U.S. Pet Industry Reaches $158 Billion in 2025, Poised for Continued Growth in 2026

The American Pet Products Association (APPA) has released its 2026 State of the Industry Report, revealing that U.S. pet industry expenditures reached $158 billion in 2025. This growth is expected to continue into 2026 with a projected total of $165 billion, driven by resilient ownership across multiple generations despite economic pressures. The report highlights a shift toward value-oriented spending and essential care, signaling a maturing market where pets remain a prioritized household expense.

According to the APPA’s latest findings presented at the Global Pet Expo, the U.S. pet market grew by 3.7% in 2025, with total spending hitting the $158 billion mark. Looking ahead to 2026, the industry is projected to reach $165 billion, representing a 4.4% growth rate, though APPA President and CEO Pete Scott notes that approximately 2% of this increase is attributed to inflation. Despite these inflationary pressures, pet ownership remains stable with 95 million U.S. households owning at least one pet, underscoring the sector's resilience in a fluctuating economy.

Dog ownership saw a significant uptick, expanding from 51% of households in 2024 to 53% in 2025, which adds roughly 4 million new dog-owning households for a total of 71 million. While Gen Z, Millennials, and Gen X are leading this expansion, spending patterns are becoming increasingly value-oriented as consumers respond to broader economic pressures. Similarly, cat ownership rose by 5% year-over-year to reach 53 million households, with younger generations driving the demand for supplies, which remain the top expense for feline owners.

The report identifies a notable demographic shift, particularly with Gen X "empty nesters" contributing to a 12% year-over-year increase in ownership across multiple species. While about half of all pet owners maintained their spending levels in 2025, there is a rising trend toward budget consciousness, with 22% of owners reporting they spent less on their pets compared to the previous year. This shift has resulted in a "share of wallet" movement away from discretionary items and toward essential care, though younger cohorts like Gen Z and Millennials are more likely to report that the economy has not negatively impacted their pet ownership status.