Veterinary Practices NAICS 541940

Feb 20, 2026 - Client Finances Often Prevent Recommended Care: Survey

• The 2025 State of Pet Care Study by PetSmart Charities and Gallup found that client financial limitations frequently prevent US veterinarians from providing recommended care. Surveying 933 veterinarians, 94% reported clients’ financial constraints sometimes (56%) or often (38%) block treatment, with cost cited more than twice as often as any other reason for declined care. Despite 81% of veterinarians claiming they offer alternative care when cost is a barrier, prior pet parent data show 73% were not presented with options, and only 23% recall being offered financing despite 41% of vets providing it. Nearly half (48%) had no formal training on discussing financial barriers, contributing to emotional strain: 74% cited euthanasia due to financial constraints as among the hardest aspects of practice. The findings highlight the need for proactive cost communication, veterinary education, and flexible strategies to improve access, protect animal welfare, and support the mental well-being of veterinary professionals.
• In early 2026, US consumer confidence and sentiment remain historically low, signaling potential headwinds for discretionary spending, including veterinary services. The Conference Board reported its Consumer Confidence Index fell sharply to 84.5 in January, the lowest since 2014, with the Expectations Index dropping to 65.1, well below the 80 threshold typically signaling recession risk. Similarly, the University of Michigan Surveys of Consumers showed February sentiment essentially flat at 57.3, roughly 20% below February 2025. Declines in perceived current business and labor conditions, combined with concerns over income and inflation (year-ahead inflation expectations at 3.5%), suggest consumers may defer nonessential spending. For the US veterinary industry, which relies heavily on elective care, grooming, and preventive services, these trends indicate that practices may see slower growth, shifting demand toward essential medical care while elective procedures and high-margin services could face softness. Strategic pricing, client communication, and flexible service offerings may help mitigate the impact.

• The American Pet Products Association’s 2025 Bird, Small Animal & Horse Report highlights expanding demand drivers for US veterinary practices, supported by generational shifts and higher engagement across non-traditional pet categories. Six million US households own birds, six million own small animals, and two million own horses, broadening the patient base beyond dogs and cats. Gen Z now accounts for 22% of bird owners and 34% of small animal owners, while Millennials represent 39% of horse owners, signaling long-term demand for avian, exotic, and equine veterinary services. Rising multi-horse ownership, with 55% of horse owners owning two or more horses (up 22% since 2018), supports recurring care needs. High spending on pet gifts, averaging $40.52 for birds, $34.52 for small animals, and $96.92 for horses, reflects strong willingness to invest in animal health and preventive care.
• 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.