The American Pet Products Association (APPA) has released its 2026 State of the Industry Report, reporting $158 billion in total U.S. pet industry expenditures in 2025 — a 3.7% increase over the prior year — and projecting growth to $165 billion in 2026.
The report projects full-year 2026 growth near 4.4%, of which roughly 2% is attributed to inflation. U.S. pet ownership remained stable in 2025, with 95 million households owning at least one pet.
"The pet industry continues to be a healthy, evolving market," said Pete Scott, APPA president and CEO. "Growth remains steady, ownership is expanding across multiple generations, and consumers are becoming more intentional with how they spend, prioritizing essential care while still investing in their pets' wellbeing. That combination creates a strong foundation for the year ahead."
Dog and cat ownership both rise
Dog ownership expanded from 51% of U.S. households in 2024 to 53% in 2025, representing 71 million households — roughly 4 million additional dog-owning households year over year. Growth was led by Gen Z, Millennials and Gen X. Household spending on dogs is becoming more value-oriented, reflecting broader consumer economic pressures.
Cat ownership increased 5% year over year to 39% of U.S. households, or 53 million households, with growth driven primarily by Gen Z and Millennials. Share of wallet among cat owners held steady year over year, and products remained the top expense category.
Value-seeking rises amid economic pressure
Despite ongoing economic pressure, the perceived impact on pet ownership appears to be easing, as many owners report making budget or lifestyle adjustments to maintain pet-related spending. About half of pet owners reported unchanged spending, while 22% reported spending less on their pets in 2025 — a 10% increase from 2024. Gen Z and Millennials were more likely to report that the economy did not affect their pet ownership. Across species, owner spending showed a shift away from discretionary items toward essential care.
Gen X emerges as growth driver
Gen X contributed a 12% year-over-year increase in pet ownership, with growth spanning multiple species. Gen X dog ownership rose 12% year over year, cat ownership rose 8%, and smaller pet categories also saw gains: birds (+25%), reptiles (+20%) and freshwater fish (+17%).
"The data highlights a broadening base of pet ownership growth, from younger consumers entering the market to Gen X households expanding into multiple species," said Ingrid Chu, vice president of research insights. "Understanding these generational dynamics is essential for identifying new opportunities across products, services, and categories."
The APPA has published the APPA National Pet Owners Survey since 1988. The survey covers consumer habits and trends across eight species-specific reports. More information on APPA's research is available at americanpetproducts.org/insights.
