Veterinary Practices NAICS 541940

Dec 28, 2025 - Faster Growth Forecast

• The US veterinary practices industry is projected to grow at a 6% CAGR from 2025 to 2029, faster than the overall economy's expected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. Consumer sentiment is likely to improve in the forecast period, which bodes well for the professional, scientific, and technical services industries, including veterinary services. Real disposable income is being limited by a slow rise of employment and higher consumption prices, with a projected increase of real disposable income of 1.8% in 2025 and 1.6% in 2026. Tariffs on consumer goods may be painful for consumers and cause issues for real income if average prices rise. Adoption of AI by services industries could boost output while the likely effect on jobs is unclear.
• Consumer sentiment in December 2025 reflected a cautious economic environment for the US veterinary industry. The University of Michigan Index rose modestly month over month but remained well below prior year levels, and most consumers still expect rising unemployment. Inflation expectations eased slightly, yet overall confidence stayed subdued. The Conference Board Consumer Confidence Index also declined, with current condition assessments weakening and expectations hovering near recession linked levels. As a result, consumers continue shifting spending toward essential, lower cost categories. For veterinary providers, the trends point to steady demand for core medical care, increased emphasis on cost efficient service models, and ongoing pressure on discretionary or premium pet services as households prioritize affordability and essential health needs.

• Veterinary practices in California must now adapt to new legal and clinical responsibilities following the signing of AB 867, which bans elective cat declawing and permits the procedure only when medically necessary, according to Veterinary Practice News. Declawing, a surgery that amputates toe bones or severs tendons, has been widely opposed by veterinarians due to risks of chronic pain, behavioral changes, and long-term health issues. Data from the American Veterinary Medical Association shows strong professional consensus against non-medical declawing, aligning with the new law. Clinics will need to emphasize alternative strategies for managing scratching behavior, strengthen client education, and carefully document cases where declawing is performed for medical reasons. By joining states like New York and municipalities such as West Hollywood, California’s ban underscores a broader trend toward animal welfare reforms that directly reshape veterinary practice standards.
• According to a report in DVM360, veterinary practices are being urged to prepare for heightened risks as the FDA reminds pet food manufacturers to address H5N1 avian influenza in their food safety plans. This follows recent cases where raw cat food tested positive for H5N1, including a San Francisco incident in which a cat consuming RAWR Raw Cat Food Chicken Eats became infected and was ultimately euthanized. As the fall migratory season increases H5N1 detections, veterinarians may see more suspected exposures, requiring vigilance in diagnostics and communication. For clinics, this highlights the need to counsel clients on safe feeding practices, particularly addressing the risks of raw or unpasteurized products. Cats remain highly susceptible, with mortality rates significantly higher than in dogs, which typically show mild symptoms. Proactive guidance on nutrition and sourcing, aligned with FDA’s preventive controls, will help practices safeguard animal health while reinforcing trust with pet owners.