US Pet Industry Reached $158 Billion in 2025

Data released 26 March 2026 · Published April 2026

Correction — 15 April 2026

This piece originally stated that pet ownership expanded from 51% to 53% of US households in 2025. That figure relates to dog ownership specifically, not overall pet ownership. Overall pet ownership remained stable at 95 million US households. The text has been corrected.

The American Pet Products Association released its 2026 State of the Industry Report at Global Pet Expo in Orlando on 26 March, confirming that total US pet industry expenditure reached $158 billion in 2025, a year on year increase of 3.7%. Growth is projected to continue into 2026, with expenditure forecast to reach approximately $165 billion, driven by a combination of organic volume growth and approximately 2% inflation related price increases.

The report draws on data from APPA's 2025 National Pet Owners Survey, covering consumer habits, sentiment and generational behaviour across dog, cat, fish, reptile, bird and small animal ownership categories.

Dog ownership expanded from 51% to 53% of US households in 2025, equivalent to approximately 71 million dog-owning households, adding around four million additional dog-owning households year on year. Overall pet ownership remained stable at 95 million US households. Cat ownership rose 5% over the same period.

The generational picture is notable. Growth is no longer concentrated in younger cohorts. Gen X households recorded a 12% year on year increase in dog ownership, alongside an 8% increase in cat ownership. Gen X also expanded into smaller pet categories: bird ownership among Gen X households rose 25% year on year, reptile ownership 20%, and freshwater fish 17%.

This broadening of the ownership base beyond Millennials and Gen Z is significant for the sector's long term trajectory. It suggests the pandemic era surge in pet adoption is evolving into a more structurally embedded trend across age groups, rather than a cohort specific pattern that might naturally fade.

The report acknowledges a more cautious spending environment alongside the ownership growth. Approximately 22% of pet owners reported spending less on their pets in 2025, a 10 percentage point increase from 2024. Value seeking is rising, particularly in food and supplies, as consumers respond to broader inflationary pressures.

However, the comparison with other spending categories is striking. Only 27% of pet owners said they planned to reduce pet spending in the following twelve months, compared with 74% in apparel and 68% in home goods, according to a 2025 L.E.K. Consulting survey referenced in the APPA report. Pet expenditure continues to behave more like an essential household cost than a discretionary one for a large proportion of owners.

Research from the Human Animal Bond Research Institute has consistently documented the depth of attachment between owners and companion animals, which helps explain this resilience. The bond is not simply sentimental: studies have linked companion animal ownership to measurable benefits in mental health, physical activity and social connection, reinforcing its perceived value even under financial strain.

The US figures sit within a wider global context. Analysis by Capstone Partners published in March 2026 noted an uptick in merger and acquisition activity across the pet sector in the year to date, with deal flow concentrated in food, services and veterinary health segments. The pet pharmacy segment in particular is expected to see increased deal activity as a shifting regulatory landscape creates new commercial opportunities.

Globally, the pet care market was valued at approximately $273 billion in 2025 and is projected to reach over $427 billion by 2032, according to sector analysis cited by multiple industry sources including Fortune Business Insights. The US remains the single largest market, but growth is accelerating in multiple regions.

These figures matter to Pawsettle not as a commercial signal but as evidence of how central animals have become to household life. A sector approaching $165 billion annually in the US alone reflects the reality that for tens of millions of people, pets are not an accessory but a core part of daily life. That reality is why the legal and planning frameworks around shared pet arrangements deserve the same seriousness as any other major household commitment. If you share a pet with a partner or co owner, documenting that arrangement clearly is the logical extension of how seriously you already take the animal's place in your life.