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, rose Jan>May (Record), fell June. The CPI vs last year fell to 3.5% from 4.2%. Grocery prices increased 0.2% from May but their YOY inflation was stable at 2.7%. BTW, Gas prices are still up 36.1% from Feb. 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 Apr>Jul 24. It passed the CPI in Aug, fell below Sep>Oct, rose above in Nov, fell below Dec>Aug 25, passed it Sep>Oct & Dec>Mar 26, equal in Apr, below in May/June. All reports 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 June 24 to June 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 & those from 12 and 24 months earlier are included. We also included and highlighted (pink) the cumulative price peak for each segment. In June, Total Pet prices were +0.2% from May. Food, Services & Vet were +0.2%. Supplies were -0.01%.

In Jun 24, the CPI was +22.3% and Pet was +24.2%. The Services segments inflated after mid-20, while Product inflation stayed low until late 21. In 22, Food prices grew but 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 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 a lift. 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, rose Dec>Mar 26, fell Apr/May, rose Jun. All segments set records in Mar and/or May 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, hit record highs Jan>May 26, slowed in June. 22.7% of the lift since Dec 19 happened Jan>Jun 22 – 7.7% 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 Jun/Jul 25↑, Aug↓, Sep↔, Oct/Nov ↓, Dec>Mar↑, Apr>May↓, Jun↑. 90+% 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↑, Jan 26↓, Feb>Mar↑(record), Apr>Jun↓. Prices are only 1.7% below Mar.
• 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>Jun 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>Apr 26, fell May, grew Jun (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. Petflation grew Jul>Nov, slowed Dec, grew Jan>May 23, fell Jun>Aug, grew Sep/Oct, fell Nov, then grew Dec>Mar 24 to a record. 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), fell in Apr>May, rose Jun.

Next, we’ll turn our attention to the YOY inflation rate change for June 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, rose to 3.5% in Dec & 4.3% in Mar. In Apr it fell to 3.8% & 3.2% in May/Jun, below the US 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 data into perspective.  

Overall, prices were -0.3% from May and were +3.5% vs Jun 25, down from 4.2% last month. Grocery prices rose 0.2% but inflation was stable at 2.7%. There were 3 price drops from last month, down from 4 in May. 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 3.5% is up 30% from 24>25 but it’s 62% less than 21>22. The 25>26 rate is above 24>25 for all but Medical Serv. & Vet. In our 2021>2025 measurement you also can see that over 75% of the cumulative inflation since 2019 has occurred in all but 2 segments – Haircuts and Medical 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 103.5% 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 63.4% of the National CPI so they are very influential. Their current CPI is 3.2%, down from 3.5%. The CPI for Commodities fell from 5.5% to 4.1%. Services are the usual inflation driver, but both drove the current decrease. The situation in Pet is closer to its “normal” than the national CPI. Petflation: 3.2%. The CPI for the Service Segments is 5.1%. The Pet Products CPI is 1.5%.

• U.S. CPI– Prices are -0.3% from May. The YOY rate is 3.5%, down from 4.2% in May. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are now 75+% higher than the target. The Jun drop follows Mar>May lifts, Feb stability, a lift in Jan, stability in Dec and 2 drops in Oct & Nov. The current rate is 30% above 24>25 and the 21>26 rate is +22.9%, 75.3% of the total inflation since 2019. The Inflation surge was growing in Jun 2021, +5.4%
• Pet Food– Prices are +0.2% vs May, but +1.3% vs Jun 25, down from 1.8%. They are now 52% below the Food at Home inflation rate of +2.7%. Remember that the YOY Pet Food CPI has deflated in 16 of the last 28 months. The 2021>2026 inflation surge has generated 98.8% of the 24.8% inflation since 2019. Inflation began for Pet Food in June 2021, +0.9%, after 12 straight deflationary months. Pet Food prices are still within 0.4% of the Mar record high.
• Food at Home – Prices are +0.2% from May, but the YOY CPI stayed 2.7%. This is radically lower than Jul>Sep 2022 when it exceeded 13%. The 33.2% Inflation for this category since 2019 is 9.2% more than the national CPI but is only in 4th place behind 3 Services expenditures. 75.0% of the inflation since 2019 occurred from 2021>26. This is slightly less 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 -0.01% from May but YOY inflation rose to 9% from 0.1%. They still have the lowest rate vs 2019. Prices were deflated for much of 20>21. As a result, the 2021>26 surge accounted for 122.2% of the total inflation 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, then fell in Apr>Jun.
• Veterinary Services– Prices are +0.2% from May and +5.1% from 2025, up from 4.9%. They are #2 in inflation vs last year, behind Pet Serv, but still #1 in the increase since 2019, +54.6% and 21, +42.2%. For Veterinary, high annual inflation is the norm. However, the rate has increased during the current surge, especially since 23. They have the highest June avg rate in 26, but only 77.3% 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 fell -0.1% from May, and inflation vs last year decreased to +2.9% from +3.6%. Medical Services are not a big part of the current surge as only 63.8% of the 22.4%, 2019>26 increase happened from 21>26.
• Pet Services – Inflation slowed in 20 but grew in 21. In 24 prices surged in Jul>Nov, then fell to 3.9% in Dec>Mar 25. Apr grew, May fell, June rose, Jul rose to 6.3%, fell to 5.8% in Aug & 4.2% in Nov. In Dec>Mar 26 it rose to 7.8%, fell to 6.6% in Apr, rose to 7.0%, fell to 6.3%. They are #1 vs 25 and #2 vs 21 & 19. 78.2% of their inflation is from 21>26.
• Haircuts/Other Personal Services – Prices are +1.3% from May and +4.4% from June 25. 21 of the last 30 months have been 4.0+%. Inflation has been pretty consistent. 70.5% of the 19>26 inflation happened 21>26.

Total Pet– Petflation stayed at 3.2%. Supplies & Vet had a rate increase. Total Pet is 52.3% above the 24>25 rate but 8.6% below the current U.S. CPI. Plus, it is equal to the 3.2% avg June rate since 1997. June prices rose 0.2%, driven by all but Supplies. The May>Jun 0.2% increase was equal to the 97>25 average change but unexpected. Since 1997, there have been 8 May>Jun price drops. The other years had an avg lift of 0.3% A key factor in the current CPI stability was that prices also rose 0.2% in May>Jun 25. The recovery is definitely slow. Now, we’ll look at YTD data.The 25>26 rate is higher than 24>25 for all, but Veterinary. The 22>23 inflation rate was the highest for Tot Pet, Pet Food, Veterinary & Pet Services. 21>22 has the highest rate for Groceries, Pet Supplies, Haircuts & the Natl CPI; 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 (1.8%) and Pet Food (3.3%). It is no surprise that Veterinary Services has the highest average rate (6.5%), but all 4 other categories are +4.1% or higher.

• U.S. CPI – The 25>26 rate is 3.3%, up 27% from 24>25 and 3% from 23>24. However, it is 60% less than 21>22 and 13% below the average increase from 2019>2026. However, it’s still 57% more than the average increase from 2018>21. 81% of the 30.0% inflation since 2019 occurred from 2021>26. Inflation is a problem that started recently.
• Pet Food – Ytd prices are still inflating, 1.7%, down from 1.8% in May. That’s a big increase from -0.5% in 24>25. It is above 1.3% in 23>24 but equal to the 18>20 average. Pet Food has the highest 22>23 rate but is only #6 in the 21>26 rates and #7 in 19>26. Deflation in the 1^st half of 2021 kept YTD prices low then they surged in 22 and especially in 23. 95% of the inflation since 2019 occurred from 2021>26.
• Food at Home – The 25>26 inflation rate is 19.0% above 24>25, but it is down 68% from 22>23 and 75% from 21>22. It’s even 12% less than 20>21. However, it is 22% 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 7.3%. You can see the impact of supply chain issues on the Grocery category as 80% 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 deflated in June, back to +0.7% in July, fell to 0.0% in Aug, rose Sep>Dec, fell Jan 26, rose Feb>Mar, fell Apr>Jun. 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 13.5% from 2019 but 113.3% of this lift happened from 21>25. Prices are up 15.3% 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 2026, +5.6%, 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 June 2026 it is 3.6%, 20% above the 3.0% 2019>26 average rate. We should also note that 3.6% is 4 times higher than the 0.9% low point 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>Jun 26 lift. The 25>26 6.8% CPI is #1 on the chart, passing Veterinary. It is 31% above their 19>26 avg and 2.5 times 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 4.3%, 20.4% below its 20/21 peak, but 36.5% above the 18>20 average. Consumers are paying over 35% more than in 2019, which usually reduces the purchase frequency.
• Total Pet – Petflation is 3.5%, up 75% from 24>25, but 66% less than their 22>23 peak. However, It’s 59% more than their 18>21 avg and 6.1% above the CPI. Pet prices are still high. Except for Mar/Aug/Oct/Nov, Pet prices rose in 25, which continued in Jan>Mar 26, paused in Apr>May, then rose in June. The overall gain 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, paused in Dec>Mar, improved Apr/May, paused June. We tend to focus on the monthly, YOY inflation in the current year and ignore the fact that inflation is cumulative. Pet prices are 28.2% above 2021 and 32.5% higher than 2019. Those are big lifts. In fact, Mar prices for the National CPI, Total Pet and all pet segments reached new record highs. In June, prices either set a new record or are within 1.7% of Mar. Only Supplies prices (+12.6%) are less than 24.8% 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 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 & SZ 26, this trend continued. Strong, cumulative inflation has a widespread impact. We’ll continue to monitor the situation.

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, rose in Jan>May 26 (Record). The CPI vs last year rose to 4.2% from 3.8%. Grocery prices increased 0.1% from Apr but their YOY inflation slowed to 2.7% from 2.9%. BTW, Gas prices are up 50.7% from Feb. 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, passed it Sep>Oct & Dec>Mar 26, equal in Apr, now below in May. All reports 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 May 24 to May 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 & those from 12 and 24 months earlier are included. We also included and highlighted (pink) the cumulative price peak for each segment. In May, Total Pet prices were down -0.1% from Apr. Non-Vet Services were up 1.4%, while all other segments were down.

In May 24, the CPI was +22.2% and Pet was +23.9%. The Services segments inflated after mid-20, while Product inflation stayed low until late 21. In 22, Food prices grew but 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 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 a lift. 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, rose Dec>Mar 26, fell Apr/May. All segments set records in Mar. Product Prices slowed in Apr/May. Vet set a new record in Apr then fell -0.1% in May. Services prices reached a new record high in Apr, then May.

• 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>May 26. 22.4% of the lift since Dec 19 happened from Jan>Jun 22 – 7.8% 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 continuing rollercoaster Jun/Jul 25↑, Aug↓, Sep↔, Oct/Nov ↓, Dec>Mar↑, Apr>May↓. 90+% 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 and the roller coaster hasn’t stopped. Jan>Feb 25↓, Mar>May↑, Jun↓, Jul↑, Aug↓, Sep↑, Oct>Nov↓, Dec↑, Jan 26↓, Feb>Mar↑(record), Apr>May↓. Prices are only 1.6% below Mar.
• 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>May 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>Apr 26 (records), fell May.
• 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 Nov. Prices grew Dec>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 (record), fell in Apr>May.

Next, we’ll turn our attention to the YOY inflation rate change for May 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, rose to 3.5% in Dec & 4.3% in Mar. In Apr it fell to 3.8% & to 3.2% in May and is now below the US 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 data into perspective.

Overall, prices were up 0.6% from Apr and were +4.2% vs May 25, up from 3.8% last month. Grocery prices rose 0.1% but inflation slowed to +2.7% from 2.9%. There were 4 price drops from last month, down from 5 in Apr. 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 4.2% is up 75% from 24>25 but it’s 51% less than 21>22. The 25>26 rate is above 24>25 for all but Pet Supplies, Haircuts & Vet. In our 2021>2025 measurement you also can see that over 75% of the cumulative inflation since 2019 has occurred in all but 2 segments – Haircuts and Medical 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 102% 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 63.4% of the National CPI so they are very influential. Their current CPI is +3.5% while the CPI for Commodities jumped up from 4.6% to 5.5%. 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: 3.2%. The CPI for the Service Segments is 5.1%. The Pet Products CPI is 1.5%.

• U.S. CPI– Prices are +0.6% from Apr. The YOY increase is 4.2%, up from 3.8% in Apr. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are now 110+% higher than the target. The Mar>May lifts follow Feb stability, a lift in Jan, stability in Dec and 2 drops in Oct & Nov. The current rate is 75% above 24>25 and the 21>26 rate is +24.5%, 79.3% of the total inflation since 2019. The Inflation surge was growing in May 2021, +5.0%
• Pet Food– Prices are -0.4% vs Apr, but +1.8% vs May 25, down from 2.2%. They are now 33% below the Food at Home inflation rate of +2.7%. Remember that the YOY Pet Food CPI has deflated in 16 of the last 27 months. The 2021>2026 inflation surge has generated 98.8% of the 24.7% inflation since 2019. Inflation began for Pet Food in June 2021, +0.9%, after 12 straight deflationary months. Pet Food prices are still within 0.6% of the Mar record high.
• Food at Home – Prices are +0.1% from Apr but the YOY CPI slowed from 2.9% to 2.7%. This is radically lower than Jul>Sep 2022 when it exceeded 13%. The 32.6% Inflation for this category since 2019 is 5.5% more than the national CPI but is only in 4th place behind 3 Services expenditures. 78.5% of the inflation since 2019 occurred from 2021>26. This is slightly less than the CPI, but we should note that Grocery prices began inflating in 2020>21 then the rate accelerated. It appears that the pandemic supply chain issues in Food which contributed to higher prices started early and foreshadowed problems in other categories and the overall CPI tsunami.
• Pets & Supplies– Prices were -1.3% from Apr and YOY inflation fell to 0.1% from 1.9%. 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 113.7% 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, then fell in Apr>May.
• Veterinary Services– Prices are -0.1% from Apr, but +4.9% from 2025, down from 5.5%. They are #2 in inflation vs last year, behind Pet Serv. but still #1 in the increase since 2019, +54.6% and 21, +42.0%. For Veterinary, high annual inflation is the norm. However, the rate has increased during the current surge, especially since 23. They have the highest May avg rate in 26, but just 76.9% 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 0.5% from Apr and inflation vs last year increased to +3.6% from +3.2%. Medical Services are not a big part of the current surge as only 62.3% 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 in Jul>Nov, then fell to 3.9% in Dec>Mar 25. Apr grew, May fell, June rose, Jul rose to 6.3%, fell to 5.8% in Aug & 4.2% in Nov. In Dec>Mar 26 it rose to 7.8%, fell to 6.6% in Apr, then rose to 7.0%. They are #1 vs 25 and #2 vs 21 & 19. 78.1% of their 19>25 inflation is from 21>26.
• Haircuts/Other Personal Services – Prices are +0.5% from Apr and +3.6% from May 25. 20 of the last 29 months have been 4.0+%. Inflation has been pretty consistent. 69.8% of the 19>26 inflation happened 21>26.
• Total Pet– Petflation slowed to 3.2% from 3.8%. Only Pet Services had a rate increase. Total Pet is 45.5% above the 24>25 rate but 23.8% below the current U.S. CPI. Plus, it is still 3.2% above the 3.1% avg May rate since 1997. May prices fell -0.1%, mainly driven by Products. The Apr>May decrease was very different from the 0.2% 97>25 average change and unexpected. Since 1997, there have been only 5 Apr>May price drops. A key factor in the current big CPI drop was that prices rose 0.5% in Apr>May 25. The recovery is definitely slow. Now, we’ll look at YTD data.

The 25>26 rate is higher than 24>25 for all, but Veterinary & Haircuts. The 22>23 inflation rate was the highest for Tot Pet, Pet Food, Veterinary & Pet Services. 21>22 has the highest rate for Groceries, Pet Supplies & the Natl CPI. 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 3.2%, up 23% from 24>25 but down 3% from 23>24. It is also 61% less than 21>22 and 16% below the average increase from 2019>2026. However, it’s still 58% more than the average increase from 2018>21. 82% of the 29.9% inflation since 2019 occurred from 2021>26. Inflation is a problem that started recently.
• Pet Food – Ytd prices are still inflating, 1.8%, the same as Apr. That’s a big increase from -0.5% in 24>25. It is now above the 1.6% rate in 23>24 but below the 1.85% 18>20 average. Pet Food has the highest 22>23 rate but is only #6 in the 21>26 rates and #7 in 19>26. Deflation in the 1^st half of 2021 kept YTD prices low then they surged in 22 and especially in 23. 94% of the inflation since 2019 occurred from 2021>26.
• Food at Home – The 25>26 inflation rate is 14.3% above 24>25, but it is down 72% from 22>23 and 76% from 21>22. It’s even 4% less than 20>21. However, it is 45.5% 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 7.0%. You can see the impact of supply chain issues on the Grocery category as 81% 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 deflated in June, back to +0.7% in July, fell to 0.0% in Aug, rose Sep>Dec, fell Jan 26, rose Feb>Mar, fell Apr>May. 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 13.7% from 2019 but 111.7% of this lift happened from 21>25. Prices are up 15.3% 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 2026, +5.7%, 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 May 2026 it is 3.7%, 23% above the 3.0% 2019>26 average rate. We should also note that 3.7% is 2.8 times higher than the 1.3% low point 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>May 26 lift. The 25>26 6.9% CPI is #1 on the chart, passing Veterinary. It is 33% 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 4.3%, 23.2% below its 20/21 peak, but 38.7% above the 18>20 average. Consumers are paying over 35% more than in 2019, which usually reduces the purchase frequency.
• Total Pet – Petflation is 3.6%, up 80% from 24>25, but 65% less than their 22>23 peak. However, It’s 59% more than their 18>21 avg and 12.5% above the CPI. Pet prices are still high. Except for Mar/Aug/Oct/Nov, Pet prices rose in 25, which continued in Jan>Mar 26, then paused in Apr>May. The overall gain 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, paused in Dec>Mar, improved Apr/May. We tend to focus on the monthly, YOY inflation in the current year and ignore the fact that inflation is cumulative. Pet prices are 27.8% above 2021 and 32.4% higher than 2019. Those are big lifts. In fact, Mar prices for the National CPI, Total Pet and all pet segments reached new record highs. In May, prices either set a new record or are within 1.6% of Mar. Only Supplies prices (+12.4%) are less than 24.7% 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 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.

Now we will turn to Veterinary Services. For years, Veterinary Services have had high inflation. This has resulted in CU income becoming the dominant factor in spending and a reduction in visit frequency.

In 2017 low inflation drove a 7.2% increase in visit frequency and a $2.5B spending lift. In 2018 inflation returned to normal. Consumers spent $0.56B more (+2.7%), but inflation was 2.6% so almost all of the lift was from higher prices. In 2019 the situation got worse. Consumers spent $0.58B (+2.7%) more but inflation was 4.1% so there was a decrease in the amount Vet Services purchased. In 2020 the pandemic hit, and Pet Parents focused on needs – Food & Veterinary. Veterinary spending grew $3.05B, (+14.0%). In 2021, this behavior grew even stronger and produced a record $7.82B (+31.5%) increase. In 2022 inflation reached 8.8%. Spending fell -$2.95B (-9.0%) but the amount of Vet Services sold fell 16.4%. In 2023 inflation was 9.4% but Vet Care is needed so spending grew $5.95B (+20.0%) – with inflation, +9.7%. In 2024, inflation slowed to 7.4% and the lift was still $5.60B, +15.7%. With inflation, it was really +7.7%.

We’ll start with the groups who were responsible for most of Vet spending in 2024 and the $5.6B increase. The 1st chart details the biggest Vet spenders for 10 demographic categories. It shows share of CU’s, share of Vet spending and their performance (Share of spending/share of CU’s). In performance – 7 groups perform at 120+%, 2 more than 2023 & 1 more than 2018>2021. This is also 1 more than Supplies, 2 more than Food, but 1 less than Services. These big spenders are performing well but it also signals that there is still disparity between the best and worst performing demographics in this “needed” segment. Only the CU Size & Income groups are different from Total Pet and the categories are listed in the order that reflects their share of Total Pet $pending. Again, High Income is the most important factor in Spending.

1. Housing – Homeowners (81.7%) up from 81.2% Homeownership is a major factor in pet ownership and spending in all industry segments. In terms of importance to Veterinary spending, their 125.9% performance rating is up from 124.8%, but they dropped to 6th from 5th place in importance. Only Homeowners w/o Mtge spent less. Renters were +12.5% while All Homeowners were +16.5%. This produced the small gains in share & performance for Homeowners. We should also note that Homeownership is definitely not as important to Veterinary Spending as it once was. In 2015 their share was 88.4% with performance of 141.8%.
2. Race/Ethnic – White, not Hispanic (79.3%) down from 84.7%. This group accounts for the vast majority of spending in every segment but lost share in Vet $ again in 2024. Their 120.0% performance is also down from 127.6% and they fell from #4 to #7 in importance in Veterinary Spending. All spent more, but the Minority increase was +56.4%, while Whites were up +8.4%. This caused the drops in share and performance.
3. Area – Urban Areas (78.9%) down from 79.0% Suburban CU’s are the biggest spenders in every segment. All areas spent more and the lifts were in double digit % and very close in size. The Rural lift was slightly bigger. This explains why the drop in share was so small and caused their performance to stay at 97.6%. They’re still last in importance.
4. Income – Over $100K (66.2%) up from 61.1% Their performance also grew from 167.7% to 174.5%. Higher income is still the most important factor in Veterinary spending. The only drops were $30>49K, -$0.27B and $70>149K, -$0.18B. The $150K> groups spent $5.68B more. This drove the big lifts in share and performance.
5. # in CU – 2 or 3 People (62.5%) up from 61.9% This smaller group had a slight gain in share and their performance grew from 129.8% to 130.5%. CU Size’s rank in importance in Vet Spending moved up from #7 to #4. All but Singles, -$0.01B, spent more. 2/3 People CUs were +$3.69B, 66% of the overall lift in Vet Spending.
6. Occupation – All Wage & Salaried (71.6%) up from 68.6% and their performance increased from 112.6% to 115.9%. In the group, all spent more. Outside the group, only Retirees, -$0.83B, spent less. White Collar workers spent $4.52B, +22.3% more. They drove the lifts in share in performance. Mgrs/Prof had the biggest lift, +$3.89B. We should also note that their perfomance lift was slowed a little because they had 1.9 million more CUs than in 2023.
7. Education – College Grads (68.9%) up from 64.9%. Income generally increases with education. It is also important in understanding the need for regular Veterinary care. Their performance also increased from 135.8% to 143.2% and they stayed #2 in importance. Only <HS Grads & HS Grads w/some College spent less in 2023. College grads (48.1% of CUs) generated 94.6% of the 23>24 lift, which drove the increases in share and performance.
8. CU Composition – Married Couples (63.8%) up from 61.5% Their performance also rose to 132.9% from 127.7% and they stayed #3 in importance. Only Married, +Adults, No kids, Single Parents & Singles spent less. The lifts in share and performance were due to All Married being +$4.39B, +20.0%.
9. # Earners – 2+ CUs, 1 or 2 Earners (63.8%) up from 60.2% Their Performance also grew from 119.9% to 127.3%.  # Earners moved up from #6 to #5 in importance. Only No Earner CUs of any size spent less. 2 Earners, +$4.61B, +29.4%, drove the group’s lifts in share and performance.
10. Age – 35>64 (60.4%) down from 60.8% Their performance also slowed a little from 116.7% to 116.6% but they stayed 8^th in importance. Only 55>64, -$0.34B & 65>74, -$0.09B spent less. The 54>64 drop along with a +$2.13B lift by <35 were the big factors in the Group’s minor drops in share and performance.

Spending disparity rose in 6 categories. The average group performance was 128.4%, up from 125.4% in 2023 so spending became less balanced. Notably, a smaller group size made CU Size & # Earners more important. However, the 3 most important groups, $100K> Income, College Degrees & Married Couples are the same as 2023.

Now, we’ll look at 2024’s best and worst performing Veterinary spending segments in each category.

There are no surprising winners or losers but 6 are different from 2023, down from 9 last year. This is 3 more than Services, but 3 less than Supplies and 9 less than Food. Also, the average difference between Best & Worst was 99.4%, much more than 89.8% in 2023. There was considerable turmoil and 9 of 12 categories had increased disparity. The average difference grew considerably, so spending was less balanced. Changes from 2023 are “boxed”. We should note:

• Income– The Winner changed from $200K>. The gap is 205.0%, 30% more than 2023.
• Earners – No change in Winner or Loser, but the gap widened by 22.7%.
• Occupation – Service Workers replaced Blue Collar at the bottom but the gap only widened by +0.7%.
• Age – 45>54 replaced 55>64 yr-olds on top and the gap narrowed by -3.9%.
• Race/Ethnic; Asians replaced African Americans on the bottom. The gap narrowed a lot, -35.3%.
• Education; Housing; Area – These all had an expected repeat winner & loser and the performance gap increased for Education: +24.6%; Housing: +20.4%; Area: +1.3%.
• Region – Northeast replaced West at the top. The South has now finished last for 9 years in a row, but the win/lose gap increased by 9.1%. Also, just 2 regions performed at 100+%, down from 3 in 2023.
• CU Composition – Married, Child 18> replaced Couple Only on top. The gap widened, +42.7%.
• # in CU – No changes, but the gap grew by +5.7%. Only 1 & 5+ people CUs perform below 100%.
• Generation – No changes and the performance gap narrowed by -2.3%.

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

We saw some turmoil in performance. It lessens here. There were 10 repeats, and 4  segments flipped from 1^st to last or vice versa. Last year there was 1 repeat and 13 flips. There were no truly surprising winners and there were only 2 somewhat surprising losers – Boomers & the West. In 2024 there were 2 categories in which all segments spent more. In 2023, there were 4. Plus, in 2023, 82.3% of 96 demographic segments spent more. In 2024, that slowed a little to 81.3%. If you consider 7.4% inflation, 69.8% still spent more in 2024.

• Housing – Homeowners w/Mtges stayed on top and those w/o Mtges stayed on the bottom.
  • Winner – Homeowner w/Mtge – Veterinary: $24.46B; Up $5.36B (+28.0%)                                        2023: Homeowner w/Mtge
  • Loser – Homeowner w/o Mtge – Veterinary$: $27B; Down $0.59B (-6.0%)                                         2023: Homeowner w/o Mtge
  • Comment – In 2023, all segments spent more. In 2024, only Homeowners w/o Mtge spent less. Renters were +$0.84B, +12.5+. They account for 35.1% of CUs but only 18.3% of Veterinary spending, 52.0% performance. All Homeowners were +$4.77B, +16.5% and had 125.9% performance.
• # Earners – 2 Earners won again while No Earner, 2+ CUs replaced No Earner, Singles as the loser.
  • Winner – 2 Earners – Veterinary Spending: $20.30B; Up $4.61B (+29.4%)                                            2023: 2 Earners
  • Loser – No Earner, 2+ CU – Veterinary Spending: $3.03B; Down $0.39B (-11.3%)                               2023: No Earner, Single
  • Comment – Only No Earner CUs spent less. The 2^nd largest lift was +$1.13B by 3+ Earner CUs. We should note that the increase by 1 Earner, Singles was only +$0.01B.
• Occupation – Mgrs/Prof won again but Retirees replaced Blue Collar on the bottom.
  • Winner – Mgrs & Professionals – Vet Spending: $18.66B; Up $3.89B (+26.4%)                                      2023: Mgrs & Professionals
  • Loser – Retired – Vet Spending: $6.08B; Down $0.83B (-12,0%)                                                                 2023: Blue Collar
  • Comment – Only Retirees spent less. Amazingly, All Other, Unemployed had the 2nd biggest lift, +$0.79B. White Collar workers were +$4.52B, 80.7% of the Veterinary increase from 42.4% of CUs.
• Generation – Millennials are a new winner. Boomers flipped to the bottom.
  • Winner – Millennials – Veterinary: $12.99B; Up $3.77B (+40.8%)                                           2023: Baby Boomers
  • Loser – Baby Boomers – Veterinary: $10.27B; Down $1.67B (-14.0%)                                   2023: Born <1946
  • Comments – Only Baby Boomers spent less. This comes after a +$2.21B lift in 2023. Millennials were more consistent. In 2023, they finished a close 2^nd to the Boomers, +$2.09B. In 2024, they led the charge. Gen X is the most consistent. 23>24: +$2.34B; 22>23: +$1.13B; 21>22: +$0.46B (Note: Vet $ were -$2.95B in 2022.)
• Income – $150>199K stayed on top and $40>49K replaced <$30K at the bottom.
  • Winner – $150>199K – Veterinary Spending: $8.98B; Up $3.63B (+67.9%)                                     2023: $150>199K
  • Loser – $40>49K – Veterinary Spending: $1.52B; Down $0.24B (-13.4%)                                        2023: <$30K
  • Comment – Only the $30>49K, $70>99K & $100>149K groups spent less. All big groups, under/over $70K & $100K had increases. The $150K> group drove the lift. They were +$5.68B (101% of the total Vet increase)
• Region – The West flipped to the bottom and the Northeast replaced them on top.
  • Winner – Northeast – Veterinary Spending: $10.23B; Up $3.51B (+52.3%)                                    2023: West
  • Loser – West – Veterinary Spending: $9.69B; Down $0.62B (-6.0%)                                                2023: Midwest
  • Comment – All Regions but West spent more. The 2^nd biggest lift was +$2.28B by the South.
• CU Composition – Married, Oldest Child 18> flipped to the top. Married, + Adults replaced them on the bottom.
  • Winner – Married, Oldest Child 18> – Veterinary: $5.80B; Up $3.01B (+107.8%)                                 2023: Married, Couple Only
  • Loser – Married, + Adults – Veterinary: $1.16B; Down $0.56B (-32.6%)                                                 2023: Married, Child 18>
  • Comment – Single Parents & Singles also spent less. 2023 favored CUs with no children. 2024 had no clear pattern. However, Married, With Children were +$3.78B, +41.6%. The largest % lift by any big group.
• Education – Adv. College degree stayed on top. HS w/some College replaced HS Grads at the bottom.
  • Winner – Adv. College Degree – Veterinary Spending: $14.72B; Up $2.87B (+24.2%)                               2023: Adv Degree
  • Loser – HS Grads w/some College – Veterinary Spending: $5.11B; Down $0.44B (-8.0%)                       2023: HS Grads
  • Comment – In 2023, only <HS & HS Grads had spending decreases. In 2024, <HS & HS Grads w/some College spent less. Total <College was positive, +$0.30B. College Grads were +$5.30B, +22.9%. BA/BS finished a close 2^nd to Adv. Degrees, +$2.43B, +21.5%.
• Area Type – Both Winner & Loser held their spots.
  • Winner – Suburbs 2500> – Veterinary Spending: $19.99B; Up $2.78B (+16.2%)                                      2023: Suburbs 2500>
  • Loser – Rural – Veterinary Spending: $8.69B; Up $1.21B (+16.1%)                                                             2023: Rural
  • Comment – In 2020 & 2021 all groups spent more. In 2022, all spent less. In 2023 & 2024, all spent more again. Since 2020, all segments have the same spending pattern. In 2024, Center City stayed in 2^nd place, +$1.61B, +14.7%. The Suburbs 2500> have the biggest share of Vet $, 48.5% and generated 49.6% of the lift.
• # in CU – 2 People stayed on top and 1 Person replaced 4 People on the bottom.
  • Winner – 2 People – Veterinary Spending: $17.79B; Up $2.66B (+17.6%)                                       2023: 2 People
  • Loser – 1 Person – Veterinary Spending: $6.39B; Down $0.01B (-0.2%)                                         2023: 4 People
  • Comment: In 2022, all spent less. In 2023, only 4 People CUs spent less. In 2024, it was 1 Person, -$0.01B. 2 People still had the biggest increase but the other lifts were more balanced. 3 people: +$1.03; 4 people: +$1.04B.
• Race/Ethnic – Whites stayed on top while Asians replaced African Americans at the bottom.
  • Winner – White, Not Hispanic– Veterinary: $32.72B; Up $2.52B (+8.4%)                                           2023: White, Not Hispanic
  • Loser – Asian – Veterinary: $1.11B; Up $0.12B (+12.7%)                                                                        2023: African Americans
  • Comment– All groups spent more – more balance. Minorities were +$3.08B, 55% of the Vet lift. Only Asians had a minor lift. African Americans: +$1.86B, +164.0%; Hispanics: +$1.10B, +32.8%.
• Age – 55>64 flipped to the bottom. 35>44 replaced them on top. BTW: That’s the 3rd consecutive flip for 55>64.
  • Winner – 35>44 yrs – Veterinary Spending: $8.52B; werUp $2.02B (+31.2%)                                  2023: 55>64 yrs
  • Loser – 55>64 yrs – Veterinary Spending: $7.95B; Down $0.34B (-4.1%)                                          2023: 45>54 yrs
  • Comment: All segments spent more in 23. In 24, 65>74 also spent less, -$0.09B. Spending skewed a little younger. <45: +$4.15B; 45>: +$1.45B. The 2^nd biggest lift was +$1.67B by 25>34. #3 was +$1.53B by 45>54.

We’ve now seen the winners and losers in terms of increase/decrease in Veterinary Spending $ for 12 Demographic Categories. 2022 had a $2.95B drop. The decrease brought a lot of turmoil in the $ changes. In 2023 there was a huge turnaround as spending rose $5.95B, +20.0% and reached $35.66B. However, the turmoil in $ change continued. In 2024, the big lift continued, +$5.60B, +15.7% to $41.26B. Veterinary Services passed Pet Food and became #1 in spending by Pet Industry Segments. In 2024, in the change chart, 10 held their spot and only 4 flipped from 1^st to last or vice versa. In 2023 there was 1 hold and 13 flips. In 2024, there was far less turmoil and greater stability. There were similarities between 2023 & 2024 but 2024 wasn’t always best. In 2023, 82.3% of demographics spent more and there were 4 categories where all segments had increases. In 2024, 81.3% spent more and there were 2 categories where all segments spent more. The “hidden gems” were still easy to find. Here are some segments that didn’t win but helped drive the big lift in Veterinary spending. These groups don’t win an award, but they certainly deserve…

HONORABLE MENTION

The big lift by African Americans shows more racial balance & high income is not an absolute necessity. Gen Z continues to increase their commitment to Pet Parenting. Veterinary Services spending is skewing a little younger as the 25>34 yr-olds and Gen Z become more aware of its importance. Income matters most but the # earners is increasing in importance. 3+ earners have high income and increased their Vet $ by $1.1B.  2 & 3 People CUs spend the most but the key is 2+. 4 people CUs still earn their share of Veterinary spending with 105% performance. Higher Education usually means higher income which helps with growing Vet prices, but it is also important in understanding the need for a Vet. This group shows that the lift was widespread.

Summary

In 2020 the pandemic focused Pet Parents on the needed segments. This drove a $3B increase in Veterinary $. Boomers & Millennials led the way, but the lift was widespread as 85% of demographic segments spent more. In 2021 the lift grew to a record $7.82B with 93% of all segments spending more including 9 categories where all segments had increases. In 2022, the “binge” was not repeated. Inflation also increased radically to 8.8% and spending fell -$2.95B (-9.0%). Only 23% of demographics spent more and in 3 categories all segments decreased spending.

In 2023 Inflation grew to 9.4% but the higher income groups stepped up. The $30>49K segments also found the $. The result was a $5.95B, +20.0% increase as Veterinary Spending reached $35.66B. In 2024, Vet Spending was +$5.60B, +15.7% and reached $41.26B, now #1 in the Pet Industry. 81.3% of demographics spent more (down from 82.3%) and in 2 categories all segments increased spending (down from 4). Even considering the 7.4% inflation, 69.8% spent more.

The performance of big spending groups is very important in all industry segments. In Veterinary we identified 7 demographic categories with high performing (120+%) large groups, 2 more than 2023. It is also 1 more than Supplies & 2 more than Pet Food, but 1 less than Services. The big groups with a high-performance level in Veterinary are:

• Income: $100K> (174.5%) Performance increases with income but doesn’t reach 100+% until income reaches $100K
• Education: College Grads (143.2%) Performance increases with education, but only College Grads are 100+%.n
• CU Composition: Married Couples (132.9%) All Married CUs, but those with extra adults (no kids) perform at 100+%.
• CU Size: 2>3 People (130.5%) They are the top 2 performers, but only 5+ (93.8%) & 1 (51.5%) are <100%.
• # Earners: 2+ CUs, 1 or 2 Earners (127.3%) Only No Earner or 1 Earner CUs of any size perform <100%.
• Housing: Homeowners (125.9%) Only Homeowners w/Mtge (160.6%) perform above 100%.
• Race/Ethnic: White, Not Hispanic (120.0%). More Balanced, but Minorities still only perform between 52% and 68%.

Consumers have no control over Race/Ethnicity but can make decisions in the other categories. Income is still the most important factor. The others are important but lower in performance – 120>143%. Spending grew in 2024 and became less balanced, now with 7 big groups performing over 120% (up from 5). Another indication of this is that the average spending disparity between the best and worst performing segments grew from 89.8% to 99.4%. We should also note that the 50/50 spending dividing line increased from $124K to $141K, further emphasizing income’s importance.

Perhaps the biggest concern is high inflation. In 2021 spending grew 31.5% in the pandemic surge. Inflation was relatively high at 4.2% but 84% of the growth was real. In 2022 spending fell -9.0%. Inflation was 8.8% so the amount sold was really down -16.4%. In 2023, inflation reached a record 9.4%. Spending was +20.0% so the “real” increase was 9.7%. In 2024, inflation slowed to 7.4% but the lift also slowed to 15.7%. The “real” increase was 7.7%. If high inflation continues, it could have a major impact on Veterinary Spending. We’ll see.

Finally – The “Ultimate” Veterinary Services Spending CU consists of 3 people – a married couple with a child still at home. Their child is 18>. They are 45>54 yr-old Gen Xers. They are White, but not of Hispanic origin. Both work. At least one of them has an Adv. College Degree and is a Mgr/Professional. Their total income is $150>199K. They live in a rural area in the Northeast and are still paying off the mortgage on their home.

Next, Pet Services. It is by far the smallest Segment, but like Supplies & Veterinary, it had a record increase in 2021. However, unlike them, there was no $ drop in 2022. The lift grew stronger, up $3.26 (+35.8%). After the great recession, Services’ annual spending slowly but steadily increased. During this time, the number of Services outlets grew as brick ‘n mortar retailers looked for a way to combat the growing influence of online outlets. After all, you can buy products, but you can’t get your dog groomed on the Internet. This created a highly price competitive market for Pet Services. In 2017 there was a slight increase in visit frequency, but Pet Parents just paid less. This resulted in a 1.0% decrease in Services spending. In 2018 consumer behavior changed as a significant number decided to take advantage of the increased availability and convenience of Pet Services and spending literally took off, +$1.95B (+28.9%), the biggest increase in history. In 2019 Pet Parents, especially the younger ones, value shopped, and spending turned down $0.10B. In the 2020 pandemic Services outlets were often deemed nonessential and were subject to restrictions and closures which drove a huge drop in $. In 2021 things opened up and Services spending rebounded with 2 consecutive record lifts in 2021 & 2022. In 2023, the growth continued but it slowed, +$1.05B (+8.5%). It slowed even more in 2024, +$0.23B, +1.7%.

Services spending is the most discretionary, but its reach is expanding. Let’s look deeper into the demographics.

Let’s start by identifying the groups most responsible for the bulk of Services spending in 2024 and the $0.23B increase. The first chart details the biggest Pet Services spenders for each of 10 demographic categories. It shows their share of CU’s, share of Services spending and their spending performance (Share of spending/share of CU’s). In order to better target the bulk of the spending we altered 2 groups – income & housing. In 2023 4 were changed. The performance level should also be noted as 8 of 10 groups have a performance level above 120%. This is 1 more than 2023, but 2 more than Supplies, 3 more than Pet Food and even 1 more than Veterinary and Total Pet. The increase from 2023 indicates that Pet Services spending was likely less balanced in 2024. It again has the biggest disparity between the best and worst performing segments. Income is still the biggest factor in Services Spending. The categories are presented in the order that reflects their share of Total Pet $ which highlights the differences of the 8 matching groups. The biggest share ranking differences from Total Pet is that Education has a bigger share in Services.

1. Housing – Homeowners w/Mtge (62.8%) up from 61.3%. Homeownership is a big factor in spending in all industry segments. This special group was created because those w/Mtge reached the 60% target in 2023. Their performance grew from 162.6% to 170.2% and they stayed #2 in importance. Homeowners without a mortgage  (-$0.10B) and Renters (-$0.01B) spent less.
2. Race/Ethnic – White, not Hispanic (80.7%) down from 84.2%. This group accounts for most of the spending in all segments. Their performance fell from 126.9% to 122.1% and they dropped from 5th to 8th place in importance. Only Whites spent less. African Americans, +$0.27B & Hispanics, +$0.20B led the way.
3. Area – Urban Areas (80.8%) up from 79.2% in share, and performance grew from 97.8% to 100.0%. They finally earned their share of $pending. Services is an Urban Segment. They are the only Pet segment with 100% performance. Only the Suburbs spent more, +$1.48B, but Center City was only -$0.05B.
4. Income – $100K> (71.3%) up from 70.7% This group’s performance rating is 187.9%, down from 194.1%. Income is still by far the most important factor in increased Pet Services Spending. Only the $70>99K and $150>199K income groups spent more. At +$0.82B, $150K>199K had the biggest increase. The biggest decrease was -$0.34B by the $100>149K group. The performance decrease was due to a 2.5M increase in $100K> CUs while <$100K fell 1.3M.
5. # in CU – 2>4 people (74.3%) up from 71.3% Their performance also increased from 119.2% to 123.4% and CU Size moved up to #6 from #8 in importance. Only 2 & 4 people CUs spent more. The biggest drop was -$0.37B by 3 people CUs. 4 People CUs were +$0.69B, which drove the share/performance lifts and put them in the 120% club.
6. Occupation– All Wage & Salary (69.3%) up from 66.2% and their performance rating rose from 108.7% to 112.2%. They stayed #9 in importance. Only Mgrs/Prof and Retirees spent more. Managers & Professionals had the biggest $ increase, +$1.04B, +18.1%. The biggest drop was Self-employed, -$0.36B, -26.3%. These 2 spending patterns were critical in the lifts in share/performance. The Mgrs/Prof lift pushed the Total Wage & Salary Group up to +$0.58B while the Self-employed drop drove the other segments total down to -$0.35B. Hence…the changes
7. Education – College Grads (76.9%) up from 72.7%. Income generally increases with education so Services spending grows with increasing education. Performance grew from 152.0% to 159.9% but Education stayed #3 in importance. Only HS Grads (only) & College Grads spent more. College: +$0.75B; <College: -$0.52B.
8. CU Composition – Married Couples (69.1%) up from 67.8%. Married couples are a big share of $ and have 100+% performance in all segments. Their performance increased to 144.0% from 140.7% but they stayed #4 in importance in Services spending. Only Singles, Married, Child <6 and Married, Plus Adults spent less. All Married were +$0.33B, while Unmarried were -$0.10. This caused the changes.
9. # Earners – 2+ CUs, 1 or 2 Earners (65.4%) up from (61.1%) All adults in the CU don’t necessarily work. Income is important but is slightly below avg for the 1 Earner segment. Their performance rose to 130.5% from 121.7% and # of Earners moved up from #7 to #4 in importance. Only the segments in this big group & No Earner, Singles spent more. The big group was +$0.72B which caused the share/performance lifts.
10. Age – 35>64 (66.7%) up from 64.8%. Their performance grew from 124.0% to 128.8%. Age stayed #6 in importance. Only 25>34, 45>54 & 75> spent more. The 45>54 group was +$0.83B, +30.1%. This big lift made up for the -$0.43B drop by other members of this big group and drove the lift in share & performance.

We changed 2 of the groups for Services – Income & Housing to better target the biggest spenders. We should also note that Income is still more important to spending in Services than in any other segment. In the Big Groups, only Race/Ethnic fell in both share and performance. Also, Services now has 8 groups performing at 120+%, up from 7 in 2023 and 6 in 2022. Overall, in 2024 Services spending became less demographically balanced.

Now, we’ll look at 2024’s best and worst performing Pet Services spending segments in each category.

The best & worst performers are not surprising. There are 3 that are different from 2023, 2 Best & 1 Worst, 1 less than last year. CU Comp & Size reinforce the move towards “family” CUs. Income is a big factor for almost all categories. Gen X is still on top, but spending shifted away from 55>64, their oldest members, to 45>54. The average difference between Best & Worst is 119.5%, the highest of any segment and up from 111.8% in 2023. Pet Services spending became a little less balanced in 2024. Changes from 2023  are “boxed”. We should note:

• Income is most important in Services. 276.2%, down from 314.7%, but still the highest by any group in any segment.
• # Earners – 2 Earners stayed on top and No Earner, Singles stayed on the bottom.
• Age – 45>54 is all Gen X. They have the highest income. 35>64 have the 3 highest incomes & performed at 100+%.
• Area – Suburbs replaced Rural on top and Center City performance is now up to 95.4%.
• Region – In 2023, 3 were 100+%. In 2024, only 2 – West & Midwest. Northeast replaced South on the bottom.
• CU Composition – Married, Oldest child 6>17, are again on top while Single Parents remain firmly at the bottom.
• CU Size – The key is having 2+ people in the CU. Only 4 & 2 People perform above 100%. However, 3 & 5+ People are close. Both are 94.1% or higher. 1 Person CUs Services’ performance is 55.0%.
• Generation – Gen X retained the Top Spot and Gen Z stayed at the bottom. Millennials earned their share with 100+% performance, but not Boomers, 80.5%. Born <1946 was next to last with 57.2%.

In Pet Services spending performance, income is still the major factor. Spending began skewing younger in 2018. They slipped a little in 2019, but basically held their ground during the pandemic. In 2021, Boomers, Millennials and younger Gen Xers got on board. In 2022 & 2023, spending skewed towards older Gen Xers. In 2024, it was the Gen X core, 45>54.

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

In this chart you immediately see the difference from last year. In 2024 you see a little less stability. There were 4 repeats. In 2023 there were 7. Also, 3 segments flipped from 1^st to last or vice versa. In 2023 there were 2 flips. 2021 & 2022 had record increases, but the lift in 2023 was only $1.05B, and fell to +$0.23B, +1.7% in 2024. Plus, there were no categories where all segments spent more. compared to 2 in 2023. Also, 48% of 96 demographic segments spent more, down from 75% in 2023. Another thing is definitely worse. The biggest drop was -$0.90B. In 2023, it was only -$0.58B.

Here are the specifics:

• Occupation – Both winner and loser are new.
  • Winner–– Mgrs & Professionals – Pet Services Spending: $6.79B; Up $1.04B (+18.1%)                 2023: Retired
  • Loser – Self-employed – Pet Services Spending: $1.00B; Down $0.36B (-26.3%)                             2023: Tech/Sls/Clerical
  • Comment – Retirees also spent a little more, +$0.03B. All others spent less.
• Region – The 2023 Winner & Loser both flipped.
  • Winner – South – Pet Services Spending: $4.77B; Up $0.89B (+23.0%)                                       2023: Northeast
  • Loser – Northeast – Pet Services Spending: $1.88B; Down $0.64B (-25.4%)                              2023: South
  • Comment – In 2021 & 2022, all spent more. In 2023 only the South spent less. In 2024, the West also spent less.
• Age – Both winner and loser are new. No surprises.
  • Winner – 45>54 yrs – Pet Services Spending: $3.57B; Up $0.83B (+30.1%)                               2023: 55>64 yrs
  • Loser – 65>74 yrs – Pet Services Spending: $1.62B; Down $0.48B (-22.9%)                             2023: 25>34 yrs
  • Comment: In 2022 only the <25 group spent less. In 2023, 25>34 & 65>74 had drops. In 2024, only 25>34, 45>54 & 75> spent more. 45>54 took the lead but 35>64 is still pretty balanced between the 3 groups. They have the 3 highest incomes and account for 51.8% of CUs, but 66.7% of Pet Services spending.
• Income – $150>199K won, no surprise. However, $100>149K was an unexpected loser.
  • Winner – $150>199K – Pet Services Spending: $2.55B; Up $0.82B (+47.2%)                               2023: $200K>
  • Loser – $100>149K – Pet Services Spending: $2.59B; Down $0.34B (-11.8%)                             2023: $70 to $99K
  • Comment – Only $70>99K & $150>199K spent more, but their lifts totaled +$1.32B, which more than made up for the -$1.09B drop by other segments. Note: In the big income groups, only $70K> & $100K> spent more.
• # in CU – Both the Winner & Loser are new and don’t usually lead in change.
  • Winner – 4 People – Pet Services Spending: $2.69B; Up $0.69B (+34.3%)                                    2023: 5+ People
  • Loser – 3 People – Pet Services Spending: $1.91B; Down $0.37B (-16.1%)                                   2023: 1 Person
  • Comment: 2 People also spent +$0.26B more. The 2 & 4 People lifts pushed 2+ CUs up to +$0.46B.
• Education – Both the Winner & Loser are again new. These 2 are not surprising.
  • Winner – Advanced Degree – Pet Services Spending: $5.95B; Up $0.67B (+12.6%)                              2023: BA/BS Degree
  • Loser – HS Grad w/some College – Services Spending: $1.15B; Down $0.55B (-32.2%)                      2023: Assoc. Degree 
  • Comment – All College Grads plus those who are only HS Grads are the only segments that spent more. Amazingly, HS Grads only had a +30.2% lift. College Grads were +0.75B; <College were -$0.52B.
• # Earners– 2 Earners held their spot at the top while 1 Earner, Singles replaced No Earner, Singles at the bottom.
  • Winner – 2 Earners – Pet Services Spending: $6.81B; Up $0.66B (+10.7%)                                      2023: 2 Earners
  • Loser – 1 Earner, Single – Pet Services Spending: $1.64B; Down $0.24B (-12.9%)                         2023: No Earner, Single
  • Comment – Only 2 Earners, 1 Earner, 2+ CUs & No Earner, Singles spent more, but 2 of 3 were +$0.06B or less.
• Area Type – Rural stayed on the bottom while Center City replaced the Suburbs at the top.
  • Winner – Center City – Pet Services Spending: $4.57B; Up $0.56B (+13.9%)                                2023: Suburbs 2500>
  • Loser – Rural – Pet Services Spending: $2.62B; Down $0.17B (-6.1%)                                           2023: Rural
  • Comment – In 2023, all segments spent more. In 2024 only Center City had a lift.
• Generation – Gen X stayed on top and Boomers replaced Born <1946 at the bottom.
  • Winner – Gen X – Services: $5.29B; Up $0.51B (+10.7%)                                                   2023: Gen X
  • Loser – Boomers – Services: $3.36B; Down $0.90B (-21.1%)                                            2023: Born <1946
  • Comment – In 2022, all generations spent more. In 2023, only Born <1946 spent less. In 2024, only Boomers spent less. Millennials again finished in second place with a strong $0.47B, +13.0% increase.
• Housing – Homeowners w/Mtge stayed on top, while those w/o Mtge replaced Renters on the bottom.
  • Winner – Homeowner w/Mtge – Services: $8.57B; Up $0.34B (+4.1%)                                  2023: Homeowner w/Mtge
  • Loser – Homeowner w/o Mtge – Services: $3.00B; Down $0.10B (-3.2%)                             2023: Renter
  • Comment – Only Homeowners w/Mtges spent more. The drop by Renters was only -$0.01B, -0.4%.
• Race/Ethnic – White, Not Hispanic flipped to the bottom while African Americans replaced them on top.
  • Winner – African Americans – Services: $0.88B; Up $0.27B (+43.8%)                                    2023: White, Not Hispanic
  • Loser – White, Not Hispanic – Services: $11.02B; Down $0.27B (-2.4%)                                2023: Hispanic
  • Comment– Only Whites spent less. All minorities spent more, totaling +$0.51B, +23.9%.
• CU Composition – Both Winner & Loser are new and not surprising.
  • Winner – Married, Child 18> – Services: $1.59B; Up $0.18B (+12.6%)                                       2023: Married, Couple Only
  • Loser – Singles – Services: $2.26B; Down $0.23B (-9.2%)                                                             2023: Unmarried, 2+ Adults
  • Comment – Only Singles, Married Child <6 & Married, +Adults, No Kids spent less. The increases were all $0.18B or less and the decreases, other than Singles, were -$0.11B or less.

We’ve seen the winners and losers in terms of change in Services Spending $ for 12 Demographic Categories. The growth slowed in 23 after 2 record lifts but was still widespread. In 24, the lift slowed even more and was far less widespread. Here’s some data which shows the evolution from 2019 to 2024. Services were hit hard by the pandemic but recovered stronger than ever with 2 record lifts. In 2024 the situation has become similar to pre-pandemic 2019 but with $5.03B more spending, a 41.6% increase. The avg 19>24 annual lift was +7.2%.

Total $:                2019: $8.62B     2020: $6.89B       2021: $9.10B       2022: $12.36B      2023: $13.42B      2024: $13.65B

% Segmts ↑$:     2019: 49%           2020: 21%          2021: 90%            2022: 93%             2023: 75%             2024: 47%

Avg Big ↑$:         2019: $0.25B      2020: $0.05B      2021: $1.10B        2022: $1.43B        2023: $0.73B        2024: $0.62B

Avg Big ↓$:         2019: -$0.27B    2020: -$0.89B     2021: $0.07B        2022: $0.16B        2023: -$0.16B       2024: -$0.39B 

We found the winners in performance and $, but there were others who performed well but didn’t win. They deserve…

Honorable Mention

Services is the most driven by high income. The performance of the lower-income segments in this group gives evidence that Service usage is still widespread. $70>99K was up 40% while HS Grads increased their spending by 30.1%. The 75+, 27% lift shows that Pet Parenting is a lifetime commitment. Whites spent less, but all Minorities spent more. The 2 lowest income groups had the biggest lifts – African Americans, +$0.27B; Hispanics, +$0.20B. Millennials aren’t low income or low profile. They are just preparing for their time at the top in Pet Spending. The Midwest has a slightly below avg income, but their Pet Services spending performance is 109.6%. Service prices are high, but they are a great benefit, so many are finding the $.

Summary

For years, Services’ spending slowly but steadily increased. However, the number of outlets offering Services was radically increasing. In 2017, this competitive pressure caused Pet Parents to shop for value and spending fell 1%. In 2018, the abundance of outlets and competitive prices finally had their intended impact. Many more consumers took advantage of the convenience of Pet Services and spending literally took off with a record increase. In 2019 Consumers held their ground, but we saw turmoil similar to 2017. Again, value shopping likely contributed to the small decrease.

In 2020, pandemic Services outlets were often deemed nonessential, so they were subject to restrictions and closures. Services are definitely needed by some groups. However, for most demographics, Services are a convenience, and spending is very discretionary in nature. The reduced availability and the pandemic driven focus on the “needed” segments – Food and Veterinary caused a 20% drop in Services $.

In 2021 the Retail Marketplace opened up again and many Pet Parents strongly returned to their previous Services mantra, “I need help with my Pet “children” and I have the money to pay for it!”. This behavior was widespread as 90% of all demographics spent more on Services, producing a record increase. In 2022 Services showed that it was different from other segments. All had record lifts related to the Pandemic followed by drops, except for Services. 2022 spending didn’t decrease, it grew even stronger, +$3.26B and more widespread as 93% of demographics increased spending. In 2023, growth continued, but slowed considerably, +$1.05B. It slowed even more in 2024, +$0.23B, +1.7%. The lifts were also becoming less widespread as 75% of CUs spent more in 2023. This fell to 48% in 2024. There was another definite negative. Services is the segment where spending is the most driven by income, so it has always had a big disparity between segments. This worsened in 2023 & 2024. Performance differences are a key measurement of disparity. Let’s consider the performance of the big groups. In 2024, there were 8 categories with a 120+% performing big group, up 1 from 2023 and the most of any segment. Services has 1 more than Veterinary (7), 2 more than Supplies (6) and 3 more than Food (5). There is an even better measure of the worsening. In 2024, the average difference between best & worst performers was 119.5%. In 2023 it was 111.8% and only 100.3% in 2022. Another key trend in 2024 was that 35>64 is still the dominant group, but spending is now skewing towards the midrange 45>54 yr olds. They have the highest income, so this makes sense.

Services were hit the hardest by the pandemic, but they had a record, widespread recovery in 2021>22. They are the segment most driven by high income so the high inflation in 2022>24 had less of an impact. It did affect the spending of some financially challenged groups, but in 2024, Services spending seems to have returned to a pattern similar to 2019.

At Last – The “Ultimate” Pet Services Spending Consumer Unit consists of 4 people – a married couple with children 6>17. They are 45>54 yr-old Gen Xers and White, but not of Hispanic origin. They both work and at least one of them has an Advanced College Degree and is a Manager or Professional. They have an income of over $200K. They live in a suburb with a population over 2500 in the Western U.S. and are still paying off their home mortgage.

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.