Veterinary Practices NAICS 541940

Jan 30, 2026 - APPA Data Signals Rising Demand for Specialty Veterinary Care

• The American Pet Products Association’s 2025 Bird, Small Animal & Horse Report highlights expanding demand drivers for US veterinary practices, supported by generational shifts and higher engagement across non-traditional pet categories. Six million US households own birds, six million own small animals, and two million own horses, broadening the patient base beyond dogs and cats. Gen Z now accounts for 22% of bird owners and 34% of small animal owners, while Millennials represent 39% of horse owners, signaling long-term demand for avian, exotic, and equine veterinary services. Rising multi-horse ownership, with 55% of horse owners owning two or more horses (up 22% since 2018), supports recurring care needs. High spending on pet gifts, averaging $40.52 for birds, $34.52 for small animals, and $96.92 for horses, reflects strong willingness to invest in animal health and preventive care.
• US consumer confidence trends from The Conference Board and the University of Michigan suggest a mixed demand outlook that could temper spending at US veterinary practices. The Conference Board’s Consumer Confidence Index plunged 9.7 points in January to 84.5, the lowest since 2014, with the Expectations Index sliding to 65.1, below the recession warning threshold, reflecting deepening caution about income, jobs, and business conditions. Lower confidence is tied to elevated concerns about prices, labor markets and inflation, and coincides with weaker plans for discretionary spending on services. Meanwhile, the University of Michigan’s Consumer Sentiment Index rose to 56.4 in January, up 6.6% month over month but still 21.3% below January 2025, highlighting ongoing pressure on purchasing power despite modest improvement. For veterinary practices, which depend in part on discretionary service demand for non-urgent care, elective procedures, and premium products, persistently subdued confidence may slow client spending and deferral of higher-margin services in early 2026.

• The US veterinary practices industry is projected to grow at a 6% CAGR from 2025 to 2029, faster than the overall economy's expected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. Consumer sentiment is likely to improve in the forecast period, which bodes well for the professional, scientific, and technical services industries, including veterinary services. Real disposable income is being limited by a slow rise of employment and higher consumption prices, with a projected increase of real disposable income of 1.8% in 2025 and 1.6% in 2026. Tariffs on consumer goods may be painful for consumers and cause issues for real income if average prices rise. Adoption of AI by services industries could boost output while the likely effect on jobs is unclear.
• Veterinary practices in California must now adapt to new legal and clinical responsibilities following the signing of AB 867, which bans elective cat declawing and permits the procedure only when medically necessary, according to Veterinary Practice News. Declawing, a surgery that amputates toe bones or severs tendons, has been widely opposed by veterinarians due to risks of chronic pain, behavioral changes, and long-term health issues. Data from the American Veterinary Medical Association shows strong professional consensus against non-medical declawing, aligning with the new law. Clinics will need to emphasize alternative strategies for managing scratching behavior, strengthen client education, and carefully document cases where declawing is performed for medical reasons. By joining states like New York and municipalities such as West Hollywood, California’s ban underscores a broader trend toward animal welfare reforms that directly reshape veterinary practice standards.