The US pet industry is at an inflection point of slow to no pet population growth, high (though slowly moderating) inflation, and pet shoppers looking to cut back. The promise of money savings and added value may be the oldest promotional maneuver. But with the economic trauma of the pandemic still rippling through, there may be no better time to focus on value in order to attract shoppers and engender loyalty.
With projected pet population growth modest at best, the advancement of dollar sales remains largely a function of converting pet owners to higher priced products and services - aka premiumization. However, the cases for premiumization will need to be ever stronger, with a number of market areas ripe for development, including fresh pet food sold refrigerated or frozen and products and services offering demonstrable health benefits. With the pet industry continuing to trend in omnichannel and omnimarket directions, the publisher anticipates ongoing modest but steady growth across all sectors through 2028, when sales are expected to top $190 billion. Characterizing a gradual return to normalcy during the forecast period will be the reinvigoration of trends including premiumization, health & wellness, sustainability, and all things digital including e-commerce, although the most positive short-term factors will likely be an improvement in consumer sentiment stemming from lessening inflation and overall economic improvement.
Scope and Methodology
This report analyzes current and projects future retail sales and trends across the U.S. 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 post pandemic economy, omnichannel and omnimarket strategizing, and consumer mindsets and purchasing patterns.
The information contained in this report was obtained from primary and secondary research. Our consumer analysis draws mainly on two sources:
Surveys of Pet Owners conducted on a regular basis, including in January 2024. These surveys have samples of 1,350-2,000 U.S. respondents age 18 or over, with the aggregate survey samples being representative of the national population by the primary demographic measures of gender, age bracket, race/ethnicity, geographic region, household income bracket, and presence of children in the household.
MRI-Simmons booklet-based consumer surveys through Fall 2023 of a large and random sample of approximately 25,000 consumers 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 season indicated.
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, GlobalPETS, Petfood Industry/Watt Publishing’s Petfood Forums, the Pet Industry Joint Advisory Council’s Pet Industry Leadership Summit, and the North American Veterinary Community (NAVC) VMX Veterinary Conferences and Media/E-Commerce Summits. 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 Fountain Report, Pet Age, Pet Business, Pet Care Weekly, 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 the 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.
Pet Tech/Technology Extends Omnimarket Reach
Flush with health-enhancing capabilities, technology continues to “omni-marketize” the business of non-food pet supplies by allowing it to interface with other areas of the pet industry, such as pet food and veterinary services and digital applications including e-commerce. Key product types include invisible fencing systems, smart pet doors, wearables including collars/tags, toys, cameras and video systems, feeders/treat dispensers, and smart litter boxes, with AI playing a growing role. Pandemic-related trends and aftereffects - including pet owners spending more time at home, online, and up close and personal with pet health issues - have benefited pet tech products. Selling points include time-saving convenience, such as the ability of feeders to signal or relay food reorders; pet health and safety, as is the case for containment and monitoring systems like invisible fences and pet doors; keeping pets entertained while their owners are absent or occupied; and connecting pet owners with pets and pet care professionals. The new wave of smart pet products is also beginning to perform another valuable function: reminding pet owners to restock food, cat litter, and other consumables via smartphone or desktop app
Telehealth Trends
The dispersal of pet care influence beyond in-clinic at the veterinarian is also evident in the emergence of veterinary telehealth. While pet owner usage of telehealth/telemedicine options remains niche, the potential remains significant and likely transformative. Telehealth is best understood not as a still-niche option for veterinary services, but as part of a much larger transformation that is redefining and redistributing pet healthcare services, products, and spending. Overall human market health and technology trends are the main drivers of telehealth in the veterinary sector, rather than COVID-19 impacts or non-veterinary entrepreneurial businesses. Telehealth is part of the omnimarket competition toolbox.
