The consumer product goods sector of the economy, which pet food falls into, is facing “multiple headwinds,” according to Nielsen IQ (NIQ) in a new post. “Volume growth is under pressure. Store brands will intensify their share grab. Digital behaviors and click-and-collect are reshaping the path to purchase, and AI is beginning to shop on behalf of consumers.”
Not to dwell on the negative or bring anyone down, but this is the current reality. Specific to pet care, a previously steady rise in pet owner spending in the U.S. has slowed. In a recent webinar, “US pet market outlook 2026,” Packaged Facts shared survey data showing the percentage of U.S. pet owners who increased their pet care spending year over year continued to grow from 2020 to 2024, to a high of 50% in 2023 — but then it started to decline. Last year, 43% of pet owners surveyed said they had increased their spending from 2024; and Shannon Landry, research director of Packaged Facts, pet, said in the most recent survey, conducted in January 2026, the percentage had gone down again.
At the same time, the percentage of pet owners saying they’ve decreased their pet care spending has continued to rise— at only 9% in 2025, but even higher in January 2026. “All of this is an indication of the economic challenges that are facing pet owners and the ways that they’re trying to economize and cut back to save some money,” Landry said.
Pet food premiumization is changing
On a more positive note, pet owners are still devoted to caring for and feeding their pets the best they can, and that translates into an ongoing preference for premiumization. Today, however, it’s “premiumization 2.0,” said Landry’s colleague, David Lummis. Meaning more targeted premiumization, because pet product companies now have the information and ability to better target specific customer segments. Business models like pet food subscriptions and auto-ship figure into this, and help establish and build customer loyalty.
Yet, Lummis added, the nature of premiumization has also changed due to retrenching or recalibration in this current economic environment.
What does that look like in the pet food market? In a recent episode of the Trending: Pet Food podcast, Nicole Hill, vice president of strategy and innovation at MarketPlace, explained to the host, my colleague, Lindsay Beaton, how the latest dog food trends balance innovation with affordability. A few examples:
- Fresh pet food continues to gain momentum, but affordability is creating friction.
- Dog owners are building bowls, layering products like mixers, toppers or freeze-dried food on their dogs’ standard fare of kibble or wet, rather than buying a single product.
- Brand loyalty is real but conditional, especially for toppers and add-ons.
- Health and wellness benefits lead the path to purchase, spanning food, treats and supplements.
- Trial is a real barrier, and brands need to lower the stakes, Hill said, explaining that if an owner doesn’t know whether a new product will work for their dog, the cost of being wrong is a meaningful deterrent.
- Consumer segments require different value messaging — for instance, “budget balancers” (34% of dog owners) are selective in purchase categories and price-motivated.
Finally, in terms of pet food premiumization, Kevin Ryan, CEO of Malachite Strategy and Research, says it’s no longer defined by price or ingredient lists alone; instead, it now reflects shifting expectations around purpose, experience and culture. As with so many things in pet food, that includes forces from human food and wellness.
(Note that Ryan will be the opening keynote speaker for Petfood Forum 2026. Landry and Hill are also presenting, on alternative pet food formats and cat food trends, respectively.)
Health and wellness still the path forward
It’s no coincidence that Hill and Ryan both keyed on health and wellness; that has been driving the pet food market for some time now. Case in point: Lonnie Hobbs Jr., Ph.D., assistant professor of agricultural economics at Kansas State University, has been surveying U.S. pet owners for several years about the main factors behind their pet food purchases, and not surprisingly, health and functional benefits top the list.
In a March 18 webinar, “Global Pet Food Trends 2026: Current growth and a look to the future,” which Hobbs co-presented with Beaton, he shared consumer survey data indicating that functional health claims on pet food command the strongest willingness to pay among pet owners. Think claims like high protein — the pet owners surveyed said they’re willing to pay an average of US$0.51/lb. for that — and skin and coat care (US$0.28/lb. willingness to pay). Hobbs said those amounts have declined recently as consumers face more financial challenges, but in relation to other claims, health and functionality still rule.
That offers a marketing path forward (or confirmation of existing messages) for pet food brands. Beaton summed it up best in the webinar with a quote from Jorge Martinez, global president, pet nutrition, for ADM. “Today’s pet parents are at a crossroads of quality and price,” he said. “Their compassion for their pets has them hunting for the highest-quality products, yet the unpredictable economic environment leaves them searching for the best value.”
In short, as NIQ emphasized, consumers expect more from brands now, including authenticity and transparency. “This opens the door for emerging and mid-sized brands that deliver ingredient integrity, originality and real connection,” read its post.
