November 29, 2017

According to John Gibbons of A GPS for Pet Businesses, $67.29 billion was spent on companion animals in 2016. Despite increases in three industry segments, overall pet spending fell $0.46 billion (-0.7 percent) in 2016, Gibbons reported in “2016 U.S. Pet Spending by Generation – The Younger Groups Step Up!”

“Our initial analysis indicated that much of the decrease can be attributed to pet parents value shopping for premium pet food,” Gibbons wrote in recently released report. “This shopping behavior which is so heavily driven by price has implications for all industry segments and retail channels. We will continue to monitor the situation and dig deeper into the pet spending demographics.”

Not only is overall pet spending slightly down, but so is the amount that baby boomers are spending in the industry. While the generation still dominates pet spending, its share has fallen from 47.5 percent in 2015 to 44.0 percent in 2016, according to the report.

In fact, the three oldest generations lost 4.4 percent in market share, but that was picked up by the millennials, +2.6 percent and Gen Xers, +1.8 percent.

“In terms of 2016 performance, it was all about the younger crowd,” Gibbons wrote. “Millennials and Gen Xers were up $2.79B. The older groups spent $3.25B less. Also, although boomer spending is up minimally, $0.14B since 2014, it was the $3.32B increase by millennials and Gen Xers that has fueled the industry’s growth over that period.”

For a full breakdown of how the generations spent within the pet industry, read Gibbons’ report here.

Share This Story On:

Stockroom //
New Products

Digital Guide

CBD Trends

This digital guide provides valuable information on the subject of CBD, including content on dosage and the importance of being fully transparent about the product’s origin

Dog & Cat Needs

With dogs and cats being members of the family, there's vital information to know in order to serve their pet parents.

Pet Health

This digital guide describes a variety of health issues and the ways that pet parents can care for their pet's well-being through pet supplements..

Pet Nutrition

Discover how science, technology and pet owning lifestyles are changing the industry.

Pet Parenting

This digital guide dives into the human-animal bond, and the roles that pet parents play in the development of their companion animals.

Pet Supplements

This digital guide provides valuable information on the subject of pet supplements, including details on the NASC and how brands should earn consumer trust.

Enews Subscribe

Subscribe To Pet Age
Sign up for the weekly e-newsletter, print magazine and more. Sign Up