Pet & Pet Supplies Stores NAICS 459910

Mar 28, 2025 - Pet Owners Concerned About Rising Costs

• According to Rover’s “True Cost of Pet Parenthood” report in USA Today, more than half of pet owners surveyed said they are concerned that tariffs will increase the cost of having a pet. With inflation and newly enacted or proposed tariffs, Rover estimates consumers will spend 11% more on veterinary fees, 183% more on pet cleaning supplies, 20% more on grooming supplies and 85% more on treats and chews in 2025. Nearly 70% of pet owners said pet food and treats account for the majority of their monthly pet budget, and 34% said pet spending would be one of the last categories they would cut if their budget were tight. A third of pet owners said they would cut spending on a category like groceries or entertainment to ensure they could afford their pet’s needs.
• 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.
• Consumer spending on pet products and services will increase by over $50 billion in the next six years, according to a forecast from the American Pet Products Association. Growth drivers include increased pet ownership, the humanization of pets, and advancements in veterinary care. The global pet industry, including pet food, healthcare, grooming, and luxury items, currently offers an economic contribution of $303 billion and is growing rapidly, with a 16% increase since 2022. According to the forecast, private equity firms are playing a growing role in the pet industry in mergers and acquisitions, as investors consolidate their businesses and expand market share. New investment trends include subscription-based services, tech-enabled products, and organic and sustainable foods.