Archive for category: Pet Market Segments

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.

It’s time to catch up with 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 new record high in Sep, then fell Oct>Dec. The CPI vs 24 also slowed to +2.7% from +3.0% in Sep, the high point of 25. Grocery prices rose 0.5% from Nov and their YOY inflation rose to 2.4% from 1.9%. 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. 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 25 vs 24 which will include Pet Segments and relevant Human spending categories. Plus
  1. CPI change from the previous month.
  2. Inflation changes for recent years (23>24, 22>23, 21>22, 20>21, 19>20, 18>19)
  3. Total Inflation for the current month in 2025 vs 2019 and vs 2021 to see the full inflation surge.
  4. Average annual Year Over Year inflation rate from 2019 to 2025
• YTD comparisons (December = Annual)
  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 Dec 23 to Dec 25. 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 2023 and 2024 are included. We also included and highlighted (pink) the cumulative price peak for each segment. In Dec, Pet prices rose +0.8% from Nov. All segments were up: Food (+0.2%). Supplies (+0.9%), Vet (+2.0%), Services (+0.2%).

In Dec 23, the CPI was +19.4% and Pet was +21.8%. 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 Product 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 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 but Food set records in Dec.

• 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 to a record high, then slowed. but 26.1% of the increase since Dec 19 happened from Jan>Jun 22 – 8.3% 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. In 25 Jan>Feb↑, Mar>May↓, Jun>Jul↑, Aug↓, Sep↔, Oct>Nov ↓, Dec ↑. 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 & stayed there until 22. They turned up in Jan and hit a record high. 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↑, Mar/Apr↓, May/Jun↑, July↓, Aug↑, Sep/Oct↓, Nov/Dec↑, Jan>Feb 25↓, Mar>May↑, Jun↓, Jul↑, Aug↓, Sep↑, Oct>Nov↓, Dec↑(record).
• Pet Services– Inflation is usually 2+%. Perhaps due to closures, prices increased at a lower rate in 2020. In 2021 consumer demand increased but with fewer outlets. Inflation grew in 21 with the biggest lift in Jan>Apr. Inflation was strong in 22 but prices got on a roller coaster. They turned up Jul>Apr 23, fell May. Jun>Aug↑, Sep>Dec↓, Jan>Mar 24↑, Apr↓, May↑, Jun↓, Jul>Nov↑, Dec>Mar 25↓, Apr>Aug↑, Sep↓, Oct>Dec↑(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 causing them to fall 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. (record)
• 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 in Dec, grew Jan>May 23, fell Jun>Aug, grew Sep/Oct, then fell in Nov. In December prices grew through Mar 24 to a record high. Prices fell in April, rose May>Jun, fell Jul>Sep, rose Oct>Nov, fell Dec, rose Jan>Feb 25, fell Mar, grew Apr>Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec (record)

Next, we’ll turn our attention to the Year Over Year inflation rate change for December and compare it to last month, last year and to previous years. We will also show total inflation from 21>25 & 19>25. Petflation rose from 2.5% to 3.5% in Sep then fell to 2.6% in Nov. In Dec it is again 3.5% and is now 29.6% above the National rate. The chart will allow you to compare the inflation rates of 24>25 to 23>24 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 down -0.02% from Nov and were +2.7% vs Dec 24, the same as last month. Grocery prices rose 0.5% and the CPI rose from 1.9% to 2.4%. The only price decrease from last month was in the National CPI. In Nov there were 6 drops – a big change. The national YOY monthly CPI rate of 2.7% is 7% below 23>24, 21% below 22>23 and 58% less than 21>22. The 24>25 rate is only below 23>24 for Pet Services and Pet Supplies. In our 2021>2025 measurement you also can see that over 75% of the cumulative inflation since 2019 has occurred in 4 segments, Total & all Pet segments but Services. Except for Pet & Vet Services, where prices have surged, Service Segments have 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>25 inflation surge provided 94% of their overall inflation since 2019. This happened because Pet Products prices in 2021 were starting to recover from a deflationary period. Services expenditures account for 63.8% of the National CPI so they are very influential. Their current CPI is +3.3% while the CPI for Commodities is 1.7%. This shows that Services are driving most of the current 2.7% inflation but Commodities did drive the small price drop from November. There is an even greater disparity in Pet, but products have a bigger share of $. Petflation is 3.5%. The combined CPI for the Service Segments is 6.2%, while the Pet Products CPI is 1.3%.

• U.S. CPI– Prices are -0.02% from Nov. The YOY rate was stable at 2.7%. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are 35+% higher than the target. The stability follows Oct>Nov drops, Apr>Sep lifts, Feb/Mar drops, 4 straight lifts and 6 consecutive drops from Apr>Sep 24. The current rate is below 23>24 and the 21>25 rate is still +16.2%, 62% of the total inflation since 2019. Inflation took off in Apr 21, +4.2%, up from 2.6%.
• Pet Food– Prices are +0.2% vs Nov but +1.2% vs Dec 24. Prices have inflated for 6 straight months, but they are still far below the Food at Home inflation rate of +2.4%. The YOY Pet Food CPI has deflated in 15 of the last 22 months. The 2021>2025 inflation surge has generated 91.5% of the 22.3% inflation since 2019. Inflation began for Pet Food in June 2021, +0.9%, after 12 straight deflationary months.
• Food at Home – Prices are +0.5% from Nov and the YOY increase rose to 2.4% from 1.9%. This is still radically lower than Jul>Sep 2022 when it exceeded 13%. The 30.6% Inflation for this category since 2019 is 17% more than the national CPI but only in 4th place behind 3 Services expenditures (2 Pet). 58.8% of the inflation since 2019 occurred from 2021>25. This is close to the national CPI rate, 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 surge.
• Pets & Supplies– Prices were +0.9% from Nov and the CPI rose to 0% from +0.3%. They still have the lowest rate vs 2019. Prices were deflated for much of 20>21. As a result, the 21>25 inflation surge accounted for 100% of the total price increase since 2019. Prices deflated after Oct 22. 3 lifts pushed them to a record high in Feb 23. Prices fell in March & the roller coaster continued. Prices grew Dec>Feb 24, fell Mar/Apr, rose May/Jun, fell July, rose Aug, fell Sep/Oct, rose Nov/Dec, fell Jan/Feb 25, rose Mar>May, fell Jun, rose Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec.
• Veterinary Services– Prices are +2.0% from Nov and their YOY CPI vs 24 rose to +7.1% from +5.4%. They remain #1 in inflation vs 24 and are still the leader since 2019 with +48.8% and since 2021, +37.0%. For Veterinary, high annual inflation is the norm. However, the rate has increased during the current surge, especially since 23. They have the highest rate in 25, and 76% of the cumulative inflation since 2019 occurred from 2021>25.
• 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 were up +0.3% from Nov, but inflation vs 24 slowed to +3.4% from +3.7%. Medical Services are becoming a bigger part of the current surge as now 64.9% of the 16.8%, 2019>25 increase happened from 21>25.
• Pet Services – Inflation slowed in 20 but grew in 21. In 24 prices surged Jan>Mar, fell April, rose May, fell Jun, rose Jul>Nov, 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 & continued down to 4.2% in Nov. In Dec it rose to 5.0%. They are #2 vs 24, 21 & 19. 72% of their 19>25 inflation is from 21>25. In Dec 23, it was 49%.
• Haircuts/Other Personal Services – Prices are +0.7% from Nov and +4.8% from Dec 24. 17 of the last 24 months have been 4.0+%. Inflation has been pretty consistent. 63.6% of the 19>25 inflation happened 21>25.
• Total Pet– Petflation returned to 3.5% from 2.6%. Vet (+7.1%) led the way but all segments had increased inflation. 3.5% is 75% more than the 23>24 rate and 29.6% above the U.S. CPI. Plus, 3.5% is 13% above the average Dec Total Pet rate since 1997. Dec prices rose +0.8% from Nov, and it was universal – all segments had a Nov>Dec increase. A Nov>Dec increase has happened in 65% of the years since 1997 (avg Chge: +0.16%). The Pet CPI rose from 2.6% to 3.5%, a 35% increase. Another factor enhancing the big CPI lift was that prices fell -0.2% in Nov>Dec 24. Pricing is very important in Retail Sales, but the CPI is a complex measurement.

Now, let’s look at the YTD numbers.

The 24>25 rate is lower than 23>24 for all, but Medical Services & Groceries. The 22>23 inflation rate was the highest for Pet Food & Vet. 21>22 has the highest rate for Pet Supplies, Total Pet, Groceries, Haircuts and the National CPI. 23>24 has the highest rate for Pet Services. The average national inflation in the 6 years since 2019 is 3.9%. Only 3 of the categories are below that rate – Medical Services (2.8%), Pet Supplies (1.9%) and Pet Food (3.5%). It is no surprise that Veterinary Services has the highest average rate (6.6%), but all 4 other categories are +4.3% or higher.

• U.S. CPI – The 24>25 rate is 2.7%, down 7% from 23>24, but it is down 34% from 22>23, 66.3% less than 21>22 and 30.8% below the average increase from 2019>2025. However, it’s still 80% more than the average increase from 2018>20. 73% of the 26.0% inflation since 2019 occurred from 2021>25. Inflation is a problem that started recently.
• Pet Food – Ytd prices are still deflating, -0.01%, up from -0.1% in Aug and significantly up from -1.1% in Jan. That’s a big change from 0.2% in 23>24, 10.6% in 22>23 and even the 1.5% 18>20 average. It’s even below 20>21. Pet Food has the highest 22>23 rate but is only #4 in the 21>25 rates. Deflation in the 1^st half of 2021 kept YTD prices low then they surged in 22 and especially in 23. 96% of the inflation since 2019 occurred from 2021>25.
• Food at Home – The 25 inflation rate is +83% vs the 23>24 rate, but at 2.2%, it is down 56% from 22>23, 81% from 21>22 and even 37% less than 20>21. Plus, it is now equal to the average rate from 2018>20. It is only in 4th place for the highest inflation since 2019 but still beat the U.S. CPI by 13.8%. You can see the impact of supply chain issues on the Grocery category as 71% of the inflation since 2019 occurred from 2021>25.
• Pets & Pet Supplies – A true roller coaster, prices rose Jan>Feb 24, fell Mar>Apr, rose May>Jun, fell July, rose Aug, fell Sep>Oct, rose Nov>Dec, fell Jan>Feb 25, then rose Mar>May. Prices vs 24 flipped from inflation to deflation in June, back to +0.7% in July, slowed to 0.0% in Aug, then rose Sep>Dec. Supplies still have the lowest inflation since 2019. Their biggest YOY lifts since 2019 were in 22 & 23. The 2021 deflation created an unusual situation. Prices are up 11.8% from 2019 but 104% of this lift happened from 21>25. Prices are up 12.3% 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 2025, +6.4%, the highest on the chart. They are also #1 in inflation since 2019 and since 2021. At +6.6%, they have the highest average inflation rate since 2019. It is 69% higher than the National Average but 2.4 times higher than the Inflation average for Medical Services. Strong Inflation is the norm in Veterinary Services.
• Medical Services – Prices went up significantly at the beginning of the pandemic, but inflation slowed in 2021. In 2025 it is 3.4%, 21% above the 2.8% 2019>25 average rate. We should also note that 3.4% is obviously radically higher than the -0.3% deflation in 22>23.
• Pet Services – After falling in late 2023, prices surged in 2024, then fell in 2025 until an Apr>Aug lift followed by a Sep>Nov dip and a Dec lift. The 24>25 5.1% CPI is 2nd, behind Veterinary on the chart. It is their lowest rate since 20/21, but it is double their 2018>20 2.5% average rate. Pet Services is also 2^nd in both 19>25 and 21>25 inflation.
• Haircuts & Personal Services – The services segments, essential & non-essential, were hit hardest by the pandemic. The industry responded by raising prices. 2025 inflation is 4.2%, 22% below its 20/21 peak, but 18% above the 18>20 average. Consumers are paying over 30% more than in 2019, which usually reduces the purchase frequency.
• Total Pet – Petflation is 2.5%, up from 2.4% in Nov, but 4% less than 23>24. However, It’s 4% more than their 18>21 avg but 7% below the CPI. Petflation is still at its lowest rate since early 2021.This was primarily driven by deflation in Pet Products and lower inflation in Services. However, except for Mar/Aug/Oct/Nov, Pet prices have risen in 25.

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. We tend to focus on monthly inflation while ignoring one critical fact. Inflation is cumulative. Pet prices are 24% above 2021 & 29% higher than 2019. Those are big lifts. In fact, Dec prices for all but Food are the highest in history. Note: Pet Food is within 0.8% of its record high. Only Supplies prices (+11.7%) are less than 22.3% 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. At SZ and GPE 25, a huge number of exhibitors actively offered their OEM services. Strong, cumulative inflation has a widespread impact, but tarifflation can hit even harder. Supplies would likely be the most impacted by new high tariffs. We’ll see…

 

Total Pet spending rose to $118.87B in 2024, up $1.27B (+1.1%) from 2023. After a record $8.65B (+57%) increase in 2021 the Supplies segment fell in 22. Recovery began in 23 and continued in 24, up $0.89B (+3.9%) to $23.91B. (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 as spending rose a record $8.65B. 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. 2024 had a small increase. We’ll drill down into the data to determine what/who drove the 23>24 3.9% lift in Spending.

In 2024, the average household spent $176.15 on Supplies, up 3.0% from $171.08 in 2023. (Note: A 2024 Pet CU (68%) Spent $259.04) The 3.0% CU lift doesn’t exactly match the 3.9% total $ increase. Here are the specific details:

• 0.9% more CU’s
• Spent 1.5% less $
• 4.6% 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 record lift. Pet parents bought all the supplies that they had been putting off for 2 years. 2021 spending ended up where it was headed in 2018 before being “derailed” by outside influences. In 2022 inflation took off and spending fell -$1.87B. In 2023 spending increased, primarily because of inflation which slowed in the 2^nd half. In 2024 inflation slowed to 0.9% from 2.6% in 2023. Although YOY inflation slowed significantly, retail prices were at a record high. This was a factor in the small 3.9% lift.

That gives us an overview of the recent spending history. Now let’s look at some specifics regarding the “who” behind the 2024 lift. First, we’ll look at spending by income level, the most influential demographic in Pet Spending.

National: $176.15 per CU (+3.0%) – $23.91B – Up $0.89B (+3.9%).

$ for the $30>70K group were unchanged but only <$30K spent less. The 50/50 $ divide moved up to $120K from $117K.

• <$30K (20.1% of CUs)- $70.75 per CU (+3.5%); $1.93B– Down $0.03B (-1.4%). This group is very price sensitive, but they still need Supplies. Their Total Supplies $ only fell because they have 4.8% fewer CUs.
• $30K>70K (27.6% of CUs)- $119.61 /CU (+1.5%); $4.48B – No Chg $0.00 (0.0%). This lower income group matches the spending pattern of the $150K+ group. 2019 Tarifflation and 2022 inflation had big impacts. 23>24 $ were unchanged. $30>50K were down, but $50>70K was up. <2019 they were the leader in Supplies $. Now, they’re 3^rd.
• $70>$100K (14.4% of CUs) – $179.76 per CU (-0.2%); $52B – Up $0.10B (+3.0%). Lift due to 3.3% more CUs. Consistent spending until 2020 hit them hard. They rebounded strong in 2021 and spending grew slightly in 22>24.
• $100K>$150K (16.3% of CUs) – $231.93 /CU (+8.0%); $5.13B – Up $0.32B (+6.6%). They had the 2^nd biggest COVID drop and the 2^nd biggest recovery. In 22, they had a 14.0% lift. In 23 their $ fell 3% but they came back +6.6% in 24.
• $150K> (21.7% of CUs) – $301.53 per CU (-4.1%); $8.86B – Up $0.50B (+6.0%). This highest income group often has the biggest drops and lifts. In 23 they provided 93% of the Supplies lift. This came from 12.3% more CUs. In 24, the situation was similar. 10.5% more CUs spent 4.1% less but provided 56% of the Supplies increase.

With high prices, income matters. Only $70K> spent more but 92.1% of the overall lift came from $100K>.

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

National: $176.15 per CU (+3.0%) – $23.91B – Up $0.89B (+3.9%)

In 2024 the age group spending rollercoaster got simpler. Under 35: ↓; 35>44: ↑; 45>54: ↓; Over 55: ↑

• 45>54 (16.3% of CUs) $238.59 per CU (+0.3%); $5.29B – Down $0.12B (-2.2%). From 2007>18 & in 23/24 this highest income group was the leader in Supplies $. They had a pandemic drop but strong growth in 21>23. The lift ended in 2024 as 2.4% less CU’s spent 11.5% less, 13.4% more often. However, they stayed #1 in $.
• 35>44 (17.9% of CUs) $214.02/ CU (+13.1%) $5.20B – ↑$0.73B (+16.3%) They are #2 in income & expenditures. Inflation drove their $ down in 2019 but COVID had little impact. Spending took off in 21, fell in 22, then grew slightly in 23 & strongly in 24 as 2.8% more CUs spent 2.6% more $, 10.3% more often. They are still #2 in $.
• 55>64 (17.6% of CUs) $197.62 /CU (+7.8%); $4.73B – Up $0.34B (+7.8%). 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. $ fell in 23 but rose in 24 as 0.1% less CUs spent 13.4% more on Supplies, 4.9% less often. They stayed #3.
• 65>74 (16.6% of CUs) $151.90 per CU (+4.5%); $3.43B – Up $0.29B (+9.4%). 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 22>23 and even more in 24 as 4.6% more CUs spent 2.3% more, 2.2% more often.
• 25<34 (15.0% of CUs) $155.96 per CU (-5.7%); $3.17B – Down $0.32B (-9.1%). 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 22>23 and even more in 24 as 3.5% less CUs spent 11.5% less $, 6.5% more often.
• 75> (11.6% of CUs) $99.87 per CU (+42.1%); $1.58B – Up $0.48B (+44.0%). This low-income group is price sensitive but they are committed to their pets. Their spending was severely impacted by COVID but they strongly recovered in 21/22. Their $ fell in 23 but spiked in 24 as 1.3% more CU’s spent 25.0% more, 13.7% more often.
• <25 (4.9% of CUs) $78.51/CU (-54.5%) $0.53B – Down $0.52B (-49.5%). It looks like they cut their Supplies spending in every possible way in 2024 as 10.9% more CUs spent 41.9% less $, 21.6% less often.

Supplies spending was again on an age roller-coaster but the most notable trend may be that <35 spent $0.84B less.

Next, let’s take a look at some other key demographic “movers” in 2024 Pet Supplies 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 2024, even with only a small increase, 64.1% of segments still spent more. In 2023 it was 66%. There was again 1 Category  in which all spent more, Race/Ethnic. In 2023 it was Housing. In 2024 there were 11 “flips” but none that held their spot. In 2023 there were 9 “flips” and 5 “holdovers”. 2024 clearly had more turmoil and less stability than 2023.

5 winners are the “usual suspects”:  • Masters/Phd.    • $200K>    • 2 Earners    • Mgrs/Profess.    • Suburbs 2500>

4 are surprising:  • 4 People    • South    • Homeowner w/o Mtge    • Hispanics

Among the losers, most often show up here. There are only 2 big surprises:  • $150>199K    • Married, Couple Only

After the post pandemic binge buy in 21, Supplies spending fell $1.86B (-7.8%) in 22. This was not surprising after the record $8.65B lift. It is very similar to the binge/bust pattern in Food. Although spending fell by $1.9B, 52% of 92 demographic segments spent more on Supplies. In 23 spending grew $1.08B (+4.9%) as 65.6% of demographics spent more. In 24 spending was +$0.89B (+3.9%) and the demographic spending lift was 64.1%. There is a key factor to put Supplies spending in a better perspective. Many Supplies cartegories have been commoditized and are more susceptible to price changes. Prices fell 2016>18 and spending grew by $5B. Prices rose in 2018>19 and spending fell -$4.6B. In 22 inflation was 7.7%. That means that the amount of Supplies purchased in 22 was “really” -14.4%, almost double the actual $ drop. In 23 Supplies spending grew by $1.08B (+4.9%). Inflation was 2.6% so the “real” lift was +2.3%. (47% real) In 24 inflation slowed to 0.9% but spending was only up $0.89B (+3.9%). The “real” lift was 2.9% (75% real). Supplies are more discretionary, but many are needed for a better life. Supplies spending is moving to higher incomes but perhaps Pet Parents are becoming less sensitive to the high prices from cumulative inflation. We’ll see.

 

With the current government shutdown, the high cost of living is a “top of mind” issue for all Americans. Our pets have become valued members of our families, so 1 question that often comes up is, “How does Petflation compare to Human Inflation?” In this report we will attempt to answer that question. For all Pet Segments but Supplies, there is a closely matching Human spending category, so the matchup is relatively easy. Let’s get started. We will begin with the most asked question, “How does Pet Food inflation compare to Grocery inflation?”

This chart and all but one in the report show annual cumulative inflation from 1997 to September 2025. 1997 was chosen as the base because that was the 1st year that the CPI was reported by Pet Industry Segment.

You can see that cumulative inflation is a pretty close match for Pet Food & Groceries.

• Grocery prices have doubled since 1997 and Pet Food is close, +91.5%
• Grocery inflation has been above Pet Food except for 2009>2014 and 2019.
• The Melamine recall in 2007 and the switch to Made in the USA caused a spike in Pet Food prices in 2008/2009.
• Inflation slowed and was similar for both from 2015 to 2019
• The 2020 Pandemic had an earlier and slightly greater impact on Grocery prices than on Pet Food.

Now, let’s compare the cumulative inflation of Medical Services to Veterinary Services.

• Human Medical Services prices are 2 2/3 times higher now than in 1997 so you see why people are concerned.
• Veterinary prices have quadrupled since 1997, 79% more than Human Medical.
• Veterinary inflation has been above Human Medical since 1999 and the gap has widened since 2022.

Now, we’ll compare Pet Services inflation to Haircuts & Other Personal Services.

• They have very similar patterns, but Pet Services inflation has cumulatively been ahead of Human Haircuts/Personal Services every year since 1997.
• The price gap began to widen in 2005 and Pet Services inflation is now 39% ahead of Haircuts.
• Prices doubled since 1997 for Pet Services in 2020 and in 2023 for Haircuts.

Under normal circumstances, we would turn our attention to Pet Supplies. Unfortunately, there is no clearly matching Human Category for Pet Supplies. We did figure out a bit of a “work around”. The US BLS began reporting the CPIs for individual Pet Industry Segments in 1997. From 1977 to 1997 they only reported the combined CPI for Pet Products (Food, Pets & Supplies). A reasonable Human match for this group is the CPI for All Commodities.

Here is a chart comparing the inflation of Pet Products to All Commodities.

• The 2 patterns are almost identical and the final numbers since 1977 are within 0.3%.
• All Commodities had a slight lead in Inflation from 1977 through 2008.
• Except for 2014 & 2021/2022, Pet Products took a slight lead in inflation from 2009>2025
• Prices doubled for Commodities from 1977 in 1992 and for Pet Products in 1996.
• Prices tripled from 1977 for both in 2021.

Finally, we will compare Total Petflation to the National CPI

• Except for the Big Pet price lift in 2008/2009, the patterns are almost identical.
• Pet took the lead in cumulative inflation in 2002 and have maintained it ever since.
• The gap widened in 2008/2009 largely due to the switch to Made in the USA Pet Food.
• Total Pet doubled 1997 prices in 2022. The National CPI did it in 2025.
• Since 1997, Petflation is 27.7% more than the National CPI Rate.

In the charts, you saw Petflation patterns that were very similar to Human categories. However, Petflation “won” in all comparisons but Pet Food vs Groceries. The most impactful and concerning chart to me was Veterinary Services vs Human Medical Services. We hear a lot from a wide variety of sources about the high cost of Medical care. It’s amazing that the Veterinary price increase is 79% more. Veterinary prices have quadrupled since 1997.

The charts give a great historical overview but what will happen next? There are outside events that can directly affect prices. 2 examples are the 2007 Melamine recall in Pet Food as Pet Parents switched to “made in the USA, with all USA ingredients”. This caused prices to increase. The second event was the 2020 COVID pandemic. People changed spending patterns and there were serious supply chain disruptions which drove prices up. What is next? Another pandemic is likely but who knows what is next. We live in a very imperfect world so something will happen, sometime.

There is another important number that wasn’t included in the charts – the average annual YOY price change. Below are the annual average price changes for the Pet and Human Categories in the charts. All categories, including Pet Products and All Commodities, show the 1997>2024 average. This allows valid comparisons.

You see that except for Pet Food, the annual Petflation rate is 18>57% higher than the Human rate. It comes as no surprise that Veterinary and Medical Services have the highest rates for both Pets and People. Medical Services (+3.5%) is 40% above the National CPI but Veterinary leads the pack. Their average inflation rate is +5.0%, which is 67% above the Total Petflation rate.

I added a category to this list that is not in the charts – All Services. This was added to illustrate that Services is the driver in both overall Inflation and Petflation. There are only 2 major categories in spending. An expenditure is either for a Commodity (Product) or a Service. In overall spending, Services Inflation is 76.5% more than Commodities inflation and about 64% of all spending is on Services. The disparity is even worse in the Pet Industry. The Petflation rate for All Pet Services (Vet & Pet) is 2.35 times higher than the rate for Pet Products (Food, Pets & Supplies). Thankfully, Pet Services are less than half of Total Pet spending.

I hope that this report gave you a better understanding of Petflation in comparison to Overall Inflation. You can clearly see the similarities and differences.

 

 

The monthly 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 -0.1% in Nov. However, they have now risen for 9 straight months, including a 0.3% lift in August to a new record high. The CPI vs 24 also increased to +2.9% from +2.7% in July. Grocery prices rose 0.4% from July and their YOY inflation jumped up from 2.2% to 2.7%, the highest rate since 3.0% in August 23. 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 and reached 96.7% of the national rate in June 22. National inflation has slowed considerably since then, but Petflation generally increased until June 23. It passed the CPI in July 22 but fell below it from Apr>Jul 24. It exceeded the CPI in August, fell below in Sep>Oct, rose above in Nov, then fell below in Dec>Aug 25. 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 25 vs 24 which will include Pet Segments and relevant Human spending categories. Plus
  1. CPI change from the previous month.
  2. Inflation changes for recent years (23>24, 22>23, 21>22, 20>21, 19>20, 18>19)
  3. Total Inflation for the current month in 2025 vs 2019 and vs 2021 to see the full inflation surge.
  4. Average annual Year Over Year inflation rate from 2019 to 2025
• 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 Aug 23 to Aug 25. 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 Aug, Pet prices were down -0.2% from July. Products were down – Food (-0.3%); Supplies (-0.6%), while Vet & Services were both up (+0.1%).

In Aug 23, the CPI was +19.5% and Pet was +20.7%. The Services segments inflated after mid-20, while Product inflation stayed low until late 21. In 22, Food prices grew but the others had mixed patterns until July 22, when all rose. In Aug>Oct Petflation took off. In Nov>Dec, Services & Food inflated while Vet & Supplies prices stabilized. In Jan>Apr 23, prices grew every month for all segments except for 1 Supplies dip. In May Product 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 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. Services drove a lift in Oct. In Nov, all were up. Prices dropped in March 25, but all but Food have set records since May.

• 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, then rose Dec>Aug 25 to a record high but 26.1% of the increase since Dec 19 happened from Jan>Jun 22 – 8.8% of the time.
• Pet Food – Prices were at the Dec 19 level Apr 20>Sep 21. They grew & peaked May 23, then got on a rollercoaster. The ride continues in 25 – Jan>Feb↑, Mar>May↓, Jun>Jul↑, Aug↓. 99% of the lift was in 22/23.
• Pet Supplies – Supplies prices were high in Dec 19 due to tariffs. They had a deflated rollercoaster ride until mid-21 when they returned to Dec 19 prices & essentially stayed there until 22. They turned up in Jan and hit a record high. They plateaued Feb>May, grew in June, flattened in July, then turned up in Aug>Oct to a new record. Prices stabilized Nov>Dec, but grew Jan>Feb 23. They fell in Mar, but the rollercoaster went on. Dec>Feb↑, Mar/Apr↓, May/Jun↑, July↓, Aug↑, Sep/Oct↓, Nov/Dec↑, Jan>Feb 25↓, Mar>May↑(record), Jun↓, Jul↑, Aug↓.
• 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>Apr 23 but prices fell in May. Jun>Aug↑, Sep>Dec↓, Jan>Mar 24↑, Apr↓, May↑, June↓, Jul>Nov↑, Dec>Mar 25↓, Apr>Aug↑, a 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 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>25 prices grew Jan>May, leveled Jun/Jul, fell Aug, grew Sep>Dec, fell Jan, grew Feb>May, fell Jun>Jul, grew Aug>Aug.
• 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 from Jul>Nov. It slowed in Dec, grew Jan>May 23, fell Jun>Aug, grew Sep/Oct, then fell in Nov. In December prices turned up and grew through Mar 24 to a record high. Prices fell in April, rose May>Jun, fell Jul>Sep, rose Oct>Nov, fell in Dec, rose Jan>Feb 25, fell Mar, set records in Apr>Jul, then fell in Aug.

Next, we’ll turn our attention to the Year Over Year inflation rate change for August and compare it to last month, last year and to previous years. We will also show total inflation from 21>25 & 19>25. Petflation slowed from 2.6% to 2.5% and it is now -13.8% below the National inflation rate. The chart will allow you to compare the inflation rates of 24>25 to 23>24 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 up 0.3% from July and were +2.9% vs Aug 24, up from +2.7% last month. Grocery inflation jumped up to 2.7% from 2.2%. 3 had a price decrease from last month, up from none in July & May. There were 2 drops in Apr/Oct/Nov but 3 in Aug/Sep/Dec/Mar and 5 back in July 24. The national YOY monthly CPI rate of 2.9% is 16% above 23>24, but 22% below 22>23 and 65% less than 21>22. The 24>25 rate is also above 23>24 for Pet Food, Groceries & Med Services. In our 2021>2025 measurement you also can see that over 75% of the cumulative inflation since 2019 has occurred in 4 segments, all Pet – all but Services (72.0%). Except for Pet & Vet Services, where prices have surged, Service Segments have 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>25 inflation surge provided 96% of their overall inflation since 2019. This happened because Pet Products prices in 2021 were starting to recover from a deflationary period. Services expenditures account for 63.8% of the National CPI so they are very influential. Their current CPI is +3.8% while the CPI for Commodities is 1.3%. This shows that Services are driving almost all of the current 2.9% inflation, but Commodities did drive the August increase. There is an even greater disparity in Pet, but products have a bigger share of $. Petflation is 2.5%. The combined CPI for the Service Segments is 5.1%, while the Pet Products CPI is 0.1%.

• U.S. CPI– Prices are +0.3% from July. The YOY rate rose to 2.9% from 2.7%. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are 45+% higher than the target. The Apr>Aug lifts follow Feb/Mar drops, 4 straight lifts and 6 consecutive drops from Apr>Sep 24. The current rate is above 23>24 and the 21>25 rate is still +18.4%, 70.0% of the total inflation since 2019. The Inflation surge took off in April 2021, +4.2%, up from 2.6%.
• Pet Food– Prices are -0.3% vs July but +0.2% vs Aug 24. Prices have inflated for 2 straight months, but they are still far below the Food at Home inflation rate of +2.7%. The YOY Pet Food CPI has deflated in 15 of the last 18 months. The 2021>2025 inflation surge has generated 100.4% of the 22.6% inflation since 2019. Inflation began for Pet Food in June 2021, +0.9%, after 12 straight deflationary months.
• Food at Home – Prices are +0.4% from July and the YOY increase rose to 2.7% from 2.2%. This is still radically lower than Jul>Sep 2022 when it exceeded 13%. The 30.5% Inflation for this category since 2019 is 16% more than the national CPI but only in 4th place behind 3 Services expenditures (2 Pet). 69.2% of the inflation since 2019 occurred from 2021>25. This is about the same as the national 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 surge.
• Pets & Supplies– Prices were -0.6% from July and the CPI dropped to 0% from +0.7%. They still have the lowest rate vs 2019. Prices were deflated for much of 20>21. As a result, the 21>25 inflation surge accounted for 85% of the total price increase since 2019. Prices deflated after Oct 22. 3 lifts pushed them to a record high in Feb 23. Prices fell March, rose Apr/May, fell Jun>Aug, grew Sep/Oct, fell Nov, grew Dec>Feb 24, fell Mar/Apr, rose May/Jun, fell July, rose Aug, fell Sep/Oct, rose Nov/Dec, fell Jan/Feb, rose Mar>May. (record), fell Jun, rose Jul, then fell in Aug.
• Veterinary Services– Prices are +0.1% from July, but their YOY CPI vs 24 stayed stable at +6.4%. They remain #1 in inflation vs 24 and are still the leader since 2019 with +46.2% and since 2021, +36.6%. For Veterinary, high annual inflation is the norm. However, the rate has increased during the current surge, especially since 23. They have the highest rate in 25, and 79% of the cumulative inflation since 2019 occurred from 2021>25.
• 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 were up +0.1% from July, but inflation vs 24 slowed sightly to +4.2% from +4.3%. Medical Services are not a big part of the current surge as only 61% of the 18.3%, 2019>25 increase happened from 21>25.
• Pet Services – Inflation slowed in 20 but grew in 21. In 24 prices surged Jan>Mar, fell April, rose May, fell Jun, rose Jul>Nov, fell Dec>Mar 24 to 3.9%, Apr grew to 5.4%, May fell to 4.9%, rose to 5.9% in Jun & 6.3% in Jul, then fell to 5.8% in Aug. They are #2 in inflation vs 24, 21 & 19. 72% of their 19>25 inflation is from 21>25. In Dec 23, it was 49%.
• Haircuts/Other Personal Services – Prices are +0.5% from July and +3.7% from Aug 24. 13 of the last 20 months have been 4.0+%. Inflation has been pretty consistent. 60% of the 19>25 inflation happened 21>25.
• Total Pet– Petflation slowed to 2.5% from 2.6%. The biggest driver was that Products inflation slowed to +0.1% from 0.3%. 2.5% is -10.7% less than the 23>24 rate and 13.8% below the U.S. CPI. Plus, 2.5% is 19% below the average Aug Total Pet rate since 1997. Aug prices fell -0.2% from July. It was divided – Products down, Services up. A Jul>Aug decrease has only happened in 22% of the years since 1997 (avg Chge: +0.2%). The Pet CPI slowed from 2.6% to 2.5%, a minor decrease. Another factor in minimizing the CPI drop was that prices also fell in Jul>Aug 24. Pricing is very important in Retail Sales, but the CPI is a complex measurement.

Now, let’s look at the YTD numbers.

The 24>25 rate is lower than 23>24 for all but Medical Services & Groceries. The 22>23 inflation rate was the highest for all pet categories but Supplies & Services. 21>22 has the highest rate for Pet Supplies, Groceries and the National CPI. 20>21 has the highest rate for Haircuts & Pet Services. The average national inflation in the 6 years since 2019 is 3.9%. Only 3 of the categories are below that rate – Medical Services (2.9%), Pet Supplies (1.9%) and Pet Food (3.6%). It is no surprise that Veterinary Services has the highest average rate (6.6%), but all 4 other categories are +4.3% or higher.

• U.S. CPI – The 24>25 rate is 2.6%, down 16% from 23>24, but it is down 42% from 22>23, 68.7% less than 21>22 and 33.3% below the average increase from 2019>2025. However, it’s still 79% more than the average increase from 2018>20. 76% of the 25.9% inflation since 2019 occurred from 2021>25. Inflation is a problem that started recently.
• Pet Food – Ytd prices are still deflating, -0.3%, up from -0.4% in July and significantly up from -1.1% in Jan. That’s a big change from 0.9% in 23>24, 13.0% in 22>23 and even the 1.7% 18>20 average. It’s even below 20>21. Pet Food has the highest 22>23 rate but is only #4 in the 21>25 rates. Deflation in the 1^st half of 2021 kept YTD prices low then they surged in 22 and especially in 23. 96% of the inflation since 2019 occurred from 2021>25.
• Food at Home – The 25 inflation rate is double the 23>24 rate, but at 2.2%, it is down 67% from 22>23, 80% from 21>22 and even 4% less than 20>21. However, it is still 5% more than the average rate from 2018>20. It is only in 4th place for the highest inflation since 2019 but still beat the U.S. CPI by 13%. You can see the impact of supply chain issues on the Grocery category as 76% of the inflation since 2019 occurred from 2021>25.
• Pets & Pet Supplies – A true roller coaster, prices rose Jan>Feb 24, fell Mar>Apr, rose May>Jun, fell July, rose Aug, fell Sep>Oct, rose Nov>Dec, fell Jan>Feb 25, then rose Mar>May. Prices vs 24 flipped from inflation to deflation in June, back to inflation in July, then slowed to 0.0% in August. Supplies still have the lowest inflation since 2019. Their biggest YOY lifts since 2019 were in 22 & 23. The 2021 deflation created an unusual situation. Prices are up 11.8% from 2019 but 109% of this lift happened from 21>25. Prices are up 12.9% 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 2025, +6.3%, the highest on the chart. They are also #1 in inflation since 2019 and since 2021. At +6.6%, they have the highest average inflation rate since 2019. It is 69% higher than the National Average but 2.3 times higher than the Inflation average for Medical Services. Strong Inflation is the norm in Veterinary Services.
• Medical Services – Prices went up significantly at the beginning of the pandemic, but inflation slowed in 2021. In 2025 it is 3.3%, 14% above the 2.9% 2019>25 average rate. We should also note that 3.3% is also 16.5 times higher than the lowest rate of 0.2% in 22>23.
• Pet Services – After falling in late 2023, prices surged in 2024, then fell in 2025 until an Apr>Aug resurgence. The 24>25 inflation rate of 5.3% is 2nd, behind Veterinary on the chart. It is their lowest rate since 2020, but it is 96% more than their 2018>20 average rate. Pet Services is also 2^nd in both 19>25 and 21>25 inflation.
• Haircuts & Personal Services – The services segments, essential & non-essential, were hit hardest by the pandemic. The industry responded by raising prices. 2025 inflation is 4.1%, 24% below its 20/21 peak, but 24% above the 18>20 average. Consumers are paying over 30% more than in 2019, which usually reduces the purchase frequency.
• Total Pet – 2025 Petflation is 2.1%, the same as July, but 22% less than 23>24. It’s also 9% lower than their 2018>21 avg. and 19% below the CPI. Petflation is still at its lowest rate since early 2021.This was primarily driven by deflation in Pet Products and lower inflation in Services. However, except for Mar & Aug, Pet prices have turned up in 25.

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>Jun. Then July hit the highest rate in 2025, but it slowed in Aug. We tend to focus on monthly inflation while ignoring one critical fact. Inflation is cumulative. Pet prices are 24% above 2021 and 28% higher than 2019. Those are big lifts. In fact, current Aug prices for Vet & Services are the highest in history. Note: Total & Pet Products are within 0.7% of their record high. Only Supplies prices (+11.6%) are less than 22.6% 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. At SZ and GPE 24 & 25, a huge number of exhibitors actively offered their OEM services. Strong, cumulative inflation has a widespread impact, but tarifflation can hit even harder. Supplies would likely be the most impacted by new high tariffs. We’ll see…