Report: Dog owners embrace value-driven spending

New data from the American Pet Products Association shows dog ownership climbing while owners tighten budgets through smarter, not smaller, spending.

2 Lisa Selfie December 2020 Headshot
Dog ownership is climbing, but per-household spending isn't keeping pace, new APPA data shows.
Dog ownership is climbing, but per-household spending isn't keeping pace, new APPA data shows.
Pexels | Pixabay.com

Article Summary

Dog ownership in the U.S. reached 71 million households (53% of all households) in 2025, but spending per household remained flat as owners shifted to value-driven strategies like flexible feeding, selective product choices, and prioritizing at-home care over professional services.

  • Dog ownership rose to 71 million U.S. households (53%) in 2025, rebounding from a 2023 low of 44%
  • Owners practice value-seeking behavior including channel shifts and selective trade-downs rather than cutting quality
  • 72% of dog owners feed primarily dry food, with many anchoring budgets in basic kibble while adding toppers and mixers

Dog ownership in the U.S. rose to 71 million households in 2025, or 53% of all U.S. households, according to insights from the American Pet Products Association's (APPA) 2026 Dog Report.

That figure marks a rebound from a pandemic-era peak of 54% in 2020 and a dip to 44% in 2023, climbing from 51% in 2024 to 53% in 2025, said Anne Sandoval, APPA's vice president of marketing operations, who presented the data alongside Lindsay Schmuecker, APPA's vice president of sales and partnerships.

"Dogs are by far the most popular pet in the U.S.," Sandoval said.

Ownership grows, spending stays flat

While dog ownership is climbing, spending per household is not rising in step, Sandoval said.

"We didn't necessarily see an equivalent increase in their spending," she said. "So yes, more dogs, not necessarily more dog revenue."

Owners are managing their pet budgets through channel shifts, selective trade-downs and value-seeking behavior rather than broad-based cuts, Sandoval said. That shift is reflected in the dog category's share-of-wallet data: Veterinary care remained the largest expense category in 2025 at 31% of dog-related spending, up from 30% in 2024, while the services category fell to 12% from 13%. Food's share slipped to 27% from 29%, and products rose slightly to 29% from 28%.

Schmuecker, who spent 15 years on the brand side of the pet industry before joining APPA, said the data does not point to owners trading down to lower-quality products.

"I don't think that necessarily means that consumers are trading down to low-quality, value-oriented products, but they're looking at how they can get the best bang for the products they are purchasing," Schmuecker said. 

She said manufacturers should consider how value propositions, product features and on-pack messaging can speak to cost-conscious owners who still want to feed high-quality food that supports their dog's health and longevity.

Flexible feeding gains ground

A second key trend outlined in the report centers on food purchasing patterns, with owners recalibrating how they buy to protect essential nutrition while managing cost, Sandoval said.

Basic or generic dry dog food purchases rose to 30% of dog owners in 2025, up from 26% in 2024, reversing a multiyear pattern of growth in premium formats. But owners are not simply defaulting to plain kibble, Sandoval said. Instead, many are anchoring their diets in basic dry food while selectively adding toppers, mixers, broths or human-grade foods.

Overall, 72% of dog owners feed primarily dry food, the data showed. Of that group, 60% feed dry food exclusively, while 12% feed dry food mixed with another format.

"By anchoring their purchases in the basics, owners can reserve room in their budget for those value-add ones, like mixers, toppers or even human-grade foods that feel more meaningful or outcome-driven," Sandoval said.

Treats trade down, chews hold steady

Spending on treats fell about 11% year-over-year, even as purchase frequency increased, Sandoval said. The share of owners buying 11 or more treat packages annually rose 10% year over year overall and 56% year over year among Gen Z owners, pointing to more frequent replenishment at a lower cost per package.

Chew purchases, by contrast, held stable. Nearly two-thirds of dog owners, 65%, purchased chews in the past year, up 5% year-over-year, with Gen Z chew purchases up 16% year over year.

"The data is really suggesting that owners view chews as a high-value form of engagement, even as they fine-tune their broader treat-related spending," Sandoval said.

Wellness and merchandise pull back; grooming wipes surge

Across non-food categories, owners pulled back on discretionary purchases such as wellness products, vitamins, supplements and pet tech, as well as pet-themed merchandise, Sandoval said.

At-home dental care and grooming wipes bucked that trend. Wipes were the fastest-growing grooming segment, with household ownership more than doubling in 2025, up 108% year-over-year. Purchases in the past year rose 129%, and planned purchases for the coming year rose 200%, signaling both accelerating trial and repeat use, according to the data.

Owners cut services before products

Owners are also pulling back on professional pet care services such as grooming and boarding in favor of at-home solutions and support from family and friends, reserving professional care for higher-need situations, Sandoval said.

"When dog owners face economic pressure, they're more likely to cut from professional services like grooming and boarding than on their products," she said.

Schmuecker said the shift creates opportunities for manufacturers to develop bundled or add-on offerings, such as a base food paired with an optional topper, that let owners continue prioritizing their dogs' care within a tighter budget.

"People continue to find joy in pet ownership, and more and more households continue to have a dog as part of their family," Schmuecker said.

The full 2026 Dog Report is available to APPA members through the organization's member portal at shop.americanpetproducts.org. Elite and premier members receive the report at no additional cost as part of their membership.

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