Archive for year: 2026

Next, Pet Services. It is by far the smallest Segment, but like Supplies & Veterinary, it had a record increase in 2021. However, unlike them, there was no $ drop in 2022. The lift grew stronger, up $3.26 (+35.8%). After the great recession, Services’ annual spending slowly but steadily increased. During this time, the number of Services outlets grew as brick ‘n mortar retailers looked for a way to combat the growing influence of online outlets. After all, you can buy products, but you can’t get your dog groomed on the Internet. This created a highly price competitive market for Pet Services. In 2017 there was a slight increase in visit frequency, but Pet Parents just paid less. This resulted in a 1.0% decrease in Services spending. In 2018 consumer behavior changed as a significant number decided to take advantage of the increased availability and convenience of Pet Services and spending literally took off, +$1.95B (+28.9%), the biggest increase in history. In 2019 Pet Parents, especially the younger ones, value shopped, and spending turned down $0.10B. In the 2020 pandemic Services outlets were often deemed nonessential and were subject to restrictions and closures which drove a huge drop in $. In 2021 things opened up and Services spending rebounded with 2 consecutive record lifts in 2021 & 2022. In 2023, the growth continued but it slowed, +$1.05B (+8.5%). It slowed even more in 2024, +$0.23B, +1.7%.

Services spending is the most discretionary, but its reach is expanding. Let’s look deeper into the demographics.

Let’s start by identifying the groups most responsible for the bulk of Services spending in 2024 and the $0.23B increase. The first chart details the biggest Pet Services spenders for each of 10 demographic categories. It shows their share of CU’s, share of Services spending and their spending performance (Share of spending/share of CU’s). In order to better target the bulk of the spending we altered 2 groups – income & housing. In 2023 4 were changed. The performance level should also be noted as 8 of 10 groups have a performance level above 120%. This is 1 more than 2023, but 2 more than Supplies, 3 more than Pet Food and even 1 more than Veterinary and Total Pet. The increase from 2023 indicates that Pet Services spending was likely less balanced in 2024. It again has the biggest disparity between the best and worst performing segments. Income is still the biggest factor in Services Spending. The categories are presented in the order that reflects their share of Total Pet $ which highlights the differences of the 8 matching groups. The biggest share ranking differences from Total Pet is that Education has a bigger share in Services.

1. Housing – Homeowners w/Mtge (62.8%) up from 61.3%. Homeownership is a big factor in spending in all industry segments. This special group was created because those w/Mtge reached the 60% target in 2023. Their performance grew from 162.6% to 170.2% and they stayed #2 in importance. Homeowners without a mortgage  (-$0.10B) and Renters (-$0.01B) spent less.
2. Race/Ethnic – White, not Hispanic (80.7%) down from 84.2%. This group accounts for most of the spending in all segments. Their performance fell from 126.9% to 122.1% and they dropped from 5th to 8th place in importance. Only Whites spent less. African Americans, +$0.27B & Hispanics, +$0.20B led the way.
3. Area – Urban Areas (80.8%) up from 79.2% in share, and performance grew from 97.8% to 100.0%. They finally earned their share of $pending. Services is an Urban Segment. They are the only Pet segment with 100% performance. Only the Suburbs spent more, +$1.48B, but Center City was only -$0.05B.
4. Income – $100K> (71.3%) up from 70.7% This group’s performance rating is 187.9%, down from 194.1%. Income is still by far the most important factor in increased Pet Services Spending. Only the $70>99K and $150>199K income groups spent more. At +$0.82B, $150K>199K had the biggest increase. The biggest decrease was -$0.34B by the $100>149K group. The performance decrease was due to a 2.5M increase in $100K> CUs while <$100K fell 1.3M.
5. # in CU – 2>4 people (74.3%) up from 71.3% Their performance also increased from 119.2% to 123.4% and CU Size moved up to #6 from #8 in importance. Only 2 & 4 people CUs spent more. The biggest drop was -$0.37B by 3 people CUs. 4 People CUs were +$0.69B, which drove the share/performance lifts and put them in the 120% club.
6. Occupation– All Wage & Salary (69.3%) up from 66.2% and their performance rating rose from 108.7% to 112.2%. They stayed #9 in importance. Only Mgrs/Prof and Retirees spent more. Managers & Professionals had the biggest $ increase, +$1.04B, +18.1%. The biggest drop was Self-employed, -$0.36B, -26.3%. These 2 spending patterns were critical in the lifts in share/performance. The Mgrs/Prof lift pushed the Total Wage & Salary Group up to +$0.58B while the Self-employed drop drove the other segments total down to -$0.35B. Hence…the changes
7. Education – College Grads (76.9%) up from 72.7%. Income generally increases with education so Services spending grows with increasing education. Performance grew from 152.0% to 159.9% but Education stayed #3 in importance. Only HS Grads (only) & College Grads spent more. College: +$0.75B; <College: -$0.52B.
8. CU Composition – Married Couples (69.1%) up from 67.8%. Married couples are a big share of $ and have 100+% performance in all segments. Their performance increased to 144.0% from 140.7% but they stayed #4 in importance in Services spending. Only Singles, Married, Child <6 and Married, Plus Adults spent less. All Married were +$0.33B, while Unmarried were -$0.10. This caused the changes.
9. # Earners – 2+ CUs, 1 or 2 Earners (65.4%) up from (61.1%) All adults in the CU don’t necessarily work. Income is important but is slightly below avg for the 1 Earner segment. Their performance rose to 130.5% from 121.7% and # of Earners moved up from #7 to #4 in importance. Only the segments in this big group & No Earner, Singles spent more. The big group was +$0.72B which caused the share/performance lifts.
10. Age – 35>64 (66.7%) up from 64.8%. Their performance grew from 124.0% to 128.8%. Age stayed #6 in importance. Only 25>34, 45>54 & 75> spent more. The 45>54 group was +$0.83B, +30.1%. This big lift made up for the -$0.43B drop by other members of this big group and drove the lift in share & performance.

We changed 2 of the groups for Services – Income & Housing to better target the biggest spenders. We should also note that Income is still more important to spending in Services than in any other segment. In the Big Groups, only Race/Ethnic fell in both share and performance. Also, Services now has 8 groups performing at 120+%, up from 7 in 2023 and 6 in 2022. Overall, in 2024 Services spending became less demographically balanced.

Now, we’ll look at 2024’s best and worst performing Pet Services spending segments in each category.

The best & worst performers are not surprising. There are 3 that are different from 2023, 2 Best & 1 Worst, 1 less than last year. CU Comp & Size reinforce the move towards “family” CUs. Income is a big factor for almost all categories. Gen X is still on top, but spending shifted away from 55>64, their oldest members, to 45>54. The average difference between Best & Worst is 119.5%, the highest of any segment and up from 111.8% in 2023. Pet Services spending became a little less balanced in 2024. Changes from 2023  are “boxed”. We should note:

• Income is most important in Services. 276.2%, down from 314.7%, but still the highest by any group in any segment.
• # Earners – 2 Earners stayed on top and No Earner, Singles stayed on the bottom.
• Age – 45>54 is all Gen X. They have the highest income. 35>64 have the 3 highest incomes & performed at 100+%.
• Area – Suburbs replaced Rural on top and Center City performance is now up to 95.4%.
• Region – In 2023, 3 were 100+%. In 2024, only 2 – West & Midwest. Northeast replaced South on the bottom.
• CU Composition – Married, Oldest child 6>17, are again on top while Single Parents remain firmly at the bottom.
• CU Size – The key is having 2+ people in the CU. Only 4 & 2 People perform above 100%. However, 3 & 5+ People are close. Both are 94.1% or higher. 1 Person CUs Services’ performance is 55.0%.
• Generation – Gen X retained the Top Spot and Gen Z stayed at the bottom. Millennials earned their share with 100+% performance, but not Boomers, 80.5%. Born <1946 was next to last with 57.2%.

In Pet Services spending performance, income is still the major factor. Spending began skewing younger in 2018. They slipped a little in 2019, but basically held their ground during the pandemic. In 2021, Boomers, Millennials and younger Gen Xers got on board. In 2022 & 2023, spending skewed towards older Gen Xers. In 2024, it was the Gen X core, 45>54.

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

In this chart you immediately see the difference from last year. In 2024 you see a little less stability. There were 4 repeats. In 2023 there were 7. Also, 3 segments flipped from 1^st to last or vice versa. In 2023 there were 2 flips. 2021 & 2022 had record increases, but the lift in 2023 was only $1.05B, and fell to +$0.23B, +1.7% in 2024. Plus, there were no categories where all segments spent more. compared to 2 in 2023. Also, 48% of 96 demographic segments spent more, down from 75% in 2023. Another thing is definitely worse. The biggest drop was -$0.90B. In 2023, it was only -$0.58B.

Here are the specifics:

• Occupation – Both winner and loser are new.
  • Winner–– Mgrs & Professionals – Pet Services Spending: $6.79B; Up $1.04B (+18.1%)                 2023: Retired
  • Loser – Self-employed – Pet Services Spending: $1.00B; Down $0.36B (-26.3%)                             2023: Tech/Sls/Clerical
  • Comment – Retirees also spent a little more, +$0.03B. All others spent less.
• Region – The 2023 Winner & Loser both flipped.
  • Winner – South – Pet Services Spending: $4.77B; Up $0.89B (+23.0%)                                       2023: Northeast
  • Loser – Northeast – Pet Services Spending: $1.88B; Down $0.64B (-25.4%)                              2023: South
  • Comment – In 2021 & 2022, all spent more. In 2023 only the South spent less. In 2024, the West also spent less.
• Age – Both winner and loser are new. No surprises.
  • Winner – 45>54 yrs – Pet Services Spending: $3.57B; Up $0.83B (+30.1%)                               2023: 55>64 yrs
  • Loser – 65>74 yrs – Pet Services Spending: $1.62B; Down $0.48B (-22.9%)                             2023: 25>34 yrs
  • Comment: In 2022 only the <25 group spent less. In 2023, 25>34 & 65>74 had drops. In 2024, only 25>34, 45>54 & 75> spent more. 45>54 took the lead but 35>64 is still pretty balanced between the 3 groups. They have the 3 highest incomes and account for 51.8% of CUs, but 66.7% of Pet Services spending.
• Income – $150>199K won, no surprise. However, $100>149K was an unexpected loser.
  • Winner – $150>199K – Pet Services Spending: $2.55B; Up $0.82B (+47.2%)                               2023: $200K>
  • Loser – $100>149K – Pet Services Spending: $2.59B; Down $0.34B (-11.8%)                             2023: $70 to $99K
  • Comment – Only $70>99K & $150>199K spent more, but their lifts totaled +$1.32B, which more than made up for the -$1.09B drop by other segments. Note: In the big income groups, only $70K> & $100K> spent more.
• # in CU – Both the Winner & Loser are new and don’t usually lead in change.
  • Winner – 4 People – Pet Services Spending: $2.69B; Up $0.69B (+34.3%)                                    2023: 5+ People
  • Loser – 3 People – Pet Services Spending: $1.91B; Down $0.37B (-16.1%)                                   2023: 1 Person
  • Comment: 2 People also spent +$0.26B more. The 2 & 4 People lifts pushed 2+ CUs up to +$0.46B.
• Education – Both the Winner & Loser are again new. These 2 are not surprising.
  • Winner – Advanced Degree – Pet Services Spending: $5.95B; Up $0.67B (+12.6%)                              2023: BA/BS Degree
  • Loser – HS Grad w/some College – Services Spending: $1.15B; Down $0.55B (-32.2%)                      2023: Assoc. Degree 
  • Comment – All College Grads plus those who are only HS Grads are the only segments that spent more. Amazingly, HS Grads only had a +30.2% lift. College Grads were +0.75B; <College were -$0.52B.
• # Earners– 2 Earners held their spot at the top while 1 Earner, Singles replaced No Earner, Singles at the bottom.
  • Winner – 2 Earners – Pet Services Spending: $6.81B; Up $0.66B (+10.7%)                                      2023: 2 Earners
  • Loser – 1 Earner, Single – Pet Services Spending: $1.64B; Down $0.24B (-12.9%)                         2023: No Earner, Single
  • Comment – Only 2 Earners, 1 Earner, 2+ CUs & No Earner, Singles spent more, but 2 of 3 were +$0.06B or less.
• Area Type – Rural stayed on the bottom while Center City replaced the Suburbs at the top.
  • Winner – Center City – Pet Services Spending: $4.57B; Up $0.56B (+13.9%)                                2023: Suburbs 2500>
  • Loser – Rural – Pet Services Spending: $2.62B; Down $0.17B (-6.1%)                                           2023: Rural
  • Comment – In 2023, all segments spent more. In 2024 only Center City had a lift.
• Generation – Gen X stayed on top and Boomers replaced Born <1946 at the bottom.
  • Winner – Gen X – Services: $5.29B; Up $0.51B (+10.7%)                                                   2023: Gen X
  • Loser – Boomers – Services: $3.36B; Down $0.90B (-21.1%)                                            2023: Born <1946
  • Comment – In 2022, all generations spent more. In 2023, only Born <1946 spent less. In 2024, only Boomers spent less. Millennials again finished in second place with a strong $0.47B, +13.0% increase.
• Housing – Homeowners w/Mtge stayed on top, while those w/o Mtge replaced Renters on the bottom.
  • Winner – Homeowner w/Mtge – Services: $8.57B; Up $0.34B (+4.1%)                                  2023: Homeowner w/Mtge
  • Loser – Homeowner w/o Mtge – Services: $3.00B; Down $0.10B (-3.2%)                             2023: Renter
  • Comment – Only Homeowners w/Mtges spent more. The drop by Renters was only -$0.01B, -0.4%.
• Race/Ethnic – White, Not Hispanic flipped to the bottom while African Americans replaced them on top.
  • Winner – African Americans – Services: $0.88B; Up $0.27B (+43.8%)                                    2023: White, Not Hispanic
  • Loser – White, Not Hispanic – Services: $11.02B; Down $0.27B (-2.4%)                                2023: Hispanic
  • Comment– Only Whites spent less. All minorities spent more, totaling +$0.51B, +23.9%.
• CU Composition – Both Winner & Loser are new and not surprising.
  • Winner – Married, Child 18> – Services: $1.59B; Up $0.18B (+12.6%)                                       2023: Married, Couple Only
  • Loser – Singles – Services: $2.26B; Down $0.23B (-9.2%)                                                             2023: Unmarried, 2+ Adults
  • Comment – Only Singles, Married Child <6 & Married, +Adults, No Kids spent less. The increases were all $0.18B or less and the decreases, other than Singles, were -$0.11B or less.

We’ve seen the winners and losers in terms of change in Services Spending $ for 12 Demographic Categories. The growth slowed in 23 after 2 record lifts but was still widespread. In 24, the lift slowed even more and was far less widespread. Here’s some data which shows the evolution from 2019 to 2024. Services were hit hard by the pandemic but recovered stronger than ever with 2 record lifts. In 2024 the situation has become similar to pre-pandemic 2019 but with $5.03B more spending, a 41.6% increase. The avg 19>24 annual lift was +7.2%.

Total $:                2019: $8.62B     2020: $6.89B       2021: $9.10B       2022: $12.36B      2023: $13.42B      2024: $13.65B

% Segmts ↑$:     2019: 49%           2020: 21%          2021: 90%            2022: 93%             2023: 75%             2024: 47%

Avg Big ↑$:         2019: $0.25B      2020: $0.05B      2021: $1.10B        2022: $1.43B        2023: $0.73B        2024: $0.62B

Avg Big ↓$:         2019: -$0.27B    2020: -$0.89B     2021: $0.07B        2022: $0.16B        2023: -$0.16B       2024: -$0.39B 

We found the winners in performance and $, but there were others who performed well but didn’t win. They deserve…

Honorable Mention

Services is the most driven by high income. The performance of the lower-income segments in this group gives evidence that Service usage is still widespread. $70>99K was up 40% while HS Grads increased their spending by 30.1%. The 75+, 27% lift shows that Pet Parenting is a lifetime commitment. Whites spent less, but all Minorities spent more. The 2 lowest income groups had the biggest lifts – African Americans, +$0.27B; Hispanics, +$0.20B. Millennials aren’t low income or low profile. They are just preparing for their time at the top in Pet Spending. The Midwest has a slightly below avg income, but their Pet Services spending performance is 109.6%. Service prices are high, but they are a great benefit, so many are finding the $.

Summary

For years, Services’ spending slowly but steadily increased. However, the number of outlets offering Services was radically increasing. In 2017, this competitive pressure caused Pet Parents to shop for value and spending fell 1%. In 2018, the abundance of outlets and competitive prices finally had their intended impact. Many more consumers took advantage of the convenience of Pet Services and spending literally took off with a record increase. In 2019 Consumers held their ground, but we saw turmoil similar to 2017. Again, value shopping likely contributed to the small decrease.

In 2020, pandemic Services outlets were often deemed nonessential, so they were subject to restrictions and closures. Services are definitely needed by some groups. However, for most demographics, Services are a convenience, and spending is very discretionary in nature. The reduced availability and the pandemic driven focus on the “needed” segments – Food and Veterinary caused a 20% drop in Services $.

In 2021 the Retail Marketplace opened up again and many Pet Parents strongly returned to their previous Services mantra, “I need help with my Pet “children” and I have the money to pay for it!”. This behavior was widespread as 90% of all demographics spent more on Services, producing a record increase. In 2022 Services showed that it was different from other segments. All had record lifts related to the Pandemic followed by drops, except for Services. 2022 spending didn’t decrease, it grew even stronger, +$3.26B and more widespread as 93% of demographics increased spending. In 2023, growth continued, but slowed considerably, +$1.05B. It slowed even more in 2024, +$0.23B, +1.7%. The lifts were also becoming less widespread as 75% of CUs spent more in 2023. This fell to 48% in 2024. There was another definite negative. Services is the segment where spending is the most driven by income, so it has always had a big disparity between segments. This worsened in 2023 & 2024. Performance differences are a key measurement of disparity. Let’s consider the performance of the big groups. In 2024, there were 8 categories with a 120+% performing big group, up 1 from 2023 and the most of any segment. Services has 1 more than Veterinary (7), 2 more than Supplies (6) and 3 more than Food (5). There is an even better measure of the worsening. In 2024, the average difference between best & worst performers was 119.5%. In 2023 it was 111.8% and only 100.3% in 2022. Another key trend in 2024 was that 35>64 is still the dominant group, but spending is now skewing towards the midrange 45>54 yr olds. They have the highest income, so this makes sense.

Services were hit the hardest by the pandemic, but they had a record, widespread recovery in 2021>22. They are the segment most driven by high income so the high inflation in 2022>24 had less of an impact. It did affect the spending of some financially challenged groups, but in 2024, Services spending seems to have returned to a pattern similar to 2019.

At Last – The “Ultimate” Pet Services Spending Consumer Unit consists of 4 people – a married couple with children 6>17. They are 45>54 yr-old Gen Xers and White, but not of Hispanic origin. They both work and at least one of them has an Advanced College Degree and is a Manager or Professional. They have an income of over $200K. They live in a suburb with a population over 2500 in the Western U.S. and are still paying off their home mortgage.

Next, we’ll turn to Pets & Supplies. We’ll see differences from Pet Food as the Supplies spending is more discretionary. There are other factors too. Spending can be affected by other segments as consumers often trade $ between segments. However, the biggest factor is price. Many categories are now commoditized so price changes can impact buying. In the 2nd half of 2016, deflation began, and Supplies started a 24-month lift, totaling $5B. Prices turned up in mid-2018 due to new tariffs and Supplies $ fell a record -$3B in 2019. In the 2020 pandemic, Supplies weren’t a necessity, so sales fell, -$1.7B. In 2021, Pet Parents caught up with their children’s needs and Supplies spending exploded, +$8.65B. In 2022, the “binge” was not repeated, and inflation was 7.7%. Spending fell -$1.86B. In 2023, inflation fell to 2.6% and Supplies $ grew $1.08B, 4.9% to $23.02B. In 2024, inflation slowed to 0.9%, but Supplies $ only grew $0.89B, +3.9% to $23.91B.

Let’s see which groups were most responsible for the bulk of Pet Supplies spending in 2024 and the $0.89B lift. The first chart details the biggest pet supplies spenders for each of 10 demographic categories. It shows their share of CU’s, share of Supplies spending and their spending performance (Share of spending/share of CU’s). All groups are the same as Total Pet. The groups are presented in the order that reflects their share of Total Pet Spending. This highlights the differences in share. There is also a difference in performance. There are 6 groups with performance of 120% or more, the same as 2023, but 1 less than Total Pet and 1 more than Pet Food. The stability in the number of 120+% groups  indicates that in 2024 there was no major change in spending balance for Supplies.

1. Race/Ethnic – White, not Hispanic (81.3%) down from 83.6%. This large group accounts for the vast majority of spending in every segment. Their share decreased. Their performance fell from 125.9% to 123.0% and they dropped from #3 to a tie for #4 in importance in spending. Minority groups account for 33.9% of all CUs and their spending rose to 18.7% of Supplies $. All minorities spent more. Hispanics were the leader, +$48B, +22.3%.
2. # in CU – 2>4 people (69.2%) up from 67.8% and their performance grew from 113.5% to 115.0%. 1, 3 & 5 People CUs spent less while 2 & 4 people CUs were +$1.15B. This caused the lifts in share & performance.
3. Housing – Homeowners (79.8%) up from 78.4%. Homeownership is a big factor in pet ownership and spending in all segments. Their performance rose to 123.0%, from 120.4% and they moved up to a tie for #4 in importance. Led by w/o Mtge, Homeowners spent more while Renters were -3.0%. This caused the share/performance increases.
4. Age – 35>64 (63.6%) up from 61.9%. Their performance level rose to 122.8% from 118.8%. They joined the 120+% club and moved up from #7 to #6 in importance. The <35 group spent less. <25 had the biggest drop, -$0.52B, -49.5%. The top spending 45>54 yr olds were also -$0.12B. All others spent more. The biggest $ lift was +$0.73B by 35>44. The biggest % increase was +44.0% by 75+ yr olds. Age became noticeably more important.
5. Area – All Urban (74.0%) up from 70.3% and their performance grew to 91.6%, from 87.2%, but Area stayed last in importance. In this category, only the big Suburbs had an increase, +$1.48B, +14.9%. Rural had the biggest drop,  -$0.54B. Center City also spent less, but it was only -$0.05B and they passed Rural in spending share. This is why the group changed. Center City has great potential, which will be realized as housing becomes more “pet friendly”.
6. Income Over $70K (73.2%) up from 72.1%. A gain in share, but their Performance fell from 142.7% to 140.0%. Income remains the most important factor in increased Pet Supplies Spending. $70K> spent +$0.92B more, while <$70K was -$0.03B. Only <$50K (-$0.26B) and $150>199K (-$0.87B) spent less. All others spent more. The biggest increase was +$1.37B by the $200K> group. A key factor in the increase in share but drop in performance was that $70K> gained 3.1 million CUs. This gain in CU share lowered performance.
7. # Earners – 2+ CUs, 1 or 2 Earners (59.6%) up from 56.8%. Their performance grew from 112.8% to 119.0%, but Earners fell from #4 to #7 in importance and and are out of the 120% club. The # Earners is less important. It is income that truly matters. 1 Earner CUs of any size spent less on Supplies. 3+ Earner CUs also spent less. The only increases came from No Earner & 2 Earner CUs. 2 Earners had the biggest lift, +$1.59B, +17.3%.
8. Occupation – All Wage & Salary Earners (67.1%) down from 69.3%. Their performance was 108.6%, down from 113.8%. Only Tech/Sls/Cler (-$1.13), Service Workers & A/O Unemployed spent less. Most other groups had small lifts. The 2 biggest increases were Mgrs/Professionals, +$1.25B and Retired, +$0.94B.
9. CU Composition – Married Couples (60.3%) down from 61.3%. Their performance also decreased from 127.2% to 125.6% and they fell from 2nd to 3rd in importance. Only Married, Couple Only, Married, + adults & Singles had decreases. The biggest lift was +$0.75B from Married, Child 18>. The Married group was +$0.33B, +2.3%, while Unmarried was +$0.57B, +6.4%. This caused the decreases in share and performance for all Married CUs.
10. Education – College Grads (62.8%) up from 56.1%. This group was reduced because of spending changes. In 2024, they gained market share and their performance level increased from 117.4% to 130.6%. Higher Education rose from 6^th to 2^nd in importance. In the Education category, the only spending decreases were by <HS Grads, HS Grads w/some College & Associates’ Degrees. There were big lifts by Adv. Degrees, +$1.65B & HS Grads, +$0.71B. The summary is <College were -$1.19B, -11.8% & College Grads were +$2.09B, +16.2%. This caused the changes.

Pet Supplies spending still skews more towards younger and higher income CUs than Food. However, the biggest difference may be in the spending disparity in segments within the big groups. Supplies has 6 big groups with perfomance of at least 120%. Food is up to 5, but 4 are different from Supplies and Total Pet.

Now, we’ll look at 2024’s best and worst performing Pet Supplies spending segments in each category.

Almost all of the best and worst performers are those that we would expect. The only small surprise is 5+ CUs. In Pet Supplies spending, there are 9 that are different from 2023, up from 8 last year. That is 3 more than Veterinary & Total Pet, 6 more than Services, but 6 less than Food. They have 5 new winners. With 7, only Food has more. In terms of disparity, the difference between the avg winner & loser was 86.2%, down from 95.4% in 2023 and much less than 123.6% in 2021. A little more balanced at the segment level. Changes from 2023 are “boxed”. We should note:

• Income matters in Supplies spending – 188.3% performance and a disparity of 148.1%.
• Occupation – Blue Collar replaced Retired. Only White-Collar Workers – at any level, perform at 100+%.
• Age – The youngsters, <25 replaced the oldsters, 75+ on the bottom.
• Education – Adv College Degree & <HS Grads. Both are new, but they occupied these spots in 2022.
• Region – The Northeast replaced the Midwest at the top, but the South was in their usual spot at the bottom. The South is the only Region with under 100% performance, but the disparity narrowed to 29% from 60% in 2023.
• CU Composition – Married, Oldest Child 18> replaced Child 6>17 on top while Singles replaced Single Parents at the bottom. In 2024, all Married CUs, except those with an oldest child <6 or only extra adults, performed over 100%.
• CU Size – 5+ People returned to the top, replacing 3 People. 1 Person CUs are the only size performing <100%.

Performance Overview – The decrease in the avg disparity was <10%, 86.2% from 95.4%, it was also less widespread than the lift in 2023. In 2023, 10 were up in disparity. In 2024, 8 of 12 were down in disparity. Occupation, CU Comp, Housing and Education had a bigger disparity.

Now, it’s time to “Show you the money”. Here are segments with the biggest $ changes in Pet Supplies Spending.

In 2019, Tarifflation caused a record $2.98B drop in Supplies spending. 2020 brought the pandemic and pet parents focused on “needs” so the more discretionary Supplies segment fell $1.65B. In 2021 Pet Parents caught up on the Supplies needs and spent a record $8.65B more. In 2022, the binge wasn’t repeated so the $ fell -$1.86B. In 2023 there was a $1.08B lift. In 2024, it was only $0.89B. In the chart, there are No repeats from 2023, and 12 segments flipped from last to 1^st or vice versa – lots of turmoil. In 2023 there were 5 repeats and 9 flips. In 2024, 60.4% of segments spent more and Race/Ethnic was all positive. In 2023, 65.6% spent more and Housing was all positive. Here are the specifics:

• Education – Both winner & loser flipped.
  • Winner – Adv. College Degree – Supplies: $7.24B; Up +$1.65B (+29.4%)                                              2023: HS Grad w/some College
  • Loser – HS Grad w/some College – Supplies Spending: $3.07B; Down $0.98B (-24.1%)                    2023: Adv College Degree
  • Comment – HS Grads (+$0.71B) and BA/BS (+$0.44B) also spent more. All others spent less. College Grads were +$2.09B. All without a College degree were -$1.19B. Higher Education mattered.
• # Earners – Again, the winner & loser flipped, producing a more expected result.
  • Winner – 2 Earners – Pet Supplies Spending: $10.81B; Up +$1.59B (+17.3%)                                          2023: 1 Earner, Single
  • Loser – 1 Earner, Single – Pet Supplies Spending: $2.81B; Down -$0.55B (-16.5%)                                2023: 2 Earners
  • Comment – Income is the biggest factor, but the # of Earners is still important in Supplies Spending. The ups & downs were mixed with a complex pattern. 1 Earner CUs of any size and 3+ Earners spent less. All No Earner CUs of any size and 2 Earners spent more. Except for the winner & loser, the changes were small.
• Area Type– Rural flipped from 1^st to last and Suburbs 2500> replaced them on top.
  • Winner – Suburbs 2500> – Pet Supplies Spending: $11.40B; Up +$1.48B (+14.9%)                            2023: Rural
  • Loser – Rural – Pet Supplies Spending: $6.22B; Down -$0.54B (-7.9%)                                                    2023: Center City
  • Comment – Center City had a miniscule, -$0.05B (-0.7%) drop. This was a key factor in Urban replacing Suburban/Rural as the big group in the Area Type Category.
• Income – $150>199K flipped to the bottom and $200K> replaced them on top.
  • Winner – $200K> – Pet Supplies Spending: $5.49B; Up +$1.37B (+33.2%)                                2023: $150>199k
  • Loser – $150>199K – Pet Supplies Spending: $3.38B; Down -$0.87B (-20.4%)                                2023: $40>49K
  • Comment – Only segments <$50K & $150>199K spent less. The big group, <$70K was also down -$0.03B. All other segments & big groups were up. Again, almost all changes were small.
• Occupation – Tech/Sls/Clerical flipped from 1st to last, and Mgrs/Professionals replaced them at the top.
  • Winner – Mgrs/Prof. – Supplies Spending: $9.39B; Up +$1.25B (+15.4%)                                  2023: Tech/Sls/Cler.
  • Loser – Tech/Sls/Cler. – Supplies Spending: $3.24B; Down -$1.13B (-25.8%)                            2023: Blue Collar
  • Comment – Service Workers & A/O, Unemployed also spent less. Everyone else spent more. Except for +$0.94B by Retirees, the changes were small.
• # in CU – The Winner & Loser flipped again.
  • Winner – 4 People – Pet Supplies Spending: $3.80B; Up $0.94B (+32.7%)                               2023: 3 People
  • Loser – 3 People – Pet Supplies Spending: $4.29B; Down -$0.20B (-4.5%)                                2023: 4 People
  • Comment: In 2024, 2 & 4 People CUs spent more, while 1, 3 & 5+ CUs spent less. This is the exact opposite of the situation in 2023.
• Region – The South flipped again, this time from last to 1^st. The Midwest replaced them on the bottom.
  • Winner – South – Pet Supplies Spending: $7.91B; Up $0.91B (+13.0%)                                            2023: Northeast
  • Loser – Midwest – Pet Supplies Spending: $5.49B; Down -$0.90B (-14.1%)                              2023: South
  • Comment – In 22 & 23, 2 spent more & 2 spent less. In 2024, 3 spent more, all but the Midwest. The Northeast had a smaller $ increase than the South, +$0.64B, but their % lift was bigger, +15.6%.
• Housing – Homeowners w/o Mtge flipped to the top, while Renters replaced them on the bottom.
  • Winner – Homeowner w/o Mtge – Supplies: $6.48B; Up +$0.88B (+15.7%)                          2023: Homeowner w/Mtge
  • Loser – Renter – Supplies: $4.83B; Down -$0.15B (-3.0%)                                                            2023: Homeowner w/o Mtge
  • Comment – In 2023 all Housing segments spent more. In 2024, only Renters spent less. Except for Homeowners w/o Mtge, the changes were small, 3% or less.
• CU Composition – Married, Oldest Child 18> flipped from last to 1^st. Married, Couple Only replaced them as last.
  • Winner – Married, Oldest Child 18> – Supplies: $3.19B; Up $0.75B (+30.8%)                       2023: Singles
  • Loser – Married, Couple Only – Supplies: $5.50B; Down $0.44B (-7.4%)                                    2023: Married, Oldest Child 18>
  • Comment – All CUs with children, including Single Parents spent more, +$1.16B. CUs with no children spent
  • -$0.27B less. We should note that unmarried, 2+ all adult CUs did spend +$0.51B more.
• Age – Both the Winner and Loser are new.
  • Winner – 35>44 yrs – Pet Supplies Spending: $5.20B; Up $0.73B (+16.3%)                                2023: 45>54 yrs
  • Loser – <25 yrs – Pet Supplies Spending: $0.53B; Down -$0.52B (-49.5%)                                    2023: 55>64 yrs
  • Comment: 2023 Supplies spending was an age rollercoaster. 2024 had ups and downs but it was simpler. <35: -$0.84B; 35>44: +$0.73B; 45>54: -$0.12B; 55>: +$1.12B.
• Generation – Both are new. The Winner & Loser got younger.
  • Winner – Millennials – Supplies: $7.14B; Up $0.48B (+7.2%)                                  2023: Gen X
  • Loser – Gen Z – Supplies: $1.18B; Down -$0.35B (-22.7%)                                           2023: Boomers
  • Comment – Only Gen Z spent less. The performance by the oldest generations, those born <1946, should be noted. They had the 2^nd biggest $ lift, +$0.40B, but it was +64.1% – a huge, significant increase.
• Race/Ethnic – All segments are positive. Both the winner & loser are new and minorities.
  • Winner – Hispanic – Supplies: $2.62B; Up +$0.48B (+22.3%)                                2023: White, Not Hispanic
  • Loser – Asian – Supplies: $0.69B; Up +$0.2B (+2.6%)                                                2023:  African Americans
  • Comment – Whites’ share of Pet Supplies $ fell to 81.3% from the 83.3% in 2023. However, they still drive this discretionary segment. They have the highest % of pet ownership and the second highest income. The interaction of these two factors is very apparent in this category. All groups spent more and the lift by minorities was +$0.68B, 76% of the 23>24 Supplies increase. Spending became a little more racially/ethnically balanced.

We’ve now seen the winners and losers in Pet Supplies Spending $ for 12 Demographic Categories. In 2022, despite the -$1.86B decrease, 52% of demographic segments spent more but there was no all-positive category.  In 2023, there was a small lift, $1.08B, 65.6% of demographics spent more and Area Type was all positive. In 2024, there was much more turmoil than 2023, and the spending lift was even smaller, +$0.89B. 60.4% of demographics spent more, 9% less than 2023. However, again one demographic category was all positive – Race/Ethnic. In performance, there were no big surprises and the disparity between winner and loser decreased by 9%. The performance winners reflected the importance of income in Supplies spending. However, not every good performer can be “the” winner and some of these “hidden” segments should be recognized for their performance. They don’t win an award, but they deserve…

HONORABLE MENTION

Supplies spending is driven by income, but Pet Parenting is widespread. This is very apparent in the strong performance of these segments. All have below average incomes, with many at or near the bottom in their category. No Earner, Singles earn <$30K but found the $ for a 55% lift in Supplies. Pet Parenting is a lifetime commitment. Retired & 75> yr olds clearly show this. HS Grads were the only segment without a college degree to spend more on Supplies. Education matters, with some exceptions. Marriage & children are also big factors in Supplies spending, but not a necessity. Pet Parenting is widespread and Supplies improve the experience. All Adult, 2+ CUs spent $0.51B more. The $50>69K group had a double-digit lift in Supplies $. This clearly demonstrates that while income may be the most important, it is not the only factor in Supplies spending. Although the lift was small, it was demographically relatively widespread.

Summary

While Pet Food spending has shown a definite pattern, Pet Supplies have been on a roller coaster ride since 2009. Many Supplies categories have become commoditized and react strongly to changes in the CPI. Prices go up and spending goes down…and vice versa. Supplies spending has also been reactive to big spending changes in Food. Consumers spend more to upgrade their Food, so they spend less on Supplies – trading dollars. We saw this in 2015. In 2016 the situation reversed. Consumers value shopped for Food and spent some of the “saved” money on Supplies.

That brought us to 2017. Both Supplies and Food prices deflated while the inflation rate in both of the Services segments dropped to lows not seen in recent years. Value was the “word” and it was available across the market. Perhaps the biggest impact was that the upgrade to super premium Food significantly penetrated the market. This could have negatively impacted Supplies Spending, but it didn’t. Supplies’ spending increased in 93% of all demographic segments.

2018 started out as expected with a $1B increase in Supplies and a small lift in Food. Then the government got involved. In July the FDA issued a warning on grain free dog food and spending dropped over $2B. New tariffs were implemented on Supplies and spending flattened out then turned down -$0.01B in the 2^nd half. The full retail impact of Tariffs hit home in 2019 when Supplies spending fell -$2.98B, affecting 97% of all demographic segments.

In 2020 The pandemic caused consumers to focus on needs. That resulted in big spending lifts for Food and Veterinary and big drops in Supplies and Services. Some good news was that Supplies spending became more balanced. The performance gap between best and worst narrowed by 10.25%.

In 2021 the overall Retail Market had recovered but with no repeat  of the buying binge, Pet Food $ dropped. In Supplies, the pent-up buying desires of Pet Parents were unleashed. They bought all the Supplies items that had been on “hold” for the last 2 years. The result was the biggest spending increase in history.  In 2022, the Supplies binge was also not repeated, and inflation took off, so spending fell -$1.86B. However, 52% segments still spent more on Supplies.

In 2023, inflation slowed and Supplies had a small $1.08B, 4.9% lift. 65.6% of segments spent more and the Housing category was all positive.  The disparity between best & worst performers grew to 95.4% from 87.5%. In 2024, the lift was smaller, +$0.89B, +3.9% and the number of demographics spending more decreased to 60.4%. However, 1 category was again all positive, Race/Ethnic and the performance disparity narrowed to 86.2% – a little more balance. The slow recovery from the big 2022 drop continues. In 2025, inflation was only 0.6%. We’ll see what happens.

Finally – The “Ultimate” Pet Supplies Spending CU consists of 5 people – a married couple, with 3 children, one 18>. They are 45>54 yr old Gen Xers. They are White, but not of Hispanic origin. They have their own business where they both work and at least one has an Advanced College Degree. Their child also works – part time and their household income is $200K>. They live in a rural area in the Northeast and are still paying off the mortgage on their home.

We looked at the Total Pet Spending for 2024 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 19,900,000 households buy food and/or treats for their pet children. Pet Products accounted for $63.95B (53.8%) of the $118.87B in Total Pet $ in 2024. This was down -$4.57B (-6.7%) from the $68.52B that was spent in 2023. However, inflation in 2024 was only 0.2% so the “real” drop was -6.9%. Pet Food had a huge drop after the record increase in 2023. Supplies also has been on a spending rollercoaster. After falling in 2020, there was a record surge in 2021. Spending fell in 2022, but there were small lifts in both 2023 & 2024.

Overall, in 2024 Pet Food spending fell -$5.46B while Supplies spending increased $0.89B. 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 2024.

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 2 of the biggest spending groups are the same as Total Pet. To reach 60%, Education added Associates & Area replaced Center City with Rural. The categories are in the order that reflects their share of Total Pet Spending. This highlights a lot of differences. Only 1 is the same rank – Area, and the group is different. 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 3 less than Total Pet in 2024. This reflects the fact that Pet Products spending, especially on Food, is spread more evenly across the category segments.

1. Housing – Homeowners (80.8%) up from 77.9%. Controlling your “own space” has long been the key to pet ownership and more pet spending. Their performance rose from 119.7% to 124.4% but they stayed 4^th in terms of importance for increased pet products spending. They are still in the 120% club but now without rounding up their performance. Only Homeowners w/o Mtge spent more on Pet Products in 2024, a strong $2.18B, +12.6% lift. The decrease for Renters was -$2.85B, -18.8% while the drop for Homeowners w/Mtge was -$3.90B, -10.8%. They only gained in share & performance because their -3.2% decrease was less than half of the national -6.7% drop.
2. Race/Ethnic – White, not Hispanic (82.6%) up from 81.1%. They are the largest in spending share and account for 79+% of the spending in every segment. Their performance rose from 122.2% to 125.0% but they stayed 3^rd in terms of importance in Pet Products Spending demographic characteristics. Only Asian Americans spent more, +35.2%. The biggest $ drop was -$2.72B by Whites but African Americans spent -$1.72B, -44.6% less. Minorities are 33.9% of U.S. CU’s, but they only spend 17.4% of Pet Products $, down from 18.9% in 2023 but up 35.9% from 12.8% in 2020. Pet ownership is relatively high in Hispanic households, but it is significantly lower for African Americans and Asians.
3. Area – Suburban & Rural (73.1%) down from  73.4%, but their performance grew from 112.1% to 112.6%. Suburban CUs are the biggest product spenders but all areas spent over $1B less. Center City is still by far the worst performer but they had the smallest drop, -$1.05B, -5.8%. The performance lift was due to more Center City CUs.
4. Income – Over $70K (68.8%, up from 64.7%). Pet Parenting is common in all income groups but money is a big driver in the spending for all industry segments. Plus, their performance rose to 131.5% from 128.2%, CU income continues to be the single most important factor in increased Pet Products Spending. As a rule, Income ↑= Pet Products Spending ↑. 2024 didn’t always follow that rule. Only incomes $40>99K and $200K> spent more. $200K had the biggest $ lift, +$1.36B but $40>49K led in %, +15.2%. Biggest Drops: $<40K, -$4.86K; $150>199K, -$2.09B.
5. # in CU – 2>4 people (70.2%) up from 67.1%. The share for Pet Products is lower than for Total Pet, 72.5%. However, If you put 2 people together, pets very likely will follow and you must spend money on food and supplies. Their 116.6% performance is up from 112.7%. Only 2 People CUs spent more, +$0.64B, +2.6%. The biggest drop was Singles, -$3.10B. This was the most important factor in the group’s share/performance lifts.
6. Occupation – All Wage & Salary Earners (61.2%) down from 62.4%. Their performance also fell from 102.4% to 99.1%. Only Mgrs/Professionals and All Others (Unlisted) spent more. Mgr/Prof were +0.91B, +4.4%. Biggest Drops: Tech/Sls/Clerical, -$2.62B; Blue Collar, -$1.13B. The Wage & Salary group is no longer “earning their share”.
7. Education – Assoc Degree> (69.5%) up from 66.5%. The performance of the expanded group also rose from 114.0% to 117.8%. However, Education fell from 5th to 7th in importance in Pet Products spending. The lifts in share & performance were due to widespread -$1B drops while Associates had a $0.54B increase. The only other lift was $0.13B by HS Grads  w/some college. The biggest drops were -$2.40B by BA/BS & -$1.88B by HS Grads.
8. CU Composition – Married Couples (62.6%) up from 60.0%. Their performance rose from 127.8% to 130.5% but they stayed 2^nd in importance. Only Married, with an Oldest Child 18> (+$0.77B) and Couples Only (+$0.21B) spent more. Share/Performance grew because Married were -$1.08B (-2.6%) while All Others were -$3.49B (-12.7%).
9. # Earners – 2+ CU, 1 or 2 Earners (59.7%) up from 57.1%. Their performance is 119.2%, up from 113.7%. This group reinforces that income is a big driver but the # of earners is much less important. The lift in share and performance was due to their -$0.95B (-2.4%) drop being much less the -$3.62B (-12.3%) by other segments. 2 Earners had the biggest lift, +$0.70B (+2.7%). The only other increase was close, +$0.68B, (+11.3) by No Earner, 2+ CUs. Along with the biggest lift, the biggest drop was also in the big share group. The 1 Earner, 2+ CUs spent -$1.65B (-12.3%) less.
10. Age – 35>64 (61.3%) up from 56.4%. Their performance also rose from 108.0% to 118.2%. Only 45>64 (Mostly Gen X) and 75+ had increases. All other age groups, but 35>44 (-$0.67B) spent over $1B less. The biggest drop was -$2.12B by 65>74. The biggest lift was +$0.66B (+5.1%) by 45>54 but 55>64 was a close second at +$0.57B.

For Pet Products, only the Education & Area spending groups are different than Total Pet, but there are other differences. Pet Products spending behavior was totally dominated by the big drop in Pet Food $. Money matters most for both but with only 4 members of the 120 Club, compared to 7 for Total Pet, Products spending is more balanced.

Now, let’s drill deeper and look at 2024’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 10 that are different from 2023, the same as last year but 4 more than Total Pet this year. Changes from 2023 are “boxed”. We should note that only 2 of the Product winners are different from Total Pet. Down from 6 in 2023. With the big drop in Food, the spending behavior became more consistent.

The average performance of the 2024 Product winners was 133.5%, up from 130.4%. The average for the losers was 64.7%, up from 57.9% . The gap between best and worst grew from 65.7% to 75.9%, even above 75.4% in 2022. This indicates that Pet Products spending became less balanced across America in 2024. We should also note:

• Generation, Age – Gen X replaced the Boomers on top. Gen Z (<25) fell to the bottom replacing Born <1946 (75+).
• Education – Adv. Degree replaced BA/BS on top. <HS replaced HS Grads at the bottom. Education matters.
• Income, # Earners – $200K> replaced $150>199K & 2 Earners replaced 3+ Earners, minor high income changes. The importance of income is reinforced in many categories like Age, Occupation and Education.
• CU Composition – Married, Child 18> are back on top. All Married CUs but Child <6 perform at 100+%.
• Race/Ethnic – White, Not Hispanic are the perennial winners. African Americans have the lowest income and low pet ownership. They replaced the high-income Asians, who are increasing pet ownership and spending.
• Region – The West has high income and lots of space. They replaced the Midwest on top.
• Occupation – Self-Employed has the highest income & are bosses. In 2023, They replaced Managers on top. Service Workers have the lowest income of any worker and often a difficult life. Stayed on bottom. No Surprise

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

Now, we’ll see who drove Pet Products spending down. There are no repeats from 2023, and 12 Segments flipped from first to last or vice versa. This is much more turmoil than 2023 which had 5 repeats but only 4 flips. Most of the winners are not surprising but in Area, all segments spent less. 2023 had 5 categories where all segments spent more. You see that the drops are much bigger. 78% of 96 demographics spent less. In 2023, 86% spent more. Here are the specifics:

• Housing – The winner and loser flipped, and both had double digit % change.
  • Winner – Homeowner w/o Mtge – Products: $19.44B; Up $2.18B (+12.6%)             2023: Homeowner w/Mtge
  • Loser – Homeowner w/ Mtge – Products: $32.21B; Down $3.90B (-10.8%)                2023: Homeowner w/o Mtge
  • Comment– Renters were -$2.85B (-18.8%) and had the only drop in Supplies, -$0.15B.
• Generation – Gen X flipped to the top and replaced Millennials.
  • Winner – Gen X – Products Spending: $20.81B; Up $1.66B (+8.7%)                               2023: Millennials
  • Loser – Baby Boomers – Products Spending: $19.92B; Down $3.14B (-13.6%)            2023; Gen X
  • Comment – Gen X moved to the top after 2 annual drops. Only Gen X spent more on Food, +$1.66B. All but Gen Z, -$0.35B, had small lifts in Supplies. The biggest was +$0.48B, by Millennials.
• Income – The loser and winner are both new, but very expected.
  • Winner – $200K> – Products Spending: $12.77B; Up $1.36B (+11.9%)                           2023: $30>39K
  • Loser – <$30K – Products Spending: $5.85B; Down $2. 74B (-31.9%)                               2023: $40>49K
  • Comment – A spending rollercoaster: <$40K = -$4.86B; $40>99K = $1.30B; $100>199K = -$3.08B; 200K> = $1.36B Food & Supplies Spending Matches: <$40K = Both Down; $70>99K = Both Up
• Region– The South flipped to the top. Only they spent more on Food and they had the biggest lift in Supplies, $0.91B
  • Winner – South – Products Spending: $22.87B; Up $1.06B (+4.9%)                                2023: Northeast
  • Loser – Midwest – Products Spending: $13.86B; Down $3.28B (-19.1%)                         2023: South
  • Comment – All regions, but the South spent less but only the Midwest spent less on Supplies.
• Occupation – Mgrs & Professionals flipped to the top and replaced Retirees.
  • Winner – Mgrs & Professionals – Products Spending: $21.48B; Up $0.91B (+4.4%)      2023: Retired
  • Loser – Tech/Sls/Clerical – Products Spending: $8.69B; Down $2.62B (-23.2%)             2023: Mgrs/Professionals
  • Comment – Only Managers/Professionals and All Other/Unemployed spent more but only A/O had a lift in Food. Mgrs were +$1.25B in Supplies, but 5 of 8 spent more. Tech/Sls/Cler had the biggest drops in Food & Supplies.
• Education – BA/BS flipped to the bottom and were replaced on top by Advanced Degrees.
  • Winner – Advanced Degree – Products Spending: $17.48B; Up $0.89B (+5.4%)              2023: BA/BS Degree
  • Loser – BA/BS Degree – Products Spending: $19.80B; Down $1.96B (-9.0%)                    2023: Associate Degree
  • Comment – Only Adv. Degrees spent more. Less than HS Grads had the biggest % drop, -46.1%, while Associate Degrees were only down -0.9%. Overall, <College were -$3.50B, -11.6% and College Grads were -$1.07B, -2.8%
• CU Composition – Singles flipped to the bottom, replacing Single Parents.
  • Winner – Married, Child 18> – Products: $7.46B; Up $0.77B (+11.6%)                               2023: Singles
  • Loser – Singles – Products: $11.85B; Down $3.10B (-20.8%)                                                   2023: Single Parents
  • Comment – Married, Oldest Child 18>, Married, Couple Only and 2+ Adults, No Kids were the only segments to spend more on Products, Food & Supplies. Overall, Married couples were down -2.6% in Products (Avg: -6.7%) They had a drop in Food & lift in Supplies. 24 was very bad for Singles. Prod: -20.8%; Food: -29.2%; Supp: -0.2%.
• # Earners – Both the winner and loser are new, but only 2 segments spent more.
  • Winner – 2 Earners – Products Spending: $26.43B; Up $0.70B (+2.7%)                              2023: 1 Earner, Single
  • Loser – 1 Earner, 2+ CU – Products Spending: $11.75B; Down $1.65B (-12.3%)                   2023: 3+ Earners
  • 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 24, 2 Earners won in $, but No Earner, 2+ CUs had the biggest % lift, +11.3%.
• Age – The 65>74 yr-olds flipped from first to last and were replaced on top by 45>54.
  • Winner – 45>54 yrs – Products Spending: $13.52B; Up $0.66B (+5.1%)                          2023: 65>74 yrs
  • Loser – 65>74 yrs – Products Spending: $10.01B; Down $2.12B (-17.5%)                          2023: 55>64 yrs
  • Comment: Only 45>64 & 75> had Product $ lifts. 45>64 spent more on Food. 55>64 & 75> spent more on Supplies. Only 55>64 spent more on both. 65>74 was +$2.35B on Food in 23 and -$2.42B in 24.
• # in CU – 1 Person flipped to the bottom and was replaced on top by 2 People.
  • Winner – 2 People – Products Spending: $25.35B; Up $0.64B (+2.6%)                          2023: 1 Person
  • Loser – 1 Person – Products Spending: $11.85B; Down $3.10B (-20.8%)                        2023: 4 People
  • Comment: Only 2 People CUs had a lift in Products or Food. They were joined in Supplies by 4 People, +$0.94B.
• Race/Ethnic – The 2023 winner & loser, White, Non-Hispanics and Asians both flipped.
  • Winner – Asian – Products Spending: $2.18B; Up $0.57B (+35.2%)                                             2023: White, Not Hispanic
  • Loser – White, Not Hispanic – Products Spending: $52.85B; Down $2.72B (-4.9%)               2023: Asian 
  • Comment – Only Asians spent more. African Americans were (-44.6%) and Hispanics (-9.2%). All but Asians spent -$1.2>$2.9B less on Food. Asians were +$0.55B. All had had lifts in Supplies spending. The biggest was +$0.48B by Hispanics. Asians had the smallest, only +$0.02B.
• Area Type – Center City flipped to the top with the smallest drop. All spent less. In a good year, all often spend more
  • Winner – Center City – Products Spending: $17.19B; Down $1.05B (-5.8%)                  2023: Suburbs 2500>
  • Loser – Rural – Products Spending: $18.13B; Down $2.27B (-11.1%)                                2023: Center City
  • Comment – All spent less on Food. Only Suburbs spent more on Supplies, +$1.48B but their Food $ were -$2.73B.

We’ve now seen the winners and losers in terms of increase/decrease in Pet Products $ for 12 Demographic Categories. 2024 was not a good year for Pet Products Spending. Food $ fell -$5.46B after a record lift in 2023. Supplies spending had a Binge in 21, a Bust in 22, a $1.1B lift in 23 and a $0.89B increase in 24. The 2024 result was a -6.7% drop in which 78% of 96 demographic segments spent less on Pet Products, a radical change from 86% spending more in 2023. In 2024 the good performances were limited, but not every good performer can be a winner. Some of these “hidden” segments should be recognized for their outstanding effort. I’ve found 6. They don’t win an award, but they deserve…

Honorable Mention

Pet Products spending was down -$4.57B in 2024 from a $5.5B decrease in Food and a small lift in Supplies. The drop in Pet Products spending was widespread as 78% of 96 demographic segments spent less. Income was still the most important factor, and spending became a little less balanced. It was not easy to find members for our honorable mention group. Gen Z ended their 2-year Pet Products spending surge and were -28% in Product $. <$40K incomes were -$4.86B but the 3 groups in the $40>99K range had 6% lifts and earned Honorable Mention. No Earner, 2+CUs had an 11.3% increase in Product $ so they returned to the list. The number of Earners is definitely much less important than income. but so is being “the Boss”. The 55>64 yr-olds were down in Food & Supplies in 2023. In 2024, both flipped to positive. In 2024, Center City was down -$1.05B in Product Spending. The biggest drop was -$1.21B by cities with a population of 2.5>4.9M. The only size with an increase was 1>2.5M. The lift was small, but they made the list. Married, Couple Only are often high profile but not in 2024. A lift in Food overcame a drop in Supplies so they earned their spot. The drop in Pet Products spending was definitely widespread so there were fewer “heroes”, but we found them.

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 availability and value increased so they spent $7B more. In 2018 the FDA warning on dog food caused many consumers to downgrade and new tariffs on Supplies flattened growth. Products $ fell -$1B. In 2019 Pet Food spending rebounded to a record level but higher prices in Supplies hit home. Supplies Spending fell $2.98. Pet Products $ fell -$0.64B.

2020 brought the COVID pandemic. Pet Parents binge bought Pet Food in the 1^st 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% & Supplies spending fell -7.8%, producing a $2.42B, +4.2% lift. Pet Products $ were $60.63B. The lift was widespread as 70% of demographics 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 and Supplies $ rose 4.9%. The $7.89B (+13.0%) lift was widespread. 86% of demographics had increases. While Income remains the most important factor, Pet Products spending continued to become a little more balanced. Overall, the disparity between Best & Worst performers fell from 75.4% in 2022 to 65.7% in 2023. The gap narrowed in all but Area & Region. Gen Z’s growth continued, and they were joined by the 65>. 2023 was great.

2024 was a bad year for Pet Products. A $5.47B drop in Pet Food $ overwhelmed an $0.89B lift in Supplies to produce a 23>24 change of -$4.57B, -6.7% in Products. The drop was widespread as 78% of Demographic Segments spent less and spending became a little less balanced as the Best/Worst disparity rose to 75.7%.

Finally,… The “Ultimate” 2024 Pet Products Spending CU is 3 people, a married couple with a child 18>. They are Gen Xers 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 both work, producing a CU income of $200K>. They still have a mortgage on their house located in a Rural area with a population <2500 in the West.