Consumers aren’t necessarily feeling better about the economy or their own financial situations than they were in recent years, but they’ve accepted volatility as the “new normal.” That’s according to global consumer research from NielsenIQ (NIQ).
Note that NIQ gathered its latest data in July 2025 (this report originally came out in September, but NIQ is resurfacing it now), so some consumer sentiments may have already changed. For example, among the top concerns affecting their spending and outlook for 2026, the consumers surveyed ranked global conflict/escalation of crisis/war second, with 23% selecting it. That represents a 9.5% jump over the previous 12 months. If these consumers were surveyed today, that increase may be even higher.
Increasing food prices still ranked as the top concern, named by 29%. Even though that’s down 3.5%, it hasn’t gone away and probably won’t, at least not any time soon.
Interestingly, the countries where consumers were the most optimistic about their financial situations in mid-2025 were ones not considered large pet food markets, with the exception of China (18% level of optimism in the NIQ data). Brazil, one of the largest pet food markets, barely registered optimistic at 0.5%. In other countries with large pet food industries — the U.S., U.K., Canada, Germany, France, Japan, among others — the level of optimism among consumers had declined anywhere from 8.5% nearly 30%.
Looking at spending on pet care
While inflation has ebbed for many consumer product categories in various regions and countries, prices are still elevated: As of June 2025, consumers were paying an average of 6% more on consumer product goods (CPG) in general than there were in 2023, according to NIQ. With the ongoing uncertainty of tariffs, trade wars and geopolitical conflict, prices are likely to stay high or be volatile.
The NIQ report breaks down price and volume changes for some CPG categories, including pet food. As of June 2025, pet food prices were up just 0.5% from the previous year, while volume rose 0.7%. That indicated lower inflation for pet food globally.
Yet, prices in other categories increased more, from 2% to 5%; and volume in those categories didn’t keep up. Heading into 2026, therefore, consumers are continuing to prioritize spending on essential or “non-negotiable” items or areas, such as housing, utilities, education/child care and health care. Another item on the list is the rather amorphously named groceries and household items, but NIQ helpfully breaks down all that entails, and that list includes pet care. Among the consumers surveyed in July 2025, they were planning to spend 1% less on pet care.
That might mean cutting back slightly on pet product and service spending, or it could reflect a hope that pet food/pet care prices will continue to remain stable, as they did in 2025.
Every purchase must earn its place
A key element to consumers’ outlook for 2026 relates to their perspective on ways to save on CPG spending. The NIQ data shows declining intention to switch to lower-priced options, shop more at discount/value stores or buy whatever’s on sale. Some consumers still plan to use those strategies, up to 31% — and private label CPG products remain popular in some countries and continue to build momentum — but that’s down 5% to 6% from the previous 12 months.
On the other hand, strategies such as evaluating and prioritizing the product attributes that “matter most” or buying larger sizes to get a better price per amount are gaining favor. “Spending is intentional; every purchase has to earn its place,” the NIQ report said.
“Consumers are valuing fewer, clearer choices that offer price, quality and values in one aligned proposition,” it continued. “With rising cognitive fatigue, simplicity is critical. Streamlined formats, low-friction experiences and bundle-based value will outperform feature-rich complexity.”
Food for thought as your pet food brand navigates the consumer space and mindset at the beginning of 2026.
