The State of the Pet Industry: 2025 Report

Welcome to Pet Age’s inaugural State of the Pet Industry report. Pets are as beloved as ever in the United States, evidenced by the American Pet Products Association (APPA) State of the Industry Report 2025 revealing that 94 million households (71 percent) of U.S. households owned at least one pet in 2024. In addition, the buying power of those pet parents is strong, as APPA’s report notes that 184 million adults live in a household with a pet.

However, while the pet industry has been called everything from “strong and resilient” to “bulletproof,” there is little doubt that it could benefit from a boost. At a time when tariffs and general economic uncertainty are hovering over the country like a dark cloud, the upcoming holiday season will be an important indicator of how the year may finish.

Pet Age has gathered data from APPA’s 2025 State of the Industry Report and Circana, a global market research firm, with the results offering a ground-level view of market conditions and emerging trends, from consumer demand to competitive landscapes, to allow pet manufacturers and retailers to understand the current landscape, identify opportunities and achieve better growth in the current business climate.

By shining a light on factors such as market demands and competitive forces, Pet Age hopes this actionable data can help companies, both large and small, develop strategies for market entry, product development and resource allocation to foster growth and innovation.

Pet ownership in the United States continues to grow despite changing demographic and economic circumstances. According to the American Pet Products Association (APPA) Americans spend $112.3 billion annually on pet, pet services and pet products. And despite recent economic challenges, the association’s most recent consumer survey revealed that 77% of U.S. consumers say they have not had their pet ownership affected by the current economy.

Not surprisingly, dogs remain Americans’ pet of choice with 51% or roughly 94 million households currently owning one or more canine companions. Cats ranked second with approximately 37% (or 49 million) of U.S. households owning one or more cats. According to APPA 63% of households currently have two or more pets, a number that has remained relatively consistent for the past several years.

Demographically, Millennials make up the largest segment of pet owners, though the largest growth in the category comes from Gen Z, with the oldest members of this cohort now entering their prime period of household formation. Pet ownership among Gen Z rose from 11% in 2018 to 20% in 2024 and this group is also the most likely of the generations to have a multi-pet household, with 70% having two or more pets. Conversely, pet ownership among Baby Boomer dropped over the same period from 29% to 25% as the did the percentage of households having multiple pets, falling from 56% in 2018 to 52% in the latest APPA survey.

When it comes to shopping for pet products, consumers are behaving much as they do in other shopping areas with increasing numbers shopping online and, more importantly, demonstrating a strong preference for omnichannel. According to a Nielsen IQ study, fully 58% of pet shoppers say they shop both in-store and online, reinforcing the importance for pet store operators of maintaining a strong presence in both worlds.

Subscription services also continue to gain traction with pet parents with fully 52% indicating they use a subscription for some pet-related purchases, according to APPA.