Archive for category: Pet Market

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.

 

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 2^nd 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 3^rd largest ever. 2008: +$17.11B; 2021: +$16.23B.
• The 2024 lift was the 5^th 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 2^nd  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 1^st 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 1^st 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 1^st 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.

Except for a small decline in 2017, Non-Vet Pet Services had shown consistent, small annual growth. In 2018, that changed as spending grew a spectacular $1.95B. The number of outlets offering Pet Services has rapidly grown and more consumers have opted for this convenience. However, spending plummeted -$1.73B in 2020 due to COVID closures and restrictions. 21>22 brought a spectacular recovery, $5.47B (+79%). Growth slowed in 23 but especially in 24 +$0.23B (+1.7%) to $13.65B. In this report we will drill down into the data to see what groups drove the small 2024 lift. (Note: All numbers in this report come from or are calculated from data in the US BLS Consumer Expenditure Surveys)

Services’ Spending per CU in 2024 was $100.55, up 0.8% from $99.73 in 2023. Note: A 2024 Pet CU (68%) Spent $147.87

More specifically, the 1.7% increase in Total Pet Services spending came as a result of:

• 0.9% more CUs
• Spending 2.5% less $
• 3.4% more often

The chart below gives a visual overview of recent spending on Pet Services

After the big lift in 2018, spending stabilized in 2019. Increased availability has significantly increased Services spending, despite a return to a normal inflation rate, +2.4%. However, inflation grew to 2.5+% in the 2^nd half of 2019 and spending declined slightly. The 2020 pandemic brought restrictions and closures which drove spending radically down. In 21>22 it grew spectacularly despite 4.9% inflation in 21 & 6.3% in 22. In 23, inflation was 5.7% so real growth was only 2.7%. In 24, 7.0% inflation made the 1.7% lift a real -4.9% drop. Let’s look at the demographics of 2024 Services spending.

First, by Income Group.

In 2023 <$50K & $70>100K had big drops. The biggest lifts came from higher incomes, especially $200K> which was up $1.16B. In 2024 the only lifts were by $70>100K and over $150K. The biggest lift was +$0.82B from $150>200K. The 2024 50/50 dividing line in $ for Services was $156K, up from $147K last year and still by far the highest of any industry segment. It is readily apparent that income is overwhelmingly the primary driver in Pet Services spending.

• <30K (20.1% of CU’s) – $19.06 per CU (-30.5%) – $0.52B, ↓$0.27B (-33.8%) – This segment is shrinking and money is tight, so Services spending is less of an option. Inflation was even higher in 24 and spending fell 33.8% to $0.52B.
• $30>70K (27.6% of CU’s); $44.27 per CU (-11.7%); $1.66B, ↓$0.25B (-13.0%) – This low-income group is shrinking but they were the only group to spend more in 2020>23. In 24 their $ dropped. $30>50K: -$0.02B; $50>70K: -$0.23B
• $70>100K (14.4% of CU’s) – $89.02 per CU (+35.6%) – $1.74B, Up $0.50B (+40.0%) – The spending of this middle income group slowly but consistently grew 2016>19, plummeted in 2020, rebounded somewhat in 2021, then took off in 2022, a 61% lift. In 2023, they had the biggest drop. They fully recovered in 2024 with a +40% lift.
• $100>150K (16.3% of CU’s) – $117.07 per CU (-10.6%) – $2.59B, ↓$0.34B (-11.8%) – They had consistent growth from 2016>19. In 2020 they had the biggest drop. Growth returned 21>23 but their $ fell to the 2022 level in 2024.
• $150K> (21.7% of CU’s) – $243.03 per CU (-1.3%) – $7.14B, Up $0.59B (+9.0%) – Spending fell 2019>20, then it took off in 21>24. They generate 52% of Services total $ and their CU spending is still over 2.4 times the national average.

Now, let’s look at spending by Age Group.

In 2023 <25, 35>64 & 75> spent more. In 2024 only 25>34, 45>54 & 75> had $ increases. The biggest was from 45>54 as they moved up to #1. The 35>64 age range has the 3 highest income groups and generates 2/3 of all Services spending. Here are the specifics:

• 45>54 (16.3% of CU’s)- $161.10 per CU (+33.4%) – $3.57B – Up $0.83B (+30.1%) This highest income group was #1 in Services $ in 2019 and held on in 2020 despite a 20% frequency drop. In 2021 they had the only $ drop and fell to #3. In 2022/23 they became #2. In 2024 as 2.4% less CU’s spent 15.9% more $, 15.1% more often, they returned to #1.
• 55>64 (17.6% of CU’s) $118.58 per CU (-12.0%) – $2.84B – ↓$0.39B (-12.1%) 2017>19 had small A big drop in frequency drove spending down in 2020 but they had a strong recovery 21>23 and took the top spot in Services $ in 2021. They held on in 23 but fell to #2 in 24 as 0.1% less CUs spent 13.8% less $, 2.0% more often.
• 35>44 (17.9% of CU’s) – $110.61 per CU (-4.0%) – $2.69B – ↓$0.04B (-1.3%) A $1B increase in 2018 pushed them to #1. In 2019>20 spending fell. In 21 they moved up to #2. In 22 $ grew 18% but they fell to #3. In 23 their $ grew but they stayed #3. In 24 2.8% more CU’s spent 7.0% less $, 3.2% more often causing a small drop but they are still #3.
• 65>74 (16.6% of CU’s) – $71.85 per CU (-26.3%) – $1.62B – ↓$0.48B (-22.9%). This group is very value conscious and growing in size. From 2017>19 their spending was stable. In 2020 it fell 20%. In 2021>22 they came back strong. In 23 spending fell but not as much as the 22.9% drop in 24 when 4.6% more CU’s spent 24.3% less $, 2.6% less often.
• 75> (11.6% of CU’s) – $65.05 /CU (+25.5%) – $1.03B – ↑$0.22B (+27.1%) They have a big need for pet services, but money is always an issue. In 2019 they had a big lift but gave it back in 2020. In 21>22 spending surged but slowed to +6.2% in 23. In 24, spending jumped up +27.1% as 1.3% more CU’s spent 14.6% more $, 9.5% more often.
• <25 (4.9% of CU’s) – $10.09 per CU (-63.6%) – $0.07B – ↓$0.10B (-59.4%) After 2018 spending fell and essentially stabilized from 2019>23. In 24 Services $ fell to almost $0 as 10.9% more CUs spent 47.8% less $, 29.9% less often.

Earlier, we saw that income was a big driver in Services spending, so it is no surprise that the 3 highest income age groups, 35>64, account for 66.7% of all Services $. They also have the only performance over 100% ($ share/CU share). 25>34 is close at 90.1%. Pet Services offer great benefits, but you need to have/find the money to get them.

Finally, here are some key demographic “movers” that drove the  lift in Pet Services Spending in 2024. The segments that are outlined in black “flipped” from 1^st to last or vice versa from 2023. A red outline stayed the same.

You see slightly less stability in 2024. There were 5 that held their position and 2 flips from last to 1^st or vice versa. In 2023, 7 held their position and there were also 2 flips. Also, no categories had no segments that spent less on Services. In 2023 there were 2. In fact, in 2024, 46 of 92 segments (50%) spent more on Services than last year. In 2023 the percentage was 75%. So, 2024 was not as good as 2023 but it wasn’t actually bad. Growth has definitely slowed but it is still happening although not as demographically widespread.

You see from the graph that, 8 of 12 winners’ changes were substantially larger than the losers’. 3 of the demographic categories had losers’ changes that equaled or exceeded the winners’ change. Also, regardless of the demographic category, there was always at least 1 segment that spent less on Services. 2024 was definitely not as good as 2023.

3 of the winners held their spot. Pet Services are a regular part of their Pet Parenting, and its importance continues to grow. The winners also demonstrate the importance of income to Services. While this segment has become more demographically widespread, higher incomes dominate. 7 of the 12 winners are either 1^st or 2^nd in income in their categories. The only winner that is a true surprise is African Americans – low pet ownership and the lowest income.

Many of the losers are not unexpected. Most have below average income, but some don’t. The 4 biggest surprises are:

•     Self-Employed    •   $100>149K    •    White, Not Hispanic    •   Baby Boomers

We should note that the biggest $ drop was by the Boomers. In 21>23 they increased their Services spending by $1.2B

In 2024, only 50% of demographic segments spent more on Services than in last year. This is down from 75% in 2023 but much better than 21% in 2020. The segment has strongly recovered. However, when you factor 7.0% inflation into the 2024 numbers, the 1.7% lift was really a -4.9% drop and only 13% of demographic segments really bought more Services. The recovery has definitely slowed. There is one spending trend that must be noted. Income continues to be the biggest factor in Services spending and its importance is growing. The 50/50 income dividing line in Services spending is now up to $156,000. That is 50% more than the average CU income and 86% more than the median income. $156K> is 23% of all CUs but accounts for 50% of Services $ and 64% of the $6.7B Services $ increase from 2020.

Overview – After the huge lift in 2018, Services spending plateaued in 2019. That changed with the pandemic in 2020. Like many retail services segments, Pet Services outlets were deemed nonessential and subject to restrictions. This resulted in a radically reduced frequency of visits and was the biggest reason behind the 20% drop in spending.

2021 and 2022 brought a strong recovery with the 2 biggest increases in history. They totaled $5.5B and spending grew by +79.4% from 2020. 2022 Spending was even +41.7% higher than the pre-pandemic peak of $8.72B in 2018. The segments that were hit the hardest by the pandemic generally had the strongest recovery. Both big lifts were largely driven by the same groups, but in 2022, 93% of all segments spent more. With continued high inflation, growth slowed markedly to 8.5% in 2023. 75% of segments had an increase in spending but only 60% had lifts that exceeded the inflation rate. In 2024 the situation worsened. The spending lift slowed to +1.7%. This lift was primarily driven by a 3.4% increase in purchase frequency but only 50% of segments spent more. The inflation rate was 7.0% so the 1.7% lift was really a 4.9% decrease in the amount sold and only 27% “really” bought more. Pet Services have become more important to Pet Parents and the Pet Industry, but growth is increasingly being driven by high income. However, many households still find the $ to fill this need.