Petflation 2026 – January Update: Total Pet Prices Reach a Record High

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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.

 

Retail Channel $ Update – November Monthly & December Advance

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Due to the shutdown, no CPIs were produced in Oct, but we were able to produce estimates. In Nov/Dec the situation was back to business as usual. Total Retail $ were +3.8% vs 24, 12.1% below their Dec avg (4.3%). Relevant Retail $ were +4.3% vs 24, 7.1% above the 4.0% avg. There are other factors besides the CPI impacting sales, including high cumulative inflation and tarifflation binge buying. It is a complex situation. YOY drops & the size of sales lifts are still concerning.

We’ll continue to track the retail market with data from 2 reports provided by the Census Bureau and then factor in a targeted CPI. The reports are the Monthly and the Advance Retail Sales Reports. Both are derived from sales data gathered from retailers across the U.S. and are published monthly at the same time. They are still about a month late due to the shutdown. The Monthly Report includes data from all respondents, so it takes longer to compile. Although the sample size for the Advance report is smaller, the results have proven it to be statistically accurate with the Monthly. The Advance Report has a smaller sample size so it can be published quickly. The biggest difference is that the full sample in the Monthly report allows us to “drill” a little deeper into the channels.

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

Both reports normally include the following:

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

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

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

First, the November Monthly. All but Relevant Retail were down from Oct and there were 3 actual YOY sales drops. Note: Gas Stations are still selling more product than in 2019. 3 groups are again “all positive”, down from 4 in Aug>Sep. Relevant Retail has been all positive in 21 of the last 25 months and in 17 of the last 19. ($ are Not Seasonally Adjusted)

The Nov Monthly is $0.7B less than the Advance report. Restaurants: +$0.3B; Auto: +$0.3B; Gas Stations: +$0.2B; Relevant Retail: -$1.4B. All but Relevant were down from Oct. An Oct>Nov drop in Total Retail  has only happened in 26% of the years since 1992. The avg. is +1.2%. There were 3 YOY drops in actual sales, the most in 2025. There was 1 “real” sales drop, the same as Oct, but up from none in Aug/Sep and far less than the 5 in Mar. 3 groups were again “all positive”, down from 4 in Aug/Sep, but equal to Mar>Jul. Restaurants still have the biggest increases vs 21 & 19 but Relevant Retl stayed at the top of “real” performance vs 2019. However, only 42.3% of their growth is real.

Now, let’s see how some Key Pet Relevant channels did in November (83% of Nov Ytd Rel Retl $)

Overall– 5 of 11 were up from Oct. Vs Nov 24, 10 were actually up & 7 were “really” up. Vs Nov 21, 7 were up but only 5 were real increases. Vs 2019, Only Dept Strs were actually & really down, but Off/Gift/Souv were also really down.

  • Building Material Stores – The pandemic focus on home has produced sales growth of 29.8% since 2019. Prices for the Bldg/Matl group have inflated 18.3% from 21 and 24.0% from 2019 which is having an impact. Sales vs Oct were -9.9% for HomeCtr/Hdwe and -10.5% for Farm Stores. Vs other years, Farm stores are actually up for all, but their Real $ were down vs 21. HomCtr/Hdwe are only actually and really up vs 2019. Plus, only 16% of the Bldg Materials group’s 19>25 lift was real. HomeCtr/Hdwe: Ytd: -3.0%; Avg 19>25 Growth: 4.1%, Real: 0.4%; Farm: Ytd: +4.3%; Avg: 6.3%, Real: 2.6%
  • Food & Drug – Both are essential. Except for the COVID food binge, they tend to have smaller changes in $. Vs: Oct Supermarkets: -0.2%; Drug: -9.5%. In terms of inflation, the Groceries rate is 73% higher than Drug/Med products. Drug Stores are positive in all measurements and 70.5% of their 2019>25 growth is real. Supermarkets’ actual $ are up in all comparisons. They are only “really” down monthly and Ytd vs 21. However, only 9% of their 19>25 increase is real growth. Supermarkets: Ytd: +3.3%; Avg 19>25: +4.9%, Real: +0.5%; Drug Stores: Ytd: +7.9%; Avg: +5.9%, Real: +4.4%.
  • Sporting Goods Stores – They also benefited from the pandemic in that consumers turned to self-entertainment, especially sports & outdoor activities. Sales are +8.2% from Oct, and their only positives are actual & real vs Nov 24 & 2019, plus real Ytd vs 24. Prices stopped deflating vs 24. Deflation started in April 23 and was a big change from +1.1% in 22>23 & +7.9% in 21>22. This caused 68% of their 32% lift since 19 to be real. Ytd: -2.0%; Avg 19>25: +4.8%; Real: +3.4%
  • Gen Mdse Stores – Sales were +4.9% vs Oct. Except for real vs 24 for clubs, all YOY $, actual & real were up for $ Stores and SupCtr/Clubs. Dept Stores are negative in all comparisons but vs Nov 24. Their Actual sales are even -28.7% from 19 (Real: -35.7%). The other channels have an average of 41.4% in real growth. SupCtr/Club: Ytd: +2.4%; Avg 19>25: 5.0%, Real: 2.2%; $/Value Strs: Ytd: +2.0%; Avg: +5.5%, Real: +2.7%; Dept. Strs: Ytd: -1.5%; Avg: -5.5%, Real: -7.4%.
  • Office, Gift & Souvenir Stores – Sales plummeted -34.0% from Oct. They are now actually up in all but vs Nov 21 but really down vs 21 & 19. Their recovery started late. It was slowly restarting in Jun/Jul, but their progress had slowed. It took off in Oct but slowed again in Nov. Their recovery continues. Ytd: +3.9%; Avg Growth Rate: 0.3%, Real: -1.4%
  • Internet/Mail Order – Sales are +7.1% from Oct to $133.5B, a Nov record. All YOY measurements are positive, but their YOY growth, +7.0%, is only 49% of their average since 2019. However, 82.3% of their 123.6% growth since 2019 is real. Ytd: +7.0%; Avg Growth: +14.3%, Real: +12.4%. As expected, they are by far the growth leader since 2019.
  • A/O Miscellaneous – Pet Stores are 22>24% of total $. In May 2020 they began their recovery which reached $100B for the first time in 2021. In 22 their $ dipped in Jan, Jul, Sep>Nov, rose Dec, fell Jan>Feb 23, grew Mar>May, fell Jun>Aug, rose Sep>Nov, fell Dec>Jan 24, grew Feb>May, fell Jun>Sep, grew Oct, fell Nov, rose Dec, fell Jan>Feb, grew Mar>May, fell Jun>Sep, rose Oct, fell Nov. All comparisons are positive, and they are right behind the Internet, in the % increase vs 19 & vs 21. Also, 76% of their 69.7% growth since 2019 is real. Ytd: +10.0%; Avg 19>25: 9.2%, Real: +7.4%

Nov was down -0.9% from Oct. All but Rel. Retl  & 5 smaller channels were down. The YOY Nov lift vs 24 was 1.9% for Total & 2.7%  for Relevant Retl. (Avg for both: 4.7%) Prices are again deflating in Sporting Gds, but this is not significant. Cumulative inflation still impacts sales as 6 channels were ‘really’ down vs Nov 21. The Retail Recovery has slowed again.

Now, Let’s Take an Advance Look at December – First the Big Groups

Nov>Dec sales were up for all but Gas Stations. A Nov>Dec Total Retail lift has happened every year since 1992. The 10.9% lift is 27% below the 15.0% avg change. There were 2 YOY $ drops, 1 less than Nov. All Big Groups were up vs Dec 24, but the Total Retail lift of 3.8% vs Dec 24 was 12% below their +4.3% 92>24 avg. However, the Relevant Retail 4.3% increase vs Dec 24 was 7% above their +4.0% avg. Inflation is still a factor. The CPI for all commodities slowed to 1.7% from 1.8% vs 24 but it fell from 8.6% to 7.7% vs 21. There is some good “real” news. No “real” measurement was down and Gas Stations are again “really” up vs 2019. Plus, 4 Big Groups are again all positive, up from 3 in Sep>Nov. Relevant Retail has been all positive in 18 of the last 20 months.

Overall Inflation Reality– The Total Retail CPI slowed to 1.7% but the $ lift vs 24 was still 12% below avg. The Restaurant CPI rose to +4.0% and their $ lift was 19% below avg. Gas prices flipped to -3.2%. They are still in turmoil. Auto inflation slowed to 0.9% vs 24 & -1.2% vs 21, but sales were only +1.9% vs 24 – 59% below their 4.6% avg change. Inflation rose to 2.0% for Relevant Retail, but their lift was 7% above avg and they are again all positive. Progress continued in December.

Total Retail – Since Jun 20, every month but Apr 23, Jun 24 & Feb 25 has set a monthly $ales record. In 2023>25, Sales were on a roller coaster. Up Jul>Aug, down Sep, up Oct>Dec, down Jan 24, up Feb>Mar, down April, up May, down Jun, up Jul>Aug, down Sep, up Oct>Dec, down Jan>Feb 25, up Mar, down Apr, up May, down Jun, up Jul>Aug, down Sep, up Oct, down Nov, up Dec. Prices are 1.7% and YOY $ are +3.8%, 12% below the avg. 42% of the 19>25 growth is real.  Inflation slowed but cumulative inflation is still impacting sales. Growth: 24>25: 3.7%; Avg 19>25: +6.2%, Real: +2.8%.

Restaurants – They were hit hard by the pandemic and didn’t begin recovery until March 2021. However, they have had strong growth since then, exceeding $1T for the 1st time in 2023. November $ are up vs 24 and they have the biggest lifts vs 21 & 19. Inflation rose to 4.0% vs 24 and it is +24.2% vs 21 and +32.3% vs 19. Their 4.5% YOY lift is 19% below their +5.5% 92>24 avg. They are all positive again, but just 32.0% of their 56.0% growth since 2019 is real. They are 3rd in performance behind Total & Relevant Retail. Recovery started late but inflation started early. Growth: 5.3%; Avg 19>25:+7.7%, Real: +2.8%. They just account for 13.6% of Total Retail $, but their strong growth has helped Total Retail.

Auto (Motor Vehicle & Parts Dealers) – They overcame the stay-at-home attitude with great deals and advertising. They finished 2020 up 1% vs 2019 and hit a record $1.48T in 2021 but much was due to high inflation. In 22, sales got on a rollercoaster. Inflation started to drop mid-year, but it caused 4 down months in actual $. Their YE real 22 sales numbers were even worse, -8.2% vs 21 and -8.9% vs 19. 23 started a sales rollercoaster but the $ hit a record, $1.595T. $ fell in Jan 24, grew Feb>Mar, fell Apr, grew May, fell June, grew Jul>Aug, fell Sep, grew Oct, fell Nov, grew Dec, fell Jan>Feb 25, grew Mar, fell Apr>Jun, rose Jul>Aug, fell Sep, rose Oct, fell Nov, rose Dec. Dec $ were +1.9% vs 24. Avg: 4.6%. However, they are again all positive but just 23.2% of 19>25 growth is real. Growth: 3.9%; Avg 19>25: +5.3%, Real: +1.4%

Gas Stations – Gas Stations were hit hard by “stay at home”. They started recovery in Mar 21, and inflation began. Sales got on a rollercoaster in 22 but set a record, $583B. Inflation started to slow in Aug and prices slightly deflated in Dec & Feb 23, then strongly fell in Mar>Jul to -20.2%. In Aug they rose to -3.7%. In Sep they were +2.7% but began deflating to -4.2% in Feb 24. In Mar>May $ grew, fell Jun, rose July, fell Aug/Sep, rose Oct, fell Nov>Feb 25, rose Mar>May, fell Jun, rose Jul, fell Aug>Oct, up Nov, fell Dec. Dec $ vs 24: +2.5% (4.3% avg). Down Ytd vs 24 & vs Dec 21. Real $ are all positive. Growth: -1.4%; Avg 19>25: +3.3%, Real: 0.2%. They show the cumulative impact of inflation can be positive & negative.

Relevant Retail – Less Auto, Gas and Restaurants– They account for ≈60% of Total Retail $ in a variety of channels. Their only down month until Feb 25 was Apr 20, and they led the way in Retail’s recovery. Sales got on a roller coaster in 22, but all months set new records with Dec reaching a new all-time high, $481B, and an annual record of $4.81T. In 23, the roller coaster continued. A Dec lift set a new monthly record of $494.7B & an annual record of $4.997T. $ales got back on the roller coaster in 24. The ride continued as $ rose Oct>Jan 25, fell Feb, rose Mar>May, fell Jun, rose Jul, fell Aug>Sep, rose Oct>Dec. The Dec 4.3% YOY lift is 7% above their 92>24 avg of +4.0%. Plus, they are all positive again but only 41.8% of their 46.4% 19>25 growth is real, now #2 in Big Group performance, behind Total. Growth: 4.0%; Avg 19>25: +6.6%, Real: +3.0%. In 2024 their inflation rate dropped from 3.2% to 0.1%. It rose in 25 to 1.8% in Sep then slowed to 1.5% in Oct>Nov & hit 2.0% in Dec. YOY Inflation is pretty low, but its cumulative impact can slow growth.

YOY inflation is low, but cumulative & impending lifts can affect sales. In Dec, 2 actual YOY $ comparison were negative, 1 less than Nov. In Oct>Nov, there was 1 real drop. That fell to 0 in Dec. In Oct, all were up vs 24 with below avg lifts. In Nov only Auto was down but the lifts were all below avg. In Dec, all were up and Relevant Retl’s lift was above avg. In Oct/Nov, 3 big groups were all positive. In Dec, there were 4. Relevant Retail has now been all positive in 18 of 20 months. As expected, Dec sales rose vs Nov, but the lift was 27% below avg. Recovery is still slow.

Here’s a more detailed look at December by Key Channels (98% of December Ytd Rel Retl $)

  • Relevant Retail: Ytd Growth: +4.0%; Avg 19>25: +6.6%; Real: 3.0%. % Real Growth: 41.8%. 10 of 11 were up from November. Vs Nov 24: 9 were up; 6 Real. Vs Nov 21: 8 were up; 7 Real. Vs 19: Only Dept Stores were down.
  • All Department Stores – This group was struggling before the pandemic hit them hard. They began recovery in March 21. Sales are +38.8% from Nov, but all YOY measurements are negative. Their -0.02% Dec YOY drop is minimal and much better their -4.7% avg. Ytd Growth: -1.3%; Avg 19>25: -5.5%; Real: -7.3%. % Real growth: None
  • Club/SuprCtr/$ – They fueled a big part of the recovery because they focus on value which has broad consumer appeal. $ales are +12.6% from Nov, and they are up in all comparisons but real vs Dec 24. Their 0.8% YOY Dec lift is -89% below their 92>24 avg of +7.0%. Ytd Growth: 2.2%; Avg 19>25: +5.0%; Real: 2.2%. % Real Growth: 40.3%
  • Grocery- They depend on frequent purchases, so their changes are usually less radical. $ales are +3.6% from Nov, but they are really down vs 21 & Dec 24. Cumulative inflation has hit them hard, especially monthly & Ytd vs 21. Their 2.2% YOY Dec lift is 29.9% below avg. Ytd Growth: 2.7%; Avg 19>25: +4.8%; Real: 0.4%. % Real Growth: 6.8%
  • Health/Drug Stores – Many stores are essential, but consumers visit less frequently than Grocery stores. $ are +17.3% from Nov and they are positive in all but real Ytd vs 21. Inflation has been relatively low, so it is no surprise that their +8.1% YOY lift vs Dec 24 is 66% above avg. Ytd Growth: 7.0%; Avg 19>25: +5.6%; Real: 4.1%. % Real Growth: 69.7%
  • Clothing and Accessories – Clothes mattered less if you stayed home. That changed in March 2021 with strong growth through 2022. Sales are +36.6% from Nov and positive in all YOY measurements but real Ytd vs 24. $ales are +5.4% vs Dec 24, more than double their 2.6% avg. Ytd Growth: 5.5%; Avg 19>25: +3.5%; Real: 2.5%. % Real Growth: 69.5%.
  • Home Furnishings – In mid-2020 consumers’ focus turned to their homes and furniture became a priority. Inflation is up to 3.1% in Dec. $ are +1.3% from Nov but are only up Ytd vs 24 & 19. YOY vs Dec 24, they are -3.7%, far below their 2.8% avg lift. Ytd Growth: 2.3%; Avg 19>25:+2.4%; Real: 0.03%. % Real Growth: 1.3%.
  • Electronic & Appliances – They have had many issues. Sales fell in Apr>May of 2020 and didn’t reach 2019 levels until March 21. $ are +19.2% from Nov and they are only down Ytd vs 21. They have had strong deflation so real sales are all up. Sales are +2.6% vs Dec 24, double the avg. Ytd Growth: 0.8%; Avg 19>25: 0.5%; Real: 3.7%. Real Growth: 11.1%
  • Building Material, Farm & Garden & Hardware – They truly benefited from the consumers’ focus on home. In 2022 the lift slowed as inflation grew to double digits. Prices turned up again in Apr>Sep 25, dropped Oct/Nov, then jumped to 5.4% in Dec. Sales are up 0.7% from Nov but only up vs Dec 24 and Ytd vs 21 & 19. YOY sales vs Dec 24 were +3.4%, 17.5% below their 4.1% Avg. Ytd Growth: -1.3%; Avg 19>25: +4.5%; Real: 0.8%. % Real Growth: 15.6%.
  • Sporting Goods, Hobby and Book Stores – Consumers turned their attention to recreation and Sporting Goods stores sales took off. Book & Hobby Stores recovered more slowly. They have been on a sales roller coaster since June 24 and $ are +34.3% from Nov. Actual & Real sales are only down Ytd vs 21. YOY Sales vs Dec 24 are +8.7%, almost 6 times their 1.5% avg. Ytd Growth: +2.5%; Avg 19>25: +4.3%; Real: 3.6%. % Real Growth; 81.5%.
  • All Miscellaneous Stores – Pet Stores have been a key part of the strong and growing recovery of this group. They finished 2020 at +0.9% but sales took off in March 21 and have continued to grow. Sales are -8.2% vs Nov, but positive in all comparisons. They are 2nd in the % increase vs 19 & 3rd vs 21. Plus, their 10.1% YOY Dec lift is 3.6 times more than their 92>24 avg of +2.8%. Ytd Growth: +9.2%; Avg 19>25: +7.1%; Real: 5.3%. % Real Growth: 70.8%.
  • NonStore Retailers – 90% of their $ comes from Internet/Mail Order/TV. The pandemic accelerated online spending. They ended 2020 +21.4%. The growth continued in 2021 as sales exceeded $100B for the 1st time and they broke the $1 Trillion barrier. $ are +17.1% from Nov but their YOY lift of 6.7% is -31% below the 9.8% avg. However, they are positive in all comparisons. Ytd Growth: 6.8%; Avg 19>25: +13.2%; Real: 11.3%. % Real Growth: 81.2%.

Recap – Driven by Relevant Retail, the Pandemic recovery was widespread by Y/E 21. In 22 we were hit with the strongest inflation in 40 years. Inflation has slowed considerably from its Jun 22 peak but only 1 channel is deflating. Deflation helps, but cumulative inflation can still have a negative impact – slowed YOY growth and even sales drops. $ rose from Nov for 10 of 11 channels. Only 1 of the 10 lifts was above avg. The biggest concern is still YOY drops and smaller lifts. Relevant Retail’s 4.3% lift vs Dec was 7% above avg. 9 channels had a YOY lift vs Dec 24, the same as last month, but only 4 of the 9 lifts were above avg, up from 3 in Nov but down from 7 in Oct and 6 in Sep. There are at least 2 major factors. High prices from cumulative inflation and the move to shop earlier for the Holidays. December is still the biggest retail month of year and Total & Relevant Retail both had the most sales in history. The Yoy lift was below avg for Total but 7% above avg for Relevant. The situation is better than Nov but still mixed due to cumulative inflation and the early holiday shopping movement. 7 of 11 channels had a below avg lift or a drop vs Dec 24. We’ll see what happens.

Here are the Nov/Dec inflation rates for the CPIs used to calculate the impact of inflation on retail groups and channels. This includes special aggregate CPIs created with the instruction and guidance of the US BLS. I also researched data from the last Economic Census to review the share of sales by product category for the various channels to help in selecting what expenditures to include in specific aggregates. Of course, none of these specially created aggregates are 100% accurate but they are much closer than the overall CPI or available aggregates. The data includes the CPI changes vs 21 to show cumulative inflation. Note: Dec Ytd is 2025 Annual & Includes October Estimates

Monthly YOY CPI changes of 0.2% or more are highlighted. (Green = lower; Pink = higher)

Here are some answers to some obvious questions. Note: Prices usually rose Nov>Dec.

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

2024 U.S. TOTAL PET SPENDING $118.87B…Up $1.27B

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In 2024 Total Pet Spending in the U.S. was $118.87B, a $1.27B (1.1%) increase from 2023. All segments but Food had  increases from 2023.  Veterinary had a 2nd consecutive double-digit lift but the drop in Food spending set a new record. Together this produced a small increase in Total Pet $. Inflation was again a factor affecting spending. It slowed in Products but remained high in the Service segments. Total Pet was +1.1%. With 2.6% inflation, it was “really” -1.5%.

  • A $5.46B (-12.0%) decrease in Food
  • A $0.89B (+3.9%) increase in Supplies
  • A $5.60B (+15.7%) increase in Veterinary
  • A $0.23B (+1.7%) increase in Services

Let’s see how these numbers blend together at the household (CU) level. Weekly, 25.2 million CU’s (1/5) spent $ on their Pets – food, supplies, services, veterinary or any combination – down from 26.8M in 2023 & well below 27.1M in 2019.

In 2024, the average U.S. CU (pet & non-pet) spent a total of $876.53 on their Pets. This was a +0.3% increase from the $874.16 spent in 2023. However, this doesn’t “add up” to a 1.1% increase in Total Pet Spending. With additional data provided from the US BLS, here is what happened.

  • 0.9% more CU’s
  • Spent 7.1% more $
  • 6.4% less often

If 68% of U.S. CU’s are pet parents, then their annual CU Total Pet Spending was $1289.01. Now, let’s look at the recent history of Total Pet Spending. The rolling chart below provides a good overview. (Note: All numbers in this report come from or are calculated by using data from the US BLS Consumer Expenditure Surveys – The 2016>2024 Totals include Veterinary Numbers from the Interview survey, rather than the Diary survey due to high variation.

  • In 2014-15, the Super Premium Food upgrade began, with the biggest lift coming in 2015.
  • In 2016, they value shopped for super premium foods. They spent more in other segments, but spending fell slightly.
  • In 2017, spending took off in all but Services, especially in the 2nd half. Consumers found more $ for their Pets.
  • In 2018, a spectacular lift in Services overcame the FDA issue in Food, tariffs on Supplies and inflation in Veterinary.
  • In 2019 a bounce back in Food and small lift in Veterinary couldn’t overcome the drop in Supplies from “tarifflation”.
  • In 2020, consumers focused on necessities, Food & Veterinary (+$8.7B) while Services & Supplies suffered (-$3.4B).
  • In 2021, there was no Food binge but in all other segments consumers made up for all the lost ground…and more!
  • The 2022 lift was the 3rd in a row, breaking a pattern since 2010 – 2 years of increases followed by a small decrease.
  • The 2023 lift was the 4th in a row, and despite high inflation, the 3rd largest ever. 2008: +$17.11B; 2021: +$16.23B.
  • The 2024 lift was the 5th in a row but the +$1.27B was the smallest increase since +$0.68B in 1993.

Now we’ll look at some Demographics. First, 2024 Total Pet Spending by Income Group

Only $70>100K & $150K> spent more, but $150K> was the big driver, +$5.54B.

Nationally: · Total Pet: ↑$1.27B   · Food: ↓$5.46B  · Supplies: ↑$0.89B  · Services: ↑$0.23B  · Veterinary: ↑$5.60B

  • < $70K – (47.7% of U.S. CUs); CU Pet Spending: $477.46, -9.9%; Total $: $30.71B, ↓$4.62B (-13.1%) 
    • Food ↓$4.19B
    • Supplies ↓$0.03B
    • Services ↓$0.51B
    • Vet ↑$0.11B

Money matters a lot to this group. In the pandemic they focused on Pet needs. They have had slow but steady annual growth since 2019 which ended in 2024 due to a big drop In Food.

  • >$70K – (52.3% of U.S. CUs); CU Pet Spending: $1238.47, +2.2%; Total $: $88.15B, ↑$5.88B (+7.2%) from…
    • Food ↓$1.27B
    • Supplies ↑$0.92B
    • Services ↑$0.74B
    • Vet ↑$5.49B

This group continues to grow in size, up 4.6% in 2024 and they had a spending lift 4.6 times bigger than the national increase. The drop in food was much smaller than expected and the other segments had ↑avg lifts.

  • < $30K – (20.1% of U.S. CUs); CU Pet Spending: $327.42, -17.1%; Total $: $8.42B, ↓$2.92B (-25.7%) from…
    • Food ↓$2.74B
    • Supplies ↓$0.03B
    • services ↓$0.27B
    • Vet ↑$0.09B

This lowest income group is shrinking but had relatively stable spending until 24. They remain committed to their pets, but In 2024 high prices became an issue. Only Veterinary had a lift, +4.4% after a -35.9% drop in 2023.

  • $30>$70K – (27.6% of CUs); CU Pet Spending: $580.69, -8.0%; Total $: $22.29B, ↓$1.70B (-7.1%) from…
    • Food ↓$1.48B
    • Supplies ↔$0.00B
    • Services ↓$0.25B
    • Vet ↑$0.02B

They no longer match the National Pattern. Only Veterinary spending was up and it was just +0.4%.

  • $70>$99K – (14.4% of CUs); CU Pet Spending: $872.49, +2.9%; Tot $: $17.58B, ↑$1.09B (+6.6%) from…
    • Food ↑$0.53B
    • Supplies ↑$0.10B
    • Services ↑$0.50B
    • Vet ↓$0.04B

This group is price sensitive but committed. They only had a 0.8% drop in Vet but managed an 8.2% lift in Food.

  • $100K>$149K– (16.3% of CUs); CU Pet Spend: $1069.03, -4.0%; Tot $: $23.63B, ↓$0.75B (-3.1%) from
    • Food ↓$0.57B
    • Supplies ↑$0.32B
    • Services ↓$0.34B
    • Vet ↓$0.14B

In 2020 they led the way in the Food binge. In 2021 they had a huge drop in Food $ but big increases in the other segments. In 2022 they got more “on track” with the biggest Total Pet $ increase for any income segment. In 23 they had the 2nd  biggest lift in the income category. In 24 all but Supplies were down. Total Pet fell -3.1%.

  • $150K> – (21.7% of CUs); CU Pet Spending: $1613.38, +3.4%; Total $: $46.94B, ↑$5.54B (+13.4%) from…
    • Food ↓$1.23B
    • Supplies ↑$0.50B
    • Services ↑$0.59B
    • Vet ↑$5.68B

This group consists of 2 segments, $150>199K and $200K>. In 2021 both groups had double digit increases in all segments. 2022 was different, with an overall lift despite 2 drops. In 23 the $150>199K group had a small drop in Services $ but all other measurements for both were up from 10.5% to 55.9%. In 24 both were down in Food & either Supplies or Services but had a 13+% Total lift. The $5.54B lift was 4.4 times the National lift of $1.27B.

  • < $100K – (62.1% of CUs); CU Pet Spending: $571.08, -4.9%; Total $: $48.29B, ↓$3.53B (-6.8%)
    • Food ↓$3.66B
    • Supplies ↑$0.08B
    • Services ↓$0.02B
    • Vet ↑$0.07B

The only drops were from <$30K & $30>39K. Both were -25+%. The biggest lift was from $70>99K, +$1.09B. Except for Food, the changes were minor. The overall drop in Services was driven by <$30K & $50>70K, -$0.50B.

  • >$100K – (37.9% of CUs); CU Pet Spending: $1379.08, +1.6%; Total $: $70.578, ↑$4.80B (+7.3%) from…
    • Food ↓$1.80B
    • Supplies ↑$0.82B
    • services ↑$0.25B
    • Vet ↑$5.54

The $100K> group exceeded 50% of Pet $ for the 1st time in 2020. Their lead is still growing as they now do 59.4%.

Income Recap –  The top 2 drivers in consumer spending behavior are value (quality + price) and convenience. That results from the biggest human motivator – fear. This drove the binge buying of pet food in 2020. The huge lift pushed the 50/50 $ divide up to $103K, a big change from $94K in 2019. 2021 brought a record lift and record spending in all segments but Food. This lift was driven by the $150K> group and the 50/50 spending divide rose to $107K. In 2022, Food & Services $ grew while Vet & Supplies fell. A big lift by $100>149K pushed the divide up  to $108K. In 2023, all segments grew, but especially Food and Vet.  The lift wthe 50/50 $ divide grew to 114K. In 2024, there was a 1.1% lift but it was driven by $150K> so the 50/50 divide jumped to $124K. Income continues to grow in importance in Total Pet Spending.

Next let’s look at 2024 Total Pet Spending by Age Group

The 25>54 & 75> groups had the only lifts. The biggest was +$3.02B by 45>54. The biggest drop was by 65>74, -$2.7B.

Nationally:  Total Pet: ↑$1.27B   · Food: ↓$5.46B  · Supplies: ↑$0.89B  · Services: ↑$0.23B  · Veterinary: ↑$5.60B

  • <25 – (4.9% of U.S. CUs); CU Pet Spending: $414.87, -36.5%; Total $: $2.71B, ↓$1.34B (-33.1%) from…
    • Food ↓$1.19B
    • Supplies ↓$0.52B
    • Services ↓$0.10B
    • Vet ↑$0.46B

Many larger CUs split and the number with pets likely fell. Those with pets value shopped. Overall, 10.9% more CUs spent 13.2% less $, 30.5% less often.

  • 25-34 – (15.0% of U.S. CUs); CU Pet Spending: $820.62, +2.6%; Total $: $17.04B, ↑$0.28B (+1.7%) from
    • Food ↓$1.26B
    • Supplies ↓$0.32B
    • Services ↑$0.19B
    • Vet ↑$1.67B

In 21 they had a big lift in all segments. In 22, spending fell in all but Services. In 23 spending was +15.7% due to lifts in Food & Vet. In 24 Vet spending drove a small lift as 3.5% less CUs spent 2.8% more $, 2.6% more often.

  • 35-44 – (17.9% of CUs); CU Pet Spending: $968.43, +3.9%; Total $: $23.43B, ↑$1.32B (+6.0%) from…
    • Food ↓$1.40B
    • Supplies ↑$0.73B
    • Services ↓$0.04B
    • Vet ↑$2.02B

They have the largest families and are building their careers. In 21 they spent more in all segments and became #1 in Total Pet $. In 22 spending decreased and they fell to #3. In 23 they had lifts in all segments but stayed #3. In 24, lifts in Vet & Supplies kept them #3 as 2.8% more CUs spent 9.7% more $, 6.1% less often.

  • 45-54 – (16.3% of U.S. CUs); CU Pet Spending: $1155.34, +15.7%; Total $: $25.53B, ↑$3.02B (+13.4%) from…
    • Food ↑$0.78B
    • Supplies ↓$0.12B
    • Services ↑$0.83B
    • Vet ↑$1.53B

They have the highest income and were #1 in Pet Spending in 2018. In 2019 & 2020 their spending and rank fell. In 2021, 2022 & 2023 their spending grew but they stayed #2. In 2024, all but Supplies $ were up and their total lift was 13.4%. They rose to #1 in CU spending and in total $. 2.4% less CUs spent 16.3% more $, 0.05% less often.

  • 55-64 – (17.6% of U.S. CUs); CU Pet Spending: $1009.96, -0.6%; Total $: $24.22B, ↓$0.16B (-0.7%) from…
    • Food ↑$0.23B
    • Supplies ↑$0.34B
    • Services ↓$0.39B
    • Vet ↓$0.34B

60% are younger Baby Boomers and they are very reactive. They drove the 20>21 binge/bust in Pet Food. In 22, spending normalized and they returned to #1. In 23, big lifts in the Services & Vet kept them #1. In 24 spending was mixed – Products↑ & Services↓. They fell to #2 as 0.1% fewer CUs spent 2.0% more $, 2.5% less often

  • 65-74 – (16.6% of U.S. CUs); CU Pet Spending: $760.56, -16.4%; Total $: $17.01B, ↓$2.70B (-13.7%) from…
    • Food ↓$2.42B
    • Supplies ↑$0.29B
    • Services ↓$0.48B
    • Vet ↓$0.09B

This group is all Baby Boomers. They are careful with their money, but their commitment to their pets is very apparent. They are the only group with a spending increase every year from 2020>2023. In 24 spending fell -13.7% with drops in all but Supplies as 4.6% more CUs spent 3.5% less $, 14.5% less often.

  • 75> – (11.6% of U.S. CUs); CU Pet Spending: $568.43, +9.0%; Total $: $8.92B, ↑$0.85B (+10.5%) from…
    • Food ↓$0.20B
    • Supp ↑$0.48B
    • Serv ↑$0.22B
    • Vet ↑$0.35B

Pet parenting is more difficult, and money is tight for these oldest Pet Parents, but their commitment is still there. In 2021 they had increases in all segments. In 2022, only Food $ fell, but the drop was substantial. In 2023, they  had a strong rebound in spending as their $ grew in all segments but Supplies, including a 35.4% lift in Pet Food. In 2024 only Food $ fell and they had a +10.5% increase as 1.3% more CUs spent 26.6% more $, 13.8% less often.

Age Group Recap: In 2022 Total Pet Spending skewed away from <45 to the 45>74 groups.  In 2023, this reversed as <45 generated 46% of the $ lift. In 2024 45>54 had the biggest lift +$3.02B, but overall 25>54 was +4.62B.

Next, we’ll take a look at some other key demographic “movers” in 2024 Total Pet Spending. The segments that are outlined in black “flipped” from 1st to last or vice versa from 2023. The red outline stayed the same.

In 24, 47 of 92 Demographic Segments (51.1%) spent more on their Pets, a big drop from 91% in 23. Another difference was that in 24 there was no category where all segments spent more. In 23 there were 6. However, there was similar level of stability in 24 as 4 segments held their spot and only 4 of the 24 segments flipped from 1st to last or vice versa. In 23 there were 3 flips and 5 “holds”. In 23, all of the biggest lifts were significantly larger than the biggest drops. In 24 there were only 4. We should also note the strong stability in the Area Type category. Both the winner and loser held their position  in 2022>24. There was one big change in 24. Not only did they hold their position in 22 & 23 but in both years, there were no segments in the Area Type category with a decrease in Total Pet Spending. In 24 that ended.

Let’s look at some specifics.

10 of the winners are often on Top and almost all of them have higher incomes.

Only 1 winner is surprising. They have the highest income but the lowest % of pet ownership.

  • Asian

Among the losers, 6 often find themselves in this position.

  • Singles     • 65>74    • 1 Person     • Renters     • Single, 1 Earner     • <$30K    

All have lower incomes. There were 3 surprises:

  • Boomers     • Rural     • White, Not Hispanic 

Only Whites have a high income, but Boomers are pet committed & Rural is a big Pet spender, $1133 per CU.

Recap: After a slight downturn in 2019, Pet Spending turned up in 2020, primarily due to the pandemic binge buying of Pet Food. This ended in 2021 and Food $ fell. However, it was replaced by binges in the other segments. Pet Parents caught up with all the Supplies purchases that they had postponed due to the pandemic. COVID also caused them to focus on the health of their Pet Children so Veterinary also had a record increase. Services were hit hard by pandemic restrictions and closures, but they came back strong. Together, this produced a $16.23B increase in Pet Spending. 2022 brought a new challenge – radically high inflation. Supplies and Veterinary had drops in spending as their 2021 binge couldn’t be repeated. Food spending bounced back with a 12.5% increase. However, the Food lift didn’t make up for the combined drop in Veterinary & Supplies. Without the record increase in Services, Pet spending would have fallen in 2022 rather than being up $2.73B (+2.7%). However, if you consider 8.9% Petflation in 2022, the amount of Pet Products & Services sold in 2022 was really down 5.7%. Although inflation was still high in 23, 8.0%, spending grew $14.89B to $117.60B, +14.5% (Real: +6.0%) and the lift was widespread as 90.6% of demographics spent more. It was 78.1% with inflation. In 24 inflation slowed to 2.6% but the lift fell to +1.1% for a Total of $118.87B. Food had the only drop, but it was a record. Veterinary drove the 23>24 lift. However, only 51.1% of demographics spent more, a big drop from 90.6% in 23. Also, with 2.6% inflation, the 1.1% lift was really a –1.5% drop. Spending moved a little younger as 45>54 returned to #1. However, the strongest trend was in income. The $150K> group had a +$5.54B lift and the 50/50 spending divide grew from $114K to $124K. In 2019, it was only $94K. In 2024, high income was by far the biggest driver in Pet Spending.

2024 U.S. VETERINARY SERVICES SPENDING $41.26B…Up $5.60B

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For years, Veterinary Services has been the second largest segment in the Pet Industry. For most of that time, high inflation has been a problem in the segment. Spending grew 24.0% from 2014>2019. Prices rose 17.4%, an avg of 3.3%. This caused a reduction of visit frequency and only 28% of the growth was “real” (avg real growth: +1.3%). In late 2020 & 2021, COVID focused Pet Parents on their “children’s” needs, including Veterinary Services. In 2021 Veterinary Spending reached $32.76 with 87% “real” growth. In 2022 the binge was not repeated so spending dropped. Inflation was still high in 23, 9.4% and 7.4% in 24. However, the higher incomes again focused on the needs of their pet children and drove two $5+B increases in Veterinary Services spending including a +$5.6B (+15.7%) lift in 24 to a new record high of $41.26B. This is more than Pet Food so in 2024, Veterinary Services became the largest segment.

In this report, we’ll take a closer look at the demographics behind the 2024 numbers. Note: All 2024 numbers in this report come from or are calculated by using data from the US BLS Consumer Expenditure Interview Survey, rather than their Diary report. The low frequency of Veterinary Visits is still generating an extremely high variation in Diary data. Interview is a more logical and accurate way to track Veterinary Services Expenditures.

Let’s get started. Veterinary Spending per CU in 2024 was $303.93 up 14.7% from $265.02 in 2023. (Note: A 2024 Pet CU (68%) Spent $446.96. More specifically, the 15.7% increase in Veterinary spending came as a result of:

  • 0.9% more CU’s
  • Spending 16.7% more $
  • 1.7% less often

We’ll take a closer look. But first, the chart below gives an overview of recent Veterinary Spending.

The big drop in the first half of 2015 was tied to the upgrade to Super Premium Foods – Trading $. Then consumers began value shopping for Food and the savings freed up $ for Veterinary Services. Spending began to climb until it flattened out at the beginning of 2017. Inflation slowed in the 2nd half and spending took off. In 2018 prices turned up and consumers held their ground through 2019. The initial COVID reaction in 2020 was a drop in spending but “need focused” consumers then drove a huge increase through 2021. In 2022, inflation grew to 8.8% and spending dropped. Inflation rose to 9.4% in 23, then slowed to 7.4% in 24 but the highest incomes drove two $5+B lifts.

Now, let’s look at Veterinary spending by some specific demographics. First, here is a chart by Income Group

Veterinary Spending is even more driven by income. All groups but $70K>150K spent more in 2024. The biggest and actually all of the lift came from the $150> group, +$5.68B. All income groups below $150K had a total change of -$0.08B. This caused the 50/50 spending break point in $ to increase significantly from $124K in 2023 to $141K in 2024.

National: $303.93 per CU (+14.7%) – $41.26B – Up $5.60B (+15.7%)

  • Over $150K (21.7% of CUs) – $653.56/CU (+28.5%) $19.21B, Up $5.68B (+42.0%) This highest income group is the biggest Veterinary Spender as 21.7% of CUs generated 46.6% of 2024 $ but also 101.4% of the increase from 2023.
  • $100>150K (16.3% of CUs) – $366.55/CU (-0.5%) $8.10B, Down $0.14B (-1.7%) Spending by this middle/upper income group slowed in 2019 but took off in 20>21, stabilized in 22, grew over 20% in 23, then fell 1.7% in 24.
  • $70K>100K (14.4% of CUs) – $273.93/CU (-3.9%) $5.36B, Down $0.04B (-0.8%) Steady growth 2016>19, then $ fell in 2020. 21 had a big COVID lift. High 22 inflation caused a drop, but spending recovered in 23, then stabilized in 24.
  • $30K>70K (27.6% of CUs) – $174.48/CU (+1.9%) $6.53B, Up $0.02B (+0.4%) From 2016 to 2020 their pattern was remarkably similar to the big spending $150K+ group. That changed in 2021 as they were the only group to spend less in Vet $ while $150K> had the biggest lift. In 2022>24 the up/down match returned, but at a much lower level.
  • Under $30K (20.1% of CUs) $75.44/CU (+9.6%) $2.06B, Up $0.09B (+4.4%) This group is very price sensitive. After the big spending dip in 2018, they slowly but consistently increased Veterinary spending until the small drop in 2022. In 2023, their spending plummeted, the only drop. In 24 spending turned up 4.4% but they’re still 13% below 2019.

Now, here is Veterinary Spending by Age Group

All groups but 55>74 spent more. The groups in 25>54 all had lifts over $1.5B. <25 again had the biggest % lift, +41.8%.

National: $303.93 per CU (+14.7%) – $41.26B – Up $5.60B (+15.7%)

  • <25 (4.9% of CUs) – $233.13/CU (+201.2%) – $1.56B – Up $0.46B (+41.8%) Many split CUs and many also added pets but cut visit frequency so 10.9% more CUs spent 61.8% more $ …20.7% less often.
  • 25>34 (15.0% of CUs) – $317.92/CU (+13.3%) – $6.47B – ↑ $1.67B (+34.8%) The commitment of these Millennials to their pets is growing. Spending was stable 2017>19. COVID caused Vet spending to take off In 2020>21. In 22 $ dropped, but they came back strong in 23 & stronger in 24 as 3.5% less CUs spent 43.1% more $ …2.4% less often
  • 35>44 (17.9% of CUs) – $350.84/CU (+22.8%) – $8.52B – ↑ $2.02B (+31.2%) In 2019, they radically increased their spending and became #1 in Veterinary $. In 2020, spending dropped. In 21 they had the biggest % increase. In 22 their spending fell but grew in 23/24. They’re #1 again as 2.8% more CUs spent 25.4% more $ …1.8% more often
  • 45>54 (16.3% of CUs) – $380.88/CU (+0.05%) – $8.44B – Up $1.53B (+22.2%) This group has the highest income, but value is important. In 2017, the slowed inflation caused them to spend significantly more money. In 2018, prices turned up and continued to inflate in 2019. Spending dropped precipitously to their 2016 level, and they lost #1 spot in Veterinary $. 2020 brought a big spending lift which continued into 2021>22. In 22, They returned to #1 in Vet $. In 23 their spending stabilized and grew in 24 as 2.4% less CUs spent 19.0% more $…5.3% more often. Still #2.
  • 55>64 (17.6% of CUs) – $332.61/CU (+37.9%) – $7.95B – ↓ $0.34B (-4.1%) This group was the leader in Veterinary Spending prior to 2015. In 2015 they upgraded to Super Premium Food and Vet Spending fell. In 2016 inflation slowed and they regained the top spot. In 2018 Veterinary prices began to strongly inflate again. Their spending fell and continued down into 2019. In 2020 they moved back to the top in Veterinary Spending. They stayed there with a big lift in 21. In 22 their spending binge ended so they fell to #2. In 23 inflation was 9.4% but a $2B lift moved pushed them back to #1. A small drop in 24 as 0.1% less CUs spent 3.0% more $, 6.8% less often. They fell to #3.
  • 65>74 (16.6% of CUs) – $238.33/CU (+17.0%) – $5.38B – ↓ $0.09B (-1.7%) This group is all Boomers, so they are committed to their pets. They had consistent annual growth from 2018>2021. In 2022 they had a small dip. In 23 they came back but another small dip in 24 as 4.6% more CUs spent 12.3% less $, 7.1% more often.
  • 75> (11.6% of CUs) – $186.22/CU (+11.4%) – $2.94B – Up $0.35B (+13.3%) This group of oldest Pet Parents has a strong commitment to their pets. In 2015, they had a $1B increase in Veterinary Spending. In 2016 & 2017, they focused on Food, Supplies and Services. In 2018, they turned their attention back to Veterinary. However, their spending has slowly but consistently grown every year since 2015 – the only group to accomplish this. In 2024 1.3% more CUs spent 31.4% more $ …14.9% less often. This produced another 13% increase in spending.

Now, let’s take a look at some other key demographic “movers” behind the 2024 Veterinary Spending numbers.

Veterinary spending rose by $5.60B (+15.7%) in 2024. With a still high 7.4% inflation rate, the real lift in the amount of Veterinary services bought was only 7.7% (Real: 49.0%). 80.4% of 92 demographic segments spent more on Veterinary Services in 2024 than in 2023, a small drop from last year when 82.3% of segments spent more. BTW – Considering inflation, only 67.4% “really” spent more in 2024. There was less turmoil as 3 of 24 flipped from first to last or vice versa and 9 maintained their position from 2023. Last year there were 12 flips but only 1 “stayed the same”. We should also note that there were 2 categories in which all segments spent more. In 2023 there were 4.

All of the “winners” are often found at the top. There were no true surprises. They have a common trait – higher income

In the “losing” group, most were expected. There were 3 that were somewhat surprising.

    ∙ 55>64 yr olds   ∙ West   ∙ Baby Boomers              

Two are surprising because they, not Boomers, have higher incomes. Most other “losers” have below average incomes.

Despite the $3.09B drop from 2021 to mid-yr 2023, Veterinary spending has increased +$20.55B (92.2%) from mid-yr 2020 through 2024. In Veterinary spending, inflation is always a factor. It has traditionally been high but 87% of the 2020>21 growth was real. However, prices rose 8.8% in 22, 9.4% in 23 and 7.4% in 24 for a 2021>24 inflation rate of 27.9%. That means that the 26.3% 2021>24 spending lift was really a -1.3% drop in the amount of Veterinary Services sold. High inflation is still a big problem in the Veterinary segment.

The 2022 decrease was widespread as 77% of all segments spent less including 3 categories where all segments had decreased Veterinary spending. The 23 $5.95B (20.0%) and 24 $5.60B (+15.7%) lifts had the opposite pattern as 80+% of demographics spent more. In 23, 4 categories had no segments with a spending decrease but it slowed to 1 in 24.

Prior to 2020 there was a youth movement in Veterinary Spending from <45. That changed in 2020 as 45> accounted for 94% of the $3B increase. In 2020, 2021 & 2023 the 55>64 yr-olds were on top. In 2022 it was the 45>54 yr-olds. The $ were skewing older. That changed in 24 as the 35>44 group moved to the top. 45>54 is a close 2nd and groups <55 now account for 60.6% of Veterinary $. Although Veterinary services are needed by all Pet Parents, higher income is by far the biggest driver in spending. This is best illustrated by comparing 2024 segment performance (Share of $/Share of CUs):

  • <$30K: 24.8%
  • $30>69K: 51.3%
  • $70K>99K: 90.1%
  • $100>149K: 120.6%
  • $150>199K: 229.9%
  • $200K>: 203.5% 

This trend is getting stronger as incomes $150> now account for 46.6% of Veterinary spending and produced 78.4% of the $11.6B 22>24 lift. Vet Services are needed by all but are becoming less affordable for many.