- U.S. pet industry expenditures hit $158 billion in 2025, projected to reach $165 billion in 2026
- Pet ownership remains stable at 95 million U.S. households
- Dog ownership increased to 53% of households, adding ~4 million new dog-owning homes
- Cat ownership rose to 39% of households, with strong spending on products
- Gen Z, Millennials, and Gen X are key drivers of ownership growth across species
- Consumers are prioritizing essential pet care while becoming more value-conscious
The American Pet Products Association (APPA) released its 2026 State of the Industry Report at Global Pet Expo, highlighting continued growth and evolving consumer behavior across the U.S. pet market.
Industry Growth Remains Steady
U.S. pet industry expenditures reached $158 billion in 2025, representing a 3.7% increase year over year, and are projected to climb to $165 billion in 2026. Overall growth for 2026 is projected near 4.4%, with approximately 2% attributed to inflation.
APPA President and CEO Pete Scott emphasized that the industry remains strong, noting that consumers continue to prioritize pet care even as they become more intentional with spending.
Ownership Trends Show Generational Expansion
Pet ownership held steady at 95 million U.S. households in 2025, but the composition of pet owners continues to shift. Growth is being driven by younger generations—Gen Z and Millennials—as well as increasing participation from Gen X households.
Gen X, in particular, is emerging as a significant contributor, with a 12% year-over-year increase in ownership across multiple species, including dogs, cats, birds, reptiles, and fish.
Dogs and Cats Drive Market Momentum
Dog ownership expanded from 51% to 53% of U.S. households in 2025, totaling approximately 71 million homes. While ownership is rising, spending is becoming more value-oriented as consumers respond to broader economic pressures.
Cat ownership also grew, reaching 39% of households (53 million), with a 5% year-over-year increase. Spending among cat owners remains consistent, with products continuing to represent the largest expense category.
Spending Behavior Shifts Toward Essentials
Despite ongoing economic pressures, pet ownership remains a priority for most households. About half of pet owners reported no change in spending, while 22% indicated they spent less on pets in 2025—an increase from the previous year.
Consumers are increasingly shifting budgets away from discretionary items and toward essential care, reinforcing the resilience of the category even during tighter economic conditions.
Information sourced from the company’s press release.
