APPA's 2026-2027 U.S. Pet Industry Trends & Forecast

Rising sales do not mean everyone is spending more

APPA projects approximately 4.4% growth in pet spending for 2026, with inflation contributing roughly two percentage points. That distinction matters: some additional revenue reflects higher prices rather than more products or services purchased.

Its survey also found that about half of pet owners reported unchanged spending in 2025, while 22% spent less.

A business can therefore operate in a growing industry and still encounter customers reducing orders, choosing lower-priced alternatives or dropping optional purchases. National expenditure is not a measure of how comfortable the typical household feels.

Consider a hypothetical customer who used to spend $60 a month and now spends $65 because the same purchases cost more. Revenue rises by 8.3%, but that customer has not become more enthusiastic about shopping. There may be less room left for an additional toy or grooming appointment.

For retailers, revenue growth is most informative alongside units sold, purchase frequency and customer retention. Those measures help distinguish expanding demand from a more expensive shopping basket.

Food and veterinary care explain much of the market

APPA’s 2025 category figures put food and treats at $68.3 billion, veterinary care and product sales at $41 billion, supplies, live animals and over-the-counter medicines at $34.4 billion, and other services at $14.3 billion.

Food and treats plus veterinary care account for approximately 69% of the $158 billion total. The calculation is straightforward: $109.3 billion divided by $158 billion.

That concentration helps explain why the industry cannot be understood through fashionable accessories alone. Routine feeding and healthcare represent a much larger part of the spending picture.

The categories also require careful reading. “Other services” includes boarding, grooming, insurance, training, sitting and walking. It is broader than a measure of visits to groomers or boarding facilities. Likewise, veterinary care and product sales combines services with products.

These figures are useful for understanding market scale. They are not a ready-made annual budget for an individual animal. A young indoor cat, an older dog needing ongoing treatment and a household with several pets create very different spending patterns.

Cats deserve a bigger role in the story

APPA’s September 2026 Cat Report announcement estimated that 53 million U.S. households owned a cat in 2025, up 5% from the previous year. Both two-cat households and households with three or more cats increased by 7% year over year.

Men represented 43% of cat owners, while Gen Z accounted for 22%. Those figures challenge the narrow customer stereotypes that can still shape cat-product packaging and advertising.

The spending picture was also active. Average reported cat-food spending reached $337.53 in 2025, a 9% increase. That is a survey spending measure, not a recommended food budget or proof that owners purchased 9% more food.

APPA describes Gen Z cat owners combining affordable staples with selected purchases they perceive as offering wellness or enrichment benefits. Nearly half purchased cat food at supermarkets.

The implication is that a customer can be price-conscious without choosing the cheapest option for every purchase. A household might compare litter prices closely while spending more on a particular food or climbing structure.

For businesses, that suggests testing specific propositions: easier cleaning, replaceable components, useful pack sizes or products that work in homes with several cats. “Premium” is less informative than explaining what improves the owner’s routine.

Dog owners are changing the basket

APPA’s July 2026 Dog Report announcement put veterinary care at 29% of dog owners’ spending and food at 27%. Together, they represented more than half of the reported budget.

Shopping channels reflected the search for value: 32% purchased dog food at supermarkets and 22% at discount retailers. These are purchasing measures, not mutually exclusive customer groups.

Average treat spending fell 11%, even as purchasing 11 or more treat packages a year became more common. That is a reminder that frequent purchasing does not necessarily mean greater spending.

Care routines were shifting too. APPA reported that 51% groomed their dogs at home, while spending on boarding, salon grooming and mobile grooming declined in 2025.

For a grooming business, the useful response is to investigate which appointments customers are reducing and why. A shorter maintenance visit might address a different need from a full service. For a retailer, clear demonstrations and instructions could make a grooming tool more valuable than another broad claim about quality.

These are possible business responses to the findings, rather than outcomes APPA has measured. They need testing with actual customers.

Younger owners are only part of the growth story

Gen Z attracts attention, but APPA also identified Gen X as a contributor to ownership growth across dogs, cats and smaller pet categories. Its 2026 industry release reported a 12% year-over-year increase in Gen X pet ownership.

An age label alone is a limited guide to what somebody needs. Two owners from the same generation may differ more in housing, working hours, number of animals and access to veterinary services than in their shopping preferences.

A more useful starting point for product planning is a concrete household situation. Someone caring for three cats needs a different replenishment routine from a first-time owner buying supplies for one kitten. A bird owner looking for replacement cage components has a different problem again.

For marketing, demonstrate that you understand the task. Show how a product is cleaned, stored, refilled or used. Those details give people a basis for deciding whether it belongs in their home.

What a realistic 2027 outlook looks like

There is no need to invent an official number to make the outlook useful. A reasonable working expectation is continued competition for recurring purchases, with owners deciding selectively where an upgrade is worthwhile.

For a numerical illustration, if spending reached APPA’s projected $165 billion in 2026 and then grew by an assumed 3% in 2027, the result would be approximately $170 billion. At an assumed 5%, it would be approximately $173.3 billion. These are arithmetic scenarios, not APPA projections or a statistically estimated forecast range. If the 2026 result changes, both starting points change.

The more revealing question is what produces any increase. Higher prices, more pet-owning households, additional animals within existing households and greater purchasing per animal have different implications for businesses.

Four developments would be especially useful to watch: whether sales volumes rise alongside revenue, whether customers repeat discretionary purchases, whether cat ownership momentum continues, and whether paid services regain visits.

A business should be cautious about assuming that a higher national total will automatically support higher prices. Its own reorder rates and lost-customer feedback may tell a different story.

Value needs a price and a practical explanation

Pet owners can apply the same scrutiny to their own spending.

Suppose an automatic feeder costs $120 and requires a $5 monthly subscription for the features you want. Over three years, the combined cost is $300 before other running costs: $120 for the device plus $180 in subscriptions. That does not make the feeder poor value. It makes the comparison more complete.

For a recurring supply, compare equivalent quantities and the amount actually used. For a subscription, check the price after the introductory offer and whether delivery frequency matches consumption. A discount loses its benefit if supplies accumulate unused.

Businesses can make these comparisons easier. Clearly state what is included, what requires an additional purchase and which parts can be replaced. Explain an expensive product’s practical advantage in terms a customer can check.

That is the central commercial question heading into 2027: which purchases will owners continue to choose when they review the bill?

APPA’s research provides evidence of a large, varied market with committed customers. Earning those customers’ next purchase requires understanding the household behind the spending figure.