2023 Pet Products Spending was $68.52B – Where did it come from…?

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We looked at the Total Pet Spending for 2023 and its key demographic sources. Now we’ll start drilling down into the data. The first stop in our journey of discovery will be Pet Products – Pet Food and Supplies. These are the industry segments that are most familiar to consumers. They are stocked in over 200,000 outlets, plus the internet. Every week over 21,700,000 households buy food and/or treats for their pet children. Pet Products accounted for $68.52B (58.3%) of the $117.60B in Total Pet $ in 2023. This was up $7.89B (+13.0%) from the $60.63B that was spent in 2022. However, inflation in 2023 was 7.4% so the “real” lift was 5.2%. Pet Food had a record lift after the small increase in 2022 that followed the binge/bust in 20/21. Supplies also was on a spending rollercoaster. After falling in 2020, there was a record surge in 2021. As expected, spending fell in 2022, but there was a small lift in 2023.

Overall, in 2023 Pet Food spending rose +$6.81B and Supplies spending increased $1.08B. We’ll combine the data and see where the bulk of Pet Products spending comes from.

We will follow the same methodology that we used in our Total Pet analysis. First, we will look at Pet Products Spending in terms of the 10 demographic category groups that were responsible for 60+% of Total Pet spending. Then we will look for the best and worst performing segments in each category and finally, the segments that generated the biggest dollar gains or losses in 2023.

The first chart details the biggest pet product spenders for each demographic category. It shows their share of CU’s, share of pet products spending and their spending performance (spending share/share of CU’s). All but 1 of the biggest spending groups are the same as Total Pet. To reach 60%, Education added Associates. The categories are shown in the order that reflects their share of Total Pet Spending. This highlights any differences. There is only 1. The bigger education group obviously has a bigger share of spending than College grads only. However, we should note that, like Total Pet Spending, Income is the highest performing demographic characteristic. In Pet Products there are only 4 groups with a performance rating of 120+%, the same as last year and 1 less than Total Pet in 2023. This reflects the fact that Pet Products spending, especially on Food, is spread more evenly across the category segments.

  1. Race/Ethnic – White, not Hispanic (81.1%) down from 82.7%. They are the 3rd largest group but still account for the vast majority of spending in every segment. Their performance fell from 123.1% to 122.2% but they stayed 3rd in terms of importance in Pet Products Spending demographic characteristics. All groups spent more but while Hispanics, African Americans and Asian American account for 33.7% of U.S. CU’s, they only spend 18.9% of Pet Products $. Although the minority share of Pet Poducts $ is still low, it is up 47.7% from 12.8% in 2020. Pet ownership is relatively high in Hispanic households, but it is significantly lower for African Americans and Asians.
  2. # in CU – 2+ people (78.2%) down from 81.4%. The share for Pet Products is now lower than for Total Pet, 79.7%. However, If you put 2 people together, pets very likely will follow and you must spend money on food and supplies. Their 112.0% performance is down from 117.9%. Only 4 People CUs spent less but the lift was below average overall and for all segments but 3 people. The big driver in the drops was a 32.2% increase by Singles.
  3. Housing – Homeowners (77.9%) down from 80.0%. Controlling your “own space” has long been the key to pet ownership and more pet spending. Their performance fell from 123.0% to 119.7% but they stayed 4th in terms of importance for increased pet products spending. However, they are only still in the 120% club if you round up their performance. Both Homeowners and Renters spent more on Pet Products in 2023 but the increase for Renters was +25.3% while the lift for Homeowners was only +9.9%. This drove the drops in share and performance. BTW – Those w/o a mortgage were +8.3% while those w/Mtge were +10.7%.
  4. Age – 35>74 (74.1%) down from 77.1%. Their performance also fell from 112.8% to 108.5%. All age groups but 55>64 had increases. However, the only above average lifts were from <35 & 65>. In fact, the share of spending is now 18.8% for all groups 35>64. The drops came because spending is becoming increasingly balanced by age group.
  5. Area – Suburban & Rural (73.4%) up from 72.7%, and their performance grew from 111.0% to 112.1%. Suburban households are the biggest pet product spenders but all segments had double digit % increases. However, Rural was again the best peformer as their 17.4% lift was the only above average increase.
  6. Income – Over $70K (64.7%, up from 64.3%). Pet Parenting is common in all income groups but money is a big driver in the spending behavior for all industry segments. Although their performance fell to 128.2% from 136.0%, CU income continues to be the single most important factor in increased Pet Products Spending. As a rule,  Higher Income = Higher Pet Products Spending. 2023 didn’t always follow that rule. Only $40>49K & $50>69K spent less but $30>39K had the biggest lift. A big factor in the share lift & performance drop was a 7.2% increase in $70K> CUs.
  7. # Earners – “Everyone Works” (63.4%) down from 65.3%. Their performance is 108.0%, down from 111.9%. In this group, all adults in the CU are employed. All Earner segments spent more but the drop in share and performance for Everyone Works comes from a couple of factors. Their lift was 9.6% while the other segments were +19.5%. No Earners CUs were even 31+%. Also, the Everyone Works group had 0.7M more CUs while the other group was -0.2M. Income is the top priority in Pet Products Spending, but how many people work to get it is less important.
  8. Occupation – All Wage & Salary Earners (62.4%) down from 64.7%. Their performance also fell from 107.2% to 102.4%. Only Mgrs/Professionals spent less but the Wage & Salary group was only +9.0%. Self-Employed were +27.7% and Retirees were +33.0%. This caused the drops in share & performance.
  9. CU Composition – Married Couples (60.0%) down from 61.1%. Their performance fell from 134.4% to 127.8% but they stayed 2nd in importance. Only Married, with an Oldest Child 18> and Single Parents spent less. The drops in share and performance were largely due to a huge, 32.2% spending lift by Singles.
  10. Education – Assoc Degree> (66.5%) down from 68.6%. The performance of the expanded group also dropped from 118.9% to 114.0%. However, Education remains 5th in importance in Pet Products spending. The drops in share and performance were due to a combination of factors. Associates had a small drop, which was the only decrease in the category. The other <College segments were +20% while College Grads were +11.9% with 2.6% more CUs.

For Pet Products, only the Education spending group is different than Total Pet, but there are subtle differences in market share and performance. Money matters most but how many earners, their occupation and education matters less. It also appears that Pet Products Spending is becoming more balanced  across most demographic categories.

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

Most of the best and worst performers are the ones that we would expect. However, there are 7 that are different from 2022, 2 less than last year but the same as Total Pet this year. Changes from 2022 are “boxed”. We should note that half of the Product winners are different from Total Pet. This reflects the influence of Services and the differences between Services & Product spending behavior. These differences are usually minor and often a contiguous segment.

The average performance of the 2023 Product winners was 130.4%, down from 136.1% – 9 were down. The average for the losers was 64.7%, up from 60.7% – 9 were up. The gap between best and worst narrowed from 75.4% to 65.7% indicating that Pet Products spending became more balanced across America in 2023. We should also note:

  • Generation – Baby Boomers replaced Gen X at the top. The Gen Z surge should keep Born <1946 on the bottom.
  • Education – BA/BS replaced Adv. Degree but only won by 1.9%. These 2 are the only 100+% Education performers.
  • Income, # Earners – There were no changes in winners or losers. All are at or near the top or bottom of the income “ladder”. The importance of income is reinforced in many categories like Age, Occupation and Education.
  • CU Composition – The winner’s oldest child is younger, 6>17 rather than 18>. Single Parents replaced singles at the bottom, which is no surprise. All Married CUs perform at 100+%.
  • Race/Ethnic – White, Not Hispanic are the perennial winners in the pet industry but we do see an exception to the high income rule. Asians have the highest income but the worst performance – because they have fewer pets.
  • Occupation – Self-Employed has the highest income & are bosses. They replaced Managers on top. Young Retirees had a great year & were replaced on the bottom by Service Workers, who have the lowest income of any worker.

It’s time to “Show you the money”. Here are segments with the biggest $ changes in Pet Products Spending.

In this section we’ll see who drove Pet Products spending up. There are 5 repeats from 2022 and only 4 Segments flipped from first to last or vice versa. This is much less turmoil than 2022 which had only 2 repeats but 12 flips. Most of the winners are somewhat surprising but in 5 categories, all segments spent more. Also, 86% of 96 demographic segments spent more. Considering 7.4% inflation, that number falls to 77%. Here are the specifics:

  • Race/Ethnic – Both White, Non-Hispanics and Asians held their spots.
    • Winner – White, Not Hispanic – Products Spending: $55.57B; Up $5.43B (+10.8%)                          2022: White, Not Hispanic
    • Loser – Asian – Products Spending: $1.61B; Up $0.11B (+7.3%)                                                             2022: Asian 
    • Comment – All groups spent more. African Americans (+40.1%) and Hispanics (+19.8%) led the way. All spent a lot more on Food and African Americans had the only drop in Supplies. They made up for it with a 95.5% lift in Food. Food was the big driver as all but Asians had a $1+B increase.
  • Generation – Millennials stayed on top, but Gen X replaced Born <1946 on the bottom.
    • Winner – Millennials – Products Spending: $19.33B; Up $4.18B (+27.6%)                                           2022: Millennials
    • Loser – Gen X – Products Spending: $19.14B; Down $0.97B (-4.8%)                                                      2022: Born <1946
    • Comment – Millennials stayed on top with a big lift in Food. In 2022, Supplies was the driver. Gen X had a 2nd consecutive drop in Product $. In 2022, it was due to a big drop in Supplies. In 2023, Food was -$1.65B.
  • CU Composition – Both the winner and loser are new…and neither is married, which is unusual.
    • Winner – Singles – Products: $14.95B; Up $3.64B (+32.2%)                                                                 2022: Married, Oldest Child 18>
    • Loser – Single Parents – Products: $1.93B; Down $0.93B (-32.6%)                                                    2022: Married, Oldest Child 6>17
    • Comment – Single Parents and Married, Oldest Child 18> were the only segments to spend less on Pet Products. Overall, Married couples were up 11.0% in Products (Avg: 13.0%) and had lifts in both Food & Supplies. However, 2023 was spectacular for Singles. Products: +32.2%; Food: +38.8%; Supplies: +18.6%.
  • # in CU – Both the winner and loser are new. Only 4 People CUs spent less on Products
    • Winner – 1 Person – Products Spending: $14.95B; Up $3.64B (+32.2%)                                             2022: 3 People
    • Loser – 4 People – Products Spending: $8.49B; Down $0.30B (-3.4%)                                                2022: 5+ People
    • Comment: 1 Person was the runaway winner but all spent more on Food. Only 2 & 4 spent less on Supplies.
  • Housing – Homeowners w/o Mtge flipped from 1st to last but all segments spent more on both Food & Supplies.
    • Winner – Homeowner w/Mtge – Products: $15.93B; Up $3.50B (+10.7%)                                       2022: Homeowner w/o Mtge
    • Loser – Homeowner w/o Mtge – Products Spending: $12.10B; Up $1.33B (+8.3%)                        2022: Renter
    • Comment– Renters had the biggest % lift, +25.3% and were only 0.02B behind the winner.
  • Occupation – Both the Winner and Loser flipped.
    • Winner – Retired – Products Spending: $13.61B; Up $3.38B (+33.0%)                                                2022: Mgrs & Professionals
    • Loser – Mgrs & Professionals – Products Spending: $20.57B; Down $0.76B (-3.6%)                       2022: Retired
    • Comment – All but Managers/Professionals and All Other/Unemployed spent more. They also had the only drops in Food but 5 of 8 spent less on Supplies. Tech/Sls/Cler had the biggest % lift in Products, +40.8%.
  • Education – Both winner and loser are new.
    • Winner – BA/BS Degree – Products Spending: $21.76B; Up $3.38B (+18.4%)                                   2022: HS Grad or Less
    • Loser – Associate’s Degree – Products Spending: $7.21B; Down $0.09B (-1.3%)                              2022: Adv College Degree
    • Comment – Only Associates spent less. HS Grads w/some College had the biggest % lift, +31.3%, while Adv. Degrees had the lowest, +4.5%. Overall, <College were +14.4% and College Grads were +11.9% -2 straight wins.
  • Area Type – The winner and loser held their spots and again all Area Types spent more.
    • Winner – Suburbs 2500> – Products Spending: $29.88B; Up $3.18B (+11.9%)                                 2022: Suburbs 2500>
    • Loser – Center City – Products Spending: $18.24B; Up $1.68B (+10.1%)                                            2022: Center City
    • Comment – Rural had the biggest % lift, +17.4%. The only drop was that Center City spent -2.8% less on Supplies.
  • Region – All regions spent more but both the winner and loser are new.
    • Winner – Northeast – Products Spending: $12.67B; Up $2.99B (+30.9%)                                           2022: Midwest
    • Loser – South – Products Spending: $21.80B; Up $0.32B (+1.5%)                                                         2022: West
    • Comment – All regions spent more on Food. The South and West spent less on Supplies.
  • Age – The 55>64 yr-olds flipped from first to last – a 2nd consecutive flip.
    • Winner – 65>74 yrs – Products Spending: $12.13B; Up $2.60B (+27.3%)                                            2022: 55>64 yrs
    • Loser – 55>64 yrs – Products Spending: $12.87B; Down $0.38B (-2.9%)                                             2022: 75> yrs
    • Comment: 55>64 had the only Product $ drop. They spent less in Food & Supplies. The only other Food drop came from 45>54. 25>34 & 75+ also bought less Supplies. The lift for 65>74 was driven by a big increase in Food.
  • # Earners – Both the winner and loser are new, but all segments spent more.
    • Winner – 1 Earner, Single – Products Spending: $9.30B; Up $2.31B (+32.9%)                                  2022: 1 Earner, 2+ CU
    • Loser – 3+ Earners – Products Spending: $8.39B; Up $0.45B (+5.7%)                                                 2022: No Earner, 2+ CU
    • Comment – While income matters most, the # of Earners is still not a major factor in Pet Products spending as 1 Earner segments won in 22 & 23. In 23, No Earner segments were up 31+% and 3+ Earners had the smallest lift.
  • Income – Both the loser and winner are low income – unusual!
    • Winner – $30>39K – Products Spending: $5.39B; Up $1.91B (+55.0%)                                                2022: $100>149K
    • Loser – $40>49K – Products Spending: $3.16B; Down $1.00B (-24.0%)                                               2022: $200K>
    • Comment – A limited spending rollercoaster: <$40K = +$3.73B; $40>69K = -$1.24B; $70K> = +$5.38B. Only Drops: <30K: Supplies; $40>49K: Products, Food & Supplies; $50>69K: Products & Food; $100>149K: Supplies

We’ve now seen the winners and losers in terms of increase/decrease in Pet Products $ for 12 Demographic Categories. 2023 was a good year for Pet Products Spending. Food $ took off with a record lift after the small increase in 2022. Supplies spending seems to be mirroring Food. A Binge, a Bust and now a Small lift. The 2023 result was a 13.0% lift in which 86% of 96 demographic segments spent more on Pet Products. Even with inflation, that number was 77% – Still Very Good! Of course, not every good performer can be a winner but some of these “hidden” segments should be recognized for their outstanding effort. I’ve narrowed the group down to 6. They don’t win an award, but they deserve…

Honorable Mention

Pet Products spending was up $7.89B in 2023 from a record increase in Food and a small lift in Supplies. The lift in Pet Products spending was widespread as 86% of 96 demographic segments spent more. Income was still the most important factor, but spending became a little more balanced. In our honorable mention group, you see that Gen Z continued their growing commitment to Pet Parenting with a 59% lift after doubling their Pet Products spending in 2022. Some other low-income segments that often finish on the bottom in spending also had a good year. No Earner, 2+CUs, Renters, <$30K and Single Parents all increased spending by 25+% and had lifts over $1.5B. The number of Earners is less important but so is being “the Boss”. The lower level White Collar Technical/Sales/Clerical group has an average income, but they are firmly committed to their Pets. They spent $3.3B (+40.8%) more on Pet Products in 2023. Formal, higher education is also a little less “necessary” as HS Grads w/some college had a $2.7B (+31.3%) increase in Pet Products spending. The lift in Pet Products spending was definitely widespread and more balanced so there were many “heroes”.

Summary

Pet Products spending has seen a lot of turmoil since 2015. Consumers upgraded to Super Premium Food and cut back on Supplies in 2015. In 2016 they value shopped for Food and Spent some of the saved money on Supplies. In 2017 there was increased availability and value. They seized the opportunity and spent $7B more. In 2018 the FDA warning on grain free dog food caused many consumers to downgrade their food and new tariffs on Supplies flattened spending growth. Products $ fell -$1B. In 2019 Pet Food spending rebounded to a record level but the higher prices in the Supplies segment really hit home. Supplies Spending fell $2.98. Pet Products $ fell -$0.64B, the second consecutive decrease.

2020 brought the COVID pandemic. Pet Parents binge bought Pet Food in the 1st half of the year. As Pet Parents focused on “needs”, discretionary Supplies $ dropped significantly. However, Pet Products spending still grew by $3.99B to $52B.

In 2021, the Food binge was not repeated so spending fell, but Pet Parents caught up on purchasing all the Supplies that they had postponed buying. The result was a record increase in Supplies and a $6.21B increase in Pet Products $.

2022 was more normal. Pet Food spending increased $4.29B, +12.5%. The Supplies binge was not repeated but Supplies spending only fell -7.8%. The net was a $2.42B, +4.2% increase which pushed Pet Products $ up to $60.63B. The lift was widespread as 70% demographic segments spent more. The $ moved towards their older members in the 45>54 yr-old age group. However, the youngsters also made their presence felt as Gen Z more than doubled their Pet Products spending. Spending also became more demographically balanced. The most visible feature of this change was in the big groups doing at least 60% of the dollars. In order to reach the 60% minimum, the Education group was downgraded from College Grads to those with an Associate’s Degree or more. However, the balancing act was not limited to Education. 10 of 12 categories narrowed the gap between their best and worst performing segments. Overall, the average gap narrowed from 92.3% in 2021 to 75.4% in 2022. It definitely improved

In 2023, Food had a record lift while Supplies $ rose 4.9% as they began to recover from their 2022 “bust”. The $7.89B (+13.0%) lift was widespread as 86% of demographic segments had increases. Even with 8.0% inflation, 77% spent more. While Income remains the most important factor, Pet Products spending continued to become a little more balanced. The best way to measure this is to compare the disparity between the best and worst performers. Overall, the disparity fell from 75.4% in 2022 to 65.7% in 2023. Again, the gap narrowed in 10 of 12 categories. Area & Region were the only exceptions. Gen Z’s growth also continued, and they were joined by the 65> group. 2023 was a great year.

Finally,… The “Ultimate” 2023 Pet Products Spending CU is 3 people, a married couple with a child 6>17. They are in the 45>54 age range and are White, but not Hispanic. At least one has an Advanced College Degree. They own their own business and everyone works, including their child (part time), producing a CU income of $150>199K.They still have a mortgage on their house located in an area with a population <2500 in the Midwest.