“An ability to recover from or adjust easily to misfortune or change.” That’s the Merriam-Webster Dictionary definition for “resilience”; and it applies nearly perfectly to the pet food and pet care markets over the past 15-plus years, including during the Great Recession, the COVID-19 pandemic and more recent economic disruption driven by a stew of geopolitical turmoil, wars, tariffs and other factors.
Consider data cited by Cascadia Capital, an investment firm specializing in the pet care market, in its “Pet Industry Insights: Summer 2026” report. In 2025 surveys, only 22% of U.S. pet owners reported spending less on their pets than in the previous year, while 50% said they spent the same and 26% even spent more. At the same time, 82% said the current economy had no impact on their pet ownership, a four-year high, according to the report. (It cited sources including the American Pet Products Association, the U.S. Bureau of Labor Statistics and IBISWorld.)
Older generations of pet owners especially showed no signs of economic impact, with boomers leading the way at 91%, followed by gen X at 85%, millennials at 77% and even gen Z, the youngest pet owners, at 72%.
Resilient, but not necessarily rosy
Demonstrating steadfast devotion to their pets via their wallets, at least for U.S. owners, may be partially because pet food inflation has slowed dramatically from its highs in 2022 and 2023, sitting at 1.8% (well below the overall consumer price index, or CPI, of 4.2%) in May 2026. That pattern seems to be holding in other countries and regions, at least developed ones.
However, a 1.8% year-over-year increase is not nothing, and the fact is — as John Gibbons, the self-titled Pet Business Professor who helpfully compiles and analyzes “petflation” data each month — inflation is cumulative. So, while it’s helpful that increases have slowed since their highs, pet food prices in the U.S. are still 24.7% higher than in 2019, pre-pandemic. That’s a huge jump for people to absorb, especially those in lower income brackets, and because it’s happened in combination with soaring prices for other necessities and staples, including food for the human family members.
This has led to the development of the so-called K-shaped economy, with growth taking place (at low levels, but still growth) in premium products and economy-priced products, not in the middle. That’s particularly true in pet care around the world, including the U.S. and European markets, according to Euromonitor. “The middle is where margins go to die,” said Kevin Ryan, Ph.D., founder and chief executive officer of Malachite Strategy and Research, said during his keynote address at Petfood Forum 2026.
Justifying the premium
That pet spending is holding steady is not just testament to owners’ deep affection and commitment to their furry family members; it’s also likely because pet food and other product brands are following the economic dynamics, and developing and marketing accordingly. Ryan emphasized that means justifying premium claims — a necessity, in his view.
“Claiming premium without evidence is no longer a positioning strategy, it's a liability,” he said. “Budgets are tighter, but spending isn't random. Consumers are keeping what they can justify and cutting what they can’t. Vague premium gets cut. Proven premium holds price.”
His theme echoed one of Innova Market Insights’ top human food trends for 2026: “worth every bite.” In a late 2025 release announcing the trends, the market research firm said,” “Products need to offer value and affordability during these times when economic pressures are palpable.”
Justification, worth, proof: Whatever you call it, the point is that, even amid tough economic times and ongoing price increases, pet owners will continue to buy the best pet food they can for their pets, as long as they perceive the value is there.
