2024 U.S. PET SERVICES SPENDING $13.65B…Up $0.23B

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

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

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

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

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

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

First, by Income Group.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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