-making expected in 2025

Two separate but closely interrelated factors largely determine pet industry performance: the state of the economy and trends in pet ownership. While the “pets as family”/pet health mindset remains in full swing, the economic conditions confronting US pet owners present a challenging market backdrop. The post-pandemic era has seen Americans grappling with inflation, and the trade policies of the new presidential administration inject an element of unease not seen since the Great Recession. The business also remains challenged by stagnant pet population growth, although this could pick back up as Gen Zers pour into adulthood and the pet ownership pool.

Assuming a reasonable level of economic stability, Packaged Facts expects the market to advance modestly over the next five years, the foremost challenge and opportunity for pet industry participants being to bridge the economic uncertainty gap by doing everything possible to help keep pet care affordable. Made in the USA appeals, home-focused fare, feline products, premium foods, customized products and services, and greater efficiency through AI, too, are poised to help keep the market on an even keel.

Pet industry sales totaled $151.3 billion in 2024, up 4.0% from 2023. This amounts to a $5.83 billion revenue increase but is nevertheless a substantial slowdown over 2020-2023, when the annual percentage gains were more than double this level. The better performance of prior years was, however, partially reflective of pandemic impacts including cocooning and high inflation, the latter of which moderated in 2024. Because prices remained elevated market-wide, however, the sales slowdown suggests spending cutbacks even as half of pet owners reported spending more on pet care in the last 12 months in Packaged Facts’ January 2025 Survey of Pet Owners.

Pet Market Opportunities

Bridging the Economic Uncertainty Gap

Even before US consumers saw their 401ks shrink as a result of President Trump’s tariff increases, they were feeling the economic crunch of the post-pandemic economy and responding accordingly. In Packaged Facts’ January 2025 Survey of Pet Owners, 31% of respondents reported that their ability to buy nonessentials has been negatively impacted by the economic environment, and 73% agreed that they look for lower prices, special offers, and sales. The foremost short-term opportunity for pet industry participants will be to help pet owners continue to afford the cost of pet ownership. This will include offering products and services designed to facilitate DIY pet care, lower priced products including private labels, pet insurance and other wellness plans designed to make pet care more affordable, and flexible payment options like Klarna and Afterpay, which are especially popular among Millennials and Gen Z.

“Pets as Family”

A prime pet market opportunity for retailers and marketers to lean into in the current economic environment is the nearly universal “pets as family” mindset. The pandemic-related traumatization of minimal human contact, maximum anxiety over personal health, and financial insecurity had Americans depending on their pets more intensely than ever for companionship and comfort. Today, as anxieties remain high, reminding pet owners of the importance of their relationships with their pets will encourage them to once again rely on them for comfort. Packaged Facts’ January 2025 Survey of Pet Owners saw 76% of respondents overall strongly agree that their pets are “part of the family”, while another 17% somewhat agreed, leaving other points of view at brink of extinction. Similarly, 56% strongly agreed that their pets are “central” to their home lives, and another 30% agreed somewhat. 

US First

The reelection of President Trump confirms that his Make America Great Again rallying cry resonates with a substantial segment of the US population, the stated end game for his tariffs being to bring more production into, or back to, the US. And the product quality and safety issues raised by massive pet food recalls of 2007, along with subsequent pet product recalls, have spurred pet food producers to manage their supply chains more carefully, causing many to limit or eliminate altogether foreign-sourced – and especially China-sourced – ingredients. Pet owners clearly appreciate the effort. In Packaged Facts’ July-August 2024 Survey of Pet Owners, 60% of pet owners agree that they “actively seek out pet foods made in the USA”, with 33% strongly agreeing – and this general sentiment extends to other areas of the pet business as well.

Home Again

Odd though it may sound, economic uncertainty – and even a significant downturn – could have a pet-related upside since people tend to turn to pets for comfort and security during worrisome times. Sales of hands-on services like grooming and training plummeted during the pandemic due to business closures and social distancing. But sales of pet food and supplies boomed as consumers spent more time at home with their pets and adopted or fostered pets, and a worsening economy could result in similar cocooning as pet owners hunker down as opposed to taking vacations, buying cars, etc. As the previous edition of this report noted, “…it’s a mistake to view the ‘at-home’ trend of more hands-on pet care witnessed during COVID-19 as a passing fad. 

Pet Market Outlook Report Scope

This report analyzes current and projects future retail sales and trends across the US pet industry. It 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 the economy, omnichannel and omnimarket strategizing, and consumer mindsets and purchasing patterns.

Report Details for US Pet Market Outlook

Key Participants Driving Trends in the US Pet Market