Pet category revenue grew 20% year-over-year in the second quarter even as brands cut losses from out-of-stock products, according to new ecommerce data from CommerceIQ.
CommerceIQ, an agentic retail platform serving more than 2,200 global brands across 1,450 retailers in over 85 countries, released its Q2 2026 quarterly trends report analyzing anonymized, aggregated Amazon marketplace data. The pet category was the only one among those tracked to reduce revenue lost to out-of-stocks during a quarter that included Prime Day, with those losses falling 63% year-over-year.
The report attributed the improvement to supply chain gains. On-hand inventory rose 11% year-over-year, while reported out-of-stock rates dropped to 1%, the best in-stock rate of any category CommerceIQ tracks. Fulfilled units increased 16% year-over-year, and purchase order fill rates improved 1 percentage point to 89%, indicating that supply chain execution kept pace with demand.
Pricing power holds without discounts
Pricing data in the report pointed to sustained brand strength. Average selling prices for pet products rose 1% year-over-year even as discount rates fell 0.4 percentage points to 3.8%, a sign that brands maintained pricing power without leaning on promotions.
Retail media investment also climbed. Ad spend in the category increased 28% year-over-year, and return on ad spend improved 6% to 4.4 times despite a 3% rise in cost-per-click to $3.30, the report found. Glance views rose 33% year-over-year, though conversion rate fell 6 percentage points to 52%, still the highest conversion rate of any category in the report, according to CommerceIQ.
Gross margin for the pet category fell 1 percentage point to 30% amid the revenue growth, a trade-off CommerceIQ characterized as among the strongest growth-to-margin balances in its large-category data set, trailing only office products.
See the full Pet Products Industry Overview.
