Pet Care Services NAICS 812910

Dec 28, 2025 - Slower Growth Forecast

• The US pet care industry is projected to grow at a CAGR of 3.88% between 2025 and 2029, slower than the overall economy‘s anticipated growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. Pet care services are in the “other services” sector, driven by consumer spending and business expenditure. Consumer sentiment is expected to improve in the forecast period, which bodes well for the industry. Real disposable income is expected to rise 1.8% in 2025 and 1.6% in 2026, limited by a slow rise of employment and higher consumption prices. Remote work rose to 61.5% during the pandemic period but has faded to some extent post-shutdown. An average of about 28% of workdays were spent at remote locations in mid-2025. Less remote working suggests lower demand for needs related to commuting and working in the office, such as doggie daycare, dog walking, and pet sitting.
• Consumer sentiment in December 2025 pointed to a cautious economic environment for the US pet care industry. The University of Michigan Index rose 3.7% month over month to 52.9 but remained 30% below December 2024, and 63% of consumers still expect unemployment to increase. Inflation expectations eased to 4.2% for the next year and 3.2% over the long run, yet overall confidence stayed subdued. The Conference Board Consumer Confidence Index fell to 89.1, with current condition assessments dropping and expectations holding at recession linked levels. As households shift spending toward essential, lower cost categories, the pet care industry can expect steady demand for core veterinary and wellness services but continued pressure on discretionary or premium offerings. Providers that emphasize value, preventive care packages, and cost efficient service models will be best positioned as consumers prioritize essential pet needs.

• Pet care services are facing a slower growth environment as US pet sector spending plateaus at just 2.9% year over year in 2025, according to America’s Pet Owners Consumer Report 2025 by Market Intelligence Reports. Pandemic era expansion has cooled, leaving providers under pressure to retain customers through segmentation and value added offerings. The ongoing “humanization” trend continues to drive demand for premium grooming, boarding, and wellness services, but affordability is becoming a critical factor as economic pressures shift ownership toward lower cost, lower maintenance pets. Notably, cat ownership has surged since 2020, led by young, urban consumers seeking flexible companions for small space living. Technology enabled solutions, such as on-demand care, OTC health monitoring, and remote interaction tools, are reshaping expectations, with social media amplifying demand for high end services. For pet care providers, balancing innovation with affordability will be key to sustaining growth amid moderating consumer spending.
• While 11 services industries reported growth in October, six industries reported a contraction, including the Other Services industry, which includes providers of pet care services, according to the latest ISM Services PMI Report. Executives in the Other Services industry reported decreases in employment, order backlogs, and inventories while reporting an increase in new orders and prices paid for materials and services in October. Other industries reporting contraction during the period include Arts, Entertainment, and Recreation; Management of Companies & Support Services; Finance & Insurance; Public Administration; and Construction. Industries reporting growth during the period were Accommodation & Food Services; Retail Trade; Wholesale Trade; Real Estate, Rental & Leasing; Health Care & Social Assistance; Utilities; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Information; Professional, Scientific & Technical Services; and Educational Services. Overall economic activity in the services sector returned to expansion in October, registering 52.4%.