“Affordability” is a term often bandied about in politics and the media, at least in the U.S., but for many consumers globally, including pet owners, it’s a very concrete reality.
A third (34%) of 21,000 consumers globally surveyed by NIQ reported being worse off financially this year compared to last year; and 77% of those cited rising costs of living as a significant contributor. “Rising food prices remain the leading consumer concern globally, signaling a shift from inflation anxiety toward affordability anxiety,” wrote NIQ in a new report, Consumer Outlook: Guide to 2027.
“Affordability anxiety” — that seems a very fitting way to capture the prevailing mood among so many people.
High pet food prices a concern, but spending holds steady: What gives?
Among pet owners, at least in the U.S., 36% of those surveyed by Packaged Facts earlier this year named the high price of pet food as a significant challenge to ownership. That’s down from 42% in early 2025, but inflated pet food prices remain a concern.
And inflated they are: While the rate of pet food price increases in the U.S. has slowed, and in some months even declined a bit, prices are up nearly 25% since before the pandemic, according to the Bureau of Labor Statistics. Pet owners continue to feel that cumulative effect, which is driven by the continuing higher costs for pet food producers; they’re up 32% from January 2020.
Yet, spending has remained steady. For example, in 2025, 36% of U.S. cat owners surveyed by Packaged Facts reported spending even more than the year before, with only 8% spending less.
For pet owners overall, data from a variety of sources cited by Cascadia Capital in its report, Pet Industry Insights: Summer 2026, showed that in 2025, 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% spent more. At the same time, 82% said the current economy had no impact on their pet ownership, a four-year high.
What gives? Why do more than a third of owners name higher pet food prices as a challenge while a fair portion also keep spending at the same or increased levels?
The answer lies, at least partially, in what types of food they’re buying: mainly premium and value priced, with the mid-priced tier continuing to decline.
Premium and economy-priced squeeze the middle
This mirrors the rise of the so-called K-shaped economy, with growth taking place (at low levels, but still growth) in premium products and economy-priced products. With consumers overall, NIQ calls this development economic polarization, or “consumption at the extremes.”
“The widening economic divide is accelerating the emergence of ‘constraint’ and ‘upgrade’ spending mindsets, placing growing pressure on mainstream propositions,” said NIQ in its report. “As consumers seek either meaningful savings or meaningful upgrades, growth is increasingly concentrating at opposite ends of the market.” Consequently, more than US$23 billion in value share has shifted away from mid-priced consumer product goods (CPG), “highlighting how market structure is evolving alongside consumer priorities.”
This is also happening in pet care around the world, including the U.S. and European markets, according to Euromonitor and other experts. “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.
Value: More about worth than cost
Obviously, most pet food and other CPG brands want to steer consumers toward premium options. But whether they target premium spenders or ones opting or needing to select economy-priced products (or both, perhaps with different product lines), the key is not just emphasizing but also proving the value. And value is no longer about cost, so much as it is about worth, according to NIQ.
“Every purchase must justify its place within evolving consumer purchasing decisions,” its report said. “Quality and performance now outrank affordability as the leading determinants of whether a purchase feels worthwhile (34% vs. 31%), signaling a meaningful shift in how value is defined. Consumers are becoming more selective, concentrating spending on products, services and experiences that deliver meaningful outcomes.”
This is definitely playing out in pet food, too, particularly with premium products. “Claiming premium without evidence is no longer a positioning strategy, it’s a liability,” Ryan 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.”
One of Innova Market Insights’ top human food trends for 2026 was “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.”
There’s that word again: affordability. Yet, again and again, it’s tied to value, as by both Innova and NIQ here. What does that look like for your target pet food consumers?
