U.S. Pet Industry Reaches $158 Billion in 2025, Poised for Continued Growth in 2026

New APPA State of the Industry Report reveals resilient pet ownership, shifting spending behaviors, and generational growth drivers.

STAMFORD, CONN (March 26, 2026) – The American Pet Products Association (APPA) announced yesterday the total U.S. pet industry expenditures in 2025 alongside its projections for 2026, demonstrating continued growth for the industry. The expenditures were released alongside the 2026 State of the Industry Report during Global Pet Expo, the pet industry’s premier event, showcasing more than 1,000 exhibitors with the latest pet product innovations.
 
The 2026 State of the Industry Report provides a comprehensive analysis of industry expenditures and key pet ownership trends with data visualizations of consumer habits, sentiment, and behaviors, with comparative data across generations. 
 
Said APPA President and CEO, Pete Scott: “The pet industry continues to be a healthy, evolving market. Growth remains steady, ownership is expanding across multiple generations, and consumers are becoming more intentional with how they spend, prioritizing essential care while still investing in their pets’ well-being. That combination creates a strong foundation for the year ahead.”
 
Key trends from the report include:
 
Industry Outlook & US Pet Ownership
The U.S. pet market continues to show resilience and momentum. Pet industry expenditures reached $158 billion in 2025 (+3.7%) and are projected to reach $165 billion in 2026. 2026 is off to a strong start, with full-year growth projected near 4.4%, of which roughly 2% is driven by inflation. In 2025, U.S. pet ownership remained stable, with 95 million U.S. households owning at least one pet. 
 
Dog Ownership continues to grow in 2025, while household spending moderates.
Ownership expanded from 51% of U.S. households in 2024 to 53% in 2025 (71 million U.S. households), translating to about 4 million additional dog-owning households year over year. Growth is led by Gen Z, Millennials, and Gen X, while spending is becoming more value-oriented, signaling resilient ownership but shifting spending patterns in response to broader consumer pressures.
 
Cat Ownership and spending rise in 2025, propelled by Gen Z and Millennials.
Cat ownership remains a key growth driver in 2025, increasing 5% year over year in 2025, at 39% of U.S. households (53 million), with growth propelled by Gen Z and Millennials. Share of wallet remains the same year over year among cat owners, and products remain the top expense for cat owners, indicating owners are willing to spend a significant portion of their budget on a wide range of supplies. 
 
Pets remain an essential part of the household, despite tightening consumer budgets.
Despite ongoing economic pressure, the perceived impact on pet ownership appears to be easing, as many owners make budget or lifestyle adjustments to maintain pet-related spending. While most owners continue to protect pet budgets (about half reported unchanged spending), value-seeking is rising, with 22% of pet owners spending less on their pets in 2025 (a 10% increase from 2024). Significantly more Gen Z and Millennials reported that the economy did not affect their pet ownership, and owners’ share of wallet across multiple species shows shifts away from discretionary items toward essential care.
 
The Gen X “empty nest” drives ownership growth across multiple pet species. 
Gen X emerged as an important contributor to pet ownership expansion (+12% YoY increase), signaling that growth is broadening beyond the younger, evident across multiple pet species: Gen X dog ownership increased 12% year over year, cat ownership increased 8%, and growth extended into smaller pet categories as well, including birds (+25% YoY), reptiles (+20% YoY), and freshwater fish (+17% YoY).  

"The data highlights a broadening base of pet ownership growth, from younger consumers entering the market to Gen X households expanding into multiple species,” said Vice President of Research Insights, Ingrid Chu. “Understanding these generational dynamics is essential for identifying new opportunities across products, services, and categories.”
 
Since 1988, APPA has published the APPA National Pet Owners Survey, the premier resource of its kind, providing in-depth data on pet owner behavior. APPA’s research and insights monitor consumer habits, identify short- and long-term trends and discover new opportunities in pet ownership, pet products and service consumption, published across eight species-specific reports, including State of the Industry, Dog, Cat, Fish, Reptile, Bird, Small Animal, and Horse. For more information about APPA’s available pet industry data, visit www.americanpetproducts.org/insights. Complementary media access is available upon request.