The U.S. pet food market is getting back to real growth, Pete Scott, president and CEO of the American Pet Products Association (APPA) at Global Pet Expo in Orlando, Florida on March 25.
"For the past couple of years, we've had mainly inflationary growth with not a lot of real growth,” he said. “Now we're getting back to real growth.
Pet industry spending totaled US$158 billion in 2025, representing a 3.7% increase compared to 2024, according to APPA data in the 2026 State of the Industry Report. Projections indicate expenditures will reach US$165 billion in 2026. The year has begun with solid momentum, with full-year growth expected to approach 4.4%, including approximately 2% attributed to inflation.
“Overall we're seeing growth, not necessarily dramatic growth, but there's some moderate growth point indicating that the industry is still very healthy,” Ingrid Chu, vice president of research insights for APPA, said during her own presentation.
Complexity in the pet food industry
However, with the pet food industry’s growth comes complexity, Scott said.
“It's no longer the simple model of manufacturer sells to brick and mortar retailer,” he said. “We live in an omni-channel world, so the mix changes. More direct to consumer, more e-commerce, more live shopping…There's a lot more elements that make up an omni-channel pie, but it is really powerful.”
As in previous chaotic and challenging times, the pet food industry has held on while some other sectors falter. Pets continue to be viewed as essential members of the household, even as consumer budgets tighten. Pet owners tend to adjust their budgets or lifestyles to sustain pet-related spending, rather than giving up their pets.
Approximately half of pet owners reported no change in spending, but value-seeking behavior is increasing. In 2025, 22% of owners said they reduced spending on their pets, a 10% increase from 2024. In 2025, a notably higher share of Gen Z and Millennial owners indicated that economic conditions did not affect their pet ownership, while spending patterns across species show a shift away from discretionary purchases toward essential care categories.
US dog and cat ownership in 2025
Even as household spending showed signs of moderation, dog ownership continued to grow in 2025. The share of U.S. households with dogs increased from 51% in 2024 to 53% in 2025, totaling 71 million households, according to the APPA’s annual survey. This represents an increase of roughly 4 million dog-owning households year over year. Growth was driven by Gen Z, Millennials and Gen X. At the same time, spending trends are shifting toward greater value orientation, suggesting ownership remains strong while purchasing behavior adjusts to broader economic pressures.
Cat ownership and related spending also increased in 2025, supported largely by younger demographics. The percentage of U.S. households with cats rose 5% year over year to reach 39%, or 53 million households. Gen Z and Millennials accounted for much of this growth. Among cat owners, share of wallet held steady compared to the previous year, with products continuing to represent the largest expense category. This indicates that cat owners remain willing to allocate a meaningful portion of their budgets to a variety of supplies.
As the industry moves into 2026, moderate but steady growth, combined with evolving purchasing channels and value-driven consumer behavior, is expected to shape competitive strategies.
