Pet & Animal Food Manufacturers NAICS 3111

Mar 28, 2025 - Tariffs to Contribute to Rising Costs

• According to a report in Pet Food Processing, a range of new tariffs by the Trump administration on imported goods from China, Canada, and Mexico are expected to raise operating costs and potentially limit growth for the pet food industry. Retaliatory tariffs imposed on the US by these countries and others will also play a role in higher costs. Canada, China, and Mexico are the biggest export markets for the pet food industry. In 2024, the US pet food industry exported $1.2 billion of US dog and cat food to Canada, $296.5 million to China, and $234.4 million to Mexico. Packaging costs for the pet industry are also expected to increase with the newly imposed metal and steel tariffs. Canada is the top steel exporter to the US, and Mexico is the third top exporter.
• Consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty, according to a report in CFO Dive. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer confidence fell in March 2025. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.”

• A new report from the American Pet Products Association titled “2024 Bird, Small Animal & Horse Report: Strategic Insights from the National Pet Owners Survey” shows that pet owners are demonstrating increased emotional attachment and proactive pet care with their specialized pets, according to Pet Age. One key finding from the report involved a marked increase in proactive health management across all pet types. Small animal owners have also increased their vitamin and supplement purchases by 44%. Specialized pet owners prefer to shop at specialized pet retailers and do their shopping in person, according to the survey. Other trends found among these diversified pet owners are significant increases in gift giving and owners making more provisions in their wills for the long-term care of their pets.
• Some 85% of pet owners in the US say inflation is making ownership more expensive, with pet food (76%), vet services (56%), and necessary supplies (40%) identified as the most expensive pet costs, according to a new survey by Lending Tree in Pet Business. When asked if they have gone into debt for their pets, 37% of pet owners say they have, with a medical emergency being the most common reason. The high costs of owning a pet have caused nearly a quarter of Americans to consider going petless, and almost 40% say they wouldn’t own another pet. Twelve percent of Americans say they have surrendered a pet due to no longer being able to afford to care for it.