Pet & Animal Food Manufacturers NAICS 3111

Mar 30, 2026 - Pet Food Sales Supported by Ownership Gains, Value Shift

• The US pet industry’s continued expansion supports pet food manufacturers, with expenditures reaching $158 billion in 2025 (up 3.7%) and projected to grow to $165 billion in 2026, according to Pet Age reporting on the APPA 2026 State of the Industry report. Pet ownership remains strong at 95 million households, with dog ownership rising to 53% (an increase of 4 million households) and cat ownership to 39% (up 5% year over year). For manufacturers, demand remains stable but increasingly value-driven. While about half of owners maintained spending, 22% reduced spend (up 10 pts year over year), signaling trading down. However, pet food demand should remain resilient as consumers prioritize essential care, with products continuing to represent a significant share of spending. Growth across Gen Z, Millennials, and Gen X supports volume, though pricing power and premium product growth may face pressure.
• Consumer confidence edged up 2.2 points to 91.2 in February 2026, supporting essential categories like pet food, though it remains below the 112.8 peak, with expectations improving (up 4.8 points to 72.0) but current conditions weakening. Inflation concerns and expectations for persistently high interest rates continue to pressure household finances. For US pet and animal food manufacturers, demand fundamentals remain stable as consumers prioritize essential spending. Planned spending on pet care increased even as overall services spending softened, supporting steady consumption of pet food products. However, ongoing cost pressures and cautious financial outlooks may limit pricing power and shift demand toward more value-oriented offerings.

• The American Pet Products Association’s 2025 Bird, Small Animal & Horse Report points to stable but shifting growth opportunities for US pet food manufacturers, as bird and small animal ownership expands and younger generations influence purchasing habits across retail channels. Six million households own birds and another six million own small animals, supporting a broad food demand base, while Gen Z now represents 22% of bird owners and 34% of small animal owners, signaling long-term volume potential. In-store purchasing remains dominant, with 55% of small animal owners buying food in person and pet superstores capturing 40% of food and treat purchases, reinforcing the importance of retail distribution. Species mix is evolving, as rabbits account for 37% of small animal ownership while hamster ownership has declined 25% since 2018, affecting feed demand by category. Horse ownership, led by Millennials at 39%, continues to support feed demand, though online and direct channels are gaining share.
• Fresh and gently cooked pet food remains a meaningful growth driver for the US pet and animal food manufacturing industry, even as expansion moderates, according to a Packaged Facts report. The report estimates fresh/frozen/refrigerated pet food accounted for about 7% of total dog and cat food sales in 2025, growing at a projected 15%–20% annually, far outpacing the broader pet food category’s 3.7% CAGR through 2029. Household adoption continues to rise, with 1.8 million households purchasing Freshpet in the past six months, up from 800,000 in 2020. While economic pressure has slowed adoption rates, leading brands continue to post solid gains; Freshpet reported 14% year-over-year Q3 2025 sales growth and 12.9% volume growth. New product launches, shelf-stable gently cooked formats, and flexible feeding models are expanding access and use cases, signaling a maturing, not declining, premium segment for manufacturers.