Pet Care Services NAICS 812910

Jun 23, 2026 - Pet Grooming Industry Gains Pricing Power

• The US pet grooming industry continues to outperform the broader pet care market, driven by increasing acceptance of premium pricing, strong demand for grooming services, and a persistent labor shortage that has given salons greater pricing power, according to a June report by Teddy Grooming Software. The shortage of qualified groomers has led to longer wait times and significant price increases since 2019, including a 46% rise in average full-groom prices. Independent salons and mobile grooming providers are gaining market share, while large chains have seen slower growth. Technology adoption is also accelerating, with 60%–70% of grooming businesses now using software for scheduling, customer communication, and operations. For grooming operators, the current environment supports higher prices, technology investments, and expansion opportunities despite rising labor and insurance costs.
• US consumer indicators suggest a cautious spending environment that could moderate growth in the pet care industry. The Conference Board’s Consumer Confidence Index declined to 93.1 in May 2026, while two-thirds of consumers reported cutting back spending because of higher prices. Although consumers are reducing discretionary purchases and delaying nonessential items, spending remains focused on necessities and everyday household needs. Separately, the University of Michigan’s Consumer Sentiment Index rose to 48.9 in June 2026 from 44.8 in May but remained 19% below year-ago levels. Consumers continue to express concerns about inflation, with one-year inflation expectations at 4.6%, significantly above 2024 levels. For the US pet care industry, these trends suggest continued resilience in essential categories such as pet food, veterinary services, and medications, while discretionary spending on premium products, accessories, toys, and nonessential services may face pressure. Value-oriented brands and retailers could benefit as pet owners seek ways to manage costs without compromising their pets' core care needs.

• Growing consumer interest in sustainability is creating new opportunities for the US pet care services industry, particularly for pet boarding, daycare, and grooming businesses that adopt eco-friendly practices, according to a Pet Boarding and Daycare Magazine report. The report notes that about 70% of global pet owners are concerned about climate change, while Millennials and Gen Z now represent nearly half of US pet-owning households and increasingly favor brands aligned with environmental values. More than half of Gen Z pet owners are willing to pay more for sustainable products and services, suggesting green initiatives could support customer loyalty and premium pricing. The article also highlights potential operational savings from energy-efficient upgrades and waste-reduction programs, with some facilities reportedly reducing costs by 25% to 30% within two years. For pet care providers, sustainability is becoming both a competitive differentiator and a potential profitability driver.
• The US pet care services industry enters 2026 on solid footing, supported by strong ownership trends and shifting demographics, according to data from the 2026 State of the Industry report from the American Pet Products Association. Total pet industry spending reached $158 billion in 2025, with 95 million US households owning pets. Growth is driven by rising dog ownership (53% of households, +4 million homes) and increasing cat ownership (39%, 53 million homes), particularly among Gen Z and Millennials, while Gen X ownership rose 12%. However, spending patterns are evolving: about half of pet owners report unchanged spending, with more prioritizing essentials over discretionary purchases. For service providers, this signals stable demand but increasing price sensitivity, making targeted offerings and clear value propositions critical to sustain growth.