Archive for category: Pet Market Segments

The monthly Consumer Price Index peaked back in June 2022 at 9.1% then began to slow until turning up in Jul/Aug 2023. Prices fell in Oct>Dec 23, then turned up Jan>Oct 24. There was a -0.1% drop in prices from last month, but the CPI rose to +2.7% from +2.6% in October (due to a bigger drop in 23). Grocery prices fell -0.1% from October, but inflation grew from 1.1% to 1.6%, again due to a big drop in 23. However, after 12 months of double digit % YOY monthly increases, grocery inflation has now been below 10% for 21 months. 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 December 2021 while the overall CPI was +7.0%. The gap narrowed as Petflation accelerated and reached 96.7% of the national rate in June 2022. National inflation has slowed considerably since June 2022, but Petflation generally increased until June 2023. It passed the National CPI in July 22 but fell below it from Apr>Jul 24. It exceeded the CPI in August, fell below Sep>Oct, but is again above it. As we drill into the data, 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 24 vs 23 which will include Pet Segments and relevant Human spending categories. Plus
  1. CPI change from the previous month.
  2. Inflation changes for recent years (22>23, 21>22, 20>21, 19>20, 18>19)
  3. Total Inflation for the current month in 2024 vs 2019 and vs 2021 to see the full inflation surge.
  4. Average annual Year Over Year inflation rate from 2019 to 2024
• YTD comparisons
  1. YTD numbers for the monthly comparisons #2>4 above

In our first graph we will track the monthly change in prices for the 24 months from Nov 22 to Nov 24. 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 and those from 12 and 24 months earlier are included. We also included and highlighted (pink) the cumulative price peak for each segment. In Nov., Pet prices were up 0.5% from Oct. All segments were up but Supplies & Services had the biggest lifts. Both were +1.3%.

In November 22, the CPI was +15.9% and Pet was +16.0%. Prices in the Services segments generally inflated after mid-2020, while Product inflation stayed low until late 21. In 22 Petflation surged. Food prices consistently grew but the others had mixed patterns until July 22, when all increased. In Aug>Oct Petflation took off. In Nov>Dec, Services & Food prices grew 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, Supplies & Vet  drove prices up. In Jan>Mar 24 Pet prices grew despite a few drops. 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 prices. In Sep, Products fueled a drop. In Oct, Services drove a lift. In Nov, all were up.

• 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 turned up Jan>Sep 23, dipped Oct>Dec, rose Jan>Oct 24, then fell in Nov, but 29.9% of the 22.8% increase in the 59 months since Dec 2019 happened from Jan>Jun 2022 – 10.2% of the time.
• Pet Food – Prices were at Dec 19 level from Apr 20>Sep 21. They grew & peaked May 23. Jun>Aug they fell, grew Sep>Nov, fell Dec>Feb, rose Mar, fell Apr>May, grew June, fell Jul>Oct, then rose in Nov. 99% 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 & essentially stayed there until 22. They turned up in Jan 22 and hit a record high, beating 2009. They plateaued Feb>May, grew in June, flattened in July, then turned up in Aug>Oct to a new record. Prices stabilized in Nov>Dec but grew in Jan>Feb 23. They fell in Mar, but set a new record in May. The rollercoaster continued with Dec>Feb ↑, Mar/Apr ↓, May/Jun ↑, July ↓, Aug ↑, Sep/Oct ↓ & Nov ↑.
• 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 rollercoaster in Mar>Jun. They turned up Jul to Mar 23 but the rate slowed in April and prices fell in May. Jun>Aug: ↑, Sep>Dec: ↓, Jan>Mar 24: ↑, Apr: ↓, May: ↑, June: ↓, Jul>Nov: ↑.
• 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 causing them to fall below the CPI. However, prices rose again and despite some dips they have stayed above the CPI since July 22. In 23>24 prices grew Jan>May, leveled Jun/Jul, fell Aug, grew Sep>Dec, fell Jan 24, grew Feb>May, fell Jun>Jul, then grew Aug>Nov.
• 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 again from Jul>Nov. It slowed in Dec, grew Jan>May 23 (peak), fell Jun>Aug, grew in Sep/Oct, then fell in Nov. In December prices turned up and grew through March 24 to a record high. Prices fell in April, rose May>June (record), fell Jul>Sep, then rose in Oct>Nov (record). Petflation is now above the National CPI.

Next, we’ll turn our attention to the Year Over Year inflation rate change for November and compare it to last month, last year and to previous years. We will also show total inflation from 21>24 & 19>24. Petflation rose to 2.9%, from 2.0% in October, and it is again above the National rate (by +7.4%). In October, it was -13.1%. The chart will allow you to compare the inflation rates of 23>24 to 22>23 and other years but also see how much of the total inflation since 2019 came from the current pricing surge. We’ve included some human categories to put the pet numbers into perspective.

Overall, prices were down -0.1% from October but were +2.7% vs Nov 23, up from +2.6% last month. Grocery inflation rose to +1.6% from 1.1%. Only 2 segments had price decreases from last month – Food at Home and the CPI. There were 2 drops in Oct, but 3 in Aug & Sep and 5 in July. The national YOY monthly CPI rate of 2.7% is up from 2.6%, but it is still 13% below the 22>23 rate and 62% less than 21>22. The 23>24 rate is below 22>23 for all but Pet Supplies, Medical Services, Pet Services & Haircuts. 21>22 has the highest rate for all but Medical & Pet Services. In our 2021>2024 measurement you also can see that over 65% of the cumulative inflation since 2019 has only occurred in Total Pet and all Pet segments. Except for Pet Services, where prices are skyrocketing, Service Segments have in the past generally had higher inflation rates so there was a smaller pricing lift in the recent surge. Pet Products have a very different pattern. The 21>24 inflation surge provided 95% of their overall inflation since 2019. This happened because Pet Products prices in 2021 were still recovering from a deflationary period. Services expenditures now account for 64.6% of the National CPI so they are very influential. Their current CPI is +4.5% while the CPI for Commodities is -0.2%. This clearly shows that Services are driving all of the current 2.7% inflation. There is a similar situation in Pet. Petflation is 2.9%. The CPI for the 2 Service Segments is 7.1%. The Pet Products CPI is 0.01%.

• U.S. CPI– Prices are -0.1% from October. The YOY increase is 2.7%, up from 2.6%. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are still 30+% higher than the target. The November increase was the 2^nd straight lift after 6 consecutive drops from Apr>Sep. The current rate is below 22>23 but the 21>24 rate is still +13.5%, 59.5% of the total inflation since 2019. Inflation was growing in November 2021, +6.8%
• Pet Food– Prices are +0.1% vs October, but -1.2% vs Nov. 23, down from -1.3%. They are still significantly below the Food at Home inflation rate of +1.6%. The YOY drop of -1.2% is being measured against a time when prices were 23.1% above the 2019 level but the current decrease is still more than the -0.9% drop from 2019 to 2020. The 2021>2024 inflation surge generated 97% of the 21.4% inflation since 2019. Inflation began in 2021.
• Food at Home – Prices are down -0.1% from October but the monthly YOY increase grew from 1.1% to 1.6%. This is radically lower than Jul>Sep 2022 when it exceeded 13%. The 27.4% Inflation for this category since 2019 is 20.7% more than the national CPI but only tied for 3rd place behind 2 Services expenditures. 56.9% of the inflation since 2019 occurred from 2021>24. This is 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 +1.3% from October and inflation grew to +2.8% vs Nov 23 from 1.0%, but they still have the lowest rate vs 2019. Prices were deflated for much of 20>21. As a result, the 2021>24 inflation surge accounted for 95% of the total price increase since 2019. Prices set a record in October 2022 then deflated. 3 monthly increases pushed them to another record high in Feb 23. Prices fell in March, rose Apr/May (record), fell Jun>Aug, grew Sep>Oct, fell Nov, grew Dec>Feb 24, fell Mar>Apr, rose May>Jun (record), fell in July, rose in Aug, fell Sep>Oct, then rose in Nov.
• Veterinary Services– Prices are +0.8% from October and +7.0% from 2023, down from 7.3%. They are #2 in inflation vs 23 but still the leader in the increase since 2019 with +39.1% and since 2021, +29.4%. For Veterinary, relatively high annual inflation is the norm. However, the rate has increased during the current surge, especially in 22 & 23. It is still high in 24, so 75.2% of the cumulative inflation since 2019 occurred from 2021>24.
• 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 +0.2% from October but inflation vs last year slowed to +3.7% from +3.8%. Medical Services are not a big part of the current surge as only 56.2% of the 13.0%, 2019>24 increase happened from 21>24.
• Pet Services – Inflation slowed in 2020 but began to grow in 21. In 24, prices surged Jan>Mar, fell in April, rose in May, fell in June, then rose Jul>Nov to a new peak of 12.1%. This is almost double the 6.3% rate in August. 68.8% of their total 19>24 inflation has occurred since 21. In Dec 23, it was only 49%. Plus, they again have the highest 23>24 rate.
• Haircuts/Other Personal Services – Prices are +0.6% from October and +4.8% from Nov 23. 9 of the last 11 months have been 4.0+%. Inflation has been pretty consistent. 59.9% of the 19>24 inflation happened 21>24.
• Total Pet– Petflation rose to 2.9% from 2.0% due to price lifts in all segments. It is still 33% less than the 22>23 rate but 7.4% more than the U.S. CPI. However, 2.9% is 7.6% below the 3.1% average November rate since 1997. Vs Oct, prices rose 0.5%, driven by all but Food (+0.1%). The Oct>Nov increase was much bigger than the 0.1% average since 1997, but a lift was to be expected. It has occurred in 19 of the last 25 years. Another factor in the big CPI lift was that prices fell -0.3% in Oct>Nov 2023. In November the recovery essentially stalled so there is still a ways to go to reach a full recovery.

Now, let’s look at the YTD numbers.

The 23>24 rate is lower than 22>23 for all but Medical Services & Pet Services (their highest rate). The 22>23 inflation rate was the highest for only 2 of 9 categories – Both Pet – Pet Food & Veterinary. 21>22 has the highest rate for the CPI, Food at Home, Pet Supplies & Total Pet. The average national inflation in the 5 years since 2019 is 4.2%. Only 2 of the categories are below that rate – Medical Services (2.7%) and Pet Supplies (2.1%). It is no surprise that Veterinary Services has the highest average rate (6.7%), but all 5 other categories are +4.3% or higher.

• U.S. CPI – The 23>24 rate is 3.0%, the same as October, but it is down 29% from 22>23, 63% less than 21>22 and 29% below the average YOY increase from 2019>2024. However, it’s still 20% more than the average annual increase from 2018>2021. 70% of the 22.7% inflation since 2019 occurred from 2021>24. Inflation is a big problem that started recently.
• Pet Food – Ytd inflation is 0.3%, down from 0.5% in Oct. and 97.3% less than the 22>23 rate. Now, it is also 96.9% lower than 21>22 and 75% below the average rate from 2018>2021. Pet Food has the highest 22>23 rate on the chart and remains in 2^nd place in the 21>24 rates. Deflation in the 1^st half of 2021 kept YTD prices low then they surged in 2022 and especially in 2023. 96% of the inflation since 2019 occurred from 2021>24.
• Food at Home – The inflation rate has slowed remarkably. At 1.1%, it is down 80% from 22>23, 90% from 21>22 and 66% from 20>21. Also, it is even 50% lower than the average rate from 2018>20. It is only tied for 3rd place for the highest inflation since 2019 but still beat the U.S. CPI by 18%. You can see the impact of supply chain issues on the Grocery category as 70% of the inflation since 2019 occurred from 2021>24.
• Pets & Pet Supplies – In 24, prices rose Jan>Feb, fell Mar>Apr, rose May>Jun, fell in July, rose in Aug, fell Sep>Oct, then rose in Nov. Inflation in 24 is 0.9% and is only higher than 19>20. Supplies have the lowest inflation since 2019. The only significant lifts since 2019 were 7.6% in 22 & 2.9% in 23. The 2021 deflation created a unusual situation. Prices are up 11.2% from 2019 but 104% of this lift happened from 21>24. Prices are up 11.7% from their 2021 “bottom”.
• Veterinary Services – Inflation was high in 2019 and steadily grew until it took off in late 2022. The rate may have peaked in 2023, but it is still going strong in 2024, +7.5%, the highest on the chart. They are also #1 in inflation since 2019 and since 2021. At +6.7%, they have the highest average annual inflation rate since 2019. It is 1.6 times higher than the National Average but 2.5 times higher than the Inflation average for Medical Services. Strong Inflation is the norm in Veterinary Services.
• Medical Services – Prices went up significantly at the beginning of the pandemic, but inflation slowed in 2021. Ytd it is 2.8%. In a non-pandemic year, “normal” is between 2.1>2.9%. We are still seeing the impact of 2023 when prices actually deflated (-0.3%). This was the only deflationary year since the US BLS began tracking this category in 1935.
• Pet Services – After falling in late 2023, prices surged in 2024, except for drops in Apr & Jun. The 23>24 inflation rate of 6.6% is 2^nd to Veterinary on the chart. It is now their highest Ytd rate and is 2 times higher than their 2018>21 average rate. Pet Services is 2^nd in 19>24 inflation but only 4^th in inflation since 21.
• Haircuts & Personal Services – The services segments, essential & non-essential, were hit hardest by the pandemic. The industry responded by raising prices. Ytd inflation is 4.5%, which is 15% below its 22 peak, but 30% above the 18>20 average. Consumers are paying over 25% more than in 2019, which usually reduces the purchase frequency.
• Total Pet – Ytd Petflation is 2.6%, the same as October, but down from 2.7% Jul>Sep. It is 69% less than 22>23 but 12% higher than the 2018>21 average rate. Plus, Ytd it is still 13% below the CPI. Despite the YOY lifts in Aug & Nov, Petflation has slowed in 24. This is primarily driven by drops in Pet Food prices, but Ytd Supplies inflation is also low. Services & Vet prices reached new record highs in November. The mix of patterns has produced some stability in the Jul>Nov Ytd Pet CPIs.

The Petflation recovery paused in August, came back Sep>Oct, then paused again in November. At 2.9%, November was 7.6% below the 25 year average for the month but is again above the National CPI. We tend to focus on monthly inflation while ignoring one critical fact. Inflation is cumulative. Pet prices are 20.2% above 2021 and 25.0% higher than 2019. Those are big lifts. In fact, in November prices for Vet, Services & Total Pet set new records while prices for the Product segments are less than 1.4% below the highest in history. Only Supplies prices (+11.3%) are less than 21% 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 see a reduction in visit frequency. The product segments will see a more complex reaction. Supplies will likely see a reduction in purchase frequency and some Pet Parents may even downgrade their Pet Food. Products will see a strong movement to online purchasing and private label. We saw proof of this at both GPE & SZ as a huge # of exhibitors offer OEM services. Strong, cumulative inflation has a widespread impact.

In 2023 Americans spent $117.60B on our companion animals, 1.13% of $10.40T in total expenditures. Pet Spending was up $14.89B (+14.5%), much more than the $2.73B in 2022. In 2020 Consumers focused on the necessary segments – Food and Veterinary, including a Food buying binge. The discretionary segments, Supplies and Services, suffered until 2021 when Food $ fell but all other segments had record increases. In 2022, Supplies & Vet $ fell while Food & Services grew. In 2023, $ increased in all segments including a record lift in Food. This produced the huge 14.5% increase in Total Pet $.

In this report we will compare Pet Spending in 2023 vs 2022 for the most popular demographic measurement – by Generation. We will also include historical data going back to 2019 when Gen Z first had enough CUs to be recognized as a separate segment. All data comes from the US BLS Consumer Expenditure Survey.

We’ll start by defining the generations and looking at their share of U.S. Consumer Units (CUs are basically households)

GENERATIONS DEFINED

Gen Z: Born after 1996

In 2023, Age 26 or less

Millennials: Born 1981 to 1996

In 2023, Age 27 to 42

Gen X: Born 1965 to 1980

In 2023, Age 43 to 58

Baby Boomers: Born 1946 to 1964

In 2023 Age 59 to 77

Silent/Greatest: Born before 1946

In 2023, Age 78+

• Baby Boomers still have the largest number of CU’s at 41.4M and 30.7% of the total. They had a 2.1M decrease in 2023 and generally have been losing ground. In fact, they have 3.8M fewer CU’s than in 2016.
• The Oldest Generations will continue to lose CUs primarily due to death or movement to permanent care facilities.
• Gen X has the second most CUs and gained a little ground in 2023.
• Millennials have the largest number of individuals, but they still rank only third in the number of CU’s.
• Gen Z gained 1.6M CUs as more of these youngsters established independent households.

Now let’s look at some key CU Characteristics (Note: Nationally, 1 change; CU Size up to 2.5 from 2.4 in 2022.)

CU size: ↑ for Millennials, ↓ for Gen X & Gen Z; # Children: Millennials ↑, Gen X ↓; # Earners: Gen Z ↑, Boomers ↓; Homeownership: ↑ for Gen X & Millennials, ↓ for Born <1946; No Mtge: ↑ for all but Gen Z (No Chge).

• CU Size – Nationally, CU size increased to 2.5 from 2.4. 2+ people CUs account for 69.8% of all U.S. CUs, (up from 69.0% in 2022) and 79.7% of pet $ (down from 80.8%) There were 1.5% more 2+ CUs and they spent 11.5% more on their pets (Natl. Avg: +14.1%). Millennials and now Gen Z are actively building their households. CU size, with all the related responsibilities, now peaks with the Millennials as Gen Xers fell from 3.0 to 2.9. CU size drops as we age but the numbers for the oldest groups are the same as 2022. However, Gen Z fell from 2.1 to 2.0.
• # Children < 18 – 27.0% of U.S. CU’s have children, the same as 2022 and they generate 30.2% of Pet Spending, down from 32.8%. There was a lift in CUs with an oldest child <6 & Single Parents. The others were down. The decrease in Total Pet Spending share was also very focused. Married couples with an oldest child 18> spent -$0.60B less. Single Parents were -$1.0B. All other CUs, with or without children, spent more. The net result was CUs with children spent $1.85B more while those without children increased spending by $13.04B. Overall there was no change in the # of children per CU. Millennials are still the leader and the only generation to average more than 1 child per CU. In 2023 they increased to 1.2 from 1.1. Gen X (#2) fell from 0.8 to 0.7. All others were unchanged.
• # Earners – Pet spending is often tied to the number of earners in a CU. In 2023, all segments in the # of Earners category spent more. 2+ earner CUs still spent the most and had the biggest increase, +$5.18B. The only changes in count were that Gen Z rose to 1.5 from 1.4 while Baby Boomers fell to 0.9 from 1.0.
• Homeownership – Owning and controlling your own space has always been a major factor in increased Pet Ownership and spending. In 2023 homeownership was unchanged at 65.1%. Millennials & Gen X had increases and Born <1946 had the only drop. The homeowners’ share of Total Pet Spending fell from 81.2% to 79.6%. The decrease happened because Homeowners’ Pet Spending increased $10.21B (12.2%), while Renters’ rose $4.67B (24.2%). We should also note that while the percentage of homeowners w/no Mtge is basically unchanged, it actually grew by 0.33%. All generations but Gen Z had slight increases.
  • As expected, Gen Z are the most common renters in society. Homeownership by Millennials has moved up to 53% but it is still only 82% of the national average.
  • Gen Xers have been above the national avg since 2018, and Homeownership generally increases with age.

Next, we’ll compare the Generations to the National Avg.:

In Income, Total CU Spending, Total Pet Spending and the Pet Share of Total CU Spending

CU National Avg: Income – $101,805; Total CU Spending – $77,278; Total Pet Spending – $874.16; Pet Share – 1.13%

• Income – The Gen Xers are still at the top, but their lead fell slightly. Compared to the national average, the incomes of Boomers and the Silent/Greatest fell. Millennials’ income beat the national average in 2020 and continues to grow. The income of Gen Z passed that of the oldest Americans in 2021 and as expected, continues to grow.
• Total Spending – The Gen Xers make the most and spend the most but it’s not out of line with their income. The Millennials’ increase was 50% above the national lift so it is now 5.6% above the national average. Boomers’ spending is 90.8% of the national average, down from 90.9%. Due to a big drop in spending compared to income, the oldest group is in a better position. However, they are still deficit spending vs their after tax income. With an 11.9% increase in Income and an 9.1% increase in spending, the retail importance of Millennials continues to grow.
• Pet Spending – Millennials had a 24.0% lift so now there are 3 groups exceeding the national average. Gen X stayed on top, but their lead has narrowed. Gen Z is now up to 75.3% while the oldest group fell to 50.1% from 55.6%.
• Pet Spending Share of Total Spending – The national number grew from 1.05% to 1.13%. The increase was driven by lifts from all groups but Born <1946. In 2020 Boomers were the only group to spend more than 1% of their total expenditures on their pets. In 2021 only Gen Z spent less than 1% of their total expenditures on their pets. In 2022, only Boomers and Gen X were above 1%. In 2023, all but the oldest group are above 1%. Boomers again lead with an incredible 1.33%. However, the strong commitment to their pets by Gen Z is very evident with a 1.25% score.

Now, let’s look at Total Pet Spending by Generation in terms of market share as well as the actual annual $ spent for 2019 through 2023. The 2023 numbers are boxed in red (decrease) or green (increase) to note the change from 2022.

• After 2 years at #2, Boomers regained the top spot in Pet Spending from Gen X and their $ exceed their 2020 binge.
• There are a variety of spending patterns. Spending in the oldest group is low and except for a surge in 2021 has been slowly falling. Millennials are the only group with consistent annual growth. Gen X also grew every year until 2020. They came back strong and moved to the top in 2021>22. They fell to #2 in 2023. The Boomers have been on a rollercoaster because they react strongly to trends and outside influences. In 2020 they drove the panic buying of Food. In 2021 their spending fell due to a big drop in Food $. In 2022 it increased but was still below 2020. In 2023 lifts in all but Supplies pushed them back to #1. Their pattern is the exact opposite of the oldest generation. Gen Z is just getting started but growing. They’re the smallest group but their 2023 spending is 3.6 times more than 2021.
• In 2023, again only the Silent/Greatest generations spent less. Millennials & Boomers had the biggest lifts.
  • Silent/Greatest: -$0.34B. Boomers: +5.26B. Gen X: +0.94B. Millennials: +$6.56B. Gen Z: +$2.46B.
• Boomers – Ave CU spent $930.33 (+$139.07, 17.6%); 2023 Total Pet spending = $39.25B, Up $5.26B (+15.5%)
  • 2019>23: Up $10.52B; Spending turned strongly up and they’re back to #1 in $. Plus, they’re finally above 2020.
• Gen X – Ave CU spent $969.74 (+$12.30, 1.3%); 2023 Total Pet Spending = $35.37B, Up $0.94B (+2.7%)
  • 2019>23: Up $9.62B Their annual Pet spending growth since 2015 had been strong and consistent until a drop in 2020. In 2021>22 they were #1 in CU Pet spending and Total $. In 2023 they fell to #2 in Total $ but are #1 in CU.
• Millennials – Ave CU spent $898.78 (+$173.79, 24.0%); 2023 Total Pet Spending = $32.18B, Up $6.56B (+25.6%)
  • 2019>23: Up $15.75B; As the income and overall spending of Millennials grows, their pet spending has also grown every year. This younger group has by far the biggest increase in $ since 2019 of any group, $15.75B, +96%
• Gen Z – Ave CU spent $658.29 (+$198.03, 43.0%); 2023 Total Pet Spending= $5.95B, Up $2.46 (+70.7%)
  • 2019>23: Up $4.88B; They’re starting to build H/Hs but are now committed Pet Parents. Pet $ are +260% vs 2021
• Silent/Greatest – Ave CU spent $437.80 (+$11.95, 2.8%); 2023 Total Pet Spending = $4.86B, Down $0.34B (-6.5%)
  • 2019>23: Down $1.60B; CU Spending was up, but their # of CUs continues to fall, -7.1% vs 2022 & -32.9% from 2019.

Baby Boomers took the top spot in Total Pet Spending from Gen X and the spectacular growth continued for Gen Z. Only the oldest group spent less. However, with 8.0% inflation, Gen X also really bought less Pet Products & Services in 2023.

Let’s look at the individual segments. First, Pet Food…

• Gen X had the only decrease. The Boomer lift exceeded the one from 21>22, but Millennials had the biggest increase and the younger groups have had more consistent growth. Gen Z has quadrupled their spending since 2021.
• Since 2014, Millennials’ have led the way in food trends, and they are the only group with an annual increase every year since 2016.
• Boomers – Ave CU spent $381.53 (+$65.97, 20.9%); 2023 Pet Food spending = $16.55B, Up $3.23B (+24.3%)
  • 2019>2023: Up $3.99B They are again #1 in Total Food $ but they are still below their 2020 COVID panic buy.
• Millennials – Ave CU spent $357.97 (+$114.43, 47.0%); 2023 Pet Food Spending = $12.67B, Up $3.87B (+44.1%)
  • 2019>2022: Up $6.88B They are the only group with increased spending every year since 2016. Their income is growing as is a commitment to their pets. They often pioneer food upgrades, and they moved up to #2 in 23.
• Gen X – Ave CU spent $320.80 (-$46.41, -12.6%); 2023 Pet Food spending = $11.43B, Down $1.65B (-12.6%)
  • 2019>2022: Up $3.05B They reacted to the FDA warning by further upgrading their food. No pandemic panic buying. In 2021>22 they were the leader in CU Pet Food Spending. In 2023, they fell to 3^rd. Value shopping!
• Gen Z – Ave CU spent $264.59 (+$58.56, 28.4%); 2023 Pet Food spending = $2.43B, Up $0.82B (+50.4%)
  • 2019>2023: Up $2.09B; Pets are more important to these youngsters. Pet Food spending is +386% from 2021.
• Silent/Greatest – Ave CU spent $221.88 (+$67.76, 44.0%); 2023 Pet Food spending = $2.41B, Up $0.53B (+28.3%)
  • 2019>2023: Down $0.07B; CU count is falling, and prices are high, but they are committed to their pets.

Pet Food Spending is driven by trends and outside influences like FDA warnings and COVID. 2023 brought a record increase. Even with 10.6% inflation, all but Gen X spent more $ and bought more food.  Now, Supplies Spending.

• The oldest groups spent less and Supplies spending again skewed towards the younger groups. Gen X had the biggest lift and stayed #1. Millennials passed Boomers and are now #2. Gen Z now spends 2.4 times more than the oldest group. In 2022, they spent -$0.02B less.
• Gen X – Ave CU spent $10 (+$14.46, 7.4%); 2023 Pet Supplies spending = $7.71B, Up $0.67B (+9.5%)
  • 2019>2023: Up $2.24B; Gen Xers are again the leader in Supplies spending. They were affected by tarifflation in 2019 but held their ground in 2020. In 2021 spending exploded, fell in 2022, then grew in 2023 – not unexpected.
• Millennials – Ave CU spent $184.53 (+$2.76, 1.5%); 2023 Pet Supplies spending = $6.66B, Up $0.31B (+4.8%)
  • 2019>2023: Up $2.74B; Millennials earn their share of Supplies $. They were the least impacted by the tariffs in 2019 and spent more in 2020. Their spending then took off in 2021 and has had slow growth in 2022>23.
• Baby Boomers – Ave CU spent $157.13 (+$0.82, 0.5%); 2023 Pet Supplies spending = $6.50B, Down $0.30B (-4.3%)
  • 2019>2023: Up $0.60B In 2020 they focused on Food! In 2021, a big lift. +$0.07B in 2022 and -$0.30B in 2023.
• Gen Z – Ave CU spent $171.13 (+$52.08, 43.7%); 2023 Pet Supplies spending = $1.53B, Up $0.65B (+74.9%)
  • 2019>2023: Up $1.11B; With a big increase in Food, their huge lift in Supplies is not surprising, Pets need both.
• Silent/Greatest – Ave CU spent $55.26 (-$17.38, -23.9%); 2023 Pet Supplies spending = $0.63B, Down $0.26B (-29.3%)
  • 2019>2023: Down $0.47B; They’re losing CUs & were hit hard by COVID & inflation. Small lifts in 21>22. A drop in 23.

In 2019, tarifflation drove spending down in all groups. In 2020 Millennials and Gen X spent a little more while the older groups spent a lot less. In 2021 spending took off in all groups. In 2022, only Gen X spent less. In 2023, the older groups spent less, but the younger groups spent more – enough to generate a $1.08B increase.

Next, we’ll turn our attention to the Service Segments. First, Non-Veterinary Pet Services

• All but the oldest spent more. Gen X had the biggest increase and became #1 in Services $.
• Gen X – Ave CU spent $129.49 (+$19.23, 17.4%); 2023 Pet Services spending = $4.78B, Up $0.79B (+19.8%)
  • 2019>2023: Up $1.74B; A big drop in 2020. The 2^nd biggest lifts in 21>22 but fell to #2. In 23 they are again #1.
• Baby Boomers – Ave CU spent $103.01 (+$7.45, 7.8%); 2023 Pet Services spending = $4.26B, Up $0.11B (+2.6%)
  • 2019>2023: Up $1.48B; The biggest $ drop in 2020 and the biggest lifts in 2021>22. Small lift in 23, now #2 in $.
• Millennials – Ave CU spent $100.55 (+$5.05, 5.3%); 2023 Pet Services spending = $3.63B, Up $0.29B (+8.7%)
  • 2019>2023: Up $1.83B; In 2020 they had the smallest decrease of any group and with the 2021>23 lifts, their spending is now double the amount in 2019.
• Silent/Greatest – Ave CU spent $38.96 (-$11.29, -22.5%); 2023 Pet Services spending = $0.61B, Down $0.17B (-28.0%)
  • 2019>2023: Down $0.51B; They have the need but not the $. Their 2023 spending was 54% less than 2019.
• Gen Z – Ave CU spent $35.23 (-$2.12, -5.7%); 2023 Pet Services spending = $0.31B, Up $0.04B (+14.8%)
  • 2019>2022: Up $0.25B; They still have the smallest share of the $ but their spending is 5 times more than 2019.

This segment had slow annual growth until 2017 which saw a small drop in spending due to an extremely competitive environment. In 2018, the increased number of outlets really hit home, and spending exploded. 2019 brought another small decrease as Gen Xers & Millennials looked for and found a better deal. 2020 brought pandemic restrictions and closures. 2021 saw a record lift which they exceeded in 2022. In 2023, growth slowed, and Gen X is again #1 in $.

Now, Veterinary Services

• The oldest group had the only decrease. Gen X stayed on top in CU spending, but Boomers are now #1 in total $.
• Except for the 2022 drop by Millennials, the younger groups have had a growing commitment to this Pet Parenting responsibility. The combined Vet $ of Millennials, Gen Z & Gen Xers is up 80% from 2019 but 139% from 2017.
• Boomers – Ave CU spent $288.66 (+64.83, 29.0%); 2023 Veterinary spending= $11.94B, Up $2.21B (+22.7%)
  • 2019>2023: Up $4.46B; In 2020, Boomers focused on Food & Veterinary. In 2021 they had a big drop in Food but a big lift in Vet $. They were the leader in Vet $ until the drop in 22 pushed them to #2. They are again #1 in 23.
• Gen X – Ave CU spent $310.35 (+$25.02, 8.8%); 2023 Veterinary spending= $11.45B, Up $1.13B (+10.9%)
  • 2019>2023: Up $4.24B; They have been at the top of CU Vet spending since 2018. They are the only group with an annual increase in Vet $ every year since 2019. In 2022 they became #1 in Total $. In 2023 they fell to #2.
• Millennials – Ave CU spent $255.73 (+$51.55, 25.2%); 2023 Veterinary Spending $9.22B, Up $2.09B (+29.3%)
  • 2019>2023: Up $4.30B; They had the biggest lift in 21, the biggest drop in 22 and another big lift in 23.
• Gen Z – Ave CU spent $187.34 (+$89.50, 91.5%); 2023 Veterinary spending = $1.67B, Up $0.95B (+133.0%)
  • 2019>2023: Up $0.47B; Their growing commitment to Pets includes Vet Services as spending more than doubled.
• Silent/Greatest – Ave CU spent $121.70 (-$27.14, -18.2%); 2023 Veterinary spending $1.38B, Down $0.44B (-24.0%)
  • 2019>2023: Down $0.55B; Their pets’ health is still a priority, but high prices & a drop in CUs drove their $ down.

Veterinary spending continues to be important to the 3 younger groups but is also a priority for Boomers as they moved back to the top in $. Even with 9.4% inflation, all but the oldest group bought more Veterinary Services.

One last chart to compare the share of spending to the share of total CU’s to see who is “earning their share”.

• Gen X Performance – Total: 109.7%; Food: 91.6%; Supplies: 122.2%; Services: 129.8%; Veterinary: 117.1%
  • Gen Xers stayed at the top in performance. They earned their share in Total Pet and all segments but Food. Except for the 2020 dip they increased their Total Pet Spending every year since 2016. In 2021 they had a big increase in every segment. In 2022 they had some spending dips but an overall increase as they stayed on top in Total Pet $. In 2023, they had lifts in all, but Food and they are the performance leader in all NonFood segments. Expect their commitment and pet spending to continue to grow.
• Baby Boomers Performance – Total: 108.6%; Food: 118.3%; Supplies: 91.8 %; Services: 103.3%; Veterinary: 108.9%
  • Boomers led the way in building the industry and are again the “top dogs” in $. They earn their share in all but Supplies and are still the spending leader in Total Pet, Food & Veterinary. They are also the most emotional Pet Parents, so their spending is subject to radical swings like 2020’s panic, binge buying of Pet Food. They should still be a major force in the Pet Industry for many more years, but the Gen Xers are performing well, and the Millennials are also preparing to eventually take their turn at the top.
• Millennials Performance – Total: 102.1%; Food: 103.9%; Supplies: 107.9%; Services: 100.8%; Veterinary: 96.5%
  • Millennials are now the only group to have increased their pet spending every year since 2016. Their spending is more evenly balanced, and their performance is 100+% in all but Veterinary. Their future as the Pet Parenting spending leaders is still aways off. Their income, home ownership and pet spending are all increasing. They are educated and well connected. Indications are that they may lead the way in adopting new trends, especially in food. Their progress is good news, but in reality, their leadership may be a decade away.
• Gen Z Performance – Total: 76.3%; Food: 80.7%; Supplies: 100.0%; Services: 35.3%; Veterinary: 70.7%
  • Their getting started numbers are low in all but Supplies. 2 strong years have pushed them far above the oldsters.
• Silent/Greatest Performance – Total: 49.1%; Food: 63.0%; Supplies: 32.3%; Services: 39.1%; Veterinary: 45.9%
  • Pet Parenting is more challenging in old age. Their performance continues to fall, from 55.6% in 22 to 49.1%.

Baby Boomers are still the heart of the industry and again the $ leaders, but Gen X leads in CU $. Gen X will continue to grow as they are pursued by Millennials. Both are ready, willing and able to take their turn at the top. Pet Spending has become more balanced across the generations. This bodes well for the continued strong growth of the industry

In 2023 Total Pet Spending in the U.S. was $117.60B, a $14.89B (14.5%) increase from 2022. All segments had spending increases from 2022.  Veterinary and Food had the biggest lifts and the increase in Food spending set a new annual record. Together this produced a big increase in Total Pet $. Inflation was again a factor affecting spending. It slowed in Supplies but remained high in the other segments. Total Pet was 8.0%. That means that the “real” 22>23 lift was 6.0%. 

• A $6.81B (+17.6%) increase in Food
• A $1.08B (+4.9%) increase in Supplies
• A $5.95B (+20.0%) increase in Veterinary
• A $1.05B (+8.5%) increase in Services

Let’s see how these numbers blend together at the household (CU) level. Weekly, 26.8 million CU’s (1/5) spent $ on their Pets – food, supplies, services, veterinary or any combination – up from 25.3M in 2022 but still below 27.1M in 2019.

In 2023, the average U.S. CU (pet & non-pet) spent a total of $874.16 on their Pets. This was a +14.1% increase from the $766.20 spent in 2022. However, this doesn’t “add up” to a 14.5% increase in Total Pet Spending. With additional data provided from the US BLS, here is what happened

• 0.3% more CU’s
• Spent 8.1% more $
• 5.6% more often

If 68% of U.S. CU’s are pet parents, then their annual CU Total Pet Spending was $1285.51. 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>2023 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!
• In 2022, big lifts in Food & Services overcame drops in Supplies & Veterinary.
• 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 strong inflation, the 3rd largest ever. Trailing only 2008: +$17.11; 2021: +$16.23.

Now we’ll look at some Demographics. First, 2023 Total Pet Spending by Income Group

All income groups spent more but the biggest lifts came from the over $100K groups, especially $150K>.

Nationally: · Total Pet: ↑$14.89B   · Food: ↑$6.81B  · Supplies: ↑$1.08B  · Services: ↑$1.05B  · Veterinary: ↑$5.95B

• < $70K – (49.5% of U.S. CUs); CU Pet Spending: $529.77, +12.1%; Total $: $35.33B, ↑$1.98B (+5.9%) ..
  • Food: ↑$2.44B
  • Supplies: ↑$0.07B
  • Services: ↓$0.06B
  • Vet: ↓$0.47B
  • 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. In 2023 they focused on Pet Food.
• >$70K – (50.5% of U.S. CUs); CU Pet Spending: $1212.30, +10.9%; Total $: $82.27B, ↑$12.90B (+18.6%) from…
  • Food: ↑$4.37B
  • Supplies: ↑$1.01B
  • Services: ↑$1.11B
  • Vet: ↑$6.41B
  • This group continues to grow in size, up 7.2% in 2023 and they produced 87% of the spending increase – 100+% of the 2 service segment lifts. All segments in the group had  double digit % Total Pet spending lifts.
• < $30K – (21.3% of U.S. CUs); CU Pet Spending: $395.19, +13.1%; Total $: $11.34B, ↑$0.50B (+4.6%) from…
  • Food: ↑$1.89B
  • Supplies: ↓$0.07B
  • Services: ↓$0.21B
  • Vet: ↓$1.11B
  • This lowest income group is shrinking but still has relatively stable spending. They remain committed to their pets, but In 2023 they focused on Pet Food as spending dropped in all other segments, especially Veterinary.
• $30>$70K – (28.3% of CUs); CU Pet Spending: $631.18, +10.9%; Total $: $23.99B, ↑$1.49B (+6.6%) from…
  • Food: ↑$0.55B
  • Supplies: ↑$0.14B
  • Services: ↑$0.15B
  • Vet: ↑$0.64B
  • Again matching the National Pattern, they had increases in all segments, but all but Services were below average.
• $70>$99K – (14.1% of CUs); CU Pet Spending: $847.89, +10.6%; Tot $: $16.49B, ↑$1.91B (+13.1%) from…
  • Food: ↑$0.63B
  • Supplies: ↑$0.15B
  • Services: ↓$0.43B
  • Vet: ↑$1.56B
  • This group is very price sensitive. They had a 26% drop in Services but lifts in all the others, including +40% in Vet.
• $100K>$149K– (16.6% of CUs); CU Pet Spend: $1113.13, +9.9%; Tot $: $24.38B, ↑$3.39B (+16.2%) from
  • Food: ↑$1.67B
  • Supplies: ↓$0.15B
  • Services: ↑$0.39B
  • Vet: ↑$1.47B
  • 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 2023 Supplies $ dropped but they had big lifts in the others which produced the 2^nd biggest lift in the income category.
• $150K> – (19.8% of CUs); CU Pet Spending: $1560.16, +9.5%; Total $: $41.40B, ↑$7.60B (+22.5%) from…
  • Food: ↑$2.06B
  • Supplies; ↑$1.00B
  • Services: ↑$1.16B
  • Vet: ↑$3.38B
  • 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 2023 the $150>199K group had a small decrease in Services $ but all other measurements for both groups were up from 10.5% to 55.9%. This produced a $7.6B lift which was 51% of the Total Pet increase. This group has 19.8% of CUs but generates 35.2% of Pet $.
• < $100K – (63.6% of CUs); CU Pet Spending: $600.80, +12.3; Total $: $51.83B, ↑$3.90B (+8.1%) …
  • Food: ↑$3.07B
  • Supplies: ↑$0.22B
  • Services: ↓$0.49
  • Vet: ↑$1.09B
  • The only drop was from $40>49K, -$0.95B. The biggest lift was from $30>39K, +$2.35B. Regarding the drop in Services, $50>69K was the only group that spent more, +$0.40K. The biggest drop was from $70>99K, -$0.42B

• >$100K – (36.4% of CUs); CU Pet Spending: $1357.08, +10.1%; Total $: $65.778, ↑$10.99B (+20.1%) from…
  • Food: ↑$3.74B
  • Supplies: ↑$0.85B
  • Services: ↑$1.55B
  • Vet: ↑$4.85B
  • The $100K> group exceeded 50% of Pet $ for the 1^st time in 2020. Their lead is growing as they now do 55.9%.

Income Recap –  The top 2 drivers in consumer spending behavior are value (quality + price) and convenience. That makes income very important in Pet Spending. We also often see motivation brought by new products. In 2020 we saw the results from perhaps the biggest human motivator – fear. This drove the binge buying of pet food. The huge lift from $100>149K helped push the 50/50 $ divide up to $103K, a huge change from $94K in 2019. 2021 brought a record lift and record spending in all segments but Food. This increase was driven by the $150K> income group and the 50/50 spending divide moved up to $107K. In 2022, Food & Services $ grew while Vet & Supplies fell. A big lift by $100>149K pushed the spending divide up  to $108K. In 2023, all segments grew, but especially Food and Vet.  The lift was driven by higher incomes so the 50/50 $ divide grew to $114K. Income continues to grow in importance in Total Pet Spending.

Next let’s look at 2023 Total Pet Spending by Age Group

All age groups spent more. 65>74 & 35>44 had $3+B lifts. However, all but 45>54 had a lift over $1B.

Nationally: · Total Pet: ↑$14.89B   · Food: ↑$6.81B  · Supplies: ↑$1.08B  · Services: ↑$1.05B  · Veterinary: ↑$5.95B

• <25 – (4.5% of U.S. CUs); CU Pet Spending: $653.22, +68.9%; Total $: $4.05B, ↑$1.50B (+58.5%) from…
  • Food: ↑$0.37B
  • Supplies: ↑$0.40B
  • Services: ↑$0.001B
  • Vet: ↑$0.72B
  • Many consolidated into bigger CUs and some got married but their Pets were included. Plus, more pets were added which generated a lift in all segments. Overall, 3.7% fewer CUs spent 25.7% more $, 30.9% more often.
• 25-34 – (15.7% of U.S. CUs); CU Pet Spending: $799.70, +16.3%; Total $: $16.75B, ↑$2.27B (+15.7%) from…
  • Food: ↑$2.02B
  • Supplies: ↓$0.17B
  • Services: ↓$0.18B
  • Vet: ↑$0.60B
  • In 2021 they had a 20% increase with a big lift in all segments. In 2022, spending fell overall and in all but Services. In 2023 spending was +15.7% due to lifts in Food & Vet. 0.9% more CUs spent 9.0% more $, 5.2% more often.
• 35-44 – (17.5% of CUs); CU Pet Spending: $931.98, +13.3%; Total $: $22.11B, ↑$3.06B (+16.1%) from…
  • Food: ↑$1.25B
  • Supplies: ↑$0.11B
  • Services: ↑$0.31B
  • Vet: ↑$1.38B
  • They have the largest families and are building their careers, so they are very sensitive in times of change. In 2021 they spent more in all segments and became #1 in Total Pet $. In 2022 spending decreased and they fell to #3. In 2023 they had lifts in all segments but stayed #3 as 3.5% more CUs spent 3.0% more $, 8.9% more often.
• 45-54 – (16.9% of U.S. CUs); CU Pet Spending: $998.89, +3.3%; Total $: $22.51B, ↑$0.72B (+3.3%) from…
  • Food: ↓$0.42B
  • Supplies: ↑$0.84B
  • Services: ↑$0.28B
  • Vet: ↑$0.01B
  • They have the highest income and were #1 in Pet Spending in 2018. In 2019 & 2020 their spending and rank fell. In 2021 & 2022 their spending grew but they stayed #2. In 2023, all but Food $ were up but their total lift was only 3.3%. They fell to #2 in CU spending and stayed #2 in total $. 0.1% more CUs spent 8.7% more $, 5.1% less often.
• 55-64 – (17.8% of U.S. CUs); CU Pet Spending: $1016.42, +12.2%; Total $: $24.39B, ↑$2.45B (+11.2%) from…
  • Food: ↓$0.12B
  • Supplies: ↓$0.26B
  • Services: ↑$0.68B
  • Vet: ↑$2.15B
  • 60% are still younger Baby Boomers and they are very reactive. They were the drivers behind the 2020>21 binge & bust in Pet Food. In 22, spending normalized and they returned to #1. In 2023, big lifts in the Services & Vet overcame small drops in products as 2.1% fewer CUs spent 13.2% more $, 0.3% more often They are still #1 in $.
• 65-74 – (16.0% of U.S. CUs); CU Pet Spending: $909.91, +18.9%; Total $: $19.71B, ↑$3.27B (+19.9%) from…
  • Food: ↑$2.35B
  • Supplies: ↑$0.25B
  • Services: ↓$0.09B
  • Vet: ↑$0.76B
  • 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 2023 they increased spending in all but Services as 0.7% less CUs spent 9.7% more $, 10.0% more often.
• 75> – (11.6% of U.S. CUs); CU Pet Spending: $521.60, +21.5%; Total $: $8.07B, ↑$1.62B (+25.1%) from…
  • Food: ↑$1.35B
  • Supplies: ↓$0.09B
  • Services: ↑$0.05B
  • Vet; ↑$0.32B
  • 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. 2.2% more CUs spent 3.2% more $, 18.6% more often.

Age Group Recap: In 2022 Total Pet Spending skewed away from <45 to the 45>74 groups.  In 2023, this reversed as <45 (38% of CUs) generated 46% of the $ lift. However, in 2023 Income became even more important in Pet spending.

Next, we’ll take a look at some other key demographic “movers” in 2023 Total Pet Spending. The segments that are outlined in black “flipped” from 1^st to last or vice versa from 2022. The red outline stayed the same.

In 2023, 87 of 96 Demographic Segments (90.6%) spent more on their Pets, a big lift from 69% in 2022. (With inflation, 78.1% spent more in 23.) Another difference was that in 2023 there were 6 categories where all segments spent more. In 2022 there was 1. There was also less turmoil in 2023 as 4 segments held their spot and only 3 of the 24 segments flipped from 1st to last or vice versa. In 2022 there were 10 flips and 3 “holds”. In 2023 all of the biggest lifts were significantly larger than the biggest drops, but the drops were generally small and only happened in 6 categories. We should also note the strong stability in the Area Type category. Both the winner and loser held their position both in 2023 and 2022. Their performance is even more memorable. Not only did they hold their position in 2022 & 2023 but in both years, there were no segments in the Area Type category with a decrease in Total Pet Spending.

Let’s look at some specifics.

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

Only 2 winners are surprising, and they have 1 common trait – They are old.

  • Retired     • 65>74 years old  

Among the losers, 6 often find themselves in this position. Note: 2 have increased spending – Asians & the South

    • Asians     • Born <1946     • Blue Collar     • South     • Single Parents     • $40>49K

All but Asians have low incomes. There were 3 surprises: Note: None had a drop in spending.

    • 3+ Earners     • 45>54 yr-olds     • Rural (despite +$0.8B spending in 22 & +$3.5B in 23)

All but Rural have a high income. However, Rural is a big Pet spender, with $1200 in annual CU pet spending.

Recap: After a slight downturn in 2019, Pet Spending turned up in 2020, primarily due to the pandemic binge buying of Pet Food. The Food binge 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 2023, 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. All industry segments had increased spending, but the biggest lifts came from Food and Veterinary. Unlike 2022, when 45> was the driver, in 2023 most of the lift came from <45 & 65>. However, the strongest trend was in income. The $100K> group (36.4% of CUs) generated 73.8% of the increase. The 50/50 spending divide grew from $108K to $114K. In 2019, it was only $94K. In 2023, 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. 2021>2022 brought a spectacular recovery. Spending grew $5.47B (+79%). Growth slowed in 2023, +$1.05B (+8.5%) to $13.42B. In this report we will drill down into the data to see what groups drove the 2023 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 2023 was $99.73, up 8.2% from $92.21 in 2022. Note: A 2023 Pet CU (68%) Spent $146.66

More specifically, the 8.5% increase in Total Pet Services spending came as a result of:

• 0.3% more CUs
• Spending 7.8% more $
• 0.4% 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 and convenience has significantly increased Services spending. This happened despite a return to a normal inflation rate, +2.4%. However, inflation grew to 2.5+% and in the 2^nd half of 2019 and spending declined slightly. The 2020 pandemic brought restrictions and closures which drove spending radically down. In 2021>2022 it grew spectacularly despite inflation rates of 4.9% in 2021 & 6.3% in 2022. In 2023, inflation was 5.7% and growth slowed. In fact the 8.5% lift was “really” only a 2.7% increase in the amount of Services bought. Now, let’s look at some demographics of 2023 Services spending.

First, by Income Group.

In 2022 all groups spent more. In 2023 <$50K & $70>100K had big drops. The biggest lifts came from higher incomes, especially $200K> which was up $1.16B. The 2023 50/50 dividing line in $ for Services was $147K. That is up radically from $134K last year and it is still by far the highest of any segment. It is readily apparent that income is overwhelmingly the primary driver in Pet Services spending.

• <30K (21.3% of CU’s) – $27.42 per CU (-12.3%) – $0.78B, ↓$0.21B (-21.4%) – This segment is shrinking and money is tight, so Services spending is less of an option. Inflation was still high and spending fell 21%. It is now below $1B.
• $30>70K (28.3% of CU’s); $50.13 per CU (+11.0%); $1.91B, Up $0.15B (+8.8%) – In 2020, they had the only increase and they are the only group to spend more in 2020, 2021, 2022 & 2023. In 23, $30>50K: ↓-$0.25B; $50>70K: +$0.4B
• $70>100K (14.1% of CU’s) – $65.67 per CU (-25.8%) – $1.24B, Down $0.43B (-25.8%) – The spending of this middle income group slowly but consistently grew 2016>19. Then it plummeted in 2020. They rebounded somewhat in 2021, but spending took off in 2022, a 61% lift. In 2023, they had the biggest drop.
• $100>150K (16.6% of CU’s) – $130.98 per CU (+6.9%) – $2.93B, Up $0.39B (+15.3%) – They had consistent growth from 2016>19. In 2020 they had the biggest drop. Consistent growth returned 2021>23 and they are now near $3B.
• $150K> (19.8% of CU’s) – $246.34 per CU (+8.2%) – $6.55B, Up $1.16B (+21.4%) – Spending fell 2019>20, then it took off in 21>23. They generate 49% of Services total $ and their CU spending is 2.5 times the national average. Note: Spending in the $150>199K segment was down -$0.01B so all of the $150K> group’s increase came from $200K>.

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

<25, 35>64 & 75> spent more in 2023. Only 25>34 and 65>74 spent less. The biggest lift was from 55>64. The lifts from the oldest & youngest groups were minor. Spending share is relatively balanced from 35>64. Here are the specifics:

• 55>64 (17.8% of CU’s) $134.78 per CU (+29.2%) – $3.22B – Up $0.68B (+26.5%) 2017>2019 they slowly increased Services spending. 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 as 2.1% less CUs spent 16.2% more $, 11.2% more often.
• 45>54 (16.9% of CU’s)- $120.78 per CU (+11.4%) – $2.74B – Up $0.28B (+11.5%) This highest income group was #1 in Services $ in 2019 and held on in 2020 despite a 20% drop in frequency. In 2021 they had the only $ drop and fell to #3. In 2022 they moved up to #2. In 2023 0.1% more CU’s spent 12.3% more $, 0.8% less often. They are still #2.
• 35>44 (17.5% of CU’s) – $115.27 per CU (+9.2%) – $2.72B – Up $0.31B (+13.0%) A $1B increase in 2018 pushed them to #1. In 2019>20 spending fell. In 2021 they had a big increase and moved up to #2. In 2022 $ grew 17.6% but they fell to #3. In 2023 3.5% more CU’s spent 11.1% more $, 1.7% less often. They are still #3 but just $0.02B behind #2.
• 65>74 (16.0% of CU’s) – $97.47 per CU (-3.6%) – $2.10B – ↓ $0.09B (-4.2%). This group is very value conscious and had been growing in numbers until 2023. From 2017>19 their spending was stable. In 2020 it fell 20%. In 2021>22 they came back strong. In 2023 0.7% less CU’s spent 3.1% more $, 6.5% less often and Services $ fell -4.2%.
• 25>34 (15.7% of CU’s) – $78.22 per CU (-10.4%) – $1.65B – ↓ $0.18B (-9.6%). These Millennials “found” the Services segment in 2018. Their spending slowly fell in 2019>20 but reached a record high in 2021 due to an increase in frequency. In 2022 their $ surged but they fell in 2023 as 0.9% more CU’s spent 10.6% less $, 0.3% more often.
• 75> (11.6% of CU’s) – $51.85 per CU (+3.9%) – $0.81B – Up $0.05B (+6.2%) They have a big need for pet services, but money is always an issue. In 2019 they had the biggest lift but gave it all back in 2020. In 2021>22 spending surged with a big increase in frequency. In 2023 $ grew 6.2% as 2.2% more CU’s spent 15.2% more $, 9.8% less often.
• <25 (4.5% of CU’s) – $27.68 per CU (+4.5%) – $0.17B – Up $0.001B (+0.7%) After 2018 spending fell and essentially stabilized from 2019>23. They had a miniscule lift in 2023 as 3.7% less CU’s spent 13.5% less $, 20.8% more 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 64.7% of all Services $. They are also the only groups with 100+% performance ($ share/CU share) 65>74 is close, 97.7%. 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 2023. The segments that are outlined in black “flipped” from 1^st to last or vice versa from 2022. A red outline stayed the same.

You see a little less stability in 2023. There were 7 that held their position and 2 flips from last to 1^st. In 2022, 13 held their position and there were no flips. Also, 2 categories had no segments that spent less on Services. There were 9 in 2022. In fact, in 2023, 72 of 96 segments (75%) spent more on Services than last year. In 2022 the percentage was 93%. So 2023 was not as great as 2022 but it was still good. The recovery growth has definitely slowed but it is still happening and is demographically widespread.

You see from the graph that, except for Education the winners’ changes were substantially larger than the losers’. This speaks to the strength and widespread nature of the lift. We should also note that regardless of the type of area that you live in or the number of people in your household, you spent more on Pet Services.

6 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. 9 of the 12 winners are either 1^st or 2^nd in income in their categories. The only winner that is bit of a surprise is Retired. High need, but low income – But more Boomers.

Almost all of the losers are not unexpected. Once again, if we look at income, 9 of 12 are at or near the bottom in income in their category. The other 3 also have below average incomes. Only Tech/Sls/Clerical is somewhat surprising, but their drop was very small, only -0.08B. We should also note that the biggest $ drop was by Associate’s Degree. In 2022 they more than doubled their Services spending.

In 2023, 75% of demographic segments spent more on Services than in 2022 and 99% from the low point in 2020. The segment has strongly recovered. However, when you factor 5.7% inflation into the 2023 numbers, only 32% of the 8.5% 22>23 lift was real, +2.7%. Plus, just 60% of demographic segments had a real increase in 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 $147,000. That is 44% more than the average CU income and 84% more than the median income. $147K> is 22% of all CUs but accounts for 50% of Services $, 110% of the $1.05B lift from 2022 and 60% of the $6.5B 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. 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 in 2023. 79% of segments had an increase in spending but only 58% had lifts that exceeded the inflation rate. Plus, the purchase frequency was only +0.4% from 22. However, one group stepped up – high income. CUs with $200K> income increased Services spending by $1.16B, 110% of the Services 22>23 lift. 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.

Total Pet spending grew to $117.60B in 2023, up $14.89B (+14.5%) from 2022. After a record $8.75B (+57%) increase in 2021 the Supplies segment fell $1.86B in 2022. They started to recover in 2023, up $1.08B (+4.9%) to $23.02B. (Note: All numbers in this report come from or are calculated by using data from the US BLS Consumer Expenditure Surveys)

Supplies Spending fell -$4.6B 2018>20 due to Tarifflation and COVID. In 2021, Pet Parents caught up. Spending turned up in the 1^st half then skyrocketed in the 2^nd half. In 2022, it plateaued in the 1^st half then fell sharply in the 2^nd half. 2023 had a 1^st half lift & a 2^nd half drop. We’ll drill down into the data to determine what & who was drove the lift in Spending.

In 2023, the average household spent $171.08 on Supplies, up 4.5% from $163.64 in 2022. (Note: A 2023 Pet CU (68%) Spent $251.59) This doesn’t exactly match the 4.9% total $ increase. Here are the specific details:

• 0.3% more CU’s
• Spent 1.5% less $
• 6.1% more often

Let’s start with a visual overview. The chart below shows recent Supplies spending history.

Since the great recession, spending in the Supplies segment has been driven by price. Although many supplies are needed by Pet Parents, when they are bought and how much you spend is often discretionary. When prices fall, consumers are more likely to buy more. When they go up, consumers spend less and/or buy less frequently.

2014 was the third consecutive year of deflation in Supplies as prices reached a level not seen since 2007. Consumers responded with a spending increase of over $2B. Prices stabilized and then moved up in 2015.

In 2015 we saw how the discretionary aspect of the Supplies segment can impact spending in another way. Consumers spent $5.4B for a food upgrade and cut back on Supplies – swapping $. Consumers spent 4.1% less, but they bought 10% less often. That drop in purchase frequency drove $1.6B (78%) of the $2.1B decrease in Supplies spending.

In 2016, supplies’ prices flattened out and consumers value shopped for their upgraded food. Supplies spending stabilized and began to increase in the second half. In 2017 supplies prices deflated, reaching a new post-recession low. The consumers responded with a $2.74B increase in Supplies spending that was widespread across demographic segments. An important factor in the lift was an increase in purchase frequency which was within 5% of the 2014 rate.

In 2018 prices started to move up in April and rapidly increased later in the year due to the impact of new tariffs. By December, Supplies prices were 3.3% higher than a year ago. This explains the initial growth and pull back in spending.

In 2019 we saw the full impact of the tariffs. Prices continued to increase. By yearend they were up 5.7% from the Spring of 2018 and spending plummeted -$2.98B. The major factor in the drop was a 13.1% decrease in purchasing frequency.

2020 brought the pandemic. Prices deflated but with retail restrictions and the consumers’ focus on needed items, both the amount spent and frequency of purchase of Supplies fell.

In 2021 the recovery began with a strong lift in the 1^st half that reached record levels in the 2^nd half. Pet parents bought all the supplies that they had been putting off for 2 years – the biggest lift in history. 2021 spending ended up where it was headed in 2018 before being “derailed” by outside influences. In 2022 inflation took off, especially in the 2^nd half. Spending plateaued then fell -$2.44B in the 2^nd half. In the 1^st half of 2023 spending increased, primarily because of inflation. In the 2^nd half inflation fell to 0.1%, but prices were still high so spending dropped.

That gives us an overview of the recent spending history. Now let’s look at some specifics regarding the “who” behind the 2023 lift. First, we’ll look at spending by income level, the most influential demographic in Pet Spending.

National: $171.08 per CU (+4.5%) – $23.02B – Up $1.08B (+4.9%).

Only the <$30 & $100>150K income groups spent less but the 50/50 $ divide moved up to $117K from $114K.

• <$30K (21.3% of CUs)- $68.33 per CU (+7.7%); $1.95B– Down $0.07B (-3.4%). This group is very price sensitive, but they still need Supplies. Their Total Supplies $ only fell because they have 10.4% fewer CUs.
• $30K>70K (28.3% of CUs)- $117.82 per CU (+5.3%); $4.48B – Up $0.14 (+3.2%). This big, lower income group matches both the national spending pattern and that of the $150K+ group. 2019 Tarifflation and 2022 inflation had big impacts. Despite fewer CUs, spending grew. Until 2019 they were the leader in Supplies $. Now, they rank 3^rd.
• $70>$100K (14.1% of CUs) – $180.19 per CU (+4.7%); $3.41B – Up $0.15B (+4.7%). This group had consistent spending until 2020 hit them hard. They rebounded strong in 21 and spending even grew slightly in both 22 & 23.
• $100K>$150K (16.6% of CUs) – $214.74 per CU (-10.0%); $4.81B – ↓$0.15B (-3.0%). This group had the 2^nd biggest COVID drop. In 21 they had the 2^nd biggest recovery. In 22, they had the only significant lift but their $ fell 3% in 23.
• $150K> (19.8% of CUs) – $314.49 per CU (+1.2%); $8.36B – Up $1.00B (+13.6%). This highest income group had the biggest $ drop in 22, which is not surprising after a $4.6B lift in 21. In 23 they provided 93% of the Supplies lift. This came from 12.3% more CUs. BTW, the $150>200K group was again the driver as $200K> spent -3.2% less per CU.

With high prices, income matters. While $30>100K spent a little more, almost all of the overall lift came from $150K>.

Now, we’ll look at spending by Age Group.

National: $171.08 per CU (+4.5%) – $23.02B – Up $1.08B (+4.9%)

2023 was an age group spending rollercoaster. Under 25: ↑; 25>34:↓; 35>54: ↑; 55>64: ↓; 65>74:↑; 75>: ↓

• 45>54 (16.9% of CUs) $237.89 per CU (+18.1%); $5.41B – Up $0.84B (+18.3%). From 2007>2018 this highest income group was the leader in Supplies spending. They had a pandemic drop but strong growth in 21 & 22. The lift continued in 2023 as 0.1% more CU’s spent 19.8% more, 1.5% less often. They moved up from #2 to #1.
• 35>44 (17.5% of CUs) $189.19 per CU (-0.9%); $4.47B – Up $0.11B (+2.6%) They are 2nd in income and expenditures. Strong inflation drove their $ down in 2019 but COVID had little impact. Spending took off in 21, fell in 22 then grew slightly in 23 as 3.5% more CUs spent 6.1% less $, 5.6% more often. They are #2, up from #3
• 55>64 (17.8% of CUs) $183.28 /CU (-3.6%); $4.39B – ↓ $0.26B (-5.6%). Tarriflation caused a spending drop in 2019. Spending fell in 2020 as they binge bought pet food. They had a strong recovery in 21. Growth slowed in 22 then $ fell in 23 as 2.1% less CUs spent 12.9% less on Supplies, 10.7% more often. They fell from #1 to #3.
• 25<34 (15.7% of CUs) $165.46 per CU (-5.5%); $3.49B – Down $0.17B (-4.7%). After trading Supplies $ for upgraded Food and Vet Care in 2016, these Millennials turned their attention back to Supplies. Tarriflation hit them hard in 2019 but they actually increased spending in the pandemic. The lift grew even stronger in 2021 but then spending fell slightly in 2022 and again in 2023 as 0.9% more CUs spent 1.0% less $, 4.6% less often.
• 65>74 (16.0% of CUs) $145.29 per CU (+9.4%); $3.14B – Up $0.25B (+8.7%). This older group is very price sensitive so rising prices caused them to cut back on spending in 2019. Like the 25>34 yr-olds, they also increased spending in 2020 and spending soared in 2021. However, unlike the 25>34 yr-olds and despite high prices, their spending grew in 2022 and again in 2023 as 0.7% less CUs spent 2.2% more, 7.1% more often.
• 75> (11.6% of CUs) $70.27 per CU (-9.8%); $1.10B – Down $0.09B (-7.8%). This low-income group is price sensitive but they are committed to their pets. Their spending was severely impacted by the Pandemic. They had a strong recovery in 21 & 22 but their $ fell in 23 as 2.2% more CU’s spent 23.6% less, 18.1% more often.
• <25 (4.5% of CUs) $172.54/CU (+69.3%) $1.04B- Up $0.40B (+63.1%). Many moved in with other adults or got married. Many also added Pets to their CU. In 2023 3.7% less CUs spent 1.2% less $, 71.5% more often.

Supplies spending was on an age roller-coaster in 2023 with no clear pattern but the 45>54 group drove most of the lift.

Next, let’s take a look at some other key demographic “movers” in 2023 Pet Supplies Spending. The segments that are outlined in black “flipped” from 1^st to last or vice versa from 2022. The red outline stayed the same.

In 2023, even with only a small increase, 65.6% of segments still spent more. In 2022 it was 52%. There was 1 Category – Housing, in which all spent more. That didn’t happen in 2022. In 2023 there were 9 “flips” and 5 that held their spot. In 2022 there were 15 “flips” and 1 “holdover”. 2023 was clearly better and more stable than 2022.

5 winners are the “usual suspects”:  • White, Not Hisp.    • $150>199K    • Gen X    • 45>54 yr-olds    • Homeown w/Mtge

5 are very surprising:  • Tech/Sls/Cler    • Rural    • 1 Earner, Single    • Singles    • HS Grad w/Some College

Among the losers, most often show up here. There are only 2 big repeat surprises:  • 2 Earners    • Adv. College Degree

After the post pandemic binge buy in 2021, Supplies spending fell $1.86B (-7.8%) in 2022. This was not surprising after the record $8.65B lift. It is very similar to the binge/bust pattern in Pet Food that occurred a year earlier. Although spending fell by $1.9B, 52% of 96 demographic segments spent more on Supplies. In 2023 spending grew $1.08B (+4.9%) as 65.6% of demographics spent more. There is a key factor to be considered to put 2022>23 Supplies spending in a better perspective. Many Supplies categories have been commoditized, so the segment has been very susceptible to price changes. Prices fell 2016>18 and spending grew by $5B. Prices rose in 2018/19 and spending fell -$4.6B. In 2022 the inflation rate was 7.7%. That means that the amount of Supplies purchased in 2022 was “really” -14.4%, almost double the actual $ drop. In 2023 Supplies spending grew by $1.08B (+4.9%). Annual inflation was 2.6% so the “real” lift was +2.3%. Inflation in the 1st half of 23 was 5.2% and spending was +$1.65B. In the 2^nd half the CPI fell to 0.1% but spending was -$0.57B. That is the opposite of what we would expect. Supplies spending is definitely more discretionary, but many products are needed for a better life – both for Pets and Pet Parents. As Supplies spending moves more towards higher incomes, perhaps Pet Parents are becoming less price sensitive in this segment. We’ll see what happens in 2024.