2024 U.S. VETERINARY SERVICES SPENDING $41.26B…Up $5.60B

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

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

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

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

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

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

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

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

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

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

Now, here is Veterinary Spending by Age Group

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

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

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

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

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

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

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

    ∙ 55>64 yr olds   ∙ West   ∙ Baby Boomers              

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

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

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

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

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

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