Pet Care Services NAICS 812910

Jan 30, 2026 - Shifting Pet Demographics Expand US Pet Services Opportunity

• 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.
• According to the latest ISM Services PMI Report, executives in the Other Services industry, which includes providers of pet care services, reported decreases in business activity and order backlogs while reporting an increase in new orders and prices paid for materials and services in December. While five services industries reported contraction in December, 11 industries reported growth. Industries reporting growth during the period were Retail Trade; Finance & Insurance; Accommodation & Food Services; Transportation & Warehousing; Arts, Entertainment & Recreation; Mining; Health Care & Social Assistance; Information; Wholesale Trade; Public Administration; and Utilities. Industries reporting contraction during the period include Management of Companies & Support Services; Professional, Scientific & Technical Services; Agriculture, Forestry, Fishing & Hunting; Educational Services; and Construction. Overall economic activity in the services sector continued to expand in December, registering 54.4%.

• 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.
• US consumer confidence weakened in January 2026, creating a more cautious backdrop for the pet care industry. The Conference Board’s Consumer Confidence Index fell 9.7 points to 84.5, its lowest level since 2014, with the Expectations Index dropping to 65.1, well below the recession warning threshold. Consumers reported declining plans for big-ticket purchases and weaker planned spending on services, as “yes” responses fell and “maybe” responses rose. Separately, the University of Michigan’s Index of Consumer Sentiment rose modestly 6.6% month-over-month to 56.4 but remained 21.3% below year-ago levels, reflecting sustained pressure on purchasing power from high prices and labor concerns. For the US pet care sector, which spans discretionary and essential spending on supplies, grooming, and services, softer confidence may temper growth in premium offerings and elective services, even as core spending on food and routine care remains more resilient.