Retail Channel $ Update – October Monthly & November Advance

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In November, YOY Commodities’ deflation slowed to -0.2% from -1.0%. Although deflating, high cumulative inflation vs 21 can still impact consumer spending and slow actual $ growth.  We saw evidence of this in November. Total Retail sales were +4.0% vs 23, -16% below the average lift since 1992. Relevant Retail was +3.9%, -17% below average. That is concerning and clearly shows that there is still a long road to full recovery. We’ll continue to track the retail market with data from 2 reports provided by the Census Bureau and factor in a targeted CPI.

The Census Bureau Reports are the Monthly and the Advance Retail Sales Reports. Both are derived from sales data gathered from retailers across the U.S. and are published monthly at the same time. The Advance Report has a smaller sample size so it can be published quickly – about 2 weeks after month end. The Monthly Report includes data from all respondents, so it takes longer to compile the data – about 6 weeks. Although the sample size for the Advance report is smaller, the results over the years have proven it to be statistically accurate with the Monthly reports. The biggest difference is that the full sample in the Monthly report allows us to “drill” a little deeper into the retail channels.

We will begin with the October Monthly Report and then go to the November Advance Report. Our focus is comparing to last year but also 21 & 19. We’ll show both actual and the “real” change in sales as we factor inflation into the data.

Both reports include the following:

  • Total Retail, Restaurants, Auto, Gas Stations and Relevant Retail (removing Restaurants, Auto and Gas)
  • Individual Channel Data – This is more detailed in the Monthly reports, and we’ll focus on Pet Relevant Channels.

The data will be presented in detailed charts to facilitate visual comparison between groups/channels. The charts will show 11 separate measurements. To save space they will be displayed in a stacked bar format for the channel charts.

  • Current Month change – % & $ vs previous month
  • Current Month change – % & $ vs same month last year and vs 2021.
    • Current Month Real change vs last year and vs 2021 – % factoring in inflation
  • Current Ytd change – % & $ for this year vs last year, 2021 & 2019.
    • Current Ytd Real change % for this year vs last year and vs 2021 and 2019
  • Monthly & Ytd $ & CPIs for this year vs last year and vs 2021 which are targeted by channel will also be shown. (CPI Details are at the end of the report)

First, the October Monthly. All were up from September & there were only 2 actual sales drops – both Gas Stations vs 23. We should note that Gas Stations are still selling less product than in 2019. Also, Relevant Retail is all positive again. They have been all positive in 9 of the last 12 months and now in 5 of the last 6. ($ are Not Seasonally Adjusted)

The October Monthly is less than $0.1B more than the Advance report. Restaurants: No/Chge; Auto: +$0.2B; Gas Stations: -$0.2B; Relevant Retail: -0.1B. As expected, $ales were up vs September for all. A Sep>Oct increase in Total Retail  has happened every year but 2008 since 1992. Plus, the  6.8% lift was double the 3.4% avg. There were only 2 drops in actual sales – Monthly & Ytd vs 23 for Gas Stations. There were 3 “real” sales drops, down from 6 last month. Total & Relevant Retail and Restaurants were all positive. Restaurants still have the biggest increases vs 21 & 19 but Relevant Retail stayed at the top of “real” performance vs 2019. However, only 51% of their growth is real.

Now, let’s see how some Key Pet Relevant channels did in October in the Stacked Bar Graph Format

Overall– All 11 were up from September. vs Oct 23, 9 were actually and 10 “really” up. Vs Oct 21, 8 were up and 7 were real increases. Vs 2019, All were actually up but Off/Gift/Souv and Disc Dept Stores were really down.

  • Building Material Stores – The pandemic focus on home has produced sales growth of 32.0% since 2019. Prices for the Bldg/Matl group have inflated 11.0% since 2021 which is having an impact. HomeCtr/Hdwe are only actually down Ytd vs 23, but Farm stores are actually and really down Ytd vs 23 & vs 21. Only the “real” measurement Ytd vs 21 is negative for Home/Hdwe. However, only 26% of the Building Materials group’s 19>24 lift was real. Avg 19>24 Growth: HomeCtr/Hdwe: 5.5%, Real: 1.5%; Farm: 6.5%, Real: 2.4%
  • Food & Drug – Both are truly essential. Except for the pandemic food binge buying, they tend to have smaller changes in $. In terms of inflation, the Grocery rate is now 110% of the rate for Drug/Med products. Drug Stores are positive in all measurements and 65% of their 2019>24 growth is real. Supermarkets’ actual $ are up in all measurements and they are only “really” down vs 2021. However, only 6% of their 19>24 increase is real growth. Avg 19>24 Growth: Supermarkets: +5.2%, Real: +0.3%; Drug Stores: +5.3%, Real: +3.5%.
  • Sporting Goods Stores – They also benefited from the pandemic in that consumers turned to self-entertainment, especially sports & outdoor activities. Sales are up 1.1% from September but their only positives are actual & real Ytd vs 19. Prices are still deflating, -3.1% vs 23. Deflation started in April 23 and is a big change from +1.1% in 22>23 and +7.9% in 21>22. The result is that 59% of their 34.5% lift since 19 is real. Avg 19>24 Growth Rate is: +6.1%; Real: +3.8%.
  • Gen Mdse Stores – All actual & real sales were up for Club/SupCtrs & $ stores. On the other hand, Discount Dept Stores were only actually up vs Oct 23 & Ytd vs 19. All of their real measurements but vs Oct 23 are negative so none of their growth since 2019 is real. The other channels average 45% in real growth. Avg 19>24 Growth: SupCtr/Club: 6.1%, Real: 2.9%; $/Value Strs: +6.4%, Real: +3.1%; Disc. Dept. Strs: +1.6%, Real: -0.4%.
  • Office, Gift & Souvenir Stores – Sales were up 21.6% from September. This helped but was not enough. They are only actually up Ytd vs 21 & 19 and all of their real sales numbers, but vs Oct 23 are negative. Their recovery started late, and their progress had stalled. Perhaps, it is beginning to restart. Avg Growth Rate: +0.2%, Real: -1.8%
  • Internet/Mail Order – Sales are +10.0% from September and set a new monthly record of $117.5B. All measurements are positive, but their Ytd growth, +9.6%, is still only 60% of their average since 2019. However, 81.9% of their 110..6% growth since 2019 is real. Avg Growth: +16.1%, Real: +13.8%. As expected, they are by far the growth leader since 2019.
  • A/O Miscellaneous – Pet Stores are 22>24% of total $. In May 2020 they began their recovery which reached a record level of $100B for the first time in 2021. In 2022 their sales dipped in January, July, Sept>Nov, rose in December, fell in Jan>Feb 23, grew Mar>May, fell in Jun>Aug, rose in Sep>Nov, fell in Dec>Jan 24, grew in Feb>May, fell in Jun>Sep, then grew in October. However, all measurements are positive. They are still in 2nd place, behind the Internet, in the % increase vs 19 and vs 21. Also, 73% of their 55.4% growth since 2019 is real. Average 19>24 Growth: +9.2%, Real: +7.1%.

October had its usual lift as all small channels were up vs September. The Total Retail YOY lift was 21% above  Avg and 9 of 11 smaller channels and 4 of 5 big groups were up vs Oct 23. Prices are now deflating in 9 channels. Also, cumulative inflation may matter a little less as 7 of 11 channels were really up vs Oct 21. The Retail Recovery has restarted again. The commodities CPI is still deflating but rose to -0.2% in November, the highest since May. Let’s see if it impacts Retail.

Oct>Nov sales were only up for Total & Relevant Retail. An Oct>Nov Total Retail lift has happened in 75% of the years since 1992 but the 0.9% lift is -25% below average. All but 3 actual YOY $ measurements are positive. The drops are from Gas Stations – Monthly vs 23 & 21 and Ytd vs 23. The Total Retail lift of 4.0% vs 23 was the 4th  biggest increase in 24 but 16% below avg. The Relevant Retail lift vs Nov 23 (+3.9%) was 17% below their 92>23 average. The Auto lift was 54% above average, but Restaurants were -18% below their average. Inflation is still a factor. The CPI for all commodities rose to -0.2% but it is down to 6.6% from 7.9% vs 21. There is some “real” good news. Only 1 measurement was “really” down vs 23 & 21. In October, there were 2 and September had 5. Restaurants, Auto, Total & Relevant Retail were YOY all positive. After 2 months with a negative, Relevant Retail has now been all positive in 6 of the last 7 months.

Overall – Inflation Reality – For Total Retail, deflation slowed to -0.2% but YOY sales grew 4.0% vs 23. For Restaurants, inflation remains high, +3.6% but they are again up in all comparisons. Gas prices fell but that group is still in turmoil. Auto prices rose but are still deflating. Their sales grew vs Nov 23 and they are now all positive. Inflation grew to 0.4% from -0.2% for Relevant Retail but YOY sales are still all positive. Their progress continues but may be slowing.

Total Retail – Since June 20, every month but April 23 & June 24 has set a monthly sales record. In 2023>24, Sales were on a roller coaster. Up Jul>Aug, down Sept, up Oct>Dec, down Jan 24, up Feb>Mar, down April, up May, down June, up Jul>Aug, down in Sep, up in Oct>Nov. Prices are now -0.2%, but YOY sales are up less than expected. Ytd Sales are up 2.9% vs 23, only 43% of their avg 19>24 growth. Plus, only 39% of the 19>24 growth is real. YOY pricing in Total Retail is still deflating but we see its cumulative impact in Ytd sales. Growth: 23>24: 2.9%;Avg 19>24: +6.8%, Real: +2.9%.

Restaurants – They were hit hard by the pandemic and didn’t begin recovery until March 2021. However, they have had strong growth since then, exceeding $1T for the 1st time in 2023 and set another monthly sales record in November. They have the biggest Ytd increases vs 23, 21 & 19 and are again all “positive”. Inflation slowed to 3.6% in October but is still +18.2% vs 21 and +27.3% vs 19. Only 34.4% of their 48.5% growth since 19 is real and they remain 3rd in performance behind Relevant & Total Retail. Recovery started late but inflation started early. Growth: 4.9%; Avg 19>24:+8.2%, Real: +3.1%. They just account for 13.5% of Total Retail $, but their performance has helped Total Retail.

Auto (Motor Vehicle & Parts Dealers) – They actively worked to overcome the stay-at-home attitude with great deals and a lot of advertising. They finished 2020 up 1% vs 2019 and hit a record $1.48T in 2021 but much of it was due to skyrocketing inflation. In 22, sales got on a rollercoaster. Inflation started to drop mid-year, but it caused 4 down months in actual sales which are the only reported sales negatives by any big group in 21>22. This is bad but their Y/E real 2022 sales numbers were worse, down -8.2% vs 21 and -8.9% vs 19. 2023 started a true sales rollercoaster but the $ set a new record, $1.595T. $ fell in Jan 24, grew Feb>Mar, fell Apr, grew May, fell June, grew Jul>Aug, fell Sep, grew Oct, fell in Nov. All comparisons are positive, but only 17.9% of 19>24 growth is real. Growth: 2.0%; Avg 19>24: +5.5%, Real: +1.1%

Gas Stations – Gas Stations were hit hard by “stay at home”. They started recovery in March 2021 and inflation began. Sales got on a rollercoaster in 2022 but reached a record $583B. Inflation started to slow in August and prices slightly deflated in Dec & Feb 23, then strongly fell in Mar>Jul to -20.2%. In August they rose to -3.7%. In Sep they were +2.7% but began deflating to -4.2% in Feb 24. In Mar>May they grew, fell June, rose July, then fell Aug>Nov. Actual $ are down monthly vs 23 & 21 & Ytd vs 23. Real sales are down Ytd vs 21 & 19. Growth: -2.9%; Avg 19>24: +4.3%, Real: -0.7%. They show the cumulative impact of inflation and demonstrate how deflation can be both a positive and a negative.

Relevant Retail – Less Auto, Gas and Restaurants – They account for ≈60% of Total Retail $ in a variety of channels, so they took many different paths through the pandemic. However, their only down month was April 2020, and they led the way in Total Retail’s recovery. Sales got on a roller coaster in 2022, but all months set new records with December reaching a new all-time high, $481B, and an annual record of $4.81T. In 2023, the roller coaster continued. A December lift set a new monthly record of $494.7B & an annual record of $4.997T. Sales fell in Jan>Feb 24, rose in Mar, fell in Apr, rose in May, fell in June, rose Jul>Aug, fell Sep, then rose in Oct>Nov. The Nov. YOY lift of 3.9% is 17% below their 92>23 avg but all measurements are still positive. Also, 51% of their 41.4% 19>24 growth is real – #1 in performance. Growth: 3.5%; Avg 19>24: +7.2%, Real: +3.9%. America shops here. They began 2024 strong. In Mar>Apr recovery slowed. It got better in May, worsened in June, rebounded in July, stabilized in Aug, slowed in Sep, grew in Oct then slowed in Nov.

Inflation is still low, but the cumulative impact is still there. YOY Sales changes vs 23 are lower and overall, progress has slowed. The changes from October are mixed. The Actual drops increased from 2 to 3 but real drops fell from 3 to 2. Restaurants are back on track and Auto is now all positive, but the Gas Stations’ turmoil is growing. Relevant Retail’s YOY Sales increase was 17% below avg but all measurements are positive for the 6th time in the last 7 months. Total Retail’s lift was also below avg but they are all positive too. The recovery strongly restarted in October and slowly continues.

Here’s a more detailed look at November by Key Channels in the Stacked Bar Graph Format

  • Relevant Retail: Growth: +3.5%; Avg: +7.2%, Real: +3.9%. 8 were up from Oct. Vs Nov 23: 9 were up, Real: 10, Vs Nov 21: 8 were up, Real: 5. Vs 19: Only Dept Stores were actually & really down. Furnishing stores were also really down.
  • All Department Stores – This group was struggling before the pandemic hit them hard. They began recovery in March 2020. Sales are up 16.9% from October but their actual and real numbers are all negative. They are even actually & really down vs 2019. Growth: -1.1%; Avg 19>24: -0.3%, Real: -1.8%.
  • Club/SuprCtr/$- They fueled a big part of the recovery because they focus on value which has broad consumer appeal. $ales are +4.9% from Oct, and they are positive in all measurements. However, only 44.3% of their 34.3% 19>24 lift is real – inflation’s impact. Ytd growth is below Avg for the 8th straight month. Growth: 3.7%; Avg: +6.1%, Real: +2.9%.
  • Grocery- These stores depend on frequent purchases, so except for the binge buying in 2020, their changes are usually less radical. Actual $ are +1.1% from Oct and positive in all comparisons. However, cumulative inflation has hit them hard. Real $ are only up vs 23 & 19 and only 6% of 19>24 growth is real. Growth: 2.0%; Avg 19>24: +5.2%, Real: +0.3 %.
  • Health/Drug Stores – Many stores are essential, but consumers visit less frequently than Grocery stores. $ are down -5.6% from Oct but they are positive in all actual and real comparisons. Because inflation has been relatively low, 65% of their 28.8% growth from 2019 is real. Growth: 2.7%; Avg 19>24: +5.2%, Real: +3.5%
  • Clothing and Accessories – Clothes initially mattered less when you stayed home. That changed in March 2021 with strong growth through 2022. Sales are up 17.7% from Oct and actual sales are up in all comparisons. Real sales are down monthly & Ytd vs 21, but 63% of their 19>24 growth is real. Growth: 2.6%; Avg 19>24: +3.3%, Real:+2.1%
  • Home Furnishings – In mid-2020 consumers’ focus turned to their homes and furniture became a priority. Prices are still deflating but they were high in 2022. Sales are +7.7% from Oct, but negative in all measurements but vs Nov 23 & actual vs 2019. They have sold less product in 2024 than in 2019. Growth: -3.3%;Avg 19>24: +2.3%, Real: -0.2%
  • Electronic & Appliances – This channel has had many issues. Sales fell in Apr>May of 2020 and didn’t reach 2019 levels until March 21. $ are +20.6% from Oct, but they are only actually positive monthly & ytd vs 23 & ytd vs 19. Due to strong deflation, real sales are positive and exceed actual in all comparisons. Growth: +0.3%; Avg 19>24: +0.5%, Real: +3.6%.
  • Building Material, Farm & Garden & Hardware –They truly benefited from the consumers’ focus on home. In 2022 the lift slowed as inflation grew to double digits. Prices are still deflating, but sales are -9.7% from Oct. Actual sales are all positive. Prices are deflating vs 23 but are still +16.1% ytd vs 21. Real sales are positive in all comparisons but monthly & Ytd vs 21. However, just 27% of their 19>24 sales growth is real. Growth: -0.7%; Avg 19>24: +5.8%, Real: +1.7%.
  • Sporting Goods, Hobby and Book Stores – Consumers turned their attention to recreation and Sporting Goods stores sales took off. Book & Hobby Stores recovered more slowly. They have been on a monthly sales rollercoaster since June. $ skyrocketed +21.8% from Oct and all comparisons but ytd vs 23 & 21 are now positive. Their inflation rate has been lower than most groups so 74% of their 25.3% growth since 2019 is real. Growth: -2.9%; Avg 19>24: +4.6%, Real: +3.5%.
  • All Miscellaneous Stores – Pet Stores have been a key part of the strong and growing recovery of this group. They finished 2020 at +0.9% but sales took off in March 21 and have continued to grow. Sales are -11.8% vs Oct but positive in all measurements but actual vs Nov 23 & real vs Nov 21. They are still 2nd in the % increase vs 19 but fell from 3rd to 4th vs 21. 66.6% of their 39.5% 19>24 growth is real. Growth: +5.6%; Avg 19>24: +6.9%, Real: 4.8%.
  • NonStore Retailers – 90% of their $ comes from Internet/Mail Order/TV. The pandemic accelerated online spending. They ended 2020 +21.4%. The growth continued in 2021 as sales exceeded $100B for the 1st time and they broke the $1 Trillion barrier. $ are +11.0% from Oct, but ytd growth fell to 7.9% from 8.1% and they are now 46% below Avg. They are positive in all comparisons and 81% of their 98.4% 19>24 growth is real. Growth: 7.9%; Avg: +14.7%, Real: +12.4%.

Note: Almost without exception, online sales by brick ‘n mortar retailers are recorded with their regular store sales.

Recap – The Retail recovery from the pandemic was largely driven by Relevant Retail and by the end of 2021 it had become very widespread. In 2022, there was a new challenge, the worst inflation in 40 years. Overall, inflation has slowed considerably from its June 22 peak and 7 channels are deflating (down from 8 in Oct). Any deflation should help the Retail Situation. As expected, $ grew for most from Oct, but the 4.6% lift for Relevant Retail was -29% less than their 92>23 avg – a big turnaround from +62% in October. Also in October, their 5.5% lift vs 23 was 21% above average, 9 of 11 channels had a YOY $ lift and all 11 sold more product. In November, their 3.9% YOY lift was 17% below avg, but 9 of 11 had a YOY $ lift and 10 sold more product. Also, in October, there were 4 channels with 6.5+% lifts. In November, it fell to 1. Growth slowed in November, but it still continues. Here’s some truly good news. Restaurants, Total & Relevant Retail and now Auto are positive in all comparisons. Relevant Retail has now been all positive in 6 of 7 months. The recovery strongly restarted in October. In November it slowed but continued. We need many more “Octobers” to fully recover.

Finally, here are the details and updated inflation rates for the CPIs used to calculate the impact of inflation on retail groups and channels. This includes special aggregate CPIs created with the instruction and guidance of personnel from the US BLS. I also researched data from the last Economic Census to review the share of sales by product category for the various channels to help in selecting what expenditures to include in specific aggregates. Of course, none of these specially created aggregates are 100% accurate but they are much closer than the overall CPI or available aggregates. The data also includes the CPI changes since 2021 to show cumulative inflation.

Here are some answers to some obvious questions. ALSO NOTE: 16 of the 23 November “pinks” are slowed deflation

  1. Why is the group for Non-store different from the Internet?
    • Non-store is not all internet. It also includes Fuel Oil Dealers, the non-motor fuel Energy Commodity.
  2. Why is there no Food at home included in Non-store or Internet?
    • Online Grocery purchasing is becoming popular but almost all is from companies whose major business is brick ‘n mortar. These online sales are recorded under their primary channel.
  3. 6 Channels have the same CPI aggregate but represent a variety of business types.
    • They also have a wide range of product types. Rather than try to build aggregates of a multitude of small expenditure categories, it seemed better to eliminate the biggest, influential groups that they don’t sell. This method is not perfect, but it is certainly closer than any existing aggregate.
  4. Why are Grocery and Supermarkets only tied to the Grocery CPI?
    • According to the Economic Census, 76% of their sales comes from Grocery products. Grocery Products are the driver. The balance of their sales comes from a collection of a multitude of categories.
  5. What about Drug/Health Stores only being tied to Medical Commodities.
    • An answer similar to the one for Grocery/Supermarkets. However, in this case Medical Commodities account for over 80% of these stores’ total sales.
  6. Why do SuperCtrs/Clubs and $ Stores have the same CPI?
    • While the Big Stores sell much more fresh groceries, Groceries account for ¼ of $ Store sales. Both Channels generally offer most of the same product categories, but the actual product mix is different.

 

 

Petflation 2024 – November Update: Jumps Up to +2.9% vs 2023

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The monthly Consumer Price Index peaked back in June 2022 at 9.1% then began to slow until turning up in Jul/Aug 2023. Prices fell in Oct>Dec 23, then turned up Jan>Oct 24. There was a -0.1% drop in prices from last month, but the CPI rose to +2.7% from +2.6% in October (due to a bigger drop in 23). Grocery prices fell -0.1% from October, but inflation grew from 1.1% to 1.6%, again due to a big drop in 23. However, after 12 months of double digit % YOY monthly increases, grocery inflation has now been below 10% for 21 months. Even minor price changes can affect consumer pet spending, especially in the discretionary pet segments, so we will continue to publish monthly reports to track petflation as it evolves in the market.

Petflation was +4.1% in December 2021 while the overall CPI was +7.0%. The gap narrowed as Petflation accelerated and reached 96.7% of the national rate in June 2022. National inflation has slowed considerably since June 2022, but Petflation generally increased until June 2023. It passed the National CPI in July 22 but fell below it from Apr>Jul 24. It exceeded the CPI in August, fell below Sep>Oct, but is again above it. As we drill into the data, all reports will include:

  • A rolling 24 month tracking of the CPI for all pet segments and the national CPI. The base number will be pre-pandemic December 2019 in this and future reports, which will facilitate comparisons.
  • Monthly comparisons of 24 vs 23 which will include Pet Segments and relevant Human spending categories. Plus
    1. CPI change from the previous month.
    2. Inflation changes for recent years (22>23, 21>22, 20>21, 19>20, 18>19)
    3. Total Inflation for the current month in 2024 vs 2019 and vs 2021 to see the full inflation surge.
    4. Average annual Year Over Year inflation rate from 2019 to 2024
  • YTD comparisons
    1. YTD numbers for the monthly comparisons #2>4 above

In our first graph we will track the monthly change in prices for the 24 months from Nov 22 to Nov 24. We will use December 2019 as a base number so we can track the progress from pre-pandemic times through an eventual recovery. This chart is designed to give you a visual image of the flow of pricing. You can see the similarities and differences in segment patterns and compare them to the overall U.S. CPI. The year-end numbers and those from 12 and 24 months earlier are included. We also included and highlighted (pink) the cumulative price peak for each segment. In Nov., Pet prices were up 0.5% from Oct. All segments were up but Supplies & Services had the biggest lifts. Both were +1.3%.

In November 22, the CPI was +15.9% and Pet was +16.0%. Prices in the Services segments generally inflated after mid-2020, while Product inflation stayed low until late 21. In 22 Petflation surged. Food prices consistently grew but the others had mixed patterns until July 22, when all increased. In Aug>Oct Petflation took off. In Nov>Dec, Services & Food prices grew while Vet & Supplies prices stabilized. In Jan>Apr 23, prices grew every month for all segments except for 1 Supplies dip. In May, Products prices grew while Services slowed. In Jun/Jul this reversed. In Aug all but Services fell. In Sep/Oct this flipped. In Nov, all but Food & Vet fell. In Dec, Supplies & Vet  drove prices up. In Jan>Mar 24 Pet prices grew despite a few drops. In April, prices in all but Vet fell. In May, all but Food grew. In June, Products drove a lift. In July, all but Services fell. In Aug, Food drove a drop in prices. In Sep, Products fueled a drop. In Oct, Services drove a lift. In Nov, all were up.

  • U.S. CPI – The inflation rate was below 2% through 2020. It turned up in January 21 and continued to grow until flattening out in Jul>Dec 22. Prices turned up Jan>Sep 23, dipped Oct>Dec, rose Jan>Oct 24, then fell in Nov, but 29.9% of the 22.8% increase in the 59 months since Dec 2019 happened from Jan>Jun 2022 – 10.2% of the time.
  • Pet Food – Prices were at Dec 19 level from Apr 20>Sep 21. They grew & peaked May 23. Jun>Aug they fell, grew Sep>Nov, fell Dec>Feb, rose Mar, fell Apr>May, grew June, fell Jul>Oct, then rose in Nov. 99% of the lift was in 22/23.
  • Pet Supplies – Supplies prices were high in Dec 19 due to tariffs. They had a “deflated” roller coaster ride until mid-21 when they returned to Dec 19 prices & essentially stayed there until 22. They turned up in Jan 22 and hit a record high, beating 2009. They plateaued Feb>May, grew in June, flattened in July, then turned up in Aug>Oct to a new record. Prices stabilized in Nov>Dec but grew in Jan>Feb 23. They fell in Mar, but set a new record in May. The rollercoaster continued with Dec>Feb ↑, Mar/Apr ↓, May/Jun ↑, July ↓, Aug ↑, Sep/Oct ↓ & Nov ↑.
  • Pet Services– Inflation is usually 2+%. Perhaps due to closures, prices increased at a lower rate in 2020. In 2021 consumer demand increased but with fewer outlets. Inflation grew in 21 with the biggest lift in Jan>Apr. Inflation was strong in 22 but prices got on a rollercoaster in Mar>Jun. They turned up Jul to Mar 23 but the rate slowed in April and prices fell in May. Jun>Aug: ↑, Sep>Dec: ↓, Jan>Mar 24: ↑, Apr: ↓, May: ↑, June: ↓, Jul>Nov: ↑.
  • Veterinary – Inflation has been consistent. Prices turned up in Mar 20 and grew through 21. A surge began in Dec 21 which put them above the overall CPI. In May 22 prices fell and stabilized in June causing them to fall below the CPI. However, prices rose again and despite some dips they have stayed above the CPI since July 22. In 23>24 prices grew Jan>May, leveled Jun/Jul, fell Aug, grew Sep>Dec, fell Jan 24, grew Feb>May, fell Jun>Jul, then grew Aug>Nov.
  • Total Pet – Petflation is a sum of the segments. In Dec 21 the price surge began. In Mar>Jun 22 the segments had ups & downs, but Petflation grew again from Jul>Nov. It slowed in Dec, grew Jan>May 23 (peak), fell Jun>Aug, grew in Sep/Oct, then fell in Nov. In December prices turned up and grew through March 24 to a record high. Prices fell in April, rose May>June (record), fell Jul>Sep, then rose in Oct>Nov (record). Petflation is now above the National CPI.

Next, we’ll turn our attention to the Year Over Year inflation rate change for November and compare it to last month, last year and to previous years. We will also show total inflation from 21>24 & 19>24. Petflation rose to 2.9%, from 2.0% in October, and it is again above the National rate (by +7.4%). In October, it was -13.1%. The chart will allow you to compare the inflation rates of 23>24 to 22>23 and other years but also see how much of the total inflation since 2019 came from the current pricing surge. We’ve included some human categories to put the pet numbers into perspective.

Overall, prices were down -0.1% from October but were +2.7% vs Nov 23, up from +2.6% last month. Grocery inflation rose to +1.6% from 1.1%. Only 2 segments had price decreases from last month – Food at Home and the CPI. There were 2 drops in Oct, but 3 in Aug & Sep and 5 in July. The national YOY monthly CPI rate of 2.7% is up from 2.6%, but it is still 13% below the 22>23 rate and 62% less than 21>22. The 23>24 rate is below 22>23 for all but Pet Supplies, Medical Services, Pet Services & Haircuts. 21>22 has the highest rate for all but Medical & Pet Services. In our 2021>2024 measurement you also can see that over 65% of the cumulative inflation since 2019 has only occurred in Total Pet and all Pet segments. Except for Pet Services, where prices are skyrocketing, Service Segments have in the past generally had higher inflation rates so there was a smaller pricing lift in the recent surge. Pet Products have a very different pattern. The 21>24 inflation surge provided 95% of their overall inflation since 2019. This happened because Pet Products prices in 2021 were still recovering from a deflationary period. Services expenditures now account for 64.6% of the National CPI so they are very influential. Their current CPI is +4.5% while the CPI for Commodities is -0.2%. This clearly shows that Services are driving all of the current 2.7% inflation. There is a similar situation in Pet. Petflation is 2.9%. The CPI for the 2 Service Segments is 7.1%. The Pet Products CPI is 0.01%.

  • U.S. CPI– Prices are -0.1% from October. The YOY increase is 2.7%, up from 2.6%. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are still 30+% higher than the target. The November increase was the 2nd straight lift after 6 consecutive drops from Apr>Sep. The current rate is below 22>23 but the 21>24 rate is still +13.5%, 59.5% of the total inflation since 2019. Inflation was growing in November 2021, +6.8%
  • Pet Food– Prices are +0.1% vs October, but -1.2% vs Nov. 23, down from -1.3%. They are still significantly below the Food at Home inflation rate of +1.6%. The YOY drop of -1.2% is being measured against a time when prices were 23.1% above the 2019 level but the current decrease is still more than the -0.9% drop from 2019 to 2020. The 2021>2024 inflation surge generated 97% of the 21.4% inflation since 2019. Inflation began in 2021.
  • Food at Home – Prices are down -0.1% from October but the monthly YOY increase grew from 1.1% to 1.6%. This is radically lower than Jul>Sep 2022 when it exceeded 13%. The 27.4% Inflation for this category since 2019 is 20.7% more than the national CPI but only tied for 3rd place behind 2 Services expenditures. 56.9% of the inflation since 2019 occurred from 2021>24. This is lower than the CPI, but we should note that Grocery prices began inflating in 2020>21 then the rate accelerated. It appears that the pandemic supply chain issues in Food which contributed to higher prices started early and foreshadowed problems in other categories and the overall CPI tsunami.
  • Pets & Supplies– Prices were +1.3% from October and inflation grew to +2.8% vs Nov 23 from 1.0%, but they still have the lowest rate vs 2019. Prices were deflated for much of 20>21. As a result, the 2021>24 inflation surge accounted for 95% of the total price increase since 2019. Prices set a record in October 2022 then deflated. 3 monthly increases pushed them to another record high in Feb 23. Prices fell in March, rose Apr/May (record), fell Jun>Aug, grew Sep>Oct, fell Nov, grew Dec>Feb 24, fell Mar>Apr, rose May>Jun (record), fell in July, rose in Aug, fell Sep>Oct, then rose in Nov.
  • Veterinary Services– Prices are +0.8% from October and +7.0% from 2023, down from 7.3%. They are #2 in inflation vs 23 but still the leader in the increase since 2019 with +39.1% and since 2021, +29.4%. For Veterinary, relatively high annual inflation is the norm. However, the rate has increased during the current surge, especially in 22 & 23. It is still high in 24, so 75.2% of the cumulative inflation since 2019 occurred from 2021>24.
  • Medical Services – Prices turned sharply up at the start of the pandemic but then inflation slowed and fell to a low rate in 20>21. Prices rose +0.2% from October but inflation vs last year slowed to +3.7% from +3.8%. Medical Services are not a big part of the current surge as only 56.2% of the 13.0%, 2019>24 increase happened from 21>24.
  • Pet Services – Inflation slowed in 2020 but began to grow in 21. In 24, prices surged Jan>Mar, fell in April, rose in May, fell in June, then rose Jul>Nov to a new peak of 12.1%. This is almost double the 6.3% rate in August. 68.8% of their total 19>24 inflation has occurred since 21. In Dec 23, it was only 49%. Plus, they again have the highest 23>24 rate.
  • Haircuts/Other Personal Services – Prices are +0.6% from October and +4.8% from Nov 23. 9 of the last 11 months have been 4.0+%. Inflation has been pretty consistent. 59.9% of the 19>24 inflation happened 21>24.
  • Total Pet– Petflation rose to 2.9% from 2.0% due to price lifts in all segments. It is still 33% less than the 22>23 rate but 7.4% more than the U.S. CPI. However, 2.9% is 7.6% below the 3.1% average November rate since 1997. Vs Oct, prices rose 0.5%, driven by all but Food (+0.1%). The Oct>Nov increase was much bigger than the 0.1% average since 1997, but a lift was to be expected. It has occurred in 19 of the last 25 years. Another factor in the big CPI lift was that prices fell -0.3% in Oct>Nov 2023. In November the recovery essentially stalled so there is still a ways to go to reach a full recovery.

Now, let’s look at the YTD numbers.

The 23>24 rate is lower than 22>23 for all but Medical Services & Pet Services (their highest rate). The 22>23 inflation rate was the highest for only 2 of 9 categories – Both Pet – Pet Food & Veterinary. 21>22 has the highest rate for the CPI, Food at Home, Pet Supplies & Total Pet. The average national inflation in the 5 years since 2019 is 4.2%. Only 2 of the categories are below that rate – Medical Services (2.7%) and Pet Supplies (2.1%). It is no surprise that Veterinary Services has the highest average rate (6.7%), but all 5 other categories are +4.3% or higher.

  • U.S. CPI – The 23>24 rate is 3.0%, the same as October, but it is down 29% from 22>23, 63% less than 21>22 and 29% below the average YOY increase from 2019>2024. However, it’s still 20% more than the average annual increase from 2018>2021. 70% of the 22.7% inflation since 2019 occurred from 2021>24. Inflation is a big problem that started recently.
  • Pet Food – Ytd inflation is 0.3%, down from 0.5% in Oct. and 97.3% less than the 22>23 rate. Now, it is also 96.9% lower than 21>22 and 75% below the average rate from 2018>2021. Pet Food has the highest 22>23 rate on the chart and remains in 2nd place in the 21>24 rates. Deflation in the 1st half of 2021 kept YTD prices low then they surged in 2022 and especially in 2023. 96% of the inflation since 2019 occurred from 2021>24.
  • Food at Home – The inflation rate has slowed remarkably. At 1.1%, it is down 80% from 22>23, 90% from 21>22 and 66% from 20>21. Also, it is even 50% lower than the average rate from 2018>20. It is only tied for 3rd place for the highest inflation since 2019 but still beat the U.S. CPI by 18%. You can see the impact of supply chain issues on the Grocery category as 70% of the inflation since 2019 occurred from 2021>24.
  • Pets & Pet Supplies – In 24, prices rose Jan>Feb, fell Mar>Apr, rose May>Jun, fell in July, rose in Aug, fell Sep>Oct, then rose in Nov. Inflation in 24 is 0.9% and is only higher than 19>20. Supplies have the lowest inflation since 2019. The only significant lifts since 2019 were 7.6% in 22 & 2.9% in 23. The 2021 deflation created a unusual situation. Prices are up 11.2% from 2019 but 104% of this lift happened from 21>24. Prices are up 11.7% from their 2021 “bottom”.
  • Veterinary Services – Inflation was high in 2019 and steadily grew until it took off in late 2022. The rate may have peaked in 2023, but it is still going strong in 2024, +7.5%, the highest on the chart. They are also #1 in inflation since 2019 and since 2021. At +6.7%, they have the highest average annual inflation rate since 2019. It is 1.6 times higher than the National Average but 2.5 times higher than the Inflation average for Medical Services. Strong Inflation is the norm in Veterinary Services.
  • Medical Services – Prices went up significantly at the beginning of the pandemic, but inflation slowed in 2021. Ytd it is 2.8%. In a non-pandemic year, “normal” is between 2.1>2.9%. We are still seeing the impact of 2023 when prices actually deflated (-0.3%). This was the only deflationary year since the US BLS began tracking this category in 1935.
  • Pet Services – After falling in late 2023, prices surged in 2024, except for drops in Apr & Jun. The 23>24 inflation rate of 6.6% is 2nd to Veterinary on the chart. It is now their highest Ytd rate and is 2 times higher than their 2018>21 average rate. Pet Services is 2nd in 19>24 inflation but only 4th in inflation since 21.
  • Haircuts & Personal Services – The services segments, essential & non-essential, were hit hardest by the pandemic. The industry responded by raising prices. Ytd inflation is 4.5%, which is 15% below its 22 peak, but 30% above the 18>20 average. Consumers are paying over 25% more than in 2019, which usually reduces the purchase frequency.
  • Total Pet – Ytd Petflation is 2.6%, the same as October, but down from 2.7% Jul>Sep. It is 69% less than 22>23 but 12% higher than the 2018>21 average rate. Plus, Ytd it is still 13% below the CPI. Despite the YOY lifts in Aug & Nov, Petflation has slowed in 24. This is primarily driven by drops in Pet Food prices, but Ytd Supplies inflation is also low. Services & Vet prices reached new record highs in November. The mix of patterns has produced some stability in the Jul>Nov Ytd Pet CPIs.

The Petflation recovery paused in August, came back Sep>Oct, then paused again in November. At 2.9%, November was 7.6% below the 25 year average for the month but is again above the National CPI. We tend to focus on monthly inflation while ignoring one critical fact. Inflation is cumulative. Pet prices are 20.2% above 2021 and 25.0% higher than 2019. Those are big lifts. In fact, in November prices for Vet, Services & Total Pet set new records while prices for the Product segments are less than 1.4% below the highest in history. Only Supplies prices (+11.3%) are less than 21% higher than 2019. Since price/value is the biggest driver in consumer spending, inflation will affect the Pet Industry. Services will be the least impacted as it is driven by high income CUs. Veterinary will see a reduction in visit frequency. The product segments will see a more complex reaction. Supplies will likely see a reduction in purchase frequency and some Pet Parents may even downgrade their Pet Food. Products will see a strong movement to online purchasing and private label. We saw proof of this at both GPE & SZ as a huge # of exhibitors offer OEM services. Strong, cumulative inflation has a widespread impact.

2023 Total Pet Spending was $117.60B – Where did it come from…?

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Total Pet Spending in the U.S. was $117.60B in 2023, a $14.89B (14.5%) increase from 2022. These figures and others in this report are calculated from data in the annual Consumer Expenditure Survey conducted by the US BLS. 2022 had mixed results. Like the Food segment a year earlier, the 2021 binge spending on Supplies and Veterinary Services was not repeated, so spending fell in both segments. However, Pet Food bounced back with a 12.5% increase and Services continued their spectacular growth. This produced only a 2.7% increase in Total Pet Spending. In 2023, the Binge/Bust pattern was over. Even with 8% inflation, all segments had an increase in spending. The lifts for Supplies & Services were small but the Food & Vet lifts were huge. This produced the 3rd largest lift in history. 2023 deserves a closer look!

The first question is, “Who is spending most of the $117.6 billion dollars?” There are of course multiple answers. We will first look at Total Pet Spending in terms of 10 demographic categories. In each category we will identify the group that is responsible for most of the overall spending. Our goal was to find demographic segments in each category that account for 60% or more of the total. To get the finalists, we started with the biggest spending segment then bundled it with related groups until we reached at or near 60%.

Knowing the specific group within each demographic category that was responsible for generating the bulk of Total Pet $ is the first step in our analysis. Next, we will drill even deeper to show the best and worst performing demographic segments/groups and finally, the segments that generated the biggest dollar gains or losses in 2023.

In the chart that follows, the demographic categories are ranked by Total Pet market share from highest to lowest. We also included their share of total CU’s (Financially Independent Consumer Units) and their performance rating. Performance is their share of market vs their share of CU’s. This is an important number, not just for measuring the impact of a particular demographic group, but also in measuring the importance of the whole demographic category in Spending. All are large groups with a high market share. A performance score of 120+% means that this demographic is extremely important in generating increased Pet Spending. I have highlighted the 5 groups with 120+% performance.

There were 2 group changes from 2022. College Grads returned to the list as their share grew while Associate’s fell. A share loss by 45>64 and gain by 65>74 caused the age group to expand. There were also changes in the numbers and rankings. Homeowners fell from 2nd to 3rd. College Grads returned to the list at #10 but the expanded age group moved up from #10 to #4. Again only 5 made the 120%+ club. College Grads replaced Associate’s Degree> in the club. Formal higher education matters, but higher income remains the single most important factor in Total Pet Spending.

  1. Race/Ethnic – White, not Hispanic (82.5%) down from 83.9%. This is the 3rd largest group but it has the largest share of Pet Spending. Their performance was down from 124.9% to 124.4% and they dropped from #3 to #4 in importance. Although this demographic, along with age, are 2 areas in which the consumers have no control, spending disparities within the group are enhanced by differences in other areas like Income, CU Composition and homeownership. There are also apparently cultural differences which impact Pet Spending. Asian Americans are first in income, education and total CU spending but they’re last in Pet Spending as a percentage of total spending – 0.44% vs a national average of 1.13%.
  2. # in CU – 2+ people (79.7%) down from 80.8%. Singles still have by far the worst performance. In 2023, there was a 2.3% drop in the number of singles, but they spent 20.7% more on their pets. At the same time, 2+ people CUs spent 13.0% more. This explains the small drop in share and a performance decrease from 117.1% to 114.2%.
  3. Housing – Homeowners (79.6%) down from 81.2%. Controlling your “own space” is a key to larger pet families and more pet spending. 2023 was not a bad year for Homeowners, with & without Mtges. Homeowners spent $10.2B more but the group’s performance fell from 124.8% to 122.4%. The biggest factor in the decrease was a 24.2% lift in spending by Renters. Homeowners fell from 4th to 5th place in importance. There were some minor changes but the overall homeownership rate remained steady at 65.1%. Those w/o a Mortgage rose from 27.0% to 27.3%
  4. Age – 35>74 (75.4%) down from 77.1%.They lost share and their performance fell from 112.8% to 110.5%. All Age groups spent more but the lift of the 45>64 group was far below average. The youngest and oldest groups had the biggest lifts. To meet the 60% share goal, the group had to be expanded. However, Pet Spending is now more balanced by age group and age fell from 7th to 8th in importance.
  5. Area – Suburban & Rural (71.8%) up from 71.7% Homeownership is high and they have the “space” for pets. All areas had increases but the Suburbs had the biggest lift. Center City gained more CUs. This combination pushed Suburban/Rural’s performance up from 109.5% to 109.6%. Center City still has the worst performance at 81.8%
  6. Income – Over $70K (70.0%) up from 67.5%. They gained share but their performance fell to 138.6% from 142.8%. The disparity was due to a 3.2% lift in CUs. However, CU income is still by far the most important factor in increased Pet Spending. Spending was up for all groups but $40>49K. $30>39K had the biggest % lift, +46%, but all other groups <$70K had increases <5%. $70K> was up +18.6%. Income matters. $100K>: 36.4% of CUs, 55.9% of Pet $
  7. # Earners – “Everyone Works” (66.2%) down from 66.8%. These are CUs of any size where all adults are employed. They lost share and their performance fell again, from 114.5% to 112.8%. They dropped out of the 120+% club in 2021 and are only the 7th most important category. Income is important but # of Earners is less so. All segments spent more. The drops were due to a 37% lift from No Earner, 2+ CUs and only a 4.1% lift from 3+ Earners.
  8. Occupation – All Wage & Salary Earners (64.7%) down from 65.7%. Their performance also fell from 109.0% to 106.2%. All but Blue Collar workers & “All Other” spent more on their pets in 2023. However, among workers, only Tech/Sls/Clerical and Self-Employed spent more than the average increase. The drops in share & performance were due to the big spending lift from Self-Employed in conjunction with a 32% increase by Retirees. BTW: “All Other”, includes unemployed and those not working because of illness or attending school.
  9. CU Composition – Married Couples (61.4%) down from 61.8%. 2 people, committed to each other, is an ideal situation for Pet Parenting. In 2023, they lost share and their performance fell from 129.3% to 127.4%, but they stayed in 2nd place in importance even though College Grads returned to the list. Their lift was below average (+13.8%) and the drops in share and performance were due to big spending increases by singles and unmarried, all adult CUs.
  10. Education – College Grads (60.6%) up from 59.4%. Higher Education is usually tied to higher income and Pet spending. It can also be a key factor in recognizing the value in product improvements. In 2022 the Education group was expanded to hit the 60% share goal. In 2023, big lifts in the Service segments returned them to the list. Their 2023 performance fell from 127.0% to 126.7% but they are #3 in importance. In Education, only Associate’s Degree spent less. The gain in share and drop in performance is primarily due to a 2.6% increase in CUs with a college grad.

Total Pet Spending is a sum of the spending in all four industry segments. The “big demographic spenders” listed above are determined by the total pet numbers. The share of spending and performance of these groups varies between segments. In fact, in every segment we altered at least 1 group (4 in Pet Services) to better reflect where most of the business is coming from. There was some turmoil, but in 2023 Pet Spending had a great year.

Performance is an important measurement. Any group that exceeds 120% indicates an increased concentration of the business which makes it easier for marketing to target the big spenders. Income over $70K is again the clear winner, but there are other strong performers. High performance also indicates the presence of segments within these categories that are seriously underperforming. These can be identified and targeted for improvement. In 2020>2022 many of the big lifts and drops in spending came from a series of buying binge/busts which affected every segment. All segments had at least a small increase in 2023 so we may be getting closer to normal.

Now, let’s drill deeper and look at 2023’s best and worst performing segments in each demographic category

Most of the best and worst performers are expected but there are 4 winners & 3 losers that are different from 22 – the same as last year. The situation is definitely becoming more normal. Changes from 2022 are “boxed”.

  • Income is important in Pet Spending, which is shown by the 181.9% performance by the $200K> group and wins by the high income 3 Earners, Mgrs/Prof and Adv College Degrees. All groups over $100K performed at 100+%.
  • Occupation – Tech/Sls/Cler joined Mgrs/Professionals & Self-Employed as the only occupations with 100+% performance. Service Workers (75.5%) replaced Retirees at the bottom.
  • Age/Generation: Gen X won again but spending moved towards their oldest members & youngest Boomers, 55>64
  • Region – The West returned to the top. The Midwest also had 100+% performance.
  • CU Size/Composition – The importance of children was maintained with wins by 3 People and those with an Oldest Child 6>17. Single Parents returned to the bottom. The “magic” CU number continues to fall – from 4 to 3.

The winners reflect the continued move back towards more normal spending patterns, but from slightly older CUs. In the next section we’ll look at the segments which literally made the biggest difference in spending in 2023.

We’ll “Show you the money”! This chart details the biggest $ changes in spending from 2022.

In 2022 there was only 1 category in which all segments spent more. In 2023, there were 6 – Race, Area Type, Housing, Region, Earners and Age. There was also more stability. 4 segments held their spot from 2022 and 3 flipped from 1st to last or vice versa.  In 2022, 3 segments were stable and 9 flipped. However, 83.3% were different from last year, just a little less than 87.5% in 2022. We should also note that with 8% inflation, the 14.5% Total Pet lift was really only +6.0%.

  • Race/Ethnic – White, Not Hispanics stayed on top, but all segments spent more.
    • Winner – White, Not Hispanic – Pet Spending: $97.06B; Up $10.88B (+12.6%)                                 2022: White, Not Hispanic
    • Loser – Asian – Pet Spending: $3.19B; Up $0.51B (+18.9%)                                                                   2022: Hispanic
    • Comment – African Americans & Hispanics were up 20+%. Asians “lost” with +18.9%. Average lift: +14.5%
  • Area Type – Both winner and loser held their positions, and all segments spent more – just like 2022.
    • Winner – Suburbs 2500> – Pet Spending: $53.72B; Up $7.26B (+15.6%)                                               2022: Suburbs 2500>
    • Loser – Areas <2500 – Pet Spending: $30.67B; Up $3.49B (+12.9%)                                                        2022: Areas <2500
    • Comment – The Big Suburbs stayed in their usual spot at the top. Center City had a +$4.13B lift and Areas <2500 have fully recovered from a drop in 2021. The increases were pretty balanced, ranging from +12.9% to +15.6%.
  • Housing – All spent more but Homeowners w/o Mtge flipped from 1st to last – That’s two consecutive flips for them.
    • Winner – Homeowner w/Mtge – Pet Spending: $63.44B; Up $6.93B (+12.3%)                                   2022: Homeowner w/o Mtge
    • Loser – Homeowner w/o Mtge– Pet Spending: $30.22B; Up $3.28B (+12.2%)                                    2022: Renter
    • Comment – Homeowners w/Mtge returned to their usual spot on top. Renters were up $4.67B, +24.2%. Their lift percentage was almost double the +12.2% for Homeowners.
  • Generation – These “rising stars” finally made it to the top of the chart with a $6.56B increase.
    • Winner – Millennials – Pet Spending: $32.18B; Up $6.56B (+25.6%)                                                       2022: Gen Z
    • Loser – Born <1946 – Pet Spending: $4.86B; Down -$0.34B (-6.5%)                                                        2022: Born <1946
    • Comment – Boomers had the 2nd biggest lift and only the oldest generations, born <1946 spent less.
  • Occupation – Retirees flipped from last to 1st – their 2nd consecutive flip.
    • Winner –– Retired – Pet Spending: $22.85B; Up $5.53B (+32.0%)                                                      2022: Managers & Professionals
    • Loser – Blue Collar – Pet Spending: $6.01B; Down -$0.16B (-2.5%)                                                    2022: Retired
    • Comment– Only Blue Collar & Unemployed/All other spent less.
  • # in CU – A new winner and loser but no flips.
    • Winner – 2 People – Pet Spending: $45.12B; Up $5.51B (+13.9%)                                                           2022: 3 People
    • Loser – 4 People – Pet Spending: $14.79B; Down -$0.56B (-3.6%)                                                            2022: 5+ People
    • Comment: Only 4 people CUs spent less. The lift was definitely skewed towards smaller CUs. 1>3 person CUs have 77.8% of CUs but generated 94% of the lift. 1 & 3 person CUs were up 20+% – the only above average lifts.
  • Region – All segments spent more and the winner and loser were both new.
    • Winner – Northeast – Pet Spending: $21.92B; Up $5.45B (+33.1%)                                                         2022: Midwest
    • Loser – South – Pet Spending: $36.38B; Up $1.81B (+5.2%)                                                                       2022: West
    • Comment – The West had the 2nd biggest increase, +$4.89B. They did spend less on Supplies but had a big turnaround from -$3.99B in 2022. The South spent less on Supplies and Services, the only other Segment $ drops.
  • Education – Associate’s degrees flipped from 1st to last and had the only spending decrease in the category.
    • Winner – BA/BS Degree – Pet Spending: $37.53B; Up $5.24B (+16.2%)                                                2022: Associates Degree
    • Loser – Associates Degree – Pet Spending: $11.90B; Down -$0.50B (-4.0%)                                        2022: Adv. College Degree
    • Comment – Except for HS Grads w/some College, +27.8%, the lifts from <College were all significantly below the 14.5% average. College Grads (47.8% of CUs) generated 68.9% of the Total Pet lift – 144% performance.
  • # Earners – All Segments spent more. The highest income 3+ Earner segment is a bit of a surprise at the bottom.
    • Winner – 2 Earners, 2+ CU – Pet Spending: $47.56B; Up $5.18B (+12.2%)                                           2022: 1 Earner, 2+ CU
    • Loser – 3 Earners, 2+ CU – Pet Spending: $14.46B; Up $0.58B (+4.1%)                                                 2022: No Earner, 2+ CU
    • Comment – 1 Earner, Singles: 2022: -$0.48B, 2023: +$3.44B; No Earner, 2+CU: 2022: -$2.53B, 2023: +$2.84B
  • CU Composition – Children became less important as the lift for Married, w/children was only 9.6%. Avg lift: 14.5%
    • Winner – Married, Couple Only – Pet Spending: $33.438; Up $4.58B (+15.9%)                                 2022: Married, Child 18>
    • Loser – Single Parent – Pet Spending: $2.99B; Down -$1.00B (-25.0%)                                                2022: Married, Child 6>17
    • Comment – Only Married, Oldest Child 18> and Single Parents spent less. Bundled together, singles and unmarried, all adult CUs had a $7.16B (+22.7%) increase. That was 48.1% of the 22>23 Total Pet lift.
  • Income – All segments but $40>49K spent more.
    • Winner – $200K> – Pet Spending: $24.41B; Up $4.26B (+21.2%)                                                            2022: $100>149K
    • Loser – $40>$49K – Pet Spending: $5.25B; Down -$0.95B (-15.4%)                                                        2022: $70>99K
    • Comment – No spending rollercoaster this year. $30>39K had the biggest percentage lift, +46.0% but all other segments <$100K were below average. The $100K> segments (36.4% of CUs) generated 73.8% of the Total lift.
  • Age – All groups spent more. However, the 45>54 yr-olds flipped to the bottom and 65>74 was a surprise winner.
    • Winner – 65>74 yrs – Pet Spending: $19.71B; Up $3.27B (+19.9%)                                                           2022: 45>54 yrs
    • Loser – 45>54 yrs – Pet Spending: $22.51B; Up $0.72B (+3.3%)                                                                2022: 35>44 yrs
    • Comment: Only 45>64 had a below average lift. All ages from 25>74 have 90+% performance. More balanced.

We’ve seen the best overall performers and the “winners” and “losers” in terms of increase/decrease in Total Pet Spending $ for 12 Demographic Categories. Now, here are some segments that didn’t win an award, but they deserve….

HONORABLE MENTION

2023 was a great year for segments that are usually at or near the bottom in Pet Spending. Gen Z had lifts in all segments. Only their Services lift was less than 50%. They are becoming even more committed to Pet Parenting. Big lifts by $30>39K and No Earner, 2+ CUs reflect the exceptionally strong performance of Retirees, especially the 65>74 yr old newly retired group. HS Grads w/some College are definitely in the HS Grad/College Grad gap and are rarely noticed. In 2023 they had double digit % increases in all segments. They deserve to be noticed. Renters and 1 Person CUs are usually at the bottom in spending lifts and/or performance. Both still have the lowest performance in their category but their $4B Total Pet spending increases should be noticed and applauded.

Summary

To review 2023, we must look at recent history. Total Pet Spending reached $78.60B in 2018, a $14.28B, 22.2% increase from 2014. However, it was not a steady rise, Total spending fell in 2016 and each segment had at least one down year. There were a number of factors driving both growth and tumult. Positives: The move to super premium foods and the increase in pet services outlets. Negatives: Value shopping, trading $ between segments and outside influences like the FDA dog food warning and tariffs. Pricing, inflation/deflation was also a negative/positive factor in some cases.

In 2019, the industry had another small decrease, -$0.16B (-0.2%) which was largely driven by a huge drop in spending in Supplies caused by Tarifflation. This affected virtually every demographic segment and caused Supplies $ to fall below 2014. Services spending also fell slightly as consumers value shopped. The good news was that Pet Food bounced back from the impact of the 2018 FDA warning to reach a new record high. Veterinary $ also increased 2.7%. Unfortunately, this was entirely due to a 4.1% increase in prices. The amount of Vet Services sold actually decreased.

That brings us to 2020 and the Pandemic turmoil. The effect was positive for Food and Veterinary, especially Food. Out of fear of shortages, many Pet Parents binge bought Pet Food. Spending also increased in Veterinary, as consumers focused on their Pets’ needs. The discretionary segments suffered. Supplies prices stayed high, so spending continued to decline. Services saw the biggest negative pandemic impact as many outlets were subject to closures and restrictions.

In 2021 the marketplace returned to “normal”. The Food binge buying wasn’t repeated but Pet Parents caught up with all their “children’s” wants and needs. This produced a big increase in Total Pet (+$16.23B) and in all segments but Food. Spending skewed younger and to more traditional winners, like Homeowners w/Mtges and Incomes over $200K.

In 2022, the spending lift was much smaller. Big lifts in Food & Services overcame the “binge drops” in Veterinary and Supplies and produced a 2.7% increase in Total Pet $. 72% of 96 demographic segments spent more on their pets, down from 83% in 2021. Spending became a little more balanced with strong performances by those without a college degree, Blue Collar workers, African Americans and Gen Z. Income is still important as Gen X stayed on top. Spending also skewed a little older towards the older Gen Xers, 45>54 yr olds. Baby Boomers are still the “heart” of the Pet Industry, but Gen X will likely lead CU spending for a number of years, until they are eventually displaced by the Millennials.

In 2023 Total Pet Spending took off, up $14.89B (+14.5%) to $117.6B. All segments had increases. The lifts in the more discretionary segments – Services & Supplies, were small but the Food & Veterinary lifts were huge. The Food increase even set a new record. The lift was widespread as 91% of 96 demographic segments spent more. Even considering 8% inflation, 78% spent more. Income is still the most important factor in all segments but Food and growing in importance. However, 2023 became a little more balanced in many categories, especially Age. Also, many underperforming segments, like Singles and Renters had big increases. 2023 was a great year and Gen X still spends the most Pet $ per CU.

Before we go…The Ultimate Total Pet Spending CU in 2023 has 3 people, a married couple with an oldest child 6>17. They are 55>64 yrs-old, but are Gen Xers, not Boomers. They are White, but not Hispanic. Both work and even their child has a part time job. At least one has an Advanced College Degree and is a Mgr/Professional. They earn $200K+. They still have a mortgage on their house located in an area with a population under 2500 in the West.

2023 U.S. Pet Spending by Generation – Boomers Back on Top!

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In 2023 Americans spent $117.60B on our companion animals, 1.13% of $10.40T in total expenditures. Pet Spending was up $14.89B (+14.5%), much more than the $2.73B in 2022. In 2020 Consumers focused on the necessary segments – Food and Veterinary, including a Food buying binge. The discretionary segments, Supplies and Services, suffered until 2021 when Food $ fell but all other segments had record increases. In 2022, Supplies & Vet $ fell while Food & Services grew. In 2023, $ increased in all segments including a record lift in Food. This produced the huge 14.5% increase in Total Pet $.

In this report we will compare Pet Spending in 2023 vs 2022 for the most popular demographic measurement – by Generation. We will also include historical data going back to 2019 when Gen Z first had enough CUs to be recognized as a separate segment. All data comes from the US BLS Consumer Expenditure Survey.

We’ll start by defining the generations and looking at their share of U.S. Consumer Units (CUs are basically households)

GENERATIONS DEFINED

Gen Z: Born after 1996

In 2023, Age 26 or less

Millennials: Born 1981 to 1996

In 2023, Age 27 to 42

Gen X: Born 1965 to 1980

In 2023, Age 43 to 58

Baby Boomers: Born 1946 to 1964

In 2023 Age 59 to 77

Silent/Greatest: Born before 1946

In 2023, Age 78+

  • Baby Boomers still have the largest number of CU’s at 41.4M and 30.7% of the total. They had a 2.1M decrease in 2023 and generally have been losing ground. In fact, they have 3.8M fewer CU’s than in 2016.
  • The Oldest Generations will continue to lose CUs primarily due to death or movement to permanent care facilities.
  • Gen X has the second most CUs and gained a little ground in 2023.
  • Millennials have the largest number of individuals, but they still rank only third in the number of CU’s.
  • Gen Z gained 1.6M CUs as more of these youngsters established independent households.

Now let’s look at some key CU Characteristics (Note: Nationally, 1 change; CU Size up to 2.5 from 2.4 in 2022.)

CU size: ↑ for Millennials, ↓ for Gen X & Gen Z; # Children: Millennials ↑, Gen X ↓; # Earners: Gen Z ↑, Boomers ↓; Homeownership: ↑ for Gen X & Millennials, ↓ for Born <1946; No Mtge: ↑ for all but Gen Z (No Chge).

  • CU Size – Nationally, CU size increased to 2.5 from 2.4. 2+ people CUs account for 69.8% of all U.S. CUs, (up from 69.0% in 2022) and 79.7% of pet $ (down from 80.8%) There were 1.5% more 2+ CUs and they spent 11.5% more on their pets (Natl. Avg: +14.1%). Millennials and now Gen Z are actively building their households. CU size, with all the related responsibilities, now peaks with the Millennials as Gen Xers fell from 3.0 to 2.9. CU size drops as we age but the numbers for the oldest groups are the same as 2022. However, Gen Z fell from 2.1 to 2.0.
  • # Children < 18 – 27.0% of U.S. CU’s have children, the same as 2022 and they generate 30.2% of Pet Spending, down from 32.8%. There was a lift in CUs with an oldest child <6 & Single Parents. The others were down. The decrease in Total Pet Spending share was also very focused. Married couples with an oldest child 18> spent -$0.60B less. Single Parents were -$1.0B. All other CUs, with or without children, spent more. The net result was CUs with children spent $1.85B more while those without children increased spending by $13.04B. Overall there was no change in the # of children per CU. Millennials are still the leader and the only generation to average more than 1 child per CU. In 2023 they increased to 1.2 from 1.1. Gen X (#2) fell from 0.8 to 0.7. All others were unchanged.
  • # Earners – Pet spending is often tied to the number of earners in a CU. In 2023, all segments in the # of Earners category spent more. 2+ earner CUs still spent the most and had the biggest increase, +$5.18B. The only changes in count were that Gen Z rose to 1.5 from 1.4 while Baby Boomers fell to 0.9 from 1.0.
  • Homeownership – Owning and controlling your own space has always been a major factor in increased Pet Ownership and spending. In 2023 homeownership was unchanged at 65.1%. Millennials & Gen X had increases and Born <1946 had the only drop. The homeowners’ share of Total Pet Spending fell from 81.2% to 79.6%. The decrease happened because Homeowners’ Pet Spending increased $10.21B (12.2%), while Renters’ rose $4.67B (24.2%). We should also note that while the percentage of homeowners w/no Mtge is basically unchanged, it actually grew by 0.33%. All generations but Gen Z had slight increases.
    • As expected, Gen Z are the most common renters in society. Homeownership by Millennials has moved up to 53% but it is still only 82% of the national average.
    • Gen Xers have been above the national avg since 2018, and Homeownership generally increases with age.

Next, we’ll compare the Generations to the National Avg.:

In Income, Total CU Spending, Total Pet Spending and the Pet Share of Total CU Spending

CU National Avg: Income – $101,805; Total CU Spending – $77,278; Total Pet Spending – $874.16; Pet Share – 1.13%

  • Income – The Gen Xers are still at the top, but their lead fell slightly. Compared to the national average, the incomes of Boomers and the Silent/Greatest fell. Millennials’ income beat the national average in 2020 and continues to grow. The income of Gen Z passed that of the oldest Americans in 2021 and as expected, continues to grow.
  • Total Spending – The Gen Xers make the most and spend the most but it’s not out of line with their income. The Millennials’ increase was 50% above the national lift so it is now 5.6% above the national average. Boomers’ spending is 90.8% of the national average, down from 90.9%. Due to a big drop in spending compared to income, the oldest group is in a better position. However, they are still deficit spending vs their after tax income. With an 11.9% increase in Income and an 9.1% increase in spending, the retail importance of Millennials continues to grow.
  • Pet Spending – Millennials had a 24.0% lift so now there are 3 groups exceeding the national average. Gen X stayed on top, but their lead has narrowed. Gen Z is now up to 75.3% while the oldest group fell to 50.1% from 55.6%.
  • Pet Spending Share of Total Spending – The national number grew from 1.05% to 1.13%. The increase was driven by lifts from all groups but Born <1946. In 2020 Boomers were the only group to spend more than 1% of their total expenditures on their pets. In 2021 only Gen Z spent less than 1% of their total expenditures on their pets. In 2022, only Boomers and Gen X were above 1%. In 2023, all but the oldest group are above 1%. Boomers again lead with an incredible 1.33%. However, the strong commitment to their pets by Gen Z is very evident with a 1.25% score.

Now, let’s look at Total Pet Spending by Generation in terms of market share as well as the actual annual $ spent for 2019 through 2023. The 2023 numbers are boxed in red (decrease) or green (increase) to note the change from 2022.

  • After 2 years at #2, Boomers regained the top spot in Pet Spending from Gen X and their $ exceed their 2020 binge.
  • There are a variety of spending patterns. Spending in the oldest group is low and except for a surge in 2021 has been slowly falling. Millennials are the only group with consistent annual growth. Gen X also grew every year until 2020. They came back strong and moved to the top in 2021>22. They fell to #2 in 2023. The Boomers have been on a rollercoaster because they react strongly to trends and outside influences. In 2020 they drove the panic buying of Food. In 2021 their spending fell due to a big drop in Food $. In 2022 it increased but was still below 2020. In 2023 lifts in all but Supplies pushed them back to #1. Their pattern is the exact opposite of the oldest generation. Gen Z is just getting started but growing. They’re the smallest group but their 2023 spending is 3.6 times more than 2021.
  • In 2023, again only the Silent/Greatest generations spent less. Millennials & Boomers had the biggest lifts.
    • Silent/Greatest: -$0.34B. Boomers: +5.26B. Gen X: +0.94B. Millennials: +$6.56B. Gen Z: +$2.46B.
  • Boomers – Ave CU spent $930.33 (+$139.07, 17.6%); 2023 Total Pet spending = $39.25B, Up $5.26B (+15.5%)
    • 2019>23: Up $10.52B; Spending turned strongly up and they’re back to #1 in $. Plus, they’re finally above 2020.
  • Gen X – Ave CU spent $969.74 (+$12.30, 1.3%); 2023 Total Pet Spending = $35.37B, Up $0.94B (+2.7%)
    • 2019>23: Up $9.62B Their annual Pet spending growth since 2015 had been strong and consistent until a drop in 2020. In 2021>22 they were #1 in CU Pet spending and Total $. In 2023 they fell to #2 in Total $ but are #1 in CU.
  • Millennials – Ave CU spent $898.78 (+$173.79, 24.0%); 2023 Total Pet Spending = $32.18B, Up $6.56B (+25.6%)
    • 2019>23: Up $15.75B; As the income and overall spending of Millennials grows, their pet spending has also grown every year. This younger group has by far the biggest increase in $ since 2019 of any group, $15.75B, +96%
  • Gen Z – Ave CU spent $658.29 (+$198.03, 43.0%); 2023 Total Pet Spending= $5.95B, Up $2.46 (+70.7%)
    • 2019>23: Up $4.88B; They’re starting to build H/Hs but are now committed Pet Parents. Pet $ are +260% vs 2021
  • Silent/Greatest – Ave CU spent $437.80 (+$11.95, 2.8%); 2023 Total Pet Spending = $4.86B, Down $0.34B (-6.5%)
    • 2019>23: Down $1.60B; CU Spending was up, but their # of CUs continues to fall, -7.1% vs 2022 & -32.9% from 2019.

Baby Boomers took the top spot in Total Pet Spending from Gen X and the spectacular growth continued for Gen Z. Only the oldest group spent less. However, with 8.0% inflation, Gen X also really bought less Pet Products & Services in 2023.

Let’s look at the individual segments. First, Pet Food…

  • Gen X had the only decrease. The Boomer lift exceeded the one from 21>22, but Millennials had the biggest increase and the younger groups have had more consistent growth. Gen Z has quadrupled their spending since 2021.
  • Since 2014, Millennials’ have led the way in food trends, and they are the only group with an annual increase every year since 2016.
  • Boomers – Ave CU spent $381.53 (+$65.97, 20.9%); 2023 Pet Food spending = $16.55B, Up $3.23B (+24.3%)
    • 2019>2023: Up $3.99B They are again #1 in Total Food $ but they are still below their 2020 COVID panic buy.
  • Millennials – Ave CU spent $357.97 (+$114.43, 47.0%); 2023 Pet Food Spending = $12.67B, Up $3.87B (+44.1%)
    • 2019>2022: Up $6.88B They are the only group with increased spending every year since 2016. Their income is growing as is a commitment to their pets. They often pioneer food upgrades, and they moved up to #2 in 23.
  • Gen X – Ave CU spent $320.80 (-$46.41, -12.6%); 2023 Pet Food spending = $11.43B, Down $1.65B (-12.6%)
    • 2019>2022: Up $3.05B They reacted to the FDA warning by further upgrading their food. No pandemic panic buying. In 2021>22 they were the leader in CU Pet Food Spending. In 2023, they fell to 3rd. Value shopping!
  • Gen Z – Ave CU spent $264.59 (+$58.56, 28.4%); 2023 Pet Food spending = $2.43B, Up $0.82B (+50.4%)
    • 2019>2023: Up $2.09B; Pets are more important to these youngsters. Pet Food spending is +386% from 2021.
  • Silent/Greatest – Ave CU spent $221.88 (+$67.76, 44.0%); 2023 Pet Food spending = $2.41B, Up $0.53B (+28.3%)
    • 2019>2023: Down $0.07B; CU count is falling, and prices are high, but they are committed to their pets.

Pet Food Spending is driven by trends and outside influences like FDA warnings and COVID. 2023 brought a record increase. Even with 10.6% inflation, all but Gen X spent more $ and bought more food.  Now, Supplies Spending.

  • The oldest groups spent less and Supplies spending again skewed towards the younger groups. Gen X had the biggest lift and stayed #1. Millennials passed Boomers and are now #2. Gen Z now spends 2.4 times more than the oldest group. In 2022, they spent -$0.02B less.
  • Gen X – Ave CU spent $10 (+$14.46, 7.4%); 2023 Pet Supplies spending = $7.71B, Up $0.67B (+9.5%)
    • 2019>2023: Up $2.24B; Gen Xers are again the leader in Supplies spending. They were affected by tarifflation in 2019 but held their ground in 2020. In 2021 spending exploded, fell in 2022, then grew in 2023 – not unexpected.
  • Millennials – Ave CU spent $184.53 (+$2.76, 1.5%); 2023 Pet Supplies spending = $6.66B, Up $0.31B (+4.8%)
    • 2019>2023: Up $2.74B; Millennials earn their share of Supplies $. They were the least impacted by the tariffs in 2019 and spent more in 2020. Their spending then took off in 2021 and has had slow growth in 2022>23.
  • Baby Boomers – Ave CU spent $157.13 (+$0.82, 0.5%); 2023 Pet Supplies spending = $6.50B, Down $0.30B (-4.3%)
    • 2019>2023: Up $0.60B In 2020 they focused on Food! In 2021, a big lift. +$0.07B in 2022 and -$0.30B in 2023.
  • Gen Z – Ave CU spent $171.13 (+$52.08, 43.7%); 2023 Pet Supplies spending = $1.53B, Up $0.65B (+74.9%)
    • 2019>2023: Up $1.11B; With a big increase in Food, their huge lift in Supplies is not surprising, Pets need both.
  • Silent/Greatest – Ave CU spent $55.26 (-$17.38, -23.9%); 2023 Pet Supplies spending = $0.63B, Down $0.26B (-29.3%)
    • 2019>2023: Down $0.47B; They’re losing CUs & were hit hard by COVID & inflation. Small lifts in 21>22. A drop in 23.

In 2019, tarifflation drove spending down in all groups. In 2020 Millennials and Gen X spent a little more while the older groups spent a lot less. In 2021 spending took off in all groups. In 2022, only Gen X spent less. In 2023, the older groups spent less, but the younger groups spent more – enough to generate a $1.08B increase.

Next, we’ll turn our attention to the Service Segments. First, Non-Veterinary Pet Services

  • All but the oldest spent more. Gen X had the biggest increase and became #1 in Services $.
  • Gen X – Ave CU spent $129.49 (+$19.23, 17.4%); 2023 Pet Services spending = $4.78B, Up $0.79B (+19.8%)
    • 2019>2023: Up $1.74B; A big drop in 2020. The 2nd biggest lifts in 21>22 but fell to #2. In 23 they are again #1.
  • Baby Boomers – Ave CU spent $103.01 (+$7.45, 7.8%); 2023 Pet Services spending = $4.26B, Up $0.11B (+2.6%)
    • 2019>2023: Up $1.48B; The biggest $ drop in 2020 and the biggest lifts in 2021>22. Small lift in 23, now #2 in $.
  • Millennials – Ave CU spent $100.55 (+$5.05, 5.3%); 2023 Pet Services spending = $3.63B, Up $0.29B (+8.7%)
    • 2019>2023: Up $1.83B; In 2020 they had the smallest decrease of any group and with the 2021>23 lifts, their spending is now double the amount in 2019.
  • Silent/Greatest – Ave CU spent $38.96 (-$11.29, -22.5%); 2023 Pet Services spending = $0.61B, Down $0.17B (-28.0%)
    • 2019>2023: Down $0.51B; They have the need but not the $. Their 2023 spending was 54% less than 2019.
  • Gen Z – Ave CU spent $35.23 (-$2.12, -5.7%); 2023 Pet Services spending = $0.31B, Up $0.04B (+14.8%)
    • 2019>2022: Up $0.25B; They still have the smallest share of the $ but their spending is 5 times more than 2019.

This segment had slow annual growth until 2017 which saw a small drop in spending due to an extremely competitive environment. In 2018, the increased number of outlets really hit home, and spending exploded. 2019 brought another small decrease as Gen Xers & Millennials looked for and found a better deal. 2020 brought pandemic restrictions and closures. 2021 saw a record lift which they exceeded in 2022. In 2023, growth slowed, and Gen X is again #1 in $.

Now, Veterinary Services

  • The oldest group had the only decrease. Gen X stayed on top in CU spending, but Boomers are now #1 in total $.
  • Except for the 2022 drop by Millennials, the younger groups have had a growing commitment to this Pet Parenting responsibility. The combined Vet $ of Millennials, Gen Z & Gen Xers is up 80% from 2019 but 139% from 2017.
  • Boomers – Ave CU spent $288.66 (+64.83, 29.0%); 2023 Veterinary spending= $11.94B, Up $2.21B (+22.7%)
    • 2019>2023: Up $4.46B; In 2020, Boomers focused on Food & Veterinary. In 2021 they had a big drop in Food but a big lift in Vet $. They were the leader in Vet $ until the drop in 22 pushed them to #2. They are again #1 in 23.
  • Gen X – Ave CU spent $310.35 (+$25.02, 8.8%); 2023 Veterinary spending= $11.45B, Up $1.13B (+10.9%)
    • 2019>2023: Up $4.24B; They have been at the top of CU Vet spending since 2018. They are the only group with an annual increase in Vet $ every year since 2019. In 2022 they became #1 in Total $. In 2023 they fell to #2.
  • Millennials – Ave CU spent $255.73 (+$51.55, 25.2%); 2023 Veterinary Spending $9.22B, Up $2.09B (+29.3%)
    • 2019>2023: Up $4.30B; They had the biggest lift in 21, the biggest drop in 22 and another big lift in 23.
  • Gen Z – Ave CU spent $187.34 (+$89.50, 91.5%); 2023 Veterinary spending = $1.67B, Up $0.95B (+133.0%)
    • 2019>2023: Up $0.47B; Their growing commitment to Pets includes Vet Services as spending more than doubled.
  • Silent/Greatest – Ave CU spent $121.70 (-$27.14, -18.2%); 2023 Veterinary spending $1.38B, Down $0.44B (-24.0%)
    • 2019>2023: Down $0.55B; Their pets’ health is still a priority, but high prices & a drop in CUs drove their $ down.

Veterinary spending continues to be important to the 3 younger groups but is also a priority for Boomers as they moved back to the top in $. Even with 9.4% inflation, all but the oldest group bought more Veterinary Services.

One last chart to compare the share of spending to the share of total CU’s to see who is “earning their share”.

  • Gen X Performance – Total: 109.7%; Food: 91.6%; Supplies: 122.2%; Services: 129.8%; Veterinary: 117.1%
    • Gen Xers stayed at the top in performance. They earned their share in Total Pet and all segments but Food. Except for the 2020 dip they increased their Total Pet Spending every year since 2016. In 2021 they had a big increase in every segment. In 2022 they had some spending dips but an overall increase as they stayed on top in Total Pet $. In 2023, they had lifts in all, but Food and they are the performance leader in all NonFood segments. Expect their commitment and pet spending to continue to grow.
  • Baby Boomers Performance – Total: 108.6%; Food: 118.3%; Supplies: 91.8 %; Services: 103.3%; Veterinary: 108.9%
    • Boomers led the way in building the industry and are again the “top dogs” in $. They earn their share in all but Supplies and are still the spending leader in Total Pet, Food & Veterinary. They are also the most emotional Pet Parents, so their spending is subject to radical swings like 2020’s panic, binge buying of Pet Food. They should still be a major force in the Pet Industry for many more years, but the Gen Xers are performing well, and the Millennials are also preparing to eventually take their turn at the top.
  • Millennials Performance – Total: 102.1%; Food: 103.9%; Supplies: 107.9%; Services: 100.8%; Veterinary: 96.5%
    • Millennials are now the only group to have increased their pet spending every year since 2016. Their spending is more evenly balanced, and their performance is 100+% in all but Veterinary. Their future as the Pet Parenting spending leaders is still aways off. Their income, home ownership and pet spending are all increasing. They are educated and well connected. Indications are that they may lead the way in adopting new trends, especially in food. Their progress is good news, but in reality, their leadership may be a decade away.
  • Gen Z Performance – Total: 76.3%; Food: 80.7%; Supplies: 100.0%; Services: 35.3%; Veterinary: 70.7%
    • Their getting started numbers are low in all but Supplies. 2 strong years have pushed them far above the oldsters.
  • Silent/Greatest Performance – Total: 49.1%; Food: 63.0%; Supplies: 32.3%; Services: 39.1%; Veterinary: 45.9%
    • Pet Parenting is more challenging in old age. Their performance continues to fall, from 55.6% in 22 to 49.1%.

Baby Boomers are still the heart of the industry and again the $ leaders, but Gen X leads in CU $. Gen X will continue to grow as they are pursued by Millennials. Both are ready, willing and able to take their turn at the top. Pet Spending has become more balanced across the generations. This bodes well for the continued strong growth of the industry