Pet ownership remains widespread in the U.S., but rising costs — particularly for veterinary care — are creating measurable strain on household budgets, according to new research from BofA Global Research. The findings point to five key trends pet food professionals should monitor.
1. Adoption momentum is slowing
Approximately 95 million U.S. households own a pet — about 71% of Americans — and pet spending reached $158 billion in 2025, according to the American Pet Products Association's 2025 National Pet Owners Survey. Dogs remain the most common pet (68%), followed by cats (46%), with fish, birds and small mammals far less prevalent.
Despite that baseline, adoption activity cooled in the first half of 2025. Dog adoptions declined modestly year over year, while cat adoptions held broadly stable. Though adoption levels remain above pre-pandemic norms, the momentum has softened, with tighter household budgets increasingly influencing decisions around taking on a new pet.
2. Lower-income and younger households are pulling back most
Bank of America credit and debit card data shows the share of households with a pet has declined across all income groups over the past two years, with the sharpest drop among lower-income households. In April, spending growth by younger generations, particularly lower-income households, declined notably.
The variation reflects selective spending, with households adjusting outlays on discretionary categories such as toys, accessories and supplies based on available budgets. A CivicScience survey found consumers are also buying pet food from local grocery stores more frequently than specialty pet stores, likely to reduce costs or consolidate shopping trips.
3. Pet spending varies significantly by geography
Bank of America card data tracking pet store, pet insurance and veterinary spending across 20 large core-based statistical areas shows notable regional variation. Seattle led all markets in the first four months of 2026, with average monthly pet spending running nearly 23% above the national monthly average. Portland, Oregon, and Portland, Maine, ranked second and third.
At the other end of the spectrum, pet spending in Atlanta, Dallas and Orlando ran below the national average. The South's generally lower cost of living may keep overall pet care costs comparatively lower in those markets.
4. Veterinary costs are rising faster than food spending
Veterinary service prices rose nearly 6% year over year in April, according to BofA Global Research. Bank of America card data shows vet spending grew more than four times faster than spending on pet food and treats, which was up just 1% year over year.
With veterinary prices outpacing wage growth for some households, many pet owners are deferring nonessential care such as wellness visits, preventative dentistry and elective diagnostics. Vet visit volumes have declined over the past several years, according to VetSource.
Pet insurance represents one mechanism for spreading healthcare costs, though uptake among pet owners remains relatively low.
5. Private equity consolidation is contributing to higher vet prices
Clinic consolidation is an additional factor driving veterinary costs higher and visit volumes lower. According to a 2024 American Veterinary Medical Association report, approximately 25% to 30% of U.S. veterinary practices, representing roughly 75% of specialty clinics, are now owned by large corporations or private equity firms.
"Such consolidation can erode competition, elevate prices and weaken service quality, ultimately reducing consumer choice," according to BofA Global Research. If current macroeconomic pressures persist, veterinary pricing will become increasingly difficult for everyday pet owners to absorb, the research found, accelerating deferred care and further pressure on visit volumes.
Read the full report, The price of pet parenting has gone off leash.
