It seems like everyone had a “pandemic puppy” or a “quarantine kitten,” right? With stay-at-home orders and the flexibility of remote work, many people took the plunge and added a furry (or scaly or feathery) friend to their household. Fast forward to today, and pet ownership is facing a few more hurdles. From return-to-office mandates to rising costs, pet ownership is barking up a different tree. In fact, pet owners are now 40% less likely to add a new pet to their pack compared to two years ago.
Our latest report, Paw Power: Pet Purchasing Trends, digs into what’s happening in the pet world and how business leaders in the pet industry can keep wagging through these changing times.
Is the pet industry growing or shrinking?
Spoiler: pretty pawsitive—at least at first! Between 2021 and 2024, pet sales have grown each year, with a slight dip expected for 2025. Here’s the breakdown of sales growth:
- 2021: +12%
- 2022: +11%
- 2023: +10%
- 2024: +8%
Compare that to other consumer sectors, which have seen declines and only recently bounced back in 2024.
As mentioned, pet owners are more unlikely than ever to add another furry friend to their household pack. The main reasons for keeping the status quo? The price of pet ownership. Three of the top five reasons for being less likely to add another pet center around the cost of pet needs; additionally, spend per unit on pet sector items is up 2.7%. The top reason for holding back on adding another pet in the household is driven by the cost veterinary care and prescriptions (36%). For brands to help alleviate costs, they should look to educate on the benefits of pet insurance in the long-term.
What tradeoffs are pet parents making due to higher prices?
Many pet owners are turning to private label, seeking out bargains at places like Walmart, Dollar General, and Dollar Tree, where prices are lower (though not cat-astrophically so). Private label share of spend in pet food & treats, for example, grew by 0.5 points, while it dropped in pet supplies by 4.7 points.
Interestingly, pet owners are also shifting their shopping habits online and to retailers growing their promotional presence. Amazon and Walmart have been big winners, while traditional pet retailers like Petco and PetSmart have seen declines which have dropped promotional ad blocks by 9% and 35%, respectively. More than three in four shoppers are repeating at Chewy.com, Amazon, and Walmart, while fewer than 3 in 5 shoppers are repeating at Tractor Supply Co., PetSmart, and Petco.
How is Amazon differentiating itself from the com-pet-tion?
Consumers are turning to Amazon for not only good pricing but also a level of convenience that brick & mortar retailers can’t offer—the ability to not have to leave the house (or pets).
Amazon has grown sales in the dog (+15%), cat (+19%) and reptile (+9%) categories over the past year, and part of this growth comes from Subscribe & Save deliveries. When shoppers set it and forget it, Amazon wins 13% more share of wallet.
What is the hot new emerging trend for pet owners?
Pets are family, right? And just like us, they need a little TLC for their health and wellness. Pet parents are increasingly growing towards the humanization of pets shows through the pet health category booming. With a 9.2% increase in buy rate, pet wellness is driven by everything from skin care to dental care. Both new and existing pet owners are treating their fur babies to some much-needed pampering.
Keeping canine (and feline) chompers healthy was top of mind for pet owners—1 in 2 shoppers who purchased just one pet health & wellness category purchased a form of pet dental care. Take, for example, brands like HICC Pet and Petlab Co. which have seen significant growth in this space. What makes brands like these interesting is that the products growing in the pet wellness sector center on ideas of digestive health by highlighting terms like probiotics and gut health– a trend reflected in the consumer health sector.
However, nearly half (46%) of pet wellness shoppers bought multiple wellness products in the past year. Healthy pets make for happy owners!
Who are the pet wellness warriors?
Older, high-income couples are leading the charge, with Boomers leading the pack. They care deeply about their pets' health—57% say the best nutrition is crucial for their pets, and 43% want them to eat as healthy as they do.
Boomers are mostly focused on physical wellness (think dental care, grooming products), while younger generations (Gen Z and Gen X) are into mental health enrichment for their pets.
How do brands and retailers capture Gen Z, the next generation of pet owners?
Generation Z is taking the pet world by storm—their pet buy rate grew by 11% vs. YA, compared to just 4% for Boomers+. Gen Z pet owners are 93% more likely to be low-income, 83% more likely to be Hispanic, and 24% more likely to live in urban areas.
Because Gen Z are younger, lower income, and living in rentals, they are 27% more likely to have a cat. They also trend toward pet-specific retailers, spending 55% more at Petco and 52% more at PetSmart compared to all pet owners.
What Does Gen Z Want for Their Pets?
- In-store pet-friendly shopping: 30% of Gen Z pet owners say it’s super important for a retailer to welcome their pets. A trend noticed more broadly in our Numerator Visions 2025 report.
- Pet pharmacy on-site: They want the convenience of picking up medications for their pets at the store (they are twice as likely to want this compared to other pet shoppers).
- Cross-species selection: Gen Z wants options for more than just dogs and cats—think birds, reptiles, and more!
The End of the Leash: Tail-End Insights
The pet industry has evolved since the pandemic, but it’s far from declining in sales. As pet owners continue to embrace e-commerce shopping and invest in their pets’ health and wellness, brands need to stay agile and rethink their retailer partnerships. Traditional pet retailers, especially, will need to rethink their promotional strategies to compete with the likes of Amazon and other retailers that have grown their promotional voice.
As for the future? It’s looking like a tail-wagging success, with Gen Z ready to lead the charge toward even more pet pampering. Whether you’re in the pet food business, wellness category, or pet accessories, there’s still plenty of room to grow.
Get in touch with our team for more purrfect insights into pet trends! Get deeper dives into our cattographics and doggographics which offer views into pet breeds and other pet purchasing behaviors.
