Although pet food price inflation has trailed the overall national inflation rate in the U.S., pet owners have nevertheless responded to higher consumer goods prices. Private label pet foods may have benefited from this growing cost-consciousness among pet owners.
Pet food inflation and private label growth
In April 2025, pet inflation rose 1.9% year-over-year, up from 1.3% in May, according to Cascadia Capital’s Pet Industry Overview – Summer 2025. Nevertheless, pet food inflation was lower than the national average of 17.4%.
Amid this inflation, private label pet food sales in the United States demonstrated modest but meaningful growth in 2024.
“As private label continues to focus and offer products aligned with the latest trends through premiumization, innovation, sustainability and elevated culinary experiences, it is poised to gain share on the overall industry, especially as consumers discover they do not need to meaningfully sacrifice quality to sace money,” Cascadia’s analysts wrote.
According to data presented by Cascadia Capital, private label pet care dollar sales increased by 1.7% year-over-year in 2024, with unit sales rising 3.5% during the same period. This trend contrasts with national pet food brands, which experienced only a 1.0% dollar sales increase and a 0.6% decline in unit sales.
Total private label sales of pet products rose 5.8% year-over-year across all categories, outpacing the growth rate for branded items. In the pet food and treats category specifically, growth in 2024 slowed to 3.6%, largely driven by price realization rather than volume gains. This environment further supported private label’s rise as pet owners adjusted their purchasing behavior.
National brands abandoned private label
Despite the category’s success, not all companies are doubling down on private label contract manufacturing. Colgate-Palmolive, for instance, announced plans to wind down its private label division in 2024 amid weak volumes and margins. The company is refocusing on its science-based Hill’s Pet Nutrition brand. Similarly, J.M. Smucker divested its private-label pet food business in 2023.
Cascadia analysts suggested that, with ongoing macroeconomic uncertainty and persistent inflation, consumer behavior may continue shifting. Likewise, private label pet food brands may continue to benefit from that economic turmoil.
