State of the US pet food and treat industry, 2023

This article was published in Pet Food Processing&#;s Buyers Guide. Read it and other articles from this issue in the digital edition of the Buyers Guide here. 

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In , the US pet care industry surpassed the $100 billion sales milestone, and years later has showed no signs of slowing down. According to the American Pet Products Association&#;s (APPA) State of the Industry data, total pet industry sales topped $136.8 billion in , representing an increase of 10.8% from . Bloomberg Intelligence (BI) predicts that the US pet market will achieve $195.6 billion in sales by .

&#;Pet spending in was up nearly 11% from the previous year,&#; said Peter Scott, president and chief executive officer of APPA, following the release of the State of the Industry data. &#;While we outperformed our forecast, we know this increase can be attributed in large part to higher than anticipated inflation, and we expect spending will follow a similar trajectory and remain steady in .&#;

Sources: Euromonitor International; * estimated year-end sales; Illustrations by ©VectorMine &#; stock.adobe.com

Globally, pet food sales are expected to grow to $133.9 billion in , according to year-end estimates by market research provider Euromonitor International. In the United States, pet food and treat sales are expected to reach $53.2 billion by the end of . Dog and cat food exports increased 20% from $2.05 billion in to $2.4 billion in , according to the US Department of Agriculture&#;s Global Agricultural Trade System.

While food and treats still represent the highest spend category for pet parents, other pet-related products and services continue to make the list of necessary expenses. The APPA&#;s State of the Industry report showed:

• $58.1 billion was spent on pet food and treats (a 16.2% increase from )
• $35.9 billion was spent on veterinary care and product sales (a 4.7% increase over )
• $31.5 billion was spent on pet supplies, live animals and OTC medication (a 5.7% increase from )
• $11.4 billion was spent on other services, including grooming, dog walking and boarding (a 20% increase over )

&#;Overall, we are excited to report all signs continue to point to the strength of the industry,&#; Scott said.

According to Chicago-based market research firm Circana, all pet food formats saw growth between June and June .

Dry dog and cat food sales both had strong years with increased growth from prior years. In the 52 weeks ended June 18, , dry dog food sales increased 19.7% (growth between and was 12.3%). Dry cat food sales increased 21.8% after experiencing a 13.2% increase between and . Nestlé Purina and Mars Petcare are the top two companies leading the dry dog food category, while Nestlé Purina and Big Heart Pet Brands lead the dry cat food category.

Wet dog and cat food sales saw 12.5% and 14.6% sales increases, respectively, compared to the year prior.

While the refrigerated/frozen category in both dog and cat food is considerably smaller, the increase in category sales was strong once again with a 31.7% increase in dog food and a 19.4% increase on the cat side. The category also saw solid sales growth between and , with increases of 35.8% and 22.5% in dog food and cat food, respectively.

The treat category continues to produce strong sales both on the dog and cat side. Dog treats increased 12.8% from $3.54 billion in to $3.95 billion in , with Big Heart Pet Brands and private label brands leading the category. Cat treats saw slightly higher growth with a 15.1% increase from $1.12 billion in sales to $1.27 billion in , with Mars Petcare and Nestlé Purina in the top two spots.

Source: Euromonitor International; Illustration by ©VectorMine &#; stock.adobe.com

 

Pet owners

According to the - APPA National Pet Owners Survey, 66% of US households own at least one pet, which equates to 86.9 million households. This pet ownership is now reflected equally among younger and older generations of pet owners. For the first time, APPA reported, the number of Gen Z and Millennial pet owners equals the number of Gen X and Baby Boomer pet parents.

&#;While pet ownership has normalized somewhat, the most recent version of the National Pet Owners Survey reveals some very interesting trends that will have significant implications for the industry this year and beyond,&#; said Anne Ferrante, senior vice president of member relations and business development at APPA. &#;This includes differences in pet ownership by generation, the effect of the economy on spending, shifts in where people are acquiring pets, trending product categories and more.&#;

Pet ownership among the two youngest generations rose steadily from to . According to APPA, 11% of Gen Z owned a pet in , which rose to 14% in and 16% in . Additionally, 31% of Millennials owned a pet in , which rose to 32% in and 33% in .

Source: American Pet Products Association, &#;- APPA National Pet Owners Survey&#;; Illustration by ©VectorMine &#; stock.adobe.com

For older generations, pet ownership has fluctuated over this period. For example, 26% of Gen X owned a pet in , which fell to 24% in , but then rose slightly in to 25%. Roughly 29% of Baby Boomers owned a pet in , which declined slightly to 27% in and fell to 24% in . Pet ownership has continued to fall among the oldest generation &#; Builders (or the Silent Generation) &#; with 4% owning a pet in , 3% in and 2% in , according to APPA.

Approximately 36% of Millennial pet parents own a dog or cat. For Gen Z, 17% own a dog and 15% own cats. Among Gen X, 24% own dogs and 25% own cats. Additionally, 22% of Baby Boomers own dogs and 23% own cats.

Though Millennials and Gen Zers are beginning to dominate the pet space, they are spending less compared to the older generations, according to MarketWatch. On average, Gen X pet parents spend the most on their pets annually at $949, followed by Baby Boomers who spend $842. Next in line are Millennials spending $679 annually, followed by the Silent Generation at $495, and Gen Zers only spending $369 per year.

Over the past 10 years, US pet parents increased the amount of money they spent on their pets annually &#; from $631 in to $969 in , a 54% increase, according to MarketWatch. Despite this, the percentage of income pet owners dedicated to their pets has dropped to 0.88% in , from an average of 0.97% in .

By generation, Baby Boomers and the Silent Generation dedicate more of their income toward their pets, spending about 1.07% and 1.18% of their income on pet products, respectively. Gen Zers spend 0.83% of their income on their pets, Gen Xers spend 0.81%, and Millennials spend the least amount of their income (0.74%) on their pets.

These generational differences are most likely due to the older generations having a higher net worth accumulated, whereas younger generations, like Gen Zers, are just starting out on their own and have considerably lower net worth.

 

Where to shop?

Despite the many options of where pet parents can shop for pet food and treats, 38% of pet owners typically purchase pet products in person at brick-and-mortar stores, compared to 34% who shop online, according to APPA&#;s National Pet Owners Survey. However, many shoppers (12%) report that they browse for products online but then shop in-store, while 7% browse in-store and then buy online.

According to APPA, 90% of pet owners have made some type of online pet product purchase over the last 12 months. Food and treats are two popular pet product categories for online purchasing, with 80% of pet owners purchasing their pets&#; food online and 76% purchasing treats online in .

According to APPA, 42% of pet owners who purchase pet food online have the products shipped directly to their homes, while 46% pick them up inside the store and the remaining 13% pick them up curbside. Similarly, for those who purchase treats online, 39% have them shipped to their homes, 49% pick them up inside the store, and 13% pick them up curbside.

Source: Euromonitor International; * estimated year-end sales

Subscription-based purchasing is a convenient alternative for online pet product shoppers with 28% of pet food shoppers utilizing such services in , down from 31% in , and 18% of pet treat consumers using this online ordering service in .

In , 50% of pet owners claimed their online pet product purchasing habits stayed the same over the last 12 months, while 42% said they made more online purchases and 8% said they made fewer. Looking ahead, 31% of pet owners said they plan to utilize online purchasing with direct home delivery more, while 19% said they plan to order online and pick up inside the store more frequently, and 16% plan to leverage curbside pickup more often.

Regardless of where today&#;s pet parents purchase their pet food and treats, pet owners learn of new products and research the products they&#;re interested in both in-store and online. According to APPA, 52% of pet owners in learned about new products by browsing the pet food aisle and 45% of pet parents researched new products online. Social media (38%), friends and relatives (38%) and TV ads (35%) are also sources of new product awareness. Pet parents are least likely to consult pet store personnel (28%) or veterinarians (27%) for information on new products.

Fifty percent of pet owners go to pet product company websites to find information about new products, which is up from 45% in . Forty-five percent learn from YouTube, 43% from retailer websites, 42% from Facebook pages, 33% from product review sites, 32% from Instagram, 25% from TikTok, 18% from Twitter or Pinterest, 12% from blogs, and 11% from Snapchat.

 

Demand for treats

While pet food is the larger ticket item for pet parents, pet treats are a growing segment of the industry. The products in this category for dogs and cats feature emerging ingredients, functional attributes and a variety of formats. According to Packaged Facts, pet treat sales topped $11 billion in , including both brick-and-mortar and online sales. E-commerce held the largest share of this market at 34% of sales.

While dog treats still make up the majority of total treat sales at 78%, cat treat sales continue to grow at a quicker pace. Indulgent treats account for 36% of total pet treat sales, while rawhide or long-lasting chews, functional treats and dental chews make up smaller shares of the category.

&#;Demand for more cat-specific treats is growing every year, presenting more opportunities for marketers willing to expand their offerings to embrace this &#;second-class pet,&#;&#; wrote Shannon Landry Brown, brand manager for pet market research at Packaged Facts.

According to Packaged Facts, the top two trends fueling the US pet treat market are humanization and health and wellness.

The humanization of pets and the increase in preventive pet health care have led to a rise in products touting a variety of functional benefits including dental health, weight management and life stage-specific benefits. Pet parents are also seeking pet treats that mirror their own dietary demands, which often includes products without artificial flavors, colors and preservatives, in addition to other functional health benefits that pet parents might be looking for in their own products.

&#;Not only do pet owners use treats to encourage good behavior (for training purposes, for example), they use them to express feelings of affection; &#;treat time&#; has become a way for pet owners to show their pets just how much they mean to them,&#; Brown added.

 

Investing in the future

All pet food industry stakeholders remain optimistic despite continued challenges throughout the manufacturing industry. This optimism can be seen through ongoing investments in facility expansions and new plant construction over the past year. The sustained growth in all segments of the industry from ingredient and equipment suppliers to the pet food and treatment manufacturing operations themselves shows the continued confidence in this growing industry.

Source: USDA Global Agricultural Trade System; Illustration by ©VectorMine &#; stock.adobe.com

Earlier in the year, Nestlé Purina PetCare announced plans to construct a new manufacturing facility in Clermont County, Ohio. Freshpet broke ground on an expansion of its pet food manufacturing facility in Ennis, Texas, which will add 200,000 square feet to the plant. Blue Buffalo also broke ground on a plant expansion in March. Its Richmond, Ind., facility will also be expanded to add 169,000 square feet of processing and warehouse space.

Leading industry ingredient suppliers also made substantial investments in operations to further support the expanding industry. ADM invested $30 million in a new production plant in Valencia, Spain, to produce probiotic and postbiotic ingredients. Scoular broke ground on a $20 million expansion of its feed blending facility in Idaho to help meet custom feed needs for dairy and beef producers. At the beginning of May, DSM announced plans to construct a premix plant for the pet food industry in Tonganoxie, Kan. In July, Kemin Nutrisurance cut the ribbon at its first wet pet food pilot plant.

These operational investments, and many others are detailed in our new construction summary  &#;Scaling up supply&#; which starts on Page 21. These investments show how the pet food and treat industry, and the ancillary industries that support it, are doing their part to help meet evolving consumer demand. 

According to BI, the global pet industry is currently worth $320 billion and is expected to reach $493 billion by . If this 54% increase is to be reached, the pet food and treat industry will need to keep evolving its technologies, formulations, ingredient development and product innovations in order to fuel this anticipated growth.

Compare these trends and numbers to our  State of the Industry report here, and keep up with the latest pet food trends on our Trends page.

The pet industry is thriving right now.

The rise of ecommerce, the introduction of new pet technology products, and a shift toward premium, organic foods have all contributed to an already growing industry.

Pet ownership is also on the rise. Adults are putting off starting families and opting instead to head to the local animal shelter. Millennials became the largest pet-owning demographic, shaking up the industry with new preferences and demands.

But just how big is the pet industry? And what does the future hold for the space?

In this article, we&#;ll cover over 75 new statistics about the pet industry.

Contents:

Top Pet Industry Statistics For

Before you read on, here are some of the most eye-catching statistics to get you started:

• The pet industry is expected to reach $358.62 billion by .
• There are over 630 different pet food brands.
• Americans spend $103.6 billion on pet products per year.
• Pet industry spending has increased by 115% since .
• 86% of pet owners shop for their pets online.

As you&#;ll see from these stats, the pet industry is in a very strong position, with plenty of growth opportunities in the near future.

Pet Market Stats

Let&#;s begin this list of pet statistics by taking a look at the pet industry as a whole.

The pet industry has grown 450% over the past 25 years (SPINS)

Today's market for pet products is vastly different compared to a quarter-century ago. Specialty pet foods are now widely adopted. Demand for new pet technology, including microchips and at-home DNA tests, is on the rise.

Expect this growth to continue (and even pick up steam) in the coming years.

The pet industry is expected to reach $358.62 billion by (Globe Newswire)

Industry experts expect a 6% compounded annual growth rate (CAGR) in the pet industry over the next five years. The big driver behind that growth is largely technology.

Technology gives pet owners new ways to keep their pets safe, healthy, and entertained. Microchipping is becoming standard practice at many pet shelters. Pet treadmills and cameras are among the new products making headway in the market today.

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In total, there are currently upwards of 630 different pet food brands (Pet Food Processing)

Pet owners don&#;t lack options when it comes to feeding and rewarding their companions. The latest data suggests there are currently 630 distinct pet food and treat brands, up 71% from . Between those brands, there are over 22,000 unique SKUs.

The pet grooming industry is expected to reach $14.46 billion by (Grandview Research)

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Market experts are bullish on the pet grooming industry. They see it hitting $14.46 billion by , with half of that revenue set to come from the United States. Shampoo and conditioner are predicted to be the leading products, with a 52% revenue share.

Almost one-third of pet spending is put towards veterinarian care and products (Supermarket News)

Pet health and wellness represent a significant portion of the pet industry. With preventative medicine, telehealth, and routine care becoming more accessible (and more recommended by vets), pet healthcare is booming. Pet owners spend $31.4 billion per year on their pets&#; health.

Searches for &#;vet telehealth&#; have increased by 7,500% over the past 5 years.

The market for exotic animal pet products is worth $3.6 billion (Packaged Facts)

Small and exotic pets have their own unique product categories that, when taken together, represent a huge overall market. Each exotic pet type has its own dietary, shelter, and habitat needs. Food, water treatment solutions, bedding, and cleaning products are all regular purchases for exotic pet owners.

Pet Ownership Statistics

No matter the industry, marketers understand that knowing the customer is one of the keys to success. Here are some current pet industry demographic stats to keep in mind.

In the US, there are around 393.3 million pets (DoggieUK9)

That&#;s right, there are more pets than people in the US. And the difference is only projected to increase in the future. That&#;s good news for the pet industry, which relies on regular purchases of food, toys, and other products.

66% of US households own a pet &#; up from 56% in (Forbes)

More American households own a pet than they do homes.

Approximately 86.9 million US households own a pet.

4.1 million animals are adopted from shelters every year (ASPCA)

23% of dogs and 31% of cats are adopted from pet shelters.

In fact, pet adoption is so popular that it&#;s entered the cultural zeitgeist: there are over 50 million posts on Instagram using the #adoptdontshop hashtag.

Over 1 in 3 dog owners say they adopted their dog from a shelter (Humane Pro)

Adopting from shelters has become the most common way people acquire their pets. Nearly 1 in 5 dog owners say they adopted their canines from a friend, 1 in 10 purchased from a pet store, and 1 in 20 took them in as strays.

Around one-eighth of US households have a pet that is not a cat or a dog (Packaged Facts)

The pet industry isn&#;t all cats and dogs. The &#;other&#; pet category includes reptiles, rodents, birds, and more. &#;Other&#; pets have found their way into nearly one-eighth of American homes &#; a 13% increase from five years ago.

Millennials are the largest pet-owning demographic, making up 32% percent of all pet owners (APPA)

As millennials enter their 30s and 40s, they're looking for more stability &#; and animal companionship.

Today, almost a third of pet owners were born between and .

Baby boomers make up 27% of pet owners, Gen X 24%, and Gen Z 14%.

Millennials are three times more likely to be pet owners than they are to be parents (YPulse & Snipp)

Millennials may start having more children in the future, but they are approaching critical mass in pet ownership today.

Over three-quarters of 20 to 38-year-olds own a pet, with over half being dog owners.

How Do Pet Owners Spend Their Money?

Pet ownership is more than just buying food and treats. People spend money on vet care, toys, leashes, tech devices, and more for their pets. This section will explore consumer trends and how much revenue each segment of the pet industry generates.

Each year, Americans spend $136.8 billion on pet products (APPA)

was the first year the pet industry crossed the $100 billion sales mark.

In , spending hit $123.6 billion.

The pet product landscape is more diverse than ever. Organic kibble, pet technology devices, and subscription boxes are among the growing list of categories pet owners are spending their money on.

Americans spend $1,533 per year on their dogs (Forbes)

The average American spends just over $125 per month on their canine companions.

Cats, on the other hand, only cost an average of $1,499 per year (MarketWatch)

It's common knowledge that cats are low-maintenance compared to dogs.

As it turns out, they're also ($34 per year) easier on the wallet.

Pet industry spending has increased 115% since (Forbes)

The pet industry has few, if any, down years. According to the American Pet Products Association, sales went up predictably throughout the late 20th century and started really picking up momentum in the s.

Since then, spending on pets has been steadily climbing from just over $50 billion in . If the trend continues, pets could be a $200 billion industry by .

40.5% of all pet product spending goes towards pet food and treats (APPA)

Any pet owner will confess that feeding and rewarding their companions are the most expensive aspects of pet ownership. In , Americans spent $50 billion on kibble and treats.

When it comes to feeding those hungry critters, there&#;s no shortage of options. In , there were no fewer than 630 distinct pet food and treat brands.

The organic pet food industry is worth around $22.8 billion (Pet Keen)

In the eyes of their owners, pets are part of the family. And as humans consume more and more organic foods, they tend to hold their pets&#; diets to the same standard.

In fact, despite being relatively new, the organic and natural pet food industry has more than doubled over the past 10 years. Diamond Naturals and Castor & Pollux ORGANIX are among the leading brands in this sub-market.

Wearable pet technology products are forecast to generate $4.6 billion in revenue in (Grandview Research)

Wearable technology including radio frequency identification (RFID) devices, GPS trackers, and motion sensors is one of the fastest-growing markets in the pet industry.

The market, which was valued at $1.8 billion in , is set for explosive growth over the next half-decade.

Searches for &#;Petlibro&#;, a pet technology company, are up 99x+ over the past 5 years.

Around 3.45 million pets are insured in North America alone (NAPHIA)

While the average monthly cost of owning a pet might seem manageable for most people, unplanned vet bills can be outright catastrophic.

Insurance is a smart way to manage the financial risk that comes with ownership &#; be it homes, cars, or even pets.

The pet insurance industry has been growing at a healthy 23.4% average annual rate.

Approximately 41% of dog owners purchase premium dog food (American Kennel Club)

As people become more conscious of the food they're consuming, the same thoughtfulness is being applied to pet ownership.

Pet owners are willing to spend extra money knowing they're feeding their pets a nutritious and ethically sourced diet.

51% of millennial pet owners have purchased a toy for their pet in the past 6 months (YPulse)

Ask any pet owner, and they'll tell you that pets get bored. They need stimulation.

Pet-friendly toys keep them occupied (and away from clothing and furniture).

Around one-third of pet owners have purchased a CBD product for their pets (American Kennel Club)

From treats and supplements to shampoos and oils, CBD pet products are on the rise.

CBD pet brands promise relief for pets with anxiety and older pets with inflammation and joint pain.

How Big is the Pet eCommerce Industry?

Online retailers got a tremendous boost during the COVID-19 pandemic. As people are now used to turning to ecommerce companies to fulfill more and more of their needs, this segment of the market will likely continue its growth.

Ecommerce companies are responsible for around one-third of pet product sales (Emarketer)

Ecommerce has been a game-changer for companies and consumers alike.

Pet products are a natural fit for the ecommerce model. Owners can buy food, treats, leashes, and harnesses from wherever they are with a couple of quick taps. Overnight shipping and automated re-orders give online sellers a huge advantage over their brick-and-mortar competition.

Consumers spent an estimated $16.28 billion on ecommerce pet products in , making up 1.8% of all ecommerce sales.

86% of pet owners shop for their pets online (American Kennel Club)

Pre-COVID, around 60% of pet owners shopped online. Since the pandemic began, this number shot up to 86%.

Around 3 in 5 pet owners who shop online use Amazon for pet products (Pet Food Processing)

It&#;s no surprise that the world&#;s largest ecommerce store has such a large share of the pet products market. Most store-bought brands are available on Amazon and can be delivered within 24 hours.

This stat also suggests that there&#;s room for ecommerce brands to position themselves as an Amazon alternative.

9% of millennial pet owners have purchased a pet subscription box in the past 6 months (YPulse)

Subscription box brands take notice.

There are around 6.5 million potential customers in the under-40 market ready to pay for a monthly pet care package.

Around 1 in 8 dog owners have an online treat subscription (Today&#;s Veterinary Business)

For dog owners, running out of treats isn't an option.

For the first year or more of a dog's life, having a constant supply of treats is vital for training and obedience.

Subscriptions and auto-fill options are the perfect solutions for pet owners.

Conclusion

As you can see, the pet industry is massive and fast-growing.

People are adopting more pets, taking better care of their pets&#; health, and seeking out higher-quality products.

The pet industry is also expanding into exciting new verticals.

Pet tech, ecommerce, and natural pet food and treats are all areas of tremendous opportunity for pet suppliers to explore.

In fact, you might say the pet industry is currently in its Golden Age.

If you enjoyed our stats on the pet industry, take a look at our 7 pet industry trends to know and our 20 pet startups with a promising future.

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