The landscape of pet buying behavior has undergone significant shifts in recent years, particularly in the wake of the COVID-19 pandemic. More pet owners’ spending habits are stabilizing, with less reporting increases to their overall pet expenditures since 2022. This suggests that pet owners are settling into new spending patterns, which is valuable information for businesses looking to understand and cater to their customer base.
Where do Pet Owners Shop in 2024?
When it comes to where pet owners are spending their money, it's no surprise that the bulk of their spending continues to go towards food, products, and veterinary services. Post-COVID buyer shifts have changed to an omni-shopper approach, splitting between brick-and-mortar and online purchasing. Online shopping reached a high due to COVID-19 closures and has become the new norm, including subscription-based purchases.
In the National Pet Owners Survey, which APPA now conducts annually, pet care buyers were asked where they make their purchases.
Nearly 80% of all dollars spent on pet care are spent by omni-shoppers, and 57% of buyers shop both in-store and online1
39.7% of buyers exclusively buy in-store1
3.35% of buyers exclusively buy online1
Online Purchasing Remains an Important Pet Retail Channel
Online purchasing shifted due to the COVID-19 pandemic and has remained steady ever since. While most buyers take an omni-shopper approach, 36% of pet owners report increased online purchases in the past year.2The top three items being purchased online are pet food, treats, and toys. This behavior became the norm during COVID, and we see it persisting well after stores opened. Households with children under 18 are much more likely to have increased their online pet product purchases; it’s more convenient and efficient for them.3
Pet businesses must leverage technology and digital platforms to engage with customers more effectively. Online sales and e-commerce have seen a significant uptick across various industries, and the pet sector is no exception. By enhancing their online presence, pet businesses can continue to reach pet owners looking for convenient shopping options from the comfort of their homes.
Pet Spending Grows Modestly Alongside Inflation
At the end of 2023, more than 113 million households were buying pet products, with an average value per buyer of $738. That’s a 7.4% increase over the previous year and rising.4 As of 2024, “spending habits are stabilizing, with less reporting increases to their overall pet expenditures since 2022.”5 Inflation is likely a significant factor influencing pet owners' decision to spend less. Despite this, it's noteworthy that employment for pet owners has remained relatively stable, with most indicating that the economy has not adversely affected their employment status. Nevertheless, 19% of pet owners have reported experiencing some form of employment disruption, such as reductions in hours or furloughs, which could further contribute to the decrease in spending.6
Branding Plays a Big Part in Purchasing Decisions
Understanding the preferences of pet owners across different generations is crucial for brands looking to capture and retain a loyal customer base. Brand names are much more important to Gen Z's and Millennials than Boomer pet owners, making branding a big opportunity for strategy and marketing departments. 73% of Gen Z dog owners and 69% of cat owners said that brand name is important when purchasing pet products. While 67% of Millennial dog owners and 70% of cat owners said that brand name is important when purchasing pet products.7
The growing importance of having a visual-platform strategy. Millennials and Gen Z prefer visual platforms like YouTube and TikTok for discovering and learning about new pet products. Businesses need to leverage these platforms through focused and engaging content to capture their attention and to market to these generations effectively. This means that younger generations continue to be more tech-driven (e.g., online, social) when it comes to researching products and services, shopping, and making purchases.
Discover More Pet Owner Spending Trends with APPA’s Strategic Insights Report
Access more detailed data on pet owner consumer behavior when youaccess APPA’s report,APPA’s State of the Industry 2024: Strategic Insights from the National Pet Owner Survey for economic insights, pet owner spending habits, and pet ownership trends.
Jun 11, 2024
