Public market performance in 2025 indicates that the pet industry may be entering a period of normalization, with growth and earnings moderating after several years of post-pandemic expansion, reported Cascadia Capital analysts in “Pet Industry Overview: Winter 2025/2026.” Publicly traded pet industry companies continue to generate steady revenue growth, though equity performance has generally lagged the S&P 500.
Cascadia’s publicly traded pet company index’s revenue increased 5.1% in the first half of 2025, compared with 4.6% in the same period a year earlier. To focus on pet food brands themselves, excluding Chewy, Tractor Supply Company and Zoetis, which together represent approximately 65% of index revenue, growth was 5.5% in the first half of 2025, nearly flat with the prior year. Adjusted earnings for the index rose 8.3% during the period, down from 21.8% growth in the first half of 2024, reflecting easing benefits from earlier pricing actions and cost efficiencies.
Nestle and Freshpet compared to overall S&P500
Nestlé Purina PetCare illustrates these broader trends. Despite stable operating results, Nestlé’s share price underperformed the S&P 500 from December 2024 to November 2025. In the third quarter of 2025, the division reported 1.2% organic growth. Performance was led by wet and dry cat food, while dry dog food dragged on results. Net revenue for the segment totaled CHF 13.6 billion during the quarter. Regionally, Latin America delivered the strongest growth, Europe posted moderate gains and Asia experienced negative growth. In May 2025, Nestle acquired Drools Pet Food in India to boost the company's presence on the subcontinent. Core brands including Felix, Pro Plan and ONE generated mid-single-digit growth in several markets.
However, Cascadia's analysts noted that Nestle has undergone leadership changes during the past 18 months that could lead to changes in Purina's strategy.
Freshpet represents a higher-growth profile within the pet food sector, though its stock performance diverged from its operating results. In the third quarter of 2025, Freshpet reported net revenue of $288.8 million, up 14% year over year, and adjusted earnings before interest, taxes, depreciation and amortization of $54.6 million, compared with $43.5 million in the prior-year period. For the first nine months of 2025, net revenue increased 14.6% to $816.8 million, driven by volume growth of 12.8% and favorable price and mix of 1.8%. Net income rose to $105.3 million, largely due to a one-time deferred tax benefit.
Despite this growth, Freshpet’s share price declined by approximately 60% year over year. Management revised guidance to the lower end of its prior range and announced plans to reduce capital expenditures, with a goal of generating positive free cash flow in the third quarter.
Cascadia’s data show a pet industry that remains fundamentally stable but is no longer outperforming the broader market in the public equities arena. Compared with the S&P 500, pet-focused companies posted slower share price performance in 2025, even as revenues and earnings continued to grow at mid-single-digit rates.
