Pet Care Services NAICS 812910

Mar 23, 2026 - Pet Care Costs Outpace Inflation

• Demand for pet care services may decrease as inflation in the category continues to rise for consumers, according to recently released government data. Excluding volatile food and energy, price increases in goods grew 2.5% in February year over year, while services inflation increased 2.9% during the same period, according to data from the Bureau of Labor Statistics' Consumer Price Index. In contrast, pet care costs rose 7.1% in February year over year and 1.3% month over month. For the pet care services sector, this environment suggests continued upward pricing pressure and operating costs, which could strain consumer demand as discretionary spending tightens relative to broader inflation trends.
• The Other Services sector, which includes pet care services, is operating in an expanding but mixed environment, according to the latest ISM Services PMI Report. Overall services activity remains strong, with the Services PMI at 56.1% (20th month of growth), supported by rising Business Activity (59.9%) and New Orders (58.6%), with the sector specifically reporting growth in new orders. However, employment declined within Other Services even as the broader index expanded to 51.8%, signaling labor challenges. Cost pressures persist, with prices at 63% (15 straight months above 60), while inventory sentiment remains elevated at 55.3%, indicating potential overstock. For pet care providers, this suggests steady demand and revenue opportunities, but continued pressure from labor constraints, pricing, and inventory management.

• 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.
• The American Pet Products Association’s 2025 Bird, Small Animal & Horse Report points to expanding demand opportunities for the US pet services industry, driven by generational shifts and deeper owner engagement. Gen Z now represents 22% of bird owners and 34% of small animal owners, while Millennials account for 39% of horse owners, supporting long-term demand for grooming, boarding, and training services. Gift-giving rates are high, 76% of bird owners, 87% of small animal owners, and 73% of horse owners, signaling strong willingness to spend beyond essentials, which often extends to premium care services. Rising multi-pet ownership among horse owners (55% owning two or more horses, up 22% since 2018) further supports recurring service needs. Continued preference for in-person shopping and reliance on specialty stores for expertise suggest service providers that emphasize hands-on care and trusted guidance are well positioned for growth.