Pet Care Services NAICS 812910

Oct 27, 2025 - Slower Growth for Pet Care Providers

• Pet care services are facing a slower growth environment as US pet sector spending plateaus at just 2.9% year over year in 2025, according to America’s Pet Owners Consumer Report 2025 by Market Intelligence Reports. Pandemic era expansion has cooled, leaving providers under pressure to retain customers through segmentation and value added offerings. The ongoing “humanization” trend continues to drive demand for premium grooming, boarding, and wellness services, but affordability is becoming a critical factor as economic pressures shift ownership toward lower cost, lower maintenance pets. Notably, cat ownership has surged since 2020, led by young, urban consumers seeking flexible companions for small space living. Technology enabled solutions, such as on-demand care, OTC health monitoring, and remote interaction tools, are reshaping expectations, with social media amplifying demand for high end services. For pet care providers, balancing innovation with affordability will be key to sustaining growth amid moderating consumer spending.
• While 11 services industries reported growth in October, six industries reported a contraction, including the Other Services industry, which includes providers of pet care services, according to the latest ISM Services PMI Report. Executives in the Other Services industry reported decreases in employment, order backlogs, and inventories while reporting an increase in new orders and prices paid for materials and services in October. Other industries reporting contraction during the period include Arts, Entertainment, and Recreation; Management of Companies & Support Services; Finance & Insurance; Public Administration; and Construction. Industries reporting growth during the period were Accommodation & Food Services; Retail Trade; Wholesale Trade; Real Estate, Rental & Leasing; Health Care & Social Assistance; Utilities; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Information; Professional, Scientific & Technical Services; and Educational Services. Overall economic activity in the services sector returned to expansion in October, registering 52.4%.

• US consumer sentiment weakened in late 2025, raising concerns for pet care services that rely on discretionary household spending. The University of Michigan’s Index of Consumer Sentiment fell 6.2% month-over-month to 50.3 in preliminary November data, nearly 30% below last year, while the Expectations Index dropped 36.3% annually to 49. Inflation expectations rose to 4.7% for the year ahead, and the Conference Board’s Consumer Confidence Index slipped to 94.6 in October, with short-term expectations down to 71.5. With more than half of consumers anticipating higher interest rates, households are likely to delay or scale back non-essential services such as pet care services.
• According to a report in Pet Boarding and Daycare magazine, pet care businesses face reduced demand for holiday boarding with fewer Americans traveling due to economic uncertainty. The report cited several studies showing a slowdown in vacation travel plans, with consumers shortening their vacations and staying closer to home. With a slowdown in holiday bookings likely, profitability for pet boarding providers hinges more on strategic booking, not just occupancy. Key recommendations include phone training to convert leads, selective booking of high-value clients, proactive outbound calls, and cautious overbooking to offset cancellations. The goal is to increase per-reservation value and stabilize revenue during a critical season. For the pet care sector, the shift highlights the need to evolve from passive intake to active revenue management. As travel-linked demand softens, businesses must optimize client engagement, refine booking practices, and invest in staff training to protect margins and build resilience heading into 2026.