Archive for category: Pet Market Segments

It’s time to continue with 2026 Inflation. The Consumer Price Index peaked back in June 2022 at 9.1% then began to slow until it turned up in Jul/Aug 2023. Prices fell in Oct>Dec 23, then turned up Jan>Oct 24 but fell in Nov. However, they rose 10 straight months to a record high in Sep 25, fell Oct>Dec, then rose in Jan>Mar (New Records). The CPI vs last year rose to 3.3% from 2.4% because of a 1% Feb>Mar lift. Grocery prices fell slightly, -0.04% from Feb and their YOY inflation slowed to 1.9% from 2.4%. Even minor price changes can affect consumer pet spending, especially in the discretionary pet segments, so we will continue to publish monthly reports to track petflation as it evolves in the market.

Petflation was +4.1% in Dec 21 while the overall CPI was +7.0%. The gap narrowed as Petflation accelerated. It was 96.7% of the national rate in June 22. National inflation has slowed considerably, but Petflation generally increased until June 23. It passed the CPI in July 22, fell below it from Apr>Jul 24. It passed the CPI in Aug, fell below in Sep>Oct, rose above in Nov, fell below in Dec>Aug 25, then passed it in Sep>Oct & Dec>Mar 26. All reports will include:

• A rolling 24 month tracking of the CPI for all pet segments and the national CPI. The base number will be pre-pandemic December 2019 in this and future reports, which will facilitate comparisons.
• Monthly comparisons of 26 vs 25 which will include Pet Segments and relevant Human spending categories. Plus
  1. CPI change from the previous month.
  2. Inflation changes for recent years (25>26, 24>25, 23>24, 22>23, 21>22, 20>21, 19>20, 18>19)
  3. Total Inflation for the current month in 2026 vs 2019 and vs 2021 to see the full inflation surge.
  4. Average annual Year Over Year inflation rate from 2019 to 2026
• YTD comparisons
  1. YTD numbers for the monthly comparisons #2>4 above

In our first graph we will track the monthly change in prices for the 24 months from Mar 24 to Mar 26. We will use December 2019 as a base number so we can track the progress from pre-pandemic times through an eventual recovery. This chart is designed to give you a visual image of the flow of pricing. You can see the similarities and differences in segment patterns and compare them to the overall U.S. CPI. The year-end numbers from 12 and 24 months earlier are included. We also included and highlighted (pink) the cumulative price peak for each segment. In Mar, Total Pet prices were up 0.8% from Feb. All segments were up & peaked. Supplies (+1.7%), Vet (+0.7%), Food (+0.4%), Services (+0.4%).

In Mar 24, the CPI was +21.5% and Pet was +24.0%. The Services segments inflated after mid-20, while Product inflation stayed low until late 21. In 22, Food prices grew but the others had mixed patterns until July 22, when all rose. In Aug>Oct Petflation took off. In Nov>Dec, Services & Food inflated while Vet & Supplies prices stabilized. In Jan>Apr 23, prices grew every month for all segments except for 1 Supplies dip. In May Products prices grew while Services slowed. In Jun/Jul this reversed. In Aug all but Services fell. In Sep/Oct this flipped. In Nov, all but Food & Vet fell. In Dec, Supp. & Vet  drove prices up. In Jan>Mar 24 Pet prices grew. In April, prices in all but Vet fell. In May, all but Food grew. In June, Products drove a lift. In July, all but Services fell. In Aug, Food drove a drop. In Sep, Products fueled a drop. In Nov all were up. Prices dropped in Mar & Oct>Nov 25, then rose Dec>Mar 26. All, including the CPI, set records in March 26.

• U.S. CPI – Inflation was below 2% through 2020. It turned up in January 21 and grew until flattening out in Jul>Dec 22. Prices rose Jan>Sep 23, fell Oct>Dec, rose Jan>Oct 24, fell Nov, rose Dec>Sep 25, fell Nov>Dec, but hit record highs in Jan/Feb/Mar 26. 25% of the lift since Dec 19 happened from Jan>Jun 22 – 8% of the time.
• Pet Food – Prices were at the Dec 19 level Apr 20> Sep /21. They grew & peaked May 23, then got on a roller which continues Jun/Jul↑, Aug↓, Sep↔, Oct/Nov ↓, Dec>Mar↑ – a new record. 93% of the lift was in 22/23.
• Pet Supplies – Supplies prices were high in Dec 19 due to tariffs. They had a deflated roller coaster ride until mid-21 when they returned to Dec 19 prices & stayed there until 22. They turned up in Jan (record). They plateaued Feb>May, grew in June, flattened in July, then turned up in Aug>Oct to a new record. Prices stabilized Nov>Dec, grew Jan>Feb 23. fell in Mar, but the roller coaster hasn’t stopped. Jan>Feb 25↓, Mar>May↑, Jun↓, Jul↑, Aug↓, Sep↑, Oct>Nov↓, Dec↑(record), Jan 26↓, Feb>Mar↑. Prices are now at a new record high.
• Pet Services– Inflation is usually 2+%. Perhaps due to closures, prices increased at a lower rate in 2020. In 2021 consumer demand increased but with fewer outlets. Inflation grew in 21 with the biggest lift in Jan>Apr. Inflation was strong in 22 but prices got on a roller coaster. They turned up Jul>Apr 23, fell May. Jun>Aug↑, Sep>Dec↓, Jan>Mar 24↑, Apr↓, May↑, Jun↓, Jul>Nov↑, Dec>Mar 25↓, Apr>Aug↑, Sep↓, Oct>Mar 26↑(record).
• Veterinary – Inflation has been consistent. Prices turned up in Mar 20 and grew through 21. A surge began in Dec 21 which put them above the overall CPI. In May/Jun 22 prices fell below the CPI. However, they rose again & have been above the CPI since July 22. In 23>25 prices grew Jan>May, leveled Jun/Jul, fell Aug, grew Sep>Dec, fell Jan, grew Feb>May, fell Jun>Jul, grew Aug 24>Sep 25, fell Oct>Nov, grew Dec>Mar 26. (records)
• Total Pet – Petflation is a sum of the segments. In Dec 21 the price surge began. In Mar>Jun 22 the segments had ups & downs, but Petflation grew Jul>Nov, slowed Dec, grew Jan>May 23, fell Jun>Aug, grew Sep/Oct, fell in Nov. In December prices grew through Mar 24 to a record high. Prices fell in April, rose May>Jun, fell Jul>Sep, rose Oct>Nov, fell Dec, rose Jan>Feb 25, fell Mar, grew Apr>Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec>Mar 26 (record)

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

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

• U.S. CPI– Prices are +1.0% from Feb. The YOY increase is 3.3%, up from 2.4% in Feb. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are now 65+% higher than the target. The lift follows stability in Feb, a lift in Jan, stability in Dec and 2 drops in Oct & Nov. The current rate is 37.5% above 24>25 and the 21>26 rate is +24.7%, 82.6% of the total inflation since 2019. The Inflation surge was just starting in March 2021, +2.6%
• Pet Food– Prices are +0.4% vs Feb. and +2.3% vs Mar 25, up from 1.4%. They are now 21% above the Food at Home inflation rate of +1.9%. Remember that the YOY Pet Food CPI has deflated in 15 of the last 25 months. The 2021>2026 inflation surge has generated 93.6% of the 26.7% inflation since 2019. Inflation began for Pet Food in June 2021, +0.9%, after 12 straight deflationary months. Pet Food prices just reached a new record high.
• Food at Home – Prices are -0.04% from Feb and the YOY increase fell from 2.4% to 1.9%. This is radically lower than Jul>Sep 2022 when it exceeded 13%. The 31.4% Inflation for this category since 2019 is 5% more than the national CPI but is only in 5th place behind 3 Services expenditures and Total Pet. 82.5% of the inflation since 2019 occurred from 2021>26. This is about the same as the CPI, but we should note that Grocery prices began inflating in 2020>21 then the rate accelerated. It appears that the pandemic supply chain issues in Food which contributed to higher prices started early and foreshadowed problems in other categories and the overall CPI tsunami.
• Pets & Supplies– Prices were +1.7% from Feb and YOY inflation rose to +3.5% from 1.8%. They still have the lowest rate vs 2019. Prices were deflated for much of 20>21. As a result, the 2021>26 inflation surge accounted for 111.0% of the total price increase since 2019. Prices set a record in Oct 22 then deflated. 3 lifts pushed them to a record high in Feb 23. Prices fell in Mar & the roller coaster continued into 25. They fell Jan/Feb 25, rose Mar>May, fell Jun, rose Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec (record), fell in Jan, rose Feb>Mar – a new record.
• Veterinary Services– Prices are +0.7% from Feb and 5.6% from 2025, up from 5.3%. They are #2 in inflation vs last year, behind Pet Serv. but still #1 in the increase since 2019, +55.5% and 21, +43.9%. For Veterinary, high annual inflation is the norm. However, the rate has increased during the current surge, especially since 23. They have the highest Mar avg rate in 26, but only 79% of the cumulative inflation since 2019 occurred from 2021>26.
• Medical Services – Prices turned sharply up at the start of the pandemic but then inflation slowed and fell to a low rate in 20>21. Prices rose +0.1% from Feb, but inflation vs last year slowed to +3.7% from +4.1%. Medical Services are not a big part of the current surge as only 58.5% of the 22.9%, 2019>26 increase happened from 21>26.
• Pet Services – Inflation slowed in 20 but grew in 21. In 24 prices surged , especially in Jul>Nov. Prices fell Dec>Mar 25 to 3.9%. Apr grew, May fell, June rose, Jul rose to 6.3%. Inflation fell to 5.8% in Aug & to 4.2% in Nov. In Dec>Mar 26 it rose to 7.8%. They are #1 vs 25 and #2 vs 21 & 19. 76.9% of their 19>25 inflation is from 21>26.
• Haircuts/Other Personal Services – Prices are -0.3% from Feb but +4.5% from Mar 25. 20 of the last 27 months have been 4.0+%. Inflation has been pretty consistent. 68.1% of the 19>26 inflation happened 21>26.

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

• U.S. CPI – The 25>26 rate is 2.7%, the same as 24>25 but down 16% from 23>24. It is also 66.2% less than 21>22 and 29% below the average increase from 2019>2026. However, it’s still 45% more than the average increase from 2018>21. 83% of the 29.5% inflation since 2019 occurred from 2021>26. Inflation is a problem that started recently.
• Pet Food – Ytd prices are still inflating, 1.7%, up from 1.4%. That’s a big increase from -0.5% in 24>25, but it is still below 3.0% in 23>24 and even the 2.0% 18>20 average. Pet Food has the highest 22>23 rate but is only #6 in the 21>26 rates and #8 in 19>26. Deflation in the 1^st half of 2021 kept YTD prices low then they surged in 22 and especially in 23. 92% of the inflation since 2019 occurred from 2021>26.
• Food at Home – The 25>26 inflation rate is the same as 24>25, but at 2.1%, it is down 89% from 22>23, 76% from 21>22 and even 40% less than 20>21. However, it is 2.1 times higher than the average rate from 2018>20. It is only in 5th place for the highest inflation since 2019 but still beat the U.S. CPI by 7.1%. You can see the impact of supply chain issues on the Grocery category as 82% of the inflation since 2019 occurred from 2021>26.
• Pets & Pet Supplies – A roller coaster, prices rose Jan>Feb 24, fell Mar>Apr, rose May>Jun, fell July, rose Aug, fell Sep>Oct, rose Nov>Dec, fell Jan>Feb 25, then rose Mar>May. Prices vs 24 flipped to deflation in June, back to +0.7% in July, fell to 0.0% in Aug, rose Sep>Dec, fell Jan 26, rose Feb>Mar. Supplies still have the lowest inflation since 2019. Their biggest YOY lifts since 2019 were in 22 & 23. The 2021 deflation created an unusual situation. Prices are up 13.8% from 2019 but 112% of this lift happened from 21>25. Prices are up 15.5% from their 2021 “bottom”.
• Veterinary Services – Inflation was high in 2019 and steadily grew until it took off in late 2022. The rate may have peaked in 2023, but it is still going strong in 2026, +6.1%, the 2^nd  highest on the chart. However, they are still #1 in inflation since 2019 and since 2021. At +6.5%, they have the highest average inflation rate since 2019. It is 71% higher than the National Average but 2.2 times higher than the Inflation average for Medical Services. Strong Inflation is the norm in Veterinary Services.
• Medical Services – Prices went up significantly at the beginning of the pandemic, but inflation slowed in 2021. In Mar 2026 it is 3.9%, 30% above the 3.0% 2019>26 average rate. We should also note that 3.9% is 3 times higher than the 1.3% low point in 23>24.
• Pet Services – After falling in late 2023, prices surged in 2024, then fell in 2025 until an Apr>Aug lift followed by a Sep>Nov dip and a Dec>Mar 26 lift. The 25>26 6.9% CPI is #1 on the chart, passing Veterinary. It is 35% above their 19>26 avg and more than double their 2018>20 avg. Pet Services is also 2^nd in both 19>26 and 21>26 inflation.
• Haircuts & Personal Services – The services segments, essential & non-essential, were hit hardest by the pandemic. The industry responded by raising prices. 2026 inflation is 4.8%, 15.8% below its 20/21 peak, but 47.7% above the 18>20 average. Consumers are paying over 35% more than in 2019, which usually reduces the purchase frequency.
• Total Pet – Petflation is 3.7%, up 95% from 24>25, but 7.5% less than 23>24. However, It’s 63 % more than their 18>21 avg and 37% above the CPI. Petflation is growing again. Except for Mar/Aug/Oct/Nov, Pet prices rose in 25, which continued in Jan>Mar 26. This is primarily being driven by a flip from deflation to inflation in Pet Products and continued strong inflation in Services, especially Non-Vet.

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

We looked at the Total Pet Spending for 2024 and its key demographic sources. Now we’ll start drilling down into the data. The first stop in our journey of discovery will be Pet Products – Pet Food and Supplies. These are the industry segments that are most familiar to consumers. They are stocked in over 200,000 outlets, plus the internet. Every week over 19,900,000 households buy food and/or treats for their pet children. Pet Products accounted for $63.95B (53.8%) of the $118.87B in Total Pet $ in 2024. This was down -$4.57B (-6.7%) from the $68.52B that was spent in 2023. However, inflation in 2024 was only 0.2% so the “real” drop was -6.9%. Pet Food had a huge drop after the record increase in 2023. Supplies also has been on a spending rollercoaster. After falling in 2020, there was a record surge in 2021. Spending fell in 2022, but there were small lifts in both 2023 & 2024.

Overall, in 2024 Pet Food spending fell -$5.46B while Supplies spending increased $0.89B. We’ll combine the data and see where the bulk of Pet Products spending comes from.

We will follow the same methodology that we used in our Total Pet analysis. First, we will look at Pet Products Spending in terms of the 10 demographic category groups that were responsible for 60+% of Total Pet spending. Then we will look for the best and worst performing segments in each category and finally, the segments that generated the biggest dollar gains or losses in 2024.

The first chart details the biggest pet product spenders for each demographic category. It shows their share of CU’s, share of pet products spending and their spending performance (spending share/share of CU’s). All but 2 of the biggest spending groups are the same as Total Pet. To reach 60%, Education added Associates & Area replaced Center City with Rural. The categories are in the order that reflects their share of Total Pet Spending. This highlights a lot of differences. Only 1 is the same rank – Area, and the group is different. However, we should note that, like Total Pet Spending, Income is the highest performing demographic characteristic. In Pet Products there are only 4 groups with a performance rating of 120+%, the same as last year and 3 less than Total Pet in 2024. This reflects the fact that Pet Products spending, especially on Food, is spread more evenly across the category segments.

1. Housing – Homeowners (80.8%) up from 77.9%. Controlling your “own space” has long been the key to pet ownership and more pet spending. Their performance rose from 119.7% to 124.4% but they stayed 4^th in terms of importance for increased pet products spending. They are still in the 120% club but now without rounding up their performance. Only Homeowners w/o Mtge spent more on Pet Products in 2024, a strong $2.18B, +12.6% lift. The decrease for Renters was -$2.85B, -18.8% while the drop for Homeowners w/Mtge was -$3.90B, -10.8%. They only gained in share & performance because their -3.2% decrease was less than half of the national -6.7% drop.
2. Race/Ethnic – White, not Hispanic (82.6%) up from 81.1%. They are the largest in spending share and account for 79+% of the spending in every segment. Their performance rose from 122.2% to 125.0% but they stayed 3^rd in terms of importance in Pet Products Spending demographic characteristics. Only Asian Americans spent more, +35.2%. The biggest $ drop was -$2.72B by Whites but African Americans spent -$1.72B, -44.6% less. Minorities are 33.9% of U.S. CU’s, but they only spend 17.4% of Pet Products $, down from 18.9% in 2023 but up 35.9% from 12.8% in 2020. Pet ownership is relatively high in Hispanic households, but it is significantly lower for African Americans and Asians.
3. Area – Suburban & Rural (73.1%) down from  73.4%, but their performance grew from 112.1% to 112.6%. Suburban CUs are the biggest product spenders but all areas spent over $1B less. Center City is still by far the worst performer but they had the smallest drop, -$1.05B, -5.8%. The performance lift was due to more Center City CUs.
4. Income – Over $70K (68.8%, up from 64.7%). Pet Parenting is common in all income groups but money is a big driver in the spending for all industry segments. Plus, their performance rose to 131.5% from 128.2%, CU income continues to be the single most important factor in increased Pet Products Spending. As a rule, Income ↑= Pet Products Spending ↑. 2024 didn’t always follow that rule. Only incomes $40>99K and $200K> spent more. $200K had the biggest $ lift, +$1.36B but $40>49K led in %, +15.2%. Biggest Drops: $<40K, -$4.86K; $150>199K, -$2.09B.
5. # in CU – 2>4 people (70.2%) up from 67.1%. The share for Pet Products is lower than for Total Pet, 72.5%. However, If you put 2 people together, pets very likely will follow and you must spend money on food and supplies. Their 116.6% performance is up from 112.7%. Only 2 People CUs spent more, +$0.64B, +2.6%. The biggest drop was Singles, -$3.10B. This was the most important factor in the group’s share/performance lifts.
6. Occupation – All Wage & Salary Earners (61.2%) down from 62.4%. Their performance also fell from 102.4% to 99.1%. Only Mgrs/Professionals and All Others (Unlisted) spent more. Mgr/Prof were +0.91B, +4.4%. Biggest Drops: Tech/Sls/Clerical, -$2.62B; Blue Collar, -$1.13B. The Wage & Salary group is no longer “earning their share”.
7. Education – Assoc Degree> (69.5%) up from 66.5%. The performance of the expanded group also rose from 114.0% to 117.8%. However, Education fell from 5th to 7th in importance in Pet Products spending. The lifts in share & performance were due to widespread -$1B drops while Associates had a $0.54B increase. The only other lift was $0.13B by HS Grads  w/some college. The biggest drops were -$2.40B by BA/BS & -$1.88B by HS Grads.
8. CU Composition – Married Couples (62.6%) up from 60.0%. Their performance rose from 127.8% to 130.5% but they stayed 2^nd in importance. Only Married, with an Oldest Child 18> (+$0.77B) and Couples Only (+$0.21B) spent more. Share/Performance grew because Married were -$1.08B (-2.6%) while All Others were -$3.49B (-12.7%).
9. # Earners – 2+ CU, 1 or 2 Earners (59.7%) up from 57.1%. Their performance is 119.2%, up from 113.7%. This group reinforces that income is a big driver but the # of earners is much less important. The lift in share and performance was due to their -$0.95B (-2.4%) drop being much less the -$3.62B (-12.3%) by other segments. 2 Earners had the biggest lift, +$0.70B (+2.7%). The only other increase was close, +$0.68B, (+11.3) by No Earner, 2+ CUs. Along with the biggest lift, the biggest drop was also in the big share group. The 1 Earner, 2+ CUs spent -$1.65B (-12.3%) less.
10. Age – 35>64 (61.3%) up from 56.4%. Their performance also rose from 108.0% to 118.2%. Only 45>64 (Mostly Gen X) and 75+ had increases. All other age groups, but 35>44 (-$0.67B) spent over $1B less. The biggest drop was -$2.12B by 65>74. The biggest lift was +$0.66B (+5.1%) by 45>54 but 55>64 was a close second at +$0.57B.

For Pet Products, only the Education & Area spending groups are different than Total Pet, but there are other differences. Pet Products spending behavior was totally dominated by the big drop in Pet Food $. Money matters most for both but with only 4 members of the 120 Club, compared to 7 for Total Pet, Products spending is more balanced.

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

Most of the best and worst performers are the ones that we would expect. However, there are 10 that are different from 2023, the same as last year but 4 more than Total Pet this year. Changes from 2023 are “boxed”. We should note that only 2 of the Product winners are different from Total Pet. Down from 6 in 2023. With the big drop in Food, the spending behavior became more consistent.

The average performance of the 2024 Product winners was 133.5%, up from 130.4%. The average for the losers was 64.7%, up from 57.9% . The gap between best and worst grew from 65.7% to 75.9%, even above 75.4% in 2022. This indicates that Pet Products spending became less balanced across America in 2024. We should also note:

• Generation, Age – Gen X replaced the Boomers on top. Gen Z (<25) fell to the bottom replacing Born <1946 (75+).
• Education – Adv. Degree replaced BA/BS on top. <HS replaced HS Grads at the bottom. Education matters.
• Income, # Earners – $200K> replaced $150>199K & 2 Earners replaced 3+ Earners, minor high income changes. The importance of income is reinforced in many categories like Age, Occupation and Education.
• CU Composition – Married, Child 18> are back on top. All Married CUs but Child <6 perform at 100+%.
• Race/Ethnic – White, Not Hispanic are the perennial winners. African Americans have the lowest income and low pet ownership. They replaced the high-income Asians, who are increasing pet ownership and spending.
• Region – The West has high income and lots of space. They replaced the Midwest on top.
• Occupation – Self-Employed has the highest income & are bosses. In 2023, They replaced Managers on top. Service Workers have the lowest income of any worker and often a difficult life. Stayed on bottom. No Surprise

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

Now, we’ll see who drove Pet Products spending down. There are no repeats from 2023, and 12 Segments flipped from first to last or vice versa. This is much more turmoil than 2023 which had 5 repeats but only 4 flips. Most of the winners are not surprising but in Area, all segments spent less. 2023 had 5 categories where all segments spent more. You see that the drops are much bigger. 78% of 96 demographics spent less. In 2023, 86% spent more. Here are the specifics:

• Housing – The winner and loser flipped, and both had double digit % change.
  • Winner – Homeowner w/o Mtge – Products: $19.44B; Up $2.18B (+12.6%)             2023: Homeowner w/Mtge
  • Loser – Homeowner w/ Mtge – Products: $32.21B; Down $3.90B (-10.8%)                2023: Homeowner w/o Mtge
  • Comment– Renters were -$2.85B (-18.8%) and had the only drop in Supplies, -$0.15B.
• Generation – Gen X flipped to the top and replaced Millennials.
  • Winner – Gen X – Products Spending: $20.81B; Up $1.66B (+8.7%)                               2023: Millennials
  • Loser – Baby Boomers – Products Spending: $19.92B; Down $3.14B (-13.6%)            2023; Gen X
  • Comment – Gen X moved to the top after 2 annual drops. Only Gen X spent more on Food, +$1.66B. All but Gen Z, -$0.35B, had small lifts in Supplies. The biggest was +$0.48B, by Millennials.
• Income – The loser and winner are both new, but very expected.
  • Winner – $200K> – Products Spending: $12.77B; Up $1.36B (+11.9%)                           2023: $30>39K
  • Loser – <$30K – Products Spending: $5.85B; Down $2. 74B (-31.9%)                               2023: $40>49K
  • Comment – A spending rollercoaster: <$40K = -$4.86B; $40>99K = $1.30B; $100>199K = -$3.08B; 200K> = $1.36B Food & Supplies Spending Matches: <$40K = Both Down; $70>99K = Both Up
• Region– The South flipped to the top. Only they spent more on Food and they had the biggest lift in Supplies, $0.91B
  • Winner – South – Products Spending: $22.87B; Up $1.06B (+4.9%)                                2023: Northeast
  • Loser – Midwest – Products Spending: $13.86B; Down $3.28B (-19.1%)                         2023: South
  • Comment – All regions, but the South spent less but only the Midwest spent less on Supplies.
• Occupation – Mgrs & Professionals flipped to the top and replaced Retirees.
  • Winner – Mgrs & Professionals – Products Spending: $21.48B; Up $0.91B (+4.4%)      2023: Retired
  • Loser – Tech/Sls/Clerical – Products Spending: $8.69B; Down $2.62B (-23.2%)             2023: Mgrs/Professionals
  • Comment – Only Managers/Professionals and All Other/Unemployed spent more but only A/O had a lift in Food. Mgrs were +$1.25B in Supplies, but 5 of 8 spent more. Tech/Sls/Cler had the biggest drops in Food & Supplies.
• Education – BA/BS flipped to the bottom and were replaced on top by Advanced Degrees.
  • Winner – Advanced Degree – Products Spending: $17.48B; Up $0.89B (+5.4%)              2023: BA/BS Degree
  • Loser – BA/BS Degree – Products Spending: $19.80B; Down $1.96B (-9.0%)                    2023: Associate Degree
  • Comment – Only Adv. Degrees spent more. Less than HS Grads had the biggest % drop, -46.1%, while Associate Degrees were only down -0.9%. Overall, <College were -$3.50B, -11.6% and College Grads were -$1.07B, -2.8%
• CU Composition – Singles flipped to the bottom, replacing Single Parents.
  • Winner – Married, Child 18> – Products: $7.46B; Up $0.77B (+11.6%)                               2023: Singles
  • Loser – Singles – Products: $11.85B; Down $3.10B (-20.8%)                                                   2023: Single Parents
  • Comment – Married, Oldest Child 18>, Married, Couple Only and 2+ Adults, No Kids were the only segments to spend more on Products, Food & Supplies. Overall, Married couples were down -2.6% in Products (Avg: -6.7%) They had a drop in Food & lift in Supplies. 24 was very bad for Singles. Prod: -20.8%; Food: -29.2%; Supp: -0.2%.
• # Earners – Both the winner and loser are new, but only 2 segments spent more.
  • Winner – 2 Earners – Products Spending: $26.43B; Up $0.70B (+2.7%)                              2023: 1 Earner, Single
  • Loser – 1 Earner, 2+ CU – Products Spending: $11.75B; Down $1.65B (-12.3%)                   2023: 3+ Earners
  • Comment – While income matters most, the # of Earners is still not a major factor in Pet Products spending as 1 Earner segments won in 22/23. In 24, 2 Earners won in $, but No Earner, 2+ CUs had the biggest % lift, +11.3%.
• Age – The 65>74 yr-olds flipped from first to last and were replaced on top by 45>54.
  • Winner – 45>54 yrs – Products Spending: $13.52B; Up $0.66B (+5.1%)                          2023: 65>74 yrs
  • Loser – 65>74 yrs – Products Spending: $10.01B; Down $2.12B (-17.5%)                          2023: 55>64 yrs
  • Comment: Only 45>64 & 75> had Product $ lifts. 45>64 spent more on Food. 55>64 & 75> spent more on Supplies. Only 55>64 spent more on both. 65>74 was +$2.35B on Food in 23 and -$2.42B in 24.
• # in CU – 1 Person flipped to the bottom and was replaced on top by 2 People.
  • Winner – 2 People – Products Spending: $25.35B; Up $0.64B (+2.6%)                          2023: 1 Person
  • Loser – 1 Person – Products Spending: $11.85B; Down $3.10B (-20.8%)                        2023: 4 People
  • Comment: Only 2 People CUs had a lift in Products or Food. They were joined in Supplies by 4 People, +$0.94B.
• Race/Ethnic – The 2023 winner & loser, White, Non-Hispanics and Asians both flipped.
  • Winner – Asian – Products Spending: $2.18B; Up $0.57B (+35.2%)                                             2023: White, Not Hispanic
  • Loser – White, Not Hispanic – Products Spending: $52.85B; Down $2.72B (-4.9%)               2023: Asian 
  • Comment – Only Asians spent more. African Americans were (-44.6%) and Hispanics (-9.2%). All but Asians spent -$1.2>$2.9B less on Food. Asians were +$0.55B. All had had lifts in Supplies spending. The biggest was +$0.48B by Hispanics. Asians had the smallest, only +$0.02B.
• Area Type – Center City flipped to the top with the smallest drop. All spent less. In a good year, all often spend more
  • Winner – Center City – Products Spending: $17.19B; Down $1.05B (-5.8%)                  2023: Suburbs 2500>
  • Loser – Rural – Products Spending: $18.13B; Down $2.27B (-11.1%)                                2023: Center City
  • Comment – All spent less on Food. Only Suburbs spent more on Supplies, +$1.48B but their Food $ were -$2.73B.

We’ve now seen the winners and losers in terms of increase/decrease in Pet Products $ for 12 Demographic Categories. 2024 was not a good year for Pet Products Spending. Food $ fell -$5.46B after a record lift in 2023. Supplies spending had a Binge in 21, a Bust in 22, a $1.1B lift in 23 and a $0.89B increase in 24. The 2024 result was a -6.7% drop in which 78% of 96 demographic segments spent less on Pet Products, a radical change from 86% spending more in 2023. In 2024 the good performances were limited, but not every good performer can be a winner. Some of these “hidden” segments should be recognized for their outstanding effort. I’ve found 6. They don’t win an award, but they deserve…

Honorable Mention

Pet Products spending was down -$4.57B in 2024 from a $5.5B decrease in Food and a small lift in Supplies. The drop in Pet Products spending was widespread as 78% of 96 demographic segments spent less. Income was still the most important factor, and spending became a little less balanced. It was not easy to find members for our honorable mention group. Gen Z ended their 2-year Pet Products spending surge and were -28% in Product $. <$40K incomes were -$4.86B but the 3 groups in the $40>99K range had 6% lifts and earned Honorable Mention. No Earner, 2+CUs had an 11.3% increase in Product $ so they returned to the list. The number of Earners is definitely much less important than income. but so is being “the Boss”. The 55>64 yr-olds were down in Food & Supplies in 2023. In 2024, both flipped to positive. In 2024, Center City was down -$1.05B in Product Spending. The biggest drop was -$1.21B by cities with a population of 2.5>4.9M. The only size with an increase was 1>2.5M. The lift was small, but they made the list. Married, Couple Only are often high profile but not in 2024. A lift in Food overcame a drop in Supplies so they earned their spot. The drop in Pet Products spending was definitely widespread so there were fewer “heroes”, but we found them.

Summary

Pet Products spending has seen a lot of turmoil since 2015. Consumers upgraded to Super Premium Food and cut back on Supplies in 2015. In 2016 they value shopped for Food and Spent some of the saved money on Supplies. In 2017 availability and value increased so they spent $7B more. In 2018 the FDA warning on dog food caused many consumers to downgrade and new tariffs on Supplies flattened growth. Products $ fell -$1B. In 2019 Pet Food spending rebounded to a record level but higher prices in Supplies hit home. Supplies Spending fell $2.98. Pet Products $ fell -$0.64B.

2020 brought the COVID pandemic. Pet Parents binge bought Pet Food in the 1^st half of the year. As Pet Parents focused on “needs”, discretionary Supplies $ dropped significantly. However, Pet Products spending still grew by $3.99B to $52B.

In 2021, the Food binge was not repeated so spending fell, but Pet Parents caught up on purchasing all the Supplies that they had postponed buying. The result was a record increase in Supplies and a $6.21B increase in Pet Products $.

2022 was more normal. Pet Food spending increased $4.29B, +12.5% & Supplies spending fell -7.8%, producing a $2.42B, +4.2% lift. Pet Products $ were $60.63B. The lift was widespread as 70% of demographics spent more. The $ moved towards their older members in the 45>54 yr-old age group. However, the youngsters also made their presence felt as Gen Z more than doubled their Pet Products spending. Spending also became more demographically balanced. The most visible feature of this change was in the big groups doing at least 60% of the dollars. In order to reach the 60% minimum, the Education group was downgraded from College Grads to those with an Associate’s Degree or more. However, the balancing act was not limited to Education. 10 of 12 categories narrowed the gap between their best and worst performing segments. Overall, the average gap narrowed from 92.3% in 2021 to 75.4% in 2022. It definitely improved

In 2023, Food had a record lift and Supplies $ rose 4.9%. The $7.89B (+13.0%) lift was widespread. 86% of demographics had increases. While Income remains the most important factor, Pet Products spending continued to become a little more balanced. Overall, the disparity between Best & Worst performers fell from 75.4% in 2022 to 65.7% in 2023. The gap narrowed in all but Area & Region. Gen Z’s growth continued, and they were joined by the 65>. 2023 was great.

2024 was a bad year for Pet Products. A $5.47B drop in Pet Food $ overwhelmed an $0.89B lift in Supplies to produce a 23>24 change of -$4.57B, -6.7% in Products. The drop was widespread as 78% of Demographic Segments spent less and spending became a little less balanced as the Best/Worst disparity rose to 75.7%.

Finally,… The “Ultimate” 2024 Pet Products Spending CU is 3 people, a married couple with a child 18>. They are Gen Xers in the 45>54 age range and are White, but not Hispanic. At least one has an Advanced College Degree. They own their own business and both work, producing a CU income of $200K>. They still have a mortgage on their house located in a Rural area with a population <2500 in the West.

Total Pet Spending in the U.S. was $118.87B in 2024, a $1.27B (1.1%) increase from 2023. These figures and others in this report are calculated from data in the annual Consumer Expenditure Survey conducted by the US BLS. In 2023, the Binge/Bust pattern was over. Even with 8% inflation, all segments had an increase in spending. The lifts for Supplies & Services were small, but the Food & Vet lifts were huge. This produced the 3rd largest lift in history. 2024 was a big change. Again Services & Supplies had small lifts & the Vet increase was huge but together they just barely made up for the -$5.5B drop in Food to generate a 1.1% Total Pet $. This is mediocre but the real situation was even worse. Petflation fell from 8% in 23 to 2.6% in 24. The 1.1% lift was really a -1.5% drop in amount sold. 2024 deserves a closer look!

The first question is, “Who is spending most of the $118.87 billion dollars?” There are of course multiple answers. We will first look at Total Pet Spending in terms of 10 demographic categories. In each category we will identify the group that is responsible for most of the overall spending. Our goal was to find demographic segments in each category that account for 60% or more of the total. To get the finalists, we started with the biggest spending segment then bundled it with related groups until we reached at or near 60%.

Knowing the specific group within each demographic category that was responsible for generating the bulk of Total Pet $ is the first step in our analysis. Next, we will drill even deeper to show the best and worst performing demographic segments/groups and finally, the segments that generated the biggest dollar gains or losses in 2024.

In the chart that follows, the demographic categories are ranked by Total Pet market share from highest to lowest. We also included their share of total CU’s (Financially Independent Consumer Units) and their performance rating. Performance is their share of market vs their share of CU’s. This is an important number, not just for measuring the impact of a particular demographic group, but also in measuring the importance of the whole demographic category in Spending. All are large groups with a high market share. A performance score of 120+% means that this demographic is extremely important in generating increased Pet Spending. I have highlighted the 7 groups with 120+% performance.

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

1. Housing – Homeowners (81.6%) up from 81.2%. Controlling your “own space” is a key to larger pet families and more pet spending. 2024 was a good year for Homeowners, with & without Mtges. Homeowners spent $3.3B more and the group’s performance rose from 122.4% to 125.7%. A big factor in the increase was a $2.02B drop in spending by Renters. Homeowners moved up from 5^th place to 4^th in importance. There were some minor changes and the homeownership rate fell slightly from 65.1% to 64.9%. Those w/o a Mortgage rose from 27.3% to 28.0%.
2. Race/Ethnic – White, not Hispanic (81.3%) down from 82.5%. This is the 2nd largest group in size and in share of Pet Spending. Their performance was down from 124.4% to 123.0% and they dropped from #4 to #6 in importance. Although this demographic, along with age, are 2 areas in which the consumers have no control, spending disparities within the group are enhanced by differences in other areas like Income, CU Composition and homeownership. There are also apparently cultural differences which impact Pet Spending. Asian Americans are first in income, education and total CU spending but they’re last in Pet Spending as a percentage of total spending – 0.52% vs a national average of 1.12%.
3. Area – Urban: Suburban/Ctr City (80.8%) down from 81.0%. Homeownership is high in the Suburbs but low in the city. The Suburbs had a -0.72% drop in CUs. Center City gained +0.52% and Rural was +2.0%.This combination pushed Urban performance up from 91.3% to 93.1%. Center City still has the worst performance at 82.4%
4. Income – Over $70K (74.2%) up from 70.0%. They gained share and their performance grew to 141.8% from 138.6%. A factor in the disparity was a 4.6% lift in $70K> CUs. CU income is still the most important factor in increased Pet Spending. Spending was up for all groups $40>99K & $150K>. $150K> had the biggest lift, +$5.5B, over 13%. $70K> was up +7.2%. Income matters. $100K>: 37.9% of CUs, 59.4% of Pet $. $150K>: 21.7% of CUs, 39.5% Pet $
5. # in CU – 2>4 people (72.5%) up from 69.8%. Singles still have by far the worst performance. In 2024, there was a slight 0.3% drop in single & 5+ CUs, but they spent 7.9% less on their pets. At the same time, 2>4 people CUs spent 5.0% more. This explains the big lift in share and a strong performance of 120.4%.
6. Occupation – All Wage & Salary Earners (65.7%) up from 64.7%. Their performance also rose slightly from 106.2% to 106.3%. Only Managers/Professionals & “All Other” spent more on their pets in 2024. Even Retirees and Self-Employed spent less on their pets in 2024, while both had double digit % increases in 2023. With a $5.85B lift, Mgrs & Profess. were the drivers behind in the slight improvement in 2024. BTW: “All Other”, includes unemployed and those not working because of illness or attending school.
7. Education – College Grads (64.1%) up from 60.6%. Higher Education is usually tied to higher income and Pet spending. It can also be a key factor in recognizing the value in product improvements. In 2022 the Education group was expanded to hit the 60% share goal. In 2023/24, big lifts in the Veterinary segment returned Grads to the list. Their 2024 performance rose from 126.7% to 133.3% and they are now #2 in importance. In Education, only <Assoc’ Degree spent less. The gain in share and in performance came entirely from those with a formal after HS degree.
8. CU Composition – Married Couples (63.8%) up from 61.4%. 2 people, committed to each other, is an ideal situation for Pet Parenting. In 2024, they gained share and their performance rose from 127.4% to 132.9%, but they fell to 3rd place in importance behind Income & College Grads. Their increases in share and performance were due to big spending increases by Couples Only and CUs with a child over 18.
9. # Earners – 2+ CUs, 1 or 2 Earners (61.7%) up from 58.4%. These are 2+ people CUs where 1 or 2 adults are employed. They gained share and their performance rose from 116.3% to 123.2%. They joined the 120+% club but are only the 5^th most important category. Income is important but # of Earners is less so. Only 2 Earners spent more. The lifts were entirely due to a $5.97B increase by 2 Earner CUs.
10. Age – 35>64 (61.6%) up from 58.6%. They gained share and their performance rose from 112.3% to 118.9%. Only the 35>54 & 75+ Age groups spent more but the lift of the 45>54 group was the biggest, $3.0B. The <25 and 65>74 groups had the biggest drops. Due to the big lift from 45>54, the group was reduced from 35>74. However, Pet Spending is still relatively balanced by age group and age stayed 8^th in importance.

Total Pet Spending is a sum of the spending in all four industry segments. The “big demographic spenders” listed above are determined by the total pet numbers. The share of spending and performance of these groups varies between segments. In fact, in every segment but Supplies we altered at least 1 group (4 in Pet Food) to better reflect where most of the business is coming from. There was turmoil & less balance, but in 2024 Total Pet Spending was still positive.

Performance is an important measurement. Any group that exceeds 120% indicates an increased concentration of the business which makes it easier for marketing to target the big spenders. Income over $70K is again the clear winner, but there are other strong performers. High performance also indicates the presence of segments within these categories that are seriously underperforming. These can be identified and targeted for improvement. In 2020>2022 many of the big lifts and drops in spending came from a series of buying binge/busts which affected every segment. In 23/24 the only affected segments were Food & Vet. All segments but Food had at least a small increase in 2024, but the spending turmoil continued.

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

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

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

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

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

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

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

We’ve seen the best overall performers and the “winners” and “losers” in terms of increase/decrease in Total Pet Spending $ for 12 Demographic Categories. Now, here are some segments that didn’t win an award, but they deserve….

HONORABLE MENTION

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

Summary

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

In 2019, there was a -$0.16B (-0.2%) decrease, driven by a big drop in Supplies $ due to Tarifflation. Almost all buyers were affected & Supplies $ fell below 2014. Services $ also fell due to value shopping. The good news was that Pet Food bounced back from the impact of the 2018 FDA warning to reach a new record high. Veterinary $ also increased 2.7%. Unfortunately, this was entirely due to a 4.1% increase in prices. The amount of Vet Services sold actually decreased.

That brings us to 2020 and the Pandemic turmoil. The effect was positive for Food and Veterinary, especially Food. Out of fear of shortages, many Pet Parents binge bought Pet Food. Spending also increased in Veterinary, as consumers focused on their Pets’ needs. The discretionary segments suffered. Supplies prices stayed high, so spending continued to decline. Services saw the biggest negative pandemic impact as many outlets were subject to closures and restrictions.

In 2021 the marketplace returned to “normal”. The Food binge buying wasn’t repeated, but Pet Parents caught up with all their “children’s” wants and needs. This produced a big increase in Total Pet (+$16.23B) and in all segments but Food. Spending skewed younger and to more traditional winners, like Homeowners w/Mtges and Incomes over $200K.

In 2022, big lifts in Food & Services overcame binge drops in Vet and Supplies and produced a 2.7% increase in  $. 72% of 96 demographics spent more, down from 83% in 2021. Spending became  more balanced with strong performances from <College, Blue Collar, African Americans & Gen Z. Income is still important as Gen X stayed on top. Spending also skewed a little older towards the older Gen Xers, 45>54 yr olds. Baby Boomers are still the “heart” of the Pet Industry, but Gen X will likely lead CU spending for a number of years, until they are eventually displaced by the Millennials.

In 2023 Total Pet Spending took off, up $14.89B (+14.5%) to $117.6B. All segments had increases. The lifts in the more discretionary segments – Services & Supplies, were small but the Food & Veterinary lifts were huge. The Food increase even set a new record. The lift was widespread as 91% of 96 demographic segments spent more. Even considering 8% inflation, 78% spent more. Income is still the most important factor in all segments but Food and growing in importance. However, 2023 became a little more balanced in many categories, especially Age. Also, many underperforming segments, like Singles and Renters, had big increases. 2023 was a great year and Gen X still spent the most Pet $ per CU.

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

Before we go…The Ultimate Total Pet Spending CU in 2024 has 3 people, a married couple, with 1 child who is 18 or over. They are 45>54 yr-old Gen Xers. They are White, but not Hispanic and both work. At least one has an Advanced College Degree and is a Mgr/Professional. They earn $200K+. They still have a mortgage on their house located in a Rural area with a population under 2500 in the West.

It’s time to get started with 2026 inflation. The Consumer Price Index peaked back in June 2022 at 9.1% then began to slow until it turned up in Jul/Aug 2023. Prices fell in Oct>Dec 23, then turned up Jan>Oct 24 but fell in Nov. However, they rose 10 straight months to a record high in Sep 25, fell Oct>Dec, then rose in Jan (New Record). The CPI vs last year slowed to +2.4% from +2.7% because of a new base year. Grocery prices rose 0.6% from Dec to a new record but their YOY inflation also fell to 2.1% from 2.4%. Even minor price changes can affect consumer pet spending, especially in the discretionary pet segments, so we will continue to publish monthly reports to track petflation as it evolves in the market.

Petflation was +4.1% in Dec 21 while the overall CPI was +7.0%. The gap narrowed as Petflation accelerated. It was 96.7% of the national rate in June 22. National inflation has slowed considerably, but Petflation generally increased until June 23. It passed the CPI in July 22, fell below it from Apr>Jul 24. It passed the CPI in Aug, fell below in Sep>Oct, rose above in Nov, fell below in Dec>Aug, then passed it in Sep>Oct & Dec>Jan. All reports will include:

• A rolling 24 month tracking of the CPI for all pet segments and the national CPI. The base number will be pre-pandemic December 2019 in this and future reports, which will facilitate comparisons.
• Monthly comparisons of 26 vs 25 which will include Pet Segments and relevant Human spending categories. Plus
  1. CPI change from the previous month.
  2. Inflation changes for recent years (24>25, 23>24, 22>23, 21>22, 20>21, 19>20, 18>19)
  3. Total Inflation for the current month in 2026 vs 2019 and vs 2021 to see the full inflation surge.
  4. Average annual Year Over Year inflation rate from 2019 to 2026
• YTD comparisons (Note: January = YTD, so there will be no separate YTD report this month.)
  1. YTD numbers for the monthly comparisons #2>4 above

In our first graph we will track the monthly change in prices for the 24 months from Jan 24 to Jan 26. We will use December 2019 as a base number so we can track the progress from pre-pandemic times through an eventual recovery. This chart is designed to give you a visual image of the flow of pricing. You can see the similarities and differences in segment patterns and compare them to the overall U.S. CPI. The year-end numbers from 12 and 24 months earlier are included. We also included and highlighted (pink) the cumulative price peak for each segment. In Jan, Pet prices were up 0.3% from Dec. Food (+0.8%), Vet (+0.5%) & Services (+0.6%) were up while Supplies (-1.0%) were down significantly.

In Jan 24, the CPI was +20.0% and Pet was +22.4%. The Services segments inflated after mid-20, while Product inflation stayed low until late 21. In 22, Food prices grew but the others had mixed patterns until July 22, when all rose. In Aug>Oct Petflation took off. In Nov>Dec, Services & Food inflated while Vet & Supplies prices stabilized. In Jan>Apr 23, prices grew every month for all segments except for 1 Supplies dip. In May Products prices grew while Services slowed. In Jun/Jul this reversed. In Aug all but Services fell. In Sep/Oct this flipped. In Nov, all but Food & Vet fell. In Dec, Supp. & Vet  drove prices up. In Jan>Mar 24 Pet prices grew. In April, prices in all but Vet fell. In May, all but Food grew. In June, Products drove a lift. In July, all but Services fell. In Aug, Food drove a drop. In Sep, Products fueled a drop. In Nov all were up. Prices dropped in Mar & Oct>Nov 25, but all set records in Dec and/or Jan.

• U.S. CPI – The inflation rate was below 2% through 2020. It turned up in January 21 and continued to grow until flattening out in Jul>Dec 22. Prices rose Jan>Sep 23, fell Oct>Dec, rose Jan>Oct 24, fell Nov, rose Dec>Sep 25, fell Nov>Dec, but hit a record high in Jan. 26% of the lift since Dec 19 happened from Jan>Jun 22 – 8.2% of the time.
• Pet Food – Prices were at the Dec 19 level Apr 20>Sep 21. They grew & peaked May 23, then got on a roller coaster. Jan/Feb 25 up, Mar>May down, Jun/Jul up, Aug down, Sep↔, Oct/Nov down, Dec/Jan up. 92% of the lift was in 22/23.
• Pet Supplies – Supplies prices were high in Dec 19 due to tariffs. They had a deflated roller coaster ride until mid-21 when they returned to Dec 19 prices & stayed there until 22. They turned up in Jan (record). They plateaued Feb>May, grew in June, flattened in July, then turned up in Aug>Oct to a new record. Prices stabilized Nov>Dec, grew Jan>Feb 23. fell in Mar, but the roller coaster went on. Dec>Feb up , Mar/Apr down, May/Jun up , July down , Aug up, Sep/Oct down , Nov/Dec up , Jan>Feb 25 down,  Mar>May up , Jun down, Jul up , Aug down , Sep up , Oct>Nov down , Dec up (record), Jan down.
• Pet Services– Inflation is usually 2+%. Perhaps due to closures, prices increased at a lower rate in 2020. In 2021 consumer demand increased but with fewer outlets. Inflation grew in 21 with the biggest lift in Jan>Apr. Inflation was strong in 22 but prices got on a roller coaster. They turned up Jul>Apr 23, fell May. rose Jun>Aug, fell Sep>Dec, rose Jan>Mar 24, fell Apr, rose May, fell Jun, rose Jul>Nov, fell Dec>Mar 25, rose Apr>Aug, fell Sep, rose Oct>Jan 26 (record).
• Veterinary – Inflation has been consistent. Prices turned up in Mar 20 and grew through 21. A surge began in Dec 21 which put them above the overall CPI. In May 22 prices fell and stabilized in June and they fell below the CPI. However, they rose again & have been above the CPI since July 22. In 23>25 prices grew Jan>May, level Jun/Jul, fell Aug, grew Sep>Dec, fell Jan, grew Feb>May, fell Jun>Jul, grew Aug 24>Sep 25, fell Oct>Nov, grew Dec/Jan.
• Total Pet – Petflation is a sum of the segments. In Dec 21 the price surge began. In Mar>Jun 22 the segments had ups & downs, but Petflation grew Jul>Nov, slowed Dec, grew Jan>May 23, fell Jun>Aug, grew Sep/Oct, fell In December prices grew through Mar 24 to a record high. Prices fell in April, rose May>Jun, fell Jul>Sep, rose Oct>Nov, fell Dec, rose Jan>Feb 25, fell Mar, grew Apr>Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec/Jan (record)

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

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

• U.S. CPI– Prices are +0.4% from Dec. The YOY increase is 2.4%, down from 2.7%. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are now 20+% higher than the target. The January increase follows stability in Dec and 2 drops in Oct & Nov. The current rate is below 24>25 but the 21>26 rate is +24.3%, 83.2% of the total inflation since 2019. The Inflation surge hadn’t started in January 2021, +1.4%
• Pet Food– Prices are +0.8% vs Dec. and +1.4 vs Jan 25, up from -1.1%. They are still 33% below the Food at Home inflation rate of +2.1%. Remember that the YOY Pet Food CPI has deflated in 15 of the last 23 months. The 2021>2026 inflation surge has generated 90.3% of the 26.9% inflation since 2019. Inflation began for Pet Food in June 2021, +0.9%, after 12 straight deflationary months.
• Food at Home – Prices are up +0.6% from Dec, but the YOY increase fell from 2.4% to 2.1%. This is radically lower than Jul>Sep 2022 when it exceeded 13%. The 31.5% Inflation for this category since 2019 is 8% more than the national CPI but is only in 5th place behind 4 Services expenditures and Total Pet. 82% of the inflation since 2019 occurred from 2021>26. This is slightly lower than the CPI, but we should note that Grocery prices began inflating in 2020>21 then the rate accelerated. It appears that the pandemic supply chain issues in Food which contributed to higher prices started early and foreshadowed problems in other categories and the overall CPI tsunami.
• Pets & Supplies– Prices were -1.0% from December and YOY inflation fell to +0.2% from 1.0%. They still have the lowest rate vs 2019. Prices were deflated for much of 20>21. As a result, the 2021>26 inflation surge accounted for 112% of the total price increase since 2019. Prices set a record in Oct 22 then deflated. 3 lifts pushed them to a record high in Feb 23. Prices fell in Mar & the roller coaster continued into 25. They fell Jan/Feb 25, rose Mar>May, fell Jun, rose Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec (record), then fell in Jan.
• Veterinary Services– Prices are +0.5% from Dec and +7.4% from 2025, up from 7.1%. They remain #1 in inflation vs last year & still the leader in the increase since 2019 with +56.2% and since 21, +42.8%. For Veterinary, relatively high annual inflation is the norm. However, the rate has increased during the current surge, especially since 23. They have the highest rate in 26, but only 76.0% of the cumulative inflation since 2019 occurred from 2021>26.
• Medical Services – Prices turned sharply up at the start of the pandemic but then inflation slowed and fell to a low rate in 20>21. Prices rose +0.6% from Dec and inflation vs last year rose to +3.9% from +3.5%. Medical Services are not a big part of the current surge as only 59.2% of the 22.8%, 2019>26 increase happened from 21>26.
• Pet Services – Inflation slowed in 20 but grew in 21. In 24 prices surged , especially in Jul>Nov. Prices fell Dec>Mar 25 to 3.9%. Apr grew, May fell, June rose, Jul rose to 6.3%. Inflation fell to 5.8% in Aug & to 4.2% in Nov. In Dec>Jan 26 it rose to 5.7%. They are #2 vs 25, 21 & 19. 84% of their 19>25 inflation is from 21>26. In Dec 23, it was 49%.
• Haircuts/Other Personal Services – Prices are +0.6% from Dec and +5.0% from Jan 25. 18 of the last 25 months have been 4.0+%. Inflation has been pretty consistent. 69.3% of the 19>26 inflation happened 21>26.
• Total Pet– Petflation slowed to 3.4% from 3.5%. All segments but Supplies had a higher rate. It is 70% above the 24>25 rate and 42% above the U.S. CPI. Plus, it is 10% above the 3.1% average January rate since 1997. Jan prices rose 0.3%, driven by all but Supplies. The Dec>Jan increase was slightly below the 0.4% 97>25 average change but expected. A drop has only occurred in 2 of the last 28 years. The big factor in the CPI drop was that prices rose 0.4.4% in Dec>Jan 25. In January, the recovery definitely slowed.

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

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

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

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

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

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

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

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

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

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

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

Now, here is Veterinary Spending by Age Group

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

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

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

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

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

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

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

    ∙ 55>64 yr olds   ∙ West   ∙ Baby Boomers              

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

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

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

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

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

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