APPA says U.S. pet industry hit $158B in 2025
Bottom line
The American Pet Products Association said the U.S. pet industry reached $158 billion in 2025, up 3.7% year over year, and is projected to reach $165 billion in 2026. The figures were released March 26, 2026, alongside APPA’s 2026 State of the Industry Report at Global Pet Expo in Orlando. APPA said pet ownership held steady at 95 million U.S. households, while spending patterns shifted toward essential care. The group also highlighted continued growth in dog ownership, rising cat ownership among Gen Z and Millennials, and a more value-conscious pet parent. (americanpetproducts.org)
Why it matters: For veterinary professionals, the topline growth is less about discretionary retail and more about resilience in care-related spending. APPA explicitly said consumers are prioritizing essential care even as budgets tighten, a useful signal for practices navigating softer demand in some markets, pricing sensitivity, and changing client expectations. The broader backdrop also supports that interpretation: North American pet insurance premiums reached about $4.7 billion in the U.S. in 2024, and insured cats continued to gain share, suggesting more pet parents may be looking for financing tools that support ongoing and higher-acuity care. (americanpetproducts.org)
What to watch: Watch whether 2026 growth materializes as APPA forecasts, and whether value-seeking pet parents continue to protect veterinary spending while trimming elsewhere. (americanpetproducts.org)
The U.S. pet industry grew to $158 billion in 2025 and is projected to climb to $165 billion in 2026, according to the American Pet Products Association’s 2026 State of the Industry Report, released March 26 at Global Pet Expo. APPA framed the numbers as evidence of a market that’s still expanding, but with a more selective consumer behind it: pet ownership stayed steady at 95 million U.S. households, while spending behavior shifted toward essential categories. (americanpetproducts.org)
That nuance matters. APPA’s message this year wasn’t simply that pet spending is up. It was that the mix is changing. In its release and follow-up analysis, the association said pet parents are becoming more intentional with spending, protecting core categories tied to health and daily care while pulling back on more discretionary purchases. About half of pet parents reported unchanged spending, but 22% said they spent less on their pets in 2025, a 10% increase from 2024. (americanpetproducts.org)
The ownership base also continues to evolve. APPA said dog ownership rose from 51% of U.S. households in 2024 to 53% in 2025, or about 71 million households, while cat ownership reached 39% of households, or 53 million, up 5% year over year. Growth was led by Gen Z, Millennials, and Gen X, with APPA describing Gen X’s “empty nest” stage as an emerging driver across multiple species. In other words, the market is broadening, not narrowing, even if spending per household is under more scrutiny. (americanpetproducts.org)
Industry coverage around Global Pet Expo pointed to the same momentum, with exhibitors and trade outlets emphasizing innovation in AI-enabled products, cat-focused launches, and wellness-oriented offerings. But APPA’s own framing is more grounded: full-year 2026 growth is projected near 4.4%, and roughly 2% of that is expected to come from inflation, meaning not all of the gain reflects true volume growth. That distinction is important for clinics, manufacturers, and distributors trying to separate demand strength from price effects. (americanpetproducts.org)
APPA President and CEO Pete Scott said the market remains “healthy” and “evolving,” while Vice President of Research Insights Ingrid Chu said the latest data shows a “broadening base” of pet ownership growth across generations. Their comments align with APPA’s broader business guidance, which argues that resilience is real, but opportunities will increasingly depend on understanding who is spending, where they’re pulling back, and which categories they still view as nonnegotiable. (americanpetproducts.org)
Why it matters: For veterinary professionals, this report is most useful as a demand signal. APPA’s data suggests pet parents still view care as essential, even as they become more price-aware and selective in adjacent categories. That may support continued demand for preventive, chronic, and medically necessary services, but it also reinforces the need for clearer communication around estimates, prioritization, and payment options. The insurance backdrop adds another layer: NAPHIA reported U.S. pet insurance premium volume reached about $4.7 billion at year-end 2024, with insured cats growing faster than dogs and taking a larger share of the market. For clinics, that could mean more insured patients over time, especially among younger and cat-owning households. (americanpetproducts.org)
The report also lands at a moment when many practices are balancing resilient long-term demand against short-term affordability pressure. APPA’s findings don’t erase concerns about pricing sensitivity, deferred care, or uneven visit trends. But they do suggest the underlying human-animal bond remains economically durable, and that veterinary care is still closer to a protected household expense than a discretionary one. That’s a meaningful distinction for practice planning, workforce investment, and service-line strategy. (americanpetproducts.org)
What to watch: The next key question is whether APPA’s projected 2026 growth to $165 billion holds through the year, and whether essential-care spending, cat household growth, and insurance adoption translate into stronger veterinary utilization rather than just higher nominal spend. (americanpetproducts.org)