Archive for year: 2026

It’s time to continue with 2026 Inflation. The Consumer Price Index peaked back in June 2022 at 9.1% then began to slow until it turned up in Jul/Aug 2023. Prices fell in Oct>Dec 23, then turned up Jan>Oct 24 but fell in Nov. However, they rose 10 straight months to a record high in Sep 25, fell Oct>Dec, then rose in Jan>Mar (New Records). The CPI vs last year rose to 3.3% from 2.4% because of a 1% Feb>Mar lift. Grocery prices fell slightly, -0.04% from Feb and their YOY inflation slowed to 1.9% from 2.4%. 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 Dec 21 while the overall CPI was +7.0%. The gap narrowed as Petflation accelerated. It was 96.7% of the national rate in June 22. National inflation has slowed considerably, but Petflation generally increased until June 23. It passed the CPI in July 22, fell below it from Apr>Jul 24. It passed the CPI in Aug, fell below in Sep>Oct, rose above in Nov, fell below in Dec>Aug 25, then passed it in Sep>Oct & Dec>Mar 26. 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 26 vs 25 which will include Pet Segments and relevant Human spending categories. Plus
  1. CPI change from the previous month.
  2. Inflation changes for recent years (25>26, 24>25, 23>24, 22>23, 21>22, 20>21, 19>20, 18>19)
  3. Total Inflation for the current month in 2026 vs 2019 and vs 2021 to see the full inflation surge.
  4. Average annual Year Over Year inflation rate from 2019 to 2026
• 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 Mar 24 to Mar 26. 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 from 12 and 24 months earlier are included. We also included and highlighted (pink) the cumulative price peak for each segment. In Mar, Total Pet prices were up 0.8% from Feb. All segments were up & peaked. Supplies (+1.7%), Vet (+0.7%), Food (+0.4%), Services (+0.4%).

In Mar 24, the CPI was +21.5% and Pet was +24.0%. The Services segments inflated after mid-20, while Product inflation stayed low until late 21. In 22, Food prices grew but the others had mixed patterns until July 22, when all rose. In Aug>Oct Petflation took off. In Nov>Dec, Services & Food inflated 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, Supp. & Vet  drove prices up. In Jan>Mar 24 Pet prices grew. 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 Sep, Products fueled a drop. In Nov all were up. Prices dropped in Mar & Oct>Nov 25, then rose Dec>Mar 26. All, including the CPI, set records in March 26.

• U.S. CPI – Inflation was below 2% through 2020. It turned up in January 21 and grew until flattening out in Jul>Dec 22. Prices rose Jan>Sep 23, fell Oct>Dec, rose Jan>Oct 24, fell Nov, rose Dec>Sep 25, fell Nov>Dec, but hit record highs in Jan/Feb/Mar 26. 25% of the lift since Dec 19 happened from Jan>Jun 22 – 8% of the time.
• Pet Food – Prices were at the Dec 19 level Apr 20> Sep /21. They grew & peaked May 23, then got on a roller which continues Jun/Jul↑, Aug↓, Sep↔, Oct/Nov ↓, Dec>Mar↑ – a new record. 93% 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 & stayed there until 22. They turned up in Jan (record). They plateaued Feb>May, grew in June, flattened in July, then turned up in Aug>Oct to a new record. Prices stabilized Nov>Dec, grew Jan>Feb 23. fell in Mar, but the roller coaster hasn’t stopped. Jan>Feb 25↓, Mar>May↑, Jun↓, Jul↑, Aug↓, Sep↑, Oct>Nov↓, Dec↑(record), Jan 26↓, Feb>Mar↑. Prices are now at a new record high.
• 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 roller coaster. They turned up Jul>Apr 23, fell May. Jun>Aug↑, Sep>Dec↓, Jan>Mar 24↑, Apr↓, May↑, Jun↓, Jul>Nov↑, Dec>Mar 25↓, Apr>Aug↑, Sep↓, Oct>Mar 26↑(record).
• 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/Jun 22 prices fell below the CPI. However, they rose again & have been above the CPI since July 22. In 23>25 prices grew Jan>May, leveled Jun/Jul, fell Aug, grew Sep>Dec, fell Jan, grew Feb>May, fell Jun>Jul, grew Aug 24>Sep 25, fell Oct>Nov, grew Dec>Mar 26. (records)
• 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 Jul>Nov, slowed Dec, grew Jan>May 23, fell Jun>Aug, grew Sep/Oct, fell in Nov. In December prices grew through Mar 24 to a record high. Prices fell in April, rose May>Jun, fell Jul>Sep, rose Oct>Nov, fell Dec, rose Jan>Feb 25, fell Mar, grew Apr>Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec>Mar 26 (record)

Next, we’ll turn our attention to the Year Over Year inflation rate change for March and compare it to last month, last year and to previous years. We will also show total inflation from 21>26 & 19>26. Petflation rose from 2.5% to 3.5% in Sep, fell to 2.6% in Nov, then rose to 3.5% in Dec. In Mar it is 4.3%, 30.3% above the National CPI. The chart will allow you to compare the inflation rates of 25>26 to 24>25 and other years but also see how much of the total inflation since 2019 came from the current surge. We’ve included some human categories to put the pet numbers into perspective.

Overall, prices were up 1.0% from Feb and were +3.3% vs Mar 25, up from 2.4% last month. Grocery prices dropped, -0.04% and inflation slowed to +1.9% from 2.4%. Haircut prices were also down from last month. In Feb, there were no drops. In Dec & Jan there was 1. In Nov there were 6 drops. The national YOY monthly CPI rate of 3.3% is up 37.5% from 24>25 but it’s 61% less than 21>22. The 25>26 rate is above 24>25 for all but Vet, Groceries & Haircuts. In our 2021>2025 measurement you also can see that over 80% of the cumulative inflation since 2019 has occurred in all but 4 segments, Haircuts, Medical, Vet, Pet Services. Service Segments have generally had higher inflation rates so there was a smaller pricing lift in the recent strong increase. Pet Products have a very different pattern. The 21>26 inflation surge provided 98% of their overall inflation since 2019. This happened because Pet Products prices in 2021 were still recovering from a deflationary period. Services expenditures account for 64.0% of the National CPI so they are very influential. Their current CPI is +3.1% while the CPI for Commodities jumped up from 1.2% to 3.4%. Services are the usual inflation driver, but Commodities are behind the current increase. The situation in Pet is closer to the “normal” national situation. Petflation: 4.3%. The CPI for the 2 Service Segments is 5.6%. The Pet Products CPI is 3.1%.

• U.S. CPI– Prices are +1.0% from Feb. The YOY increase is 3.3%, up from 2.4% in Feb. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are now 65+% higher than the target. The lift follows stability in Feb, a lift in Jan, stability in Dec and 2 drops in Oct & Nov. The current rate is 37.5% above 24>25 and the 21>26 rate is +24.7%, 82.6% of the total inflation since 2019. The Inflation surge was just starting in March 2021, +2.6%
• Pet Food– Prices are +0.4% vs Feb. and +2.3% vs Mar 25, up from 1.4%. They are now 21% above the Food at Home inflation rate of +1.9%. Remember that the YOY Pet Food CPI has deflated in 15 of the last 25 months. The 2021>2026 inflation surge has generated 93.6% of the 26.7% inflation since 2019. Inflation began for Pet Food in June 2021, +0.9%, after 12 straight deflationary months. Pet Food prices just reached a new record high.
• Food at Home – Prices are -0.04% from Feb and the YOY increase fell from 2.4% to 1.9%. This is radically lower than Jul>Sep 2022 when it exceeded 13%. The 31.4% Inflation for this category since 2019 is 5% more than the national CPI but is only in 5th place behind 3 Services expenditures and Total Pet. 82.5% of the inflation since 2019 occurred from 2021>26. This is about the same as 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 +1.7% from Feb and YOY inflation rose to +3.5% from 1.8%. They still have the lowest rate vs 2019. Prices were deflated for much of 20>21. As a result, the 2021>26 inflation surge accounted for 111.0% of the total price increase since 2019. Prices set a record in Oct 22 then deflated. 3 lifts pushed them to a record high in Feb 23. Prices fell in Mar & the roller coaster continued into 25. They fell Jan/Feb 25, rose Mar>May, fell Jun, rose Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec (record), fell in Jan, rose Feb>Mar – a new record.
• Veterinary Services– Prices are +0.7% from Feb and 5.6% from 2025, up from 5.3%. They are #2 in inflation vs last year, behind Pet Serv. but still #1 in the increase since 2019, +55.5% and 21, +43.9%. For Veterinary, high annual inflation is the norm. However, the rate has increased during the current surge, especially since 23. They have the highest Mar avg rate in 26, but only 79% of the cumulative inflation since 2019 occurred from 2021>26.
• 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 +0.1% from Feb, but inflation vs last year slowed to +3.7% from +4.1%. Medical Services are not a big part of the current surge as only 58.5% of the 22.9%, 2019>26 increase happened from 21>26.
• Pet Services – Inflation slowed in 20 but grew in 21. In 24 prices surged , especially in Jul>Nov. Prices fell Dec>Mar 25 to 3.9%. Apr grew, May fell, June rose, Jul rose to 6.3%. Inflation fell to 5.8% in Aug & to 4.2% in Nov. In Dec>Mar 26 it rose to 7.8%. They are #1 vs 25 and #2 vs 21 & 19. 76.9% of their 19>25 inflation is from 21>26.
• Haircuts/Other Personal Services – Prices are -0.3% from Feb but +4.5% from Mar 25. 20 of the last 27 months have been 4.0+%. Inflation has been pretty consistent. 68.1% of the 19>26 inflation happened 21>26.

Total Pet– Petflation rose to 4.3% from 3.3%. Only Veterinary & Pet Services had a higher rate. It is 3.3 times the 24>25 rate and 30.3% more than the current U.S. CPI. Plus, it is 43.3% above the 3.0% average March rate since 1997. Feb prices rose 0.8%, driven by all. The Feb>Mar increase was well above the 0.3% 97>25 average change, but expected. Since 1997, there have been only 5 Feb>Mar price drops. Another factor in the current CPI lift was that prices fell 0.2% in Feb>Mar 25. The recovery definitely slowed. Now, we’ll look at YTD data.The 25>26 rate is equal to or higher than 24>25 for all, but Veterinary. The 22>23 inflation rate was the highest for Tot Pet, Pet Food, Groceries & Pet Services. 21>22 has the highest rate for Pet Supplies & the Natl CPI. 23>24: Vet; 20>21: Haircuts; 19>20: Medical Services. The average national inflation rate in the 7 years since 2019 is 3.8%. Only 3 of the categories are below that rate – Medical Services (3.0%), Pet Supplies (1.9%) and Pet Food (3.4%). It is no surprise that Veterinary Services has the highest average rate (6.5%), but all 4 other categories are +4.0% or higher.

• U.S. CPI – The 25>26 rate is 2.7%, the same as 24>25 but down 16% from 23>24. It is also 66.2% less than 21>22 and 29% below the average increase from 2019>2026. However, it’s still 45% more than the average increase from 2018>21. 83% of the 29.5% inflation since 2019 occurred from 2021>26. Inflation is a problem that started recently.
• Pet Food – Ytd prices are still inflating, 1.7%, up from 1.4%. That’s a big increase from -0.5% in 24>25, but it is still below 3.0% in 23>24 and even the 2.0% 18>20 average. Pet Food has the highest 22>23 rate but is only #6 in the 21>26 rates and #8 in 19>26. Deflation in the 1^st half of 2021 kept YTD prices low then they surged in 22 and especially in 23. 92% of the inflation since 2019 occurred from 2021>26.
• Food at Home – The 25>26 inflation rate is the same as 24>25, but at 2.1%, it is down 89% from 22>23, 76% from 21>22 and even 40% less than 20>21. However, it is 2.1 times higher than the average rate from 2018>20. It is only in 5th place for the highest inflation since 2019 but still beat the U.S. CPI by 7.1%. You can see the impact of supply chain issues on the Grocery category as 82% of the inflation since 2019 occurred from 2021>26.
• Pets & Pet Supplies – A roller coaster, prices rose Jan>Feb 24, fell Mar>Apr, rose May>Jun, fell July, rose Aug, fell Sep>Oct, rose Nov>Dec, fell Jan>Feb 25, then rose Mar>May. Prices vs 24 flipped to deflation in June, back to +0.7% in July, fell to 0.0% in Aug, rose Sep>Dec, fell Jan 26, rose Feb>Mar. Supplies still have the lowest inflation since 2019. Their biggest YOY lifts since 2019 were in 22 & 23. The 2021 deflation created an unusual situation. Prices are up 13.8% from 2019 but 112% of this lift happened from 21>25. Prices are up 15.5% 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 2026, +6.1%, the 2^nd  highest on the chart. However, they are still #1 in inflation since 2019 and since 2021. At +6.5%, they have the highest average inflation rate since 2019. It is 71% higher than the National Average but 2.2 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. In Mar 2026 it is 3.9%, 30% above the 3.0% 2019>26 average rate. We should also note that 3.9% is 3 times higher than the 1.3% low point in 23>24.
• Pet Services – After falling in late 2023, prices surged in 2024, then fell in 2025 until an Apr>Aug lift followed by a Sep>Nov dip and a Dec>Mar 26 lift. The 25>26 6.9% CPI is #1 on the chart, passing Veterinary. It is 35% above their 19>26 avg and more than double their 2018>20 avg. Pet Services is also 2^nd in both 19>26 and 21>26 inflation.
• Haircuts & Personal Services – The services segments, essential & non-essential, were hit hardest by the pandemic. The industry responded by raising prices. 2026 inflation is 4.8%, 15.8% below its 20/21 peak, but 47.7% above the 18>20 average. Consumers are paying over 35% more than in 2019, which usually reduces the purchase frequency.
• Total Pet – Petflation is 3.7%, up 95% from 24>25, but 7.5% less than 23>24. However, It’s 63 % more than their 18>21 avg and 37% above the CPI. Petflation is growing again. Except for Mar/Aug/Oct/Nov, Pet prices rose in 25, which continued in Jan>Mar 26. This is primarily being driven by a flip from deflation to inflation in Pet Products and continued strong inflation in Services, especially Non-Vet.

The Petflation recovery paused in Aug 24, came back Sep>Oct, paused in Nov, resumed in Dec>Jan 25, paused in Feb, restarted in Mar and paused Apr>Sep. It improved Oct/Nov but paused in Dec>Mar 26. We tend to focus on the monthly, YOY inflation in the current year and ignore the fact that inflation is cumulative. Pet prices are 29.0% above 2021 and 33.8% higher than 2019. Those are big lifts. In fact, March prices for the National CPI, Total Pet and all pet segments reached new record highs. Only Supplies prices (+15.4%) are less than 26.7% 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 the most driven by high income CUs. Veterinary will continue to see a reduction in visit frequency. Pet Parents will just pay more. The product segments will see a more complex reaction. Supplies are more discretionary so we will likely see a reduction in purchase frequency. In Pet Food, the most needed segment, some Pet Parents may even choose to downgrade their Pet Food. However, the biggest impact in both product segments will be a strong movement to online purchasing and private label. We saw proof of this at both GPE 25 & SZ 25 as a huge # of exhibitors offer OEM services. At GPE 26, this trend continued. Strong, cumulative inflation has a widespread impact. We’ll continue to monitor the situation.

As we continue to drill ever deeper into the demographic Pet spending data from the US BLS, we have now reached the level of individual Industry segments. We will start with Pet Food, now the 2nd largest, but arguably the most influential. We have noted the trendy nature of Pet Food Spending. In 2018 we broke a 20 year pattern – 2 years up then spending goes flat or turns down. We expected a small increase in 2018 but got a $2.27B decrease. This was due to the reaction to the FDA warning on grain free dog food. The warning lost credibility and spending rebounded in 2019, +$2.35B. In 2020 the market was hit by a bigger outside influence – the pandemic. In Pet Food, it created a wave of panic buying and a $5.65B lift. The panic buying was over, so spending fell -$2.44B in 2021. In 2022 spending returned to more “normal” behavior with a strong $4.29B, +12.5% increase to $38.69B. In 2023, spending skyrocketed with a record $6.81B lift and reached $45.5B. In 2024, spending fell -$5.46B, -12.0% to $40.04B, now 2^nd to Veterinary. Let’s take a closer look.

First, we’ll see which groups were most responsible for the bulk of Pet Food spending and the -$5.46B decrease. The first chart details the biggest pet food spenders for each of 10 demographic categories. It shows their share of CU’s, share of pet Food spending and their spending performance (Share of spending/share of CU’s). To reach the 60% goal, 4 are different from Total Pet – Education, Occupation, Area and CU Size. The categories are presented in the order that reflects their share of Total Pet Spending. The big difference is that $70K> income has the smallest share of Food $. This difference is magnified in performance. Being Married is the most important factor in Food spending. In Total Pet and other segments, Income is the most important. Food spending is also more balanced than Total Pet Spending. This is evident by the fact that the Performance of only 5 groups exceeds 120%. In Total Pet there were 7. In 2024, Pet Food accounted for 62.6% of Pet Products $ and 33.7% of Total Pet $, down significantly from 66.4% and 38.7% in 2023. Pet Food is no longer the largest segment (Veterinary) but it is still very important & impactful to the Pet Industry.

1. Housing – Homeowners (81.3%) – up from 77.6%. Homeownership is a huge factor in pet ownership and pet spending. In 2024, homeowners gained share and their performance rose from 119.2% to 125.3%. They rejoined the 120% club and are tied for 4th in importance. Only w/o Mtge spent more, +$1.3B. W/Mtge were -$4.1B. The increase in share and performance was driven by a -$2.7B, -26.5% drop by Renters.
2. Race/Ethnic – White, not Hispanic (83.4%) – up from 79.9%. This large group accounts for the vast majority of spending in every segment. They gained share and their performance increased to 125.3% from 120.4%, but this category stayed #3 in terms of importance in Pet Food Spending. Hispanics, African Americans and Asians account for 33.9% of U.S. CU’s & they spend 16.6% of Food $, down from 20.1% in 2023. Only Asians spent more, +$0.55B. Whites were -$2.94B, -8.1%. Minorities were -$2.53B, -27.6%. This % disparity drove the share/performance lifts.
3. Area – Suburban + Rural (72.7%) down from 73.8%. Their performance fell from 112.7% to 112.0% and their importance dropped to #9, from #8. All segments spent less. The Suburbs had the biggest $ drop, -$2.73B and Center City had the smallest, -$1.01B. Overall, the drop was rather balanced.
4. Income – Over $70K (66.2%) – up from 61.0%. Their performance rose from 120.9% to 126.4% but they stayed 2nd in importance. High income is still very important in Pet Food Spending but is not at the top of the list. The 50/50 $ divide rose from $93K in 2023 to $98K in 2024 but it is still 6% below the average CU income. Only $40>49K, +$0.56B and 70>99K, +$0.53B spent more. The biggest drop was by <$40K groups, -$4.68B. The $100K> were all down, but the drop was only -$1.8B. The share and performance for $70K> strongly increased because they were only down  -$1.27B, -4.6%, while <$70K was -$4.19B, -23.6%.
5. # in CU – 2/3 people (60.0%) – up from 54.7%. Their performance also rose from 114.7% to 125.3% and their rank is now tied for 4th. Only 2 people CUs spent more, +$0.43B, +2.6%. In 2024, 2 & 3 People CUs spent -$0.88B, 3.5% less. In 2023 they spent $3.5B more – a big change. Singles led the way down with a -$3.09B, -29.9% decrease in Food spending. Together, 1,4 & 5+ were -$4.58B, -22.2%. This caused the big lifts in share & performance.
6. Occupation – Wage & Salaried + Self-employed (65.3%) – down from 66.9% – The group’s performance is even lower from 98.7% to 96.0%. Occupation is again last in importance. Only Mgrs/Prof, +$0.91B & All Other, Unemployed, +$0.14 spent more. The widespread spending decreases caused the drops in share & perform ance.
7. Education – Assoc. Degree> (67.0%) – up from 64.7%. Performance rose from 110.9% to 113.6% but higher education fell from 6th to 8th in importance. Only Associates & HS grads w/some college spent more. Assoc.> were -$2.61B, -8.9%. <Assoc. were -3.09B, -19.2%. This caused the lifts in share and performance.
8. CU Composition – Married Couples (64.0%) – up from 59.4%. They gained share and their performance rose from 123.3% to 133.3%. They stayed #1 in importance. Only Married, Couple Only & Child 18> CUs spent more. Married CUs were -$1.41B, -5.2%. All others were -$4.05B, -21.9%. This caused the Married Group’s big lifts.
9. # Earners – 2+ CU, 1 or 2 Earners (59.7%) – up from 57.4% Their performance also rose from 114.3% to 119.2% and they moved from 9^th to 6^th in importance. Only No Earner, 2+ CUs spent more, +$0.60B. The 1 or 2 Earners, 2+ CUs spent -$2.17B, -8.3% less. All other CUs were -$3.29B, -17.0%. This drove the lift in share & performance.
10. Age – 35>64 (60.0%) – up from 53.5%. Their performance rose from 102.5% to 115.8% & age moved up from #8 to #7 in importance. All but 45>64 spent less, the reverse of 2023. Age Share: 25>34: 13.9%; 35>44: 17.6%;45>54: 20.6%; 55>64: 21.8%; 65>74: 16.4%. 35>64 have the 3 highest incomes but there’s still some Balance!

The 4 top performers for Pet Food are the same as Total Pet. In 2023 there was a record lift that was widespread and more balanced. This is best illustrated by the fact that in 2023 the performance for only 3 groups exceeds 120% with the highest at 123.3%. In 2024, there was a huge drop and 120+% rose to 5, with the highest at 133.3%. To put the current balance situation into better perspective, we should note that in 2020 there were 8 at 120+%, 5 over 130%.

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

Almost all of the best and worst performers are the ones that we would expect. 2024 produced just 1 surprise winner – Married, + Adults in a repeat. There are 7 different winners from 2023 and 8 different losers. This total is 4 more than 2023, which had 6 new winners and 5 new losers. More new losers reflects the widespread nature of 2024’s huge decrease in Pet Food spending. Changes from 2023 are “boxed”. We should also note the performance gap between winner and loser widened in 9 of 12 categories. Overall, the average gap rose from 59.1% in 2023 to 77.4% in 2024. This is strong evidence of decreased spending balance. Here are some more performance specifics:

• Income – The winner & loser are new but expected. The gap stayed at 86% and is again below 100%.
• # Earners – Winner & loser are new. The loser has a very low income. The gap widened from 39% to 84%.
• Occupation – Blue Collar replaced Service Workers on bottom. The gap widened from 38% to 61%.
• Age, Generation – Gen X is now on top in both and Gen Z on the bottom. Both gaps widened. Age:+42%; Gen:+28%
• Race – The usual winner. African Americans replaced Asians on the bottom. The gap widened from 83% to 107%.
• Education – Both are new but, like income, very expected. The gap increased from 35% to 76%.
• Housing – Owning a home is always important. The usual winner & loser returned. The gap widened – 74% to 79%.
• Area – The usual winner/loser – Rural on top & Center City on the bottom. The gap narrowed a little 82% to 79%.
• Region – Both are new and this category also had a small decrease in the performance gap – 30% to 29%.
• CU Comp, CU Size – Comp: No change. Size: 2 replaced 3. Both gaps widened. Comp: +24%; Size: +15%

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

There are no repeats from 2023 and 17 flipped from 1^st to last or vice versa. Last year there were 4 repeats and 4 flips -much more turmoil in 2024. The Surprise winners were w/o Mtge, $40>49K, Asians, Associates, A/O and Center City. The surprising losers were Boomers, w/Mtge, Whites, BA/BS and Suburbs. Spending fell -12.0% as 82.3% of demographic segments spent less. (In 23, 87.5% spent more) Plus, there was no category where all segments had increases. (5 in 23) However, in 2024 in Area, all segments spent less. Here are the specifics:

• Generation – Gen X flipped to the top, replacing Millennials. Boomers are the new loser.
  • Winner – Gen X – Pet Food Spending: $12.91B; Up $1.48B (+13.0%)                                   2023: Millennials
  • Loser – Baby Boomers – Pet Food Spending: $13.24B; Down $3.31B (-20.0%)                 2023: Gen X
  • Comment – Much of the 2020>21 Pet Food spending boom and bust was due to the Boomers. Gen X took over the top spot in 21 & 22. In 2023, they had the only spending decrease. Millennials edged out Boomers for the win. In 2024, Gen X had the only Food lift. BTW – Millennials were -$2.0B.
• Housing – The winner and loser flipped.
  • Winner – Homeowners w/o Mtge – Food: $12.96B; Up $1.30B (+11.2%)                        2023: Homeowners w/Mtge
  • Loser – Homeowners w/Mtge – Food: $19.60B; Down $4.06B (-17.2%)                          2023: Homeowners w/o Mtge
  • Comment – Only Homeowners w/o Mtge spent more. Renters spent -$2.70B, -26.5% less. Like 2023, all changes were double digit %. However, all were positive in 2023. In 2024, that number fell to just 1.
• Age – The Winner and loser both flipped but the result was not surprising.
  • Winner – 45>54 yrs – Pet Food Spending: $8.23B; Up $0.78B (+10.4%)                                2023: 65>74 yrs
  • Loser – 65>74 yrs – Pet Food Spending: $6.58B; Down $2.42B (-26.9%)                               2023: 45>54 yrs
  • Comment: Only 45>64 spent more while <45 and 65> spent less. The lift was driven by Gen Xers while Millennials & Boomers drove the drop. This spending pattern is the exact opposite of 2023.
• CU Composition – The 2023 winner flipped to the bottom. The 2024 winner is new, but not surprising.
  • Winner – Married, Couple Only – Food: $12.66B; Up $0.65B (+5.4%)                                  2023: Singles
  • Loser – Singles – Food: $7.51B; Down $3.09B (-29.2%)                                                            2023: Single Parents
  • Comment – Only Married, Couple Only and those with a Child 18>, +$0.02B, spent more. All other CUs spent $4.7B less. Married, w/children were -$1.89B, but Singles had by far the biggest drop after their huge, +$2.96B, +38.8% increase in 2023.
• # Earners – No Earner, Singles flipped to the bottom. No Earner, 2+ CUs replaced them on top.
  • Winner –– No Earner, 2+ CUs – Pet Food Spending: $4.88B; Up $0.60B (+14.1%)                 2023: No Earner, Single
  • Loser – No Earner, Single – Pet Food Spending: $2.55B; Down $2.12B (-45.5%)                   2023: 3+ Earners
  • Comment – No Earner, 2+ CUs had the only spending increase. No Earner CUs were at the top & bottom. All CUs with any workers spent less on Pet Food.
• Income – Both the winner & loser flipped, and the winner is again a surprise.
  • Winner – $40>49K – Pet Food Spending: $2.66B; Up $0.56B (+26.5%)                                    2023: <$30K
  • Loser – <$30K – Pet Food Spending: $3.92B; Down $2.71B (-40.9%)                                        2023: $40 to $49K
  • Comment – Only the $40>49K & $70>99K groups spent more, +$1.09B. <$40K spent -$4.68B less, which was more than double the -$1.80 decrease by $100K>. All groups over $70K still have 100+% performance.
• Race/Ethnic – Both the winner and loser from 2023 flipped.
  • Winner – Asians – Pet Food Spending: $1.49B; Up $0.55B (+58.4%)                                         2023: White, Not Hispanic
  • Loser – White, Not Hispanic – Pet Food Spending: $33.40B; Down -$2.94B (-8.1%)             2023: Asian
  • Comment – The U.S. is becoming more racially/ethnically diverse, especially with Hispanics & African Americans but White, Not Hispanics are by far the biggest spender in every Pet Segment. Only Asians spent more, but the Minorities were still -$3.53B, -38.5%.
• Education – Both winner and loser flipped and are surprising.
  • Winner – Associate’s Degree – Food Spending: $4.55B; Up $0.54B (+13.4%)                       2023: BA/BS Degree
  • Loser – BA/BS Degree – Food Spending: $12.03B; Down $2.40B (-16.6%)                             2023: Associate’s Degree
  • Comment – Only Associate’s degrees and High School Grads with Some College spent more. The other <College groups were -$2.98B, -33.9%. Advanced Deg. were only -$0.75B, -6.8%, so College Grads were -$3.15B, -12.4%.
• # in CU – 1 Person flipped to the bottom and was replaced on top by 2 People.
  • Winner – 2 People – Pet Food Spending: $16.89B; Up $0.43B (+2.6%)                                 2023: 1 Person
  • Loser– 1 Person– Pet Food Spending: $7.51B; Down $3.09B (-29.2%)                                 2023: 4 People
  • Comment: Only 2 People CUs spent more. Singles were the big loser, but 3 & 4 People CUs both spent -$1.3B less. In fact, 2+ CUs were -$2.37B, -6.8%. Only 2, 3 & 5+ People CUs perform above 100%.
• Occupation – Both winner & loser are new. The Winner, All Other, Not listed includes Unemployed was surprising.
  • Winner – All Other, Not Listed – Pet Food Spending: $4.79B; Up $0.34B (+7.7%)                2023: Retired
  • Loser – Tech/Sls/Clerical – Pet Food Spending: $5.45B; Down $1.49B (-25.8%)                    2023: Mgrs/Professionals
  • Comment – Only A/O, Unemployed spent more. Self-employed were -$0.64B, -17.5%; Retirees were -$1.48B, -14.0% and All Wage & Salary Workers were -$3.68B, -13.7%.
• Region – The South flipped from last to 1^st and the Northeast replaced them on the bottom.
  • Winner – South – Pet Food Spending: $14.96B; Up $0.15B (+1.0%)                                            2023: West
  • Loser – Northeast – Pet Food Spending: $6.22B; Down $2.38B (-27.7%)                                   2023: South
  • Comment – Only the South spent more. The drop by the Midwest, -$2.37, was virtually equal to the Northeast.
• Area Type – The Winner and Loser both flipped.
  • Winner – Center City – Pet Food Spending: $10.90B; Down $1.01B (-8.4%)                            2023: Suburbs;
  • Loser – Suburbs 2500> – Center City: $17.23B; Down $2.73B (-13.7%)                                    2023: Ctr City/Rural – Tie          
  • Comment – In an unusual situation, all segments spent less. In 2023 Center City tied for the bottom, despite a $1.86B lift. In 2024, they won with a -$1.01B drop. Rural was -$1.73B, -12.7%.

We’ve now seen the “winners” and “losers” in terms of increase/decrease in Pet Food Spending $ for 12 Demographic Categories. In 2020, very specific segments binge bought Pet Food. In 2021, their pets “ate up” the overstock so Pet Food spending fell. 2022>23 brought a new challenge, strong inflation. However, most of America remains firmly committed to high quality Pet Food. Super premium Food already had high prices, so income is still very important in Pet Food spending. The 2023 result was 87.5% of all demographic segments spent more which drove a record lift of $6.81B, +17.6% to $45.5B. 2024 was a different story. 82.3% of demographics spent less. The result was $40.04B in spending, -$5.46B, -12.0%. We have identified the winning segments in performance and $ increase but they were not alone. Not every good performer can be a winner. Some “hidden” segments should also be recognized for their performance. They don’t win an award, but they get…

HONORABLE MENTION

Because the drop was so widespread, the possible members of this group was very limited. With 5 different categories, the group was diverse. The lifts were small, under 10% with 4 under 4%. No young groups were included. The Gen X/Boomer 55>64 yr olds spent $0.23B more. The biggest % lift came from the urban  1>2.5M people group. They are the only <100% performer, which is unusual. The smaller urban area with 100>249K people also spent $0.10B more, not unexpected in Food. A college degree mattered less as HS Grads w/some college spent more. Marriage & children matter as those with a child 18> had a miniscule, +$0.02B lift. Income matters in Pet Food spending, but the below avg $70>99K group had the biggest increase, +$0.53B. However, we should note that 3 segments had above avg income and 3 were below  avg. The group is definitely diverse.

Summary

Pet Food has been ruled by trends over the years. The drop in 2018 due to the FDA grain free warning broke a 20 year pattern of 2 years up followed by 1 year of flat or declining sales. This trendy nature increased with the move to premium foods in 2004. The 2007 Melamine crisis resulted in a series of “waves” which became a tsunami with the introduction of Super Premium Foods. The 25 to 34 yr old Millennials were the first to “get on board” with Super Premium in the 2^nd  half of 2014. In 2015, many more groups began to upgrade. The result was a $5.4B spending lift. These consumers were generally more educated with higher incomes. Unfortunately, they often paid for the upgrade by spending less in other segments. In 2016, spending dropped as many value shopped, especially online. They spent some of the $3B “saved” Food $ in other segments but not enough so Total Pet Spending was down -$0.46B. In 2017, due to a price competitive market, we got a deeper penetration of Super Premium. These upgraders were mostly middle-income and not college educated. The result was a $4.6B increase but this time there was no trading of segment $.

In 2018 we were “due” a small annual increase in Pet Food, but spending fell $2.26B in reaction to the FDA warning on grain free dog food. The big decrease came directly from the groups who had fueled the 2017 increase. In fact, 71% of the demographic groups with the biggest change in Pet Food $ switched from first to last or vice versa from 2017.

That brought us to 2019. The FDA warning was false, so Pet Parents returned to Super Premium or even pricier options. Supplement $ also grew as the health of their Pet Children remained the #1 priority. Pet Food $ grew $2.35B with 75% of demographic segments spending more. Income and related categories mattered more, and Pet Food Spending became less demographically balanced. In 2020 the Pandemic accelerated this trend. Fear of shortages led to binge buying and a $5.65B increase. This behavior was driven by very specific groups. This spending disparity was manifested in the fact that the performance of 8 of 10 big spending groups exceeded 120% while 49% of all segments spent less.

In 2021, the retail market strongly recovered but the turmoil in Pet Food continued. The 2020 binge buying didn’t increase usage, so Pet Food spending fell by $2.44B. Every segment with the biggest increase in 2020 had the biggest decrease in 2021. The resulting drop in $ hid the fact that 65% of all demographic segments spent more on Pet Food.

In 2022 the situation returned to a more normal, balanced pattern in spending. Pet Parents renewed their commitment to high quality food for their children. Despite strong inflation, 82% of demographic segments increased spending generating a $4.29B (+12.5%) lift and reaching a new record high of $38.69B – even exceeding the 2020 binge by $1.85B.

In 2023 inflation grew to +10.6%, but spending was +$6.81B, a record. The lift was widespread. In 5 categories, all spent more and overall,  87.5% of demographics increased spending. 2023 was also more balanced as only 3 big groups performed over 120% and the best/worst discrepancy fell from 73.5% to 59.1%. 2023 was a great year for Pet Food.

In 2024, inflation plummeted to 0.2%, but so did Pet Food spending, -$5.46B, -12.0% to $40.04B. They are now the 2nd largest segment, behind Veterinary. The drop was widespread as 82.3% of demographics spent less and in the Area category, all segments were down. Spending  was also less balanced, as 5 big groups performed over 120%, up from 3 and the best/worst performance discrepancy rose from 59.1% to 77.4%. 2024 was a bad year for Pet Food.

Finally – The Ultimate Pet Food Spending CU is 3 people – a married couple and 1 other adult. They are 45>54 yr-old Gen Xers, White, but not Hispanic. At least one has an Advanced Degree and both work in their own business. This generates an income of $200K>. They are still paying the mortgage on their house in a rural area <2500 in the West.

It’s time to continue with 2026 inflation. The Consumer Price Index peaked back in June 2022 at 9.1% then began to slow until it turned up in Jul/Aug 2023. Prices fell in Oct>Dec 23, then turned up Jan>Oct 24 but fell in Nov. However, they rose 10 straight months to a record high in Sep 25, fell Oct>Dec, then rose in Jan/Feb (New Records). The February CPI vs last year stayed at +2.4% because of a similar Jan>Feb lift in 25. Grocery prices rose 0.5% from Jan to a new record and their YOY inflation rose to 2.4% from 2.1%. 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 Dec 21 while the overall CPI was +7.0%. The gap narrowed as Petflation accelerated. It was 96.7% of the national rate in June 22. National inflation has slowed considerably, but Petflation generally increased until June 23. It passed the CPI in July 22, fell below it from Apr>Jul 24. It passed the CPI in Aug, fell below in Sep>Oct, rose above in Nov, fell below in Dec>Aug 25, then passed it in Sep>Oct & Dec>Feb 26. 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 26 vs 25 which will include Pet Segments and relevant Human spending categories. Plus
  1. CPI change from the previous month.
  2. Inflation changes for recent years (25>26, 24>25, 23>24, 22>23, 21>22, 20>21, 19>20, 18>19)
  3. Total Inflation for the current month in 2026 vs 2019 and vs 2021 to see the full inflation surge.
  4. Average annual Year Over Year inflation rate from 2019 to 2026
• 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 Feb 24 to Feb 26. 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 from 12 and 24 months earlier are included. We also included and highlighted (pink) the cumulative price peak for each segment. In Feb, Total Pet prices were up 0.7% from Jan. All segments were up. Services (+1.3%), Supplies (+0.9%), Food (+0.5%), Vet (+0.3%).

In Feb 24, the CPI was +20.8% and Pet was +22.7%. The Services segments inflated after mid-20, while Product inflation stayed low until late 21. In 22, Food prices grew but the others had mixed patterns until July 22, when all rose. In Aug>Oct Petflation took off. In Nov>Dec, Services & Food inflated 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, Supp. & Vet  drove prices up. In Jan>Mar 24 Pet prices grew. 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 Sep, Products fueled a drop. In Nov all were up. Prices dropped in Mar & Oct>Nov 25, but all set records in Dec and/or Jan/Feb 26.

• U.S. CPI – Inflation was below 2% through 2020. It turned up in January 21 and grew until flattening out in Jul>Dec 22. Prices rose Jan>Sep 23, fell Oct>Dec, rose Jan>Oct 24, fell Nov, rose Dec>Sep 25, fell Nov>Dec, but hit record highs in Jan/Feb. 25% of the lift since Dec 19 happened from Jan>Jun 22 – 8% of the time.
• Pet Food – Prices were at the Dec 19 level Apr 20> Sep /21. They grew & peaked May 23, then got on a roller which continues Jun/Jul↑, Aug↓, Sep↔, Oct/Nov ↓, Dec>Feb 26↑ – a new record. 93% 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 & stayed there until 22. They turned up in Jan (record). They plateaued Feb>May, grew in June, flattened in July, then turned up in Aug>Oct to a new record. Prices stabilized Nov>Dec, grew Jan>Feb 23. fell in Mar, but the roller coaster hasn’t stopped. Jan>Feb 25↓, Mar>May↑, Jun↓, Jul↑, Aug↓, Sep↑, Oct>Nov↓, Dec↑(record), Jan↓, Feb↑. Prices are now only 0.1% below the Dec 25 record high.
• 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 roller coaster. They turned up Jul>Apr 23, fell May. Jun>Aug↑, Sep>Dec↓, Jan>Mar 24↑, Apr↓, May↑, Jun↓, Jul>Nov↑, Dec>Mar 25↓, Apr>Aug↑, Sep↓, Oct>Feb 26↑(record).
• 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/Jun 22 prices fell below the CPI. However, they rose again & have been above the CPI since July 22. In 23>25 prices grew Jan>May, leveled Jun/Jul, fell Aug, grew Sep>Dec, fell Jan, grew Feb>May, fell Jun>Jul, grew Aug 24>Sep 25, fell Oct>Nov, grew Dec>Feb 26. (records)
• 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 Jul>Nov, slowed Dec, grew Jan>May 23, fell Jun>Aug, grew Sep/Oct, fell In December prices grew through Mar 24 to a record high. Prices fell in April, rose May>Jun, fell Jul>Sep, rose Oct>Nov, fell Dec, rose Jan>Feb 25, fell Mar, grew Apr>Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec>Feb (record)

Next, we’ll turn our attention to the Year Over Year inflation rate change for February and compare it to last month, last year and to previous years. We will also show total inflation from 21>26 & 19>26. Petflation rose from 2.5% to 3.5% in Sep, fell to 2.6% in Nov, then rose to 3.5% in Dec. In Feb it is 3.3% and 37.5% above the National CPI. The chart will allow you to compare the inflation rates of 25>26 to 24>25 and other years but also see how much of the total inflation since 2019 came from the current surge. We’ve included some human categories to put the pet numbers into perspective.

Overall, prices were up 0.5% from January and were +2.4% vs Feb 25, the same as last month. Grocery prices rose 0.5% and inflation rose to +2.4% from 2.1%. No price decreases from last month. In Dec & Jan there was 1. In Nov there were 6 drops – a big change. The national YOY monthly CPI rate of 2.4% is down 14% from 24>25 but it’s 70% less than 21>22. However, the 25>26 rate is above 24>25 for all others but Veterinary Services. In our 2021>2025 measurement you also can see that over 80% of the cumulative inflation since 2019 has occurred in all but 3 segments, Haircuts, Medical & Veterinary Services. Except for Pet Services, where prices have surged Service Segments have had higher inflation rates so there was a smaller pricing lift in the recent surge. Pet Products have a very different pattern. The 21>26 inflation surge provided 98% of their overall inflation since 2019. This happened because Pet Products prices in 2021 were still recovering from a deflationary period. Services expenditures account for 64.0% of the National CPI so they are very influential. Their current CPI is +3.1% while the CPI for Commodities is 1.2%. This clearly shows that Services are driving almost all of the current 2.4% inflation. The situation in Pet is just as bad. Petflation: 3.3%. The CPI for the 2 Service Segments is 5.1%. The Pet Products CPI is 1.9%.

• U.S. CPI– Prices are +0.5% from Jan. The YOY increase is 2.4%, the same as Jan. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are now 20+% higher than the target. The stability follows a lift in Jan, stability in Dec and 2 drops in Oct & Nov. The current rate is below 24>25 but the 21>26 rate is +24.2%, 82.6% of the total inflation since 2019. The Inflation surge hadn’t started in February 2021, +1.7%
• Pet Food– Prices are +0.5% vs Jan. and +1.4 vs Feb 25, the same as Jan. They are still 42% below the Food at Home inflation rate of +2.4%. Remember that the YOY Pet Food CPI has deflated in 15 of the last 24 months. The 2021>2026 inflation surge has generated 92.5% of the 26.7% inflation since 2019. Inflation began for Pet Food in June 2021, +0.9%, after 12 straight deflationary months. Pet Food prices just reached a new record high.
• Food at Home – Prices are up +0.5% from Jan and the YOY increase rose from 2.1% to 2.4%. This is radically lower than Jul>Sep 2022 when it exceeded 13%. The 31.7% Inflation for this category since 2019 is 8% more than the national CPI but is only in 5th place behind 3 Services expenditures and Total Pet. 82.6% of the inflation since 2019 occurred from 2021>26. This is the same as 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 +0.9% from January and YOY inflation rose to +1.8% from 0.2%. They still have the lowest rate vs 2019. Prices were deflated for much of 20>21. As a result, the 2021>26 inflation surge accounted for 113.5% of the total price increase since 2019. Prices set a record in Oct 22 then deflated. 3 lifts pushed them to a record high in Feb 23. Prices fell in Mar & the roller coaster continued into 25. They fell Jan/Feb 25, rose Mar>May, fell Jun, rose Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec (record), fell in Jan, rose Feb – only 0.1% below a record.
• Veterinary Services– Prices are +0.3% from Dec and +5.3% from 2025, down from 7.4%. They fell to #2 in inflation vs last year, behind Pet Serv. but are still #1 in the increase since 2019, +55.2% and 21, +42.5%. For Veterinary, high annual inflation is the norm. However, the rate has increased during the current surge, especially since 23. They have the highest Feb avg rate in 26, but only 77% of the cumulative inflation since 2019 occurred from 2021>26.
• 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 +0.5% from Jan and inflation vs last year rose to +4.1% from +3.9%. Medical Services are not a big part of the current surge as only 58.3% of the 23.0%, 2019>26 increase happened from 21>26.
• Pet Services – Inflation slowed in 20 but grew in 21. In 24 prices surged , especially in Jul>Nov. Prices fell Dec>Mar 25 to 3.9%. Apr grew, May fell, June rose, Jul rose to 6.3%. Inflation fell to 5.8% in Aug & to 4.2% in Nov. In Dec>Feb 26 it rose to 7.3%. They are #1 vs 25 & #2 vs 21 & 19. 84% of their 19>25 inflation is from 21>26.
• Haircuts/Other Personal Services – Prices are +0.3% from Jan and +4.9% from Feb 25. 19 of the last 26 months have been 4.0+%. Inflation has been pretty consistent. 69.6% of the 19>26 inflation happened 21>26.
• Total Pet– Petflation slowed to 3.3% from 3.4%. Only 4 Services categories had a higher rate. It is 37.5% above the 24>25 rate and the current U.S. CPI. Plus, it is 10% above the 3.0% average February rate since 1997. Feb prices rose 0.7%, driven by all. The Jan>Feb increase was well above the 0.4% 97>25 average change but expected. Since 1997, there has been only 1 Jan>Feb price drop, -0.1% in 2018. The big factor in the small CPI drop was that prices rose 0.8% in Jan>Feb 25. The recovery definitely slowed.

Now, we’ll look at YTD data.

The 25>26 rate is higher than 24>25 for all, but Veterinary Services & The CPI. The 22>23 inflation rate was the highest for Tot Pet, Pet Food, Groceries, Pet Services & Vet. 21>22 has the highest rate for Pet Supplies & the Natl CPI. 20>21: Haircuts; 19>20: Medical Services. The average national inflation rate in the 7 years since 2019 is 3.7%. Only 3 of the categories are below that rate – Medical Services (3.0%), Pet Supplies (1.8%) and Pet Food (3.5%). It is no surprise that Veterinary Services has the highest average rate (6.5%), but all 4 other categories are +4.0% or higher.

• U.S. CPI – The 25>26 rate is 2.4%, down 17% from 24>25 and 23% from 23>24, but is 68.6% less than 21>22 and 35.1% below the average increase from 2019>2026. However, it’s still 33% more than the average increase from 2018>21. 83% of the 29.2% inflation since 2019 occurred from 2021>26. Inflation is a problem that started recently.
• Pet Food – Ytd prices are still inflating, 1.4%, the same as Jan. That’s a big increase from -0.3% in 24>25, but it is still below 3.7% in 23>24 and even the 2.1% 18>20 average. Pet Food has the highest 22>23 rate but is only #6 in the 21>26 rates and #7 in 19>26. Deflation in the 1^st half of 2021 kept YTD prices low then they surged in 22 and especially in 23. 91% of the inflation since 2019 occurred from 2021>26.
• Food at Home – The 25>26 inflation rate is +21% vs the 24>25 rate, but at 2.3%, it is down 89% from 22>23, 71% from 21>22 and even 36% less than 20>21. However, it is 2.7 times higher than the average rate from 2018>20. It is only in 5th place for the highest inflation since 2019 but still beat the U.S. CPI by 8.2%. You can see the impact of supply chain issues on the Grocery category as 82% of the inflation since 2019 occurred from 2021>26.
• Pets & Pet Supplies – A true roller coaster, prices rose Jan>Feb 24, fell Mar>Apr, rose May>Jun, fell July, rose Aug, fell Sep>Oct, rose Nov>Dec, fell Jan>Feb 25, then rose Mar>May. Prices vs 24 flipped to deflation in June, back to +0.7% in July, fell to 0.0% in Aug, rose Sep>Dec, fell Jan 26, rose Feb. Supplies still have the lowest inflation since 2019. Their biggest YOY lifts since 2019 were in 22 & 23. The 2021 deflation created an unusual situation. Prices are up 13.0% from 2019 but 113% of this lift happened from 21>26. Prices are up 14.7% 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 2026, +6.3%, the 2^nd  highest on the chart. However, they are still #1 in inflation since 2019 and since 2021. At +6.5%, they have the highest average inflation rate since 2019. It is 76% higher than the National Average but 2.2 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. In Feb 2026 it is 4.0%, 33% above the 3.0% 2019>26 average rate. We should also note that 4.0% is 5 times higher than the 0.8% low point in 23>24.
• Pet Services – After falling in late 2023, prices surged in 2024, then fell in 2025 until an Apr>Aug lift followed by a Sep>Nov dip and a Dec>Feb 26 lift. The 25>26 6.5% CPI is #1 on the chart, passing Veterinary. It is 30% above their 19>26 avg and more than double their 2018>20 avg. Pet Services is also 2^nd in both 19>26 and 21>26 inflation.
• Haircuts & Personal Services – The services segments, essential & non-essential, were hit hardest by the pandemic. The industry responded by raising prices. 2026 inflation is 4.9%, 12.5% below its 20/21 peak, but 48.5% above the 18>20 average. Consumers are paying over 35% more than in 2019, which usually reduces the purchase frequency.
• Total Pet – Petflation is 3.4%, up 54% from 24>25, but 17% less than 23>24. However, It’s 50 % more than their 18>21 avg and 42% above the CPI. Petflation is growing again. Except for Mar/Aug/Oct/Nov, Pet prices rose in 25, which continued in Jan & Feb 26. This is primarily being driven by a cessation of deflation in Pet Products and continued strong inflation in Services, especially Non-Vet.

The Petflation recovery paused in Aug 24, came back Sep>Oct, paused in Nov, resumed in Dec>Jan 25, paused in Feb, restarted in Mar and paused Apr>Sep. It improved in Oct/Nov but paused in Dec>Feb. We tend to focus on the monthly, YOY inflation in the current year and ignore the fact that inflation is cumulative. Pet prices are 28.1% above 2021 and 33.1% higher than 2019. Those are big lifts. In fact, February prices are within 0.1% of the record for Pet Supplies, while the prices for the National CPI, Total Pet and all other pet segments reached record levels. Only Supplies prices (+13.0%) are less than 26.8% 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 continue to see a reduction in visit frequency. The product segments will see a more complex reaction. Supplies are more discretionary so we will likely see a reduction in purchase frequency. In Pet Food, the most needed segment, some Pet Parents may even downgrade their Pet Food. However, the biggest impact in both product segments will be a strong movement to online purchasing and private label. We saw proof of this at both GPE 25 & SZ 25 as a huge # of exhibitors offer OEM services. At GPE 26, this trend will continue. Strong, cumulative inflation has a widespread impact. We’ll continue to monitor the situation.

Total Pet Spending in the U.S. was $118.87B in 2024, a $1.27B (1.1%) increase from 2023. These figures and others in this report are calculated from data in the annual Consumer Expenditure Survey conducted by the US BLS. 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. 2024 was a big change. Again Services & Supplies had small lifts & the Vet increase was huge but together they just barely made up for the -$5.5B drop in Food to generate a 1.1% Total Pet $. This is mediocre but the real situation was even worse. Petflation fell from 8% in 23 to 2.6% in 24. The 1.1% lift was really a -1.5% drop in amount sold. 2024 deserves a closer look!

The first question is, “Who is spending most of the $118.87 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 2024.

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 7 groups with 120+% performance.

There were 4 group changes from 23. Urban, 2>4 CUs, 1 or 2 Earner CUs & 35>64 replaced Suburb/Rural, 2+ CUs, Everyone Works & 35>74. There were also changes in the numbers and rankings. No category in 2024 is ranked the same as in 2023. In 2024, 7 made the 120%+ club, up from 5 in 22 & 23. CU Size & # of Earners were added to the group. Formal higher education & marriage matter, but higher income remains the single most important factor in Total Pet Spending.

1. Housing – Homeowners (81.6%) up from 81.2%. Controlling your “own space” is a key to larger pet families and more pet spending. 2024 was a good year for Homeowners, with & without Mtges. Homeowners spent $3.3B more and the group’s performance rose from 122.4% to 125.7%. A big factor in the increase was a $2.02B drop in spending by Renters. Homeowners moved up from 5^th place to 4^th in importance. There were some minor changes and the homeownership rate fell slightly from 65.1% to 64.9%. Those w/o a Mortgage rose from 27.3% to 28.0%.
2. Race/Ethnic – White, not Hispanic (81.3%) down from 82.5%. This is the 2nd largest group in size and in share of Pet Spending. Their performance was down from 124.4% to 123.0% and they dropped from #4 to #6 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 – 0.52% vs a national average of 1.12%.
3. Area – Urban: Suburban/Ctr City (80.8%) down from 81.0%. Homeownership is high in the Suburbs but low in the city. The Suburbs had a -0.72% drop in CUs. Center City gained +0.52% and Rural was +2.0%.This combination pushed Urban performance up from 91.3% to 93.1%. Center City still has the worst performance at 82.4%
4. Income – Over $70K (74.2%) up from 70.0%. They gained share and their performance grew to 141.8% from 138.6%. A factor in the disparity was a 4.6% lift in $70K> CUs. CU income is still the most important factor in increased Pet Spending. Spending was up for all groups $40>99K & $150K>. $150K> had the biggest lift, +$5.5B, over 13%. $70K> was up +7.2%. Income matters. $100K>: 37.9% of CUs, 59.4% of Pet $. $150K>: 21.7% of CUs, 39.5% Pet $
5. # in CU – 2>4 people (72.5%) up from 69.8%. Singles still have by far the worst performance. In 2024, there was a slight 0.3% drop in single & 5+ CUs, but they spent 7.9% less on their pets. At the same time, 2>4 people CUs spent 5.0% more. This explains the big lift in share and a strong performance of 120.4%.
6. Occupation – All Wage & Salary Earners (65.7%) up from 64.7%. Their performance also rose slightly from 106.2% to 106.3%. Only Managers/Professionals & “All Other” spent more on their pets in 2024. Even Retirees and Self-Employed spent less on their pets in 2024, while both had double digit % increases in 2023. With a $5.85B lift, Mgrs & Profess. were the drivers behind in the slight improvement in 2024. BTW: “All Other”, includes unemployed and those not working because of illness or attending school.
7. Education – College Grads (64.1%) up from 60.6%. 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 2023/24, big lifts in the Veterinary segment returned Grads to the list. Their 2024 performance rose from 126.7% to 133.3% and they are now #2 in importance. In Education, only <Assoc’ Degree spent less. The gain in share and in performance came entirely from those with a formal after HS degree.
8. CU Composition – Married Couples (63.8%) up from 61.4%. 2 people, committed to each other, is an ideal situation for Pet Parenting. In 2024, they gained share and their performance rose from 127.4% to 132.9%, but they fell to 3rd place in importance behind Income & College Grads. Their increases in share and performance were due to big spending increases by Couples Only and CUs with a child over 18.
9. # Earners – 2+ CUs, 1 or 2 Earners (61.7%) up from 58.4%. These are 2+ people CUs where 1 or 2 adults are employed. They gained share and their performance rose from 116.3% to 123.2%. They joined the 120+% club but are only the 5^th most important category. Income is important but # of Earners is less so. Only 2 Earners spent more. The lifts were entirely due to a $5.97B increase by 2 Earner CUs.
10. Age – 35>64 (61.6%) up from 58.6%. They gained share and their performance rose from 112.3% to 118.9%. Only the 35>54 & 75+ Age groups spent more but the lift of the 45>54 group was the biggest, $3.0B. The <25 and 65>74 groups had the biggest drops. Due to the big lift from 45>54, the group was reduced from 35>74. However, Pet Spending is still relatively balanced by age group and age stayed 8^th in importance.

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 but Supplies we altered at least 1 group (4 in Pet Food) to better reflect where most of the business is coming from. There was turmoil & less balance, but in 2024 Total Pet Spending was still positive.

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. In 23/24 the only affected segments were Food & Vet. All segments but Food had at least a small increase in 2024, but the spending turmoil continued.

Now, let’s drill deeper and look at 2024’s best and worst performing segments in each demographic category.

Most of the best and worst performers are expected but there are 4 winners & 2 losers that are different from 2023 – 1 less loser than last year. The situation is definitely becoming more normal. Changes from 2023 are “boxed”.

• Income is important in Pet Spending, which is shown by the 190.5% performance by the $200K> group and wins by the high income 2 Earners, Mgrs/Prof, Adv College Degrees & Gen X. All groups over $100K performed at 100+%.
• Occupation – Tech/Sls/Cler, Mgrs/Professionals & Self-Employed are still the only occupations with 100+% performance. Blue Collar (59.8%) replaced Service Workers at the bottom.
• Age/Generation: Gen X won again but spending moved towards their younger members. <25 moved to the bottom
• Region – The West stayed on top. The Midwest also had 100+% performance.
• CU Size/Composition – The importance of marriage was maintained with wins by 2 People and couples with an Oldest Child 18>. Single Parents stayed on the bottom. The “magic” CU number continues to fall – from 3 to 2.

The winners reflect the continued move back towards more normal spending patterns, but from slightly younger CUs. In the next section we’ll look at the segments which literally made the biggest difference in spending in 2024.

We’ll “Show you the money”! This chart details the biggest $ changes in spending from 2023.

In 2023 there were 6 categories in which all segments spent more. In 2024, there were none. However, there was a little more stability. 6 segments held their spot from 2023 and 5 flipped from 1^st to last or vice versa.  In 2023, 4 segments were stable and 3 flipped. 75% were different from last year, considerably less than 83.3% in 2023 and 87.5% in 2022. We should also note that with 2.6% inflation, the 1.1% Total Pet lift was really a -1.5% drop.

• # Earners – Only 2+ CUs with 2 Earners or No Earner spent more.
  • Winner – 2 Earners, 2+ CU – Pet Spending: $53.53B; Up $5.97B (+12.6%)                                       2023: 2 Earners, 2+ CU
  • Loser – 1 Earner, Single – Pet Spending: $14.05B; Down -$1.76B (-11.1%)                                         2023: 3 Earners
  • Comment – Other Big Drops – No Earner, Singles: -$1.59B; 1 Earner, 2+CU: -$1.32B
• Occupation – Both the Winner & Loser are new.
  • Winner – Managers & Professionals – Pet Spending: $46.93B; Up $5.85B (+14.2%)                      2023: Retired
  • Loser – Tech/Sales/Clerical – Pet Spending: $16.15B; Down -$2.14B (-11.7%)                                  2023: Blue Collar
  • Comment– Unemployed/All other had the only other increase, +$0.92B.
• Generations – With a lift in all segments, the highest income Gen Xers returned to the top of the chart.
  • Winner – Gen X – Pet Spending: $39.88B; Up $4.51B (+12.8%)                                                             2023: Millennials
  • Loser – Baby Boomers – Pet Spending: $33.55B; Down -$5.71B (-14.5%)                                           2023: Born <1946
  • Comment – Millennials had the 2^nd biggest lift and Gen Z had the only other drop besides Boomers.
• Education – A clear divide – Associate’s degree & above spent more. All others spent less.
  • Winner – Advanced Degree – Pet Spending: $38.14B; Up $4.43B (+13.1%)                                      2023: BA/BS Degree
  • Loser – HS Grad w/some College – Pet Spending: $16.73B; Down -$1.84B (-9.9%)                       2023: Associate’s Degree
  • Comment – The lift for BA/BS (+$0.55B) & Assoc. degree (+$0.20B) were small. The 2^nd  biggest drop (-$1.66B) was by those w/o a High School Diploma. College matters. Only College Grads have 100+% performance.
• Region – The South flipped from last in 23 to 1^st in 24.
  • Winner – South – Pet Spending: $40.62B; Up $4.24B (+11.6%)                                                            2023: Northeast
  • Loser – Midwest – Pet Spending: $25.38B; Down -$2.72B (-9.7%)                                                       2023: South
  • Comment – The South was up in all segments. The Midwest was down in Products but up in Services. There were 2 Regions that spent more and 2 that spent less. Northeast: +$1.13B; West: -$1.38B.
• CU Composition – The importance of marriage in Pet Spending was reinforced.
  • Winner – Married, Child 18> – Pet Spending: $14.858; Up $3.96B (+36.4%)                                  2023: Married, Couple Only
  • Loser – Singles – Pet Spending: $20.50B; Down -$3.35B (-14.0%)                                                       2023: Single Parent
  • Comment – Only Married, Couple Only or those with no children <6 spent more. All others spent less. Married, Couple Only had the 2^nd biggest lift: +$1.45B; #2 Drop was Married w/others: -$1.09B.
• # in CU – 2 People is a repeat winner, but 1 Person replaced 4 People on the bottom.
  • Winner – 2 People – Pet Spending: $48.68B; Up $3.56B (+7.9%)                                                        2023: 2 People
  • Loser – 1 Person – Pet Spending: $20.50B; Down -$3.35B (-14.0%)                                                    2023: 4 People
  • Comment: Only 1 & 3 people CUs spent less. 3 People were -$0.85B. The bigger CUs had increases. 4 People were the 2^nd best, +$1.35B (+9.2%); 5+ People: +$0.54B (+4.6%).
• Income – $200K> is a repeat winner but the lowest income group is now the biggest loser.
  • Winner – $200K> – Pet Spending: $27.59B; Up $3.18B (+13.0%)                                                        2023: $200K>
  • Loser – <$30K – Pet Spending: $8.42B; Down -$2.92B (-31.9%)                                                            2023: $40>49K
  • Comment – All incomes $40K>, but $100>149K had spending lifts. All <$40K spent less. $150>199K had the 2^nd largest lift, +$2.36B, but $70>99K was also +$1.09B. $30>39K was -$2.16B. All performances $70K> =100+%
• Age – The 2023 winner and loser both flipped in 2024.
  • Winner – 45>54 yrs – Pet Spending: $25.53B; Up $3.02B (+13.4%)                                                     2023: 65>74 yrs
  • Loser – 65>74 yrs – Pet Spending: $17.01B; Down -$2.70B (-13.7%)                                                     2023: 45>54 yrs
  • Comment: Only 25>54 & 75+ had lifts. The #2 lift was +$1.32B by 35>44. The #2 drop was -$1.32B by <25.
• Housing – Homeowners w/Mtge returned to the top, but Renters replaced those w/o Mtge on the bottom.
  • Winner – Homeowner w/Mtge – Pet Spending: $65.24B; Up $1.80B (+2.8%)                                2023: Homeowner w/Mtge
  • Loser – Renters – Pet Spending: $21.92B; Down -$2.02B (-8.4%)                                                        2023: Homeowner w/o Mtge
  • Comment – Homeowners w/Mtge returned to their usual spot on top. Renters took their expected place as the big loser. We should note that Homeowners w/o a Mtge were up $1.49B, +4.9%.
• Area Type – Both winner and loser held their positions for the 3^rd straight year.
  • Winner – Suburbs 2500> – Pet Spending: $55.09B; Up $2.78B (+2.6%)                                           2023: Suburbs 2500>
  • Loser – Rural Areas <2500 – Pet Spending: $29.44B; Down -$1.23B (-4.0%)                                  2023: Rural Areas <2500
  • Comment – The same winner and loser for 3 consecutive years – stability. However, 2024 was a little different. For the 1^st time since 2021, the loser had a drop in spending. Note: Center City had a $1.12B (+3.4%) lift.
• Race/Ethnic – After stability in 2023, the Winner and Loser flipped in 2024.
  • Winner – Asians – Pet Spending: $3.92B; Up $0.73B (+22.8%)                                                             2023: White, Not Hispanic
  • Loser – White, Not Hispanic – Pet Spending: $96.58B; Down -$0.48B (-0.5%)                              2023: Asian
  • Comment – Only Whites spent less. Hispanics were up $0.61B (+5.2%). African Amer. were +$0.40B (+7.1%).

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

2024 was not a good year for segments that are usually at or near the bottom in Pet Spending. Most stayed there but a few did well. Millennials are high profile, but they didn’t win. Their $2.7B lift should be noted. The oldsters, 75+ are still around and pet committed as shown by their 10.5% spending lift. Homeowners w/o Mtges had a 69% bigger % lift than those w/Mtge. African American have low income and low pet ownership, but they found a way to spend more on all but food. The below avg $70>99K income group makes few headlines but they spent $1.09B more on their pets. Center City has a lot of people but fewer pets due to less space. They are down in Products but a big lift in Veterinary & Services pushed them up $1.12B. Our thanks go to all 6.

Summary

We’ll start with recent history. Pet Spending reached $78.60B in 2018, a $14.28B, +22.2% lift from 2014. It was not a steady rise, Spending fell in 2016 and each segment had at least one down year. There were a number of driving factors  Positives: The move to super premium foods and the increase in Services outlets. Negatives: Value shopping, trading segment $ and outside influences like the FDA Dog Food warning and tariffs on Supplies. Inflation/deflation was also a factor in some cases.

In 2019, there was a -$0.16B (-0.2%) decrease, driven by a big drop in Supplies $ due to Tarifflation. Almost all buyers were affected & Supplies $ fell below 2014. Services $ also fell due to value shopping. 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, big lifts in Food & Services overcame binge drops in Vet and Supplies and produced a 2.7% increase in  $. 72% of 96 demographics spent more, down from 83% in 2021. Spending became  more balanced with strong performances from <College, Blue Collar, African Americans & 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 spent the most Pet $ per CU.

2024 was mediocre. A big increase in Vet spending along with small lifts in Supplies & Services barely overcame a big drop in Pet Food producing a $1.27B, +1.1% increase in Total Pet $. Only 50% of 96 demographic categories spent more on their pets in 24 – a huge drop from 91% in 2023. Income is #1 in importance for Total & all segments but Food (#2).

Before we go…The Ultimate Total Pet Spending CU in 2024 has 3 people, a married couple, with 1 child who is 18 or over. They are 45>54 yr-old Gen Xers. They are White, but not Hispanic and both work. 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 a Rural area with a population under 2500 in the West.

It’s time to get started with 2026 inflation. The Consumer Price Index peaked back in June 2022 at 9.1% then began to slow until it turned up in Jul/Aug 2023. Prices fell in Oct>Dec 23, then turned up Jan>Oct 24 but fell in Nov. However, they rose 10 straight months to a record high in Sep 25, fell Oct>Dec, then rose in Jan (New Record). The CPI vs last year slowed to +2.4% from +2.7% because of a new base year. Grocery prices rose 0.6% from Dec to a new record but their YOY inflation also fell to 2.1% from 2.4%. 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 Dec 21 while the overall CPI was +7.0%. The gap narrowed as Petflation accelerated. It was 96.7% of the national rate in June 22. National inflation has slowed considerably, but Petflation generally increased until June 23. It passed the CPI in July 22, fell below it from Apr>Jul 24. It passed the CPI in Aug, fell below in Sep>Oct, rose above in Nov, fell below in Dec>Aug, then passed it in Sep>Oct & Dec>Jan. 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 26 vs 25 which will include Pet Segments and relevant Human spending categories. Plus
  1. CPI change from the previous month.
  2. Inflation changes for recent years (24>25, 23>24, 22>23, 21>22, 20>21, 19>20, 18>19)
  3. Total Inflation for the current month in 2026 vs 2019 and vs 2021 to see the full inflation surge.
  4. Average annual Year Over Year inflation rate from 2019 to 2026
• YTD comparisons (Note: January = YTD, so there will be no separate YTD report this month.)
  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 Jan 24 to Jan 26. 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 from 12 and 24 months earlier are included. We also included and highlighted (pink) the cumulative price peak for each segment. In Jan, Pet prices were up 0.3% from Dec. Food (+0.8%), Vet (+0.5%) & Services (+0.6%) were up while Supplies (-1.0%) were down significantly.

In Jan 24, the CPI was +20.0% and Pet was +22.4%. The Services segments inflated after mid-20, while Product inflation stayed low until late 21. In 22, Food prices grew but the others had mixed patterns until July 22, when all rose. In Aug>Oct Petflation took off. In Nov>Dec, Services & Food inflated 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, Supp. & Vet  drove prices up. In Jan>Mar 24 Pet prices grew. 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 Sep, Products fueled a drop. In Nov all were up. Prices dropped in Mar & Oct>Nov 25, but all set records in Dec and/or Jan.

• 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 rose Jan>Sep 23, fell Oct>Dec, rose Jan>Oct 24, fell Nov, rose Dec>Sep 25, fell Nov>Dec, but hit a record high in Jan. 26% of the lift since Dec 19 happened from Jan>Jun 22 – 8.2% of the time.
• Pet Food – Prices were at the Dec 19 level Apr 20>Sep 21. They grew & peaked May 23, then got on a roller coaster. Jan/Feb 25 up, Mar>May down, Jun/Jul up, Aug down, Sep↔, Oct/Nov down, Dec/Jan up. 92% 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 & stayed there until 22. They turned up in Jan (record). They plateaued Feb>May, grew in June, flattened in July, then turned up in Aug>Oct to a new record. Prices stabilized Nov>Dec, grew Jan>Feb 23. fell in Mar, but the roller coaster went on. Dec>Feb up , Mar/Apr down, May/Jun up , July down , Aug up, Sep/Oct down , Nov/Dec up , Jan>Feb 25 down,  Mar>May up , Jun down, Jul up , Aug down , Sep up , Oct>Nov down , Dec up (record), Jan down.
• 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 roller coaster. They turned up Jul>Apr 23, fell May. rose Jun>Aug, fell Sep>Dec, rose Jan>Mar 24, fell Apr, rose May, fell Jun, rose Jul>Nov, fell Dec>Mar 25, rose Apr>Aug, fell Sep, rose Oct>Jan 26 (record).
• 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 and they fell below the CPI. However, they rose again & have been above the CPI since July 22. In 23>25 prices grew Jan>May, level Jun/Jul, fell Aug, grew Sep>Dec, fell Jan, grew Feb>May, fell Jun>Jul, grew Aug 24>Sep 25, fell Oct>Nov, grew Dec/Jan.
• 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 Jul>Nov, slowed Dec, grew Jan>May 23, fell Jun>Aug, grew Sep/Oct, fell In December prices grew through Mar 24 to a record high. Prices fell in April, rose May>Jun, fell Jul>Sep, rose Oct>Nov, fell Dec, rose Jan>Feb 25, fell Mar, grew Apr>Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec/Jan (record)

Next, we’ll turn our attention to the Year Over Year inflation rate change for January and compare it to last month, last year and to previous years. We will also show total inflation from 21>26 & 19>26. Petflation rose from 2.5% to 3.5% in Sep, fell to 2.6% in Nov, then rose to 3.5% in Dec. In Jan it is 3.4% and 41.7% above the National rate. The chart will allow you to compare the inflation rates of 25>26 to 24>25 and other years but also see how much of the total inflation since 2019 came from the current surge. We’ve included some human categories to put the pet numbers into perspective

Overall, prices were up 0.4% from December and were +2.4% vs Jan 25, down from +2.7% last month. Grocery prices rose 0.6% but inflation fell to +2.1% from 2.4%. Only Pet Supplies had a price decrease from last month. In Dec only the National CPI was down. In Nov there were 6 drops – a big change. The national YOY monthly CPI rate of 2.4% is down 20% from 24>25 and 68% less than 21>22. However, the 25>26 rate is above 24>25 for all but the CPI and Pet Supplies. In our 2021>2025 measurement you also can see that over 80% of the cumulative inflation since 2019 has occurred in all but 3 segments, Haircuts, Medical & Veterinary Services. Except for Pet Services, where prices have surged Service Segments have had higher inflation rates so there was a smaller pricing lift in the recent surge. Pet Products have a very different pattern. The 21>26 inflation surge provided 94% of their overall inflation since 2019. This happened because Pet Products prices in 2021 were still recovering from a deflationary period. Services expenditures account for 64.0% of the National CPI so they are very influential. Their current CPI is +3.2% while the CPI for Commodities is 1.0%. This clearly shows that Services are driving almost all of the current 2.4% inflation. The situation in Pet is even worse. Petflation: 3.4%. The CPI for the 2 Service Segments is 6.0%. The Pet Products CPI is 1.3%.

• U.S. CPI– Prices are +0.4% from Dec. The YOY increase is 2.4%, down from 2.7%. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are now 20+% higher than the target. The January increase follows stability in Dec and 2 drops in Oct & Nov. The current rate is below 24>25 but the 21>26 rate is +24.3%, 83.2% of the total inflation since 2019. The Inflation surge hadn’t started in January 2021, +1.4%
• Pet Food– Prices are +0.8% vs Dec. and +1.4 vs Jan 25, up from -1.1%. They are still 33% below the Food at Home inflation rate of +2.1%. Remember that the YOY Pet Food CPI has deflated in 15 of the last 23 months. The 2021>2026 inflation surge has generated 90.3% of the 26.9% inflation since 2019. Inflation began for Pet Food in June 2021, +0.9%, after 12 straight deflationary months.
• Food at Home – Prices are up +0.6% from Dec, but the YOY increase fell from 2.4% to 2.1%. This is radically lower than Jul>Sep 2022 when it exceeded 13%. The 31.5% Inflation for this category since 2019 is 8% more than the national CPI but is only in 5th place behind 4 Services expenditures and Total Pet. 82% of the inflation since 2019 occurred from 2021>26. This is slightly 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 -1.0% from December and YOY inflation fell to +0.2% from 1.0%. They still have the lowest rate vs 2019. Prices were deflated for much of 20>21. As a result, the 2021>26 inflation surge accounted for 112% of the total price increase since 2019. Prices set a record in Oct 22 then deflated. 3 lifts pushed them to a record high in Feb 23. Prices fell in Mar & the roller coaster continued into 25. They fell Jan/Feb 25, rose Mar>May, fell Jun, rose Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec (record), then fell in Jan.
• Veterinary Services– Prices are +0.5% from Dec and +7.4% from 2025, up from 7.1%. They remain #1 in inflation vs last year & still the leader in the increase since 2019 with +56.2% and since 21, +42.8%. For Veterinary, relatively high annual inflation is the norm. However, the rate has increased during the current surge, especially since 23. They have the highest rate in 26, but only 76.0% of the cumulative inflation since 2019 occurred from 2021>26.
• 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 +0.6% from Dec and inflation vs last year rose to +3.9% from +3.5%. Medical Services are not a big part of the current surge as only 59.2% of the 22.8%, 2019>26 increase happened from 21>26.
• Pet Services – Inflation slowed in 20 but grew in 21. In 24 prices surged , especially in Jul>Nov. Prices fell Dec>Mar 25 to 3.9%. Apr grew, May fell, June rose, Jul rose to 6.3%. Inflation fell to 5.8% in Aug & to 4.2% in Nov. In Dec>Jan 26 it rose to 5.7%. They are #2 vs 25, 21 & 19. 84% of their 19>25 inflation is from 21>26. In Dec 23, it was 49%.
• Haircuts/Other Personal Services – Prices are +0.6% from Dec and +5.0% from Jan 25. 18 of the last 25 months have been 4.0+%. Inflation has been pretty consistent. 69.3% of the 19>26 inflation happened 21>26.
• Total Pet– Petflation slowed to 3.4% from 3.5%. All segments but Supplies had a higher rate. It is 70% above the 24>25 rate and 42% above the U.S. CPI. Plus, it is 10% above the 3.1% average January rate since 1997. Jan prices rose 0.3%, driven by all but Supplies. The Dec>Jan increase was slightly below the 0.4% 97>25 average change but expected. A drop has only occurred in 2 of the last 28 years. The big factor in the CPI drop was that prices rose 0.4.4% in Dec>Jan 25. In January, the recovery definitely slowed.

The Petflation recovery paused in Aug 24, came back Sep>Oct, paused in Nov, resumed in Dec>Jan, paused in Feb, restarted in Mar and paused Apr>Sep. It improved Oct/Nov but paused in Dec/Jan. We tend to focus on the monthly, YOY inflation in the current year and ignore the fact that inflation is cumulative. Pet prices are 27.6% above 2021 and 33.0% higher than 2019. Those are big lifts. In fact, January prices are within 1% of the record for Pet Supplies, while the prices for the National CPI, Total Pet and all other pet segments reached record levels. (Note: Jan Pet Food prices are still 0.06% below May 2023 but with rounding….) Only Supplies prices (+12.7%) are less than 26.9% 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 continue to see a reduction in visit frequency. The product segments will see a more complex reaction. Supplies are more discretionary so we will likely see a reduction in purchase frequency. In Pet Food, the most needed segment, some Pet Parents may even downgrade their Pet Food. However, the biggest impact in both product segments will be a strong movement to online purchasing and private label. We saw proof of this at both GPE 25 & SZ 25 as a huge # of exhibitors offer OEM services. At GPE 26, this trend will continue. Strong, cumulative inflation has a widespread impact.