(Photo by Cindy Martin)
The industry of pets is a rapidly growing global market. In 2023, Fortune Business Insights reported that the global pet care market size was about $246.66 billion, with projections to grow to $427.75 billion by 2032.
While the global industry market size is catching up, the U.S. still makes up the largest pet expenditure, by far. Of the $246.66 billion spent on pets globally in 2023, the U.S. market made up $147 billion, or about 59 percent of global pet expenditure.
The industry has seen steady growth for years, but it was seemingly catapulted to new heights during and in the wake of the COVID-19 pandemic. According to the American Pet Products Association (APPA), Americans spent $97.1 billion on their pets in 2019, meaning that the American industry saw growth of $49.9 billion, or about 51 percent, in just four years.
While every generation owns more pets each year, Millennials are still the most common pet owners; about 30 percent of all American pet owners are Millennials, while Baby Boomers and Gen X own about 25 percent each, leaving Gen Z with the remaining 20 percent.
According to APPA, Americans spent $152 billion on pets in 2024. Of that total expenditure, pet food and treats made up $65.8 billion; supplies, live animals and over the counter medicine made up $33.3 billion; vet care and product sales made up $39.8 billion; other services including boarding, grooming, insurance, training, pet sitting, pet walking, and all services outside of veterinary care, made up $13 billion.
In this rapidly growing industry, there are a number of trends contributing to the overall growth. A significant one is pet insurance, specifically for dogs and cats. The average annual costs of veterinary visits for households with either a dog or cat has increased significantly in the last three years, contributing to the rise of pet insurance. However, the pet insurance market is still young, and is projected for significant growth in the near future.
While the total number of insured pets in the U.S. has seen an average growth of 26.6 percent each year since 2018, a vast majority of pet owners are still uninsured; only four percent of dog owners and one percent of cat owners have insured their pets.
The breed, and mostly the size, of a pet heavily affect its insurance rate. Cats are on average less expensive to insure than dogs, but larger breeds of both cats and dogs will be more expensive. A biggest outlier to this rule is the French Bulldog, which has an average monthly premium of $101; the next most expensive breed is the Golden Retriever, averaging a monthly premium of $69.
Another trend affecting the growth of the industry revolves around sustainability and wellness. Not only are American pet owners increasingly concerned with the environmental impacts of the products they buy, they are also putting more thought into the actual ingredients they are feeding their pets. Sustainable examples include biodegradable toys, organic food options, eco-friendly grooming products and products made from recycled materials, like paper cat litter. In terms of wellness, supplements like probiotics, specialized diets such as fresh or freeze-dried food, fitness trackers designed specifically for pets and previously niche products like pet toothbrushes are all examples of a growing interest.
Other trends include an increase in high-tech products, like tracking devices, cameras and automated items such as feeders and litter boxes, as well as customizable items like tags, collars and clothes for pets.
In general, every trend in the pet industry can be tied back to one fact; American pet owners, and more than likely, the global market, are seeing their pets as integral parts of their family, deserving of an increased level of attention and care. If global trends continue, this means the pet industry is ripe with opportunity for innovation and growth.
