Pet Care Services NAICS 812910

Apr 21, 2026 - Shifting Demographics Influence Pet Care Spending

• The US pet care services industry enters 2026 on solid footing, supported by strong ownership trends and shifting demographics, according to data from the 2026 State of the Industry report from the American Pet Products Association. Total pet industry spending reached $158 billion in 2025, with 95 million US households owning pets. Growth is driven by rising dog ownership (53% of households, +4 million homes) and increasing cat ownership (39%, 53 million homes), particularly among Gen Z and Millennials, while Gen X ownership rose 12%. However, spending patterns are evolving: about half of pet owners report unchanged spending, with more prioritizing essentials over discretionary purchases. For service providers, this signals stable demand but increasing price sensitivity, making targeted offerings and clear value propositions critical to sustain growth.
• Pet care costs are increasing more rapidly than the general services category, according to the latest data from the Bureau of Labor Statistics' Consumer Price Index. Excluding volatile food and energy, price increases in goods grew 2.6% in March year over year, while services inflation increased 3% during the same period. In contrast, pet care costs rose 7.8% in March year over year and 0.4% month over month. The pet care services sector faces continued upward pricing pressure and operating costs, which may reduce consumer demand as discretionary spending tightens relative to broader inflation trends.

• The “Other Services” sector, covering industries such as pet care services, personal care, repair services, and dry cleaning, remained in expansion territory in March, supported by broader services growth (PMI 54%) and continued increases in business activity and new orders, according to the latest ISM Services PMI Report. However, the operating environment is becoming more challenging, with rising input costs (Prices Index 70.7%) and a contraction in employment (Employment Index 45.2%), indicating some labor pressure. Inventory levels also increased, suggesting firms are building stock amid ongoing uncertainty. Overall, while demand remains stable, margin pressures and hiring challenges could weigh on near-term performance for businesses in this sector. Across the services economy, 13 industries reported growth, while 3 industries contracted in March.
• As US pet care evolves, feline-exclusive boarding is emerging as a major growth opportunity, according to a report in Pet Boarding and Daycare. Cats make up nearly half of the nation’s pet population, with 1.8 cats per home on average, yet most facilities remain dog-centric. Operators like Happy Cat Hotel & Spa (19 units open and in development since launching franchising in 2020) and Cat’s Meow Resort (opened 2019, now with peak-season waitlists) demonstrate rising demand for cat-only environments featuring vertical space, soundproofing, enrichment, and individualized care. Post-COVID, more owners prefer professional boarding over in-home visits, and younger pet parents are willing to pay for transparent, enrichment-based services like 24/7 camera access and grooming. With consistent growth in cat ownership and increased spending on specialized services, reallocating space and investment toward feline-focused boarding represents both an animal welfare upgrade and a scalable, underserved revenue stream for the US pet care services industry.