Pet Industry Outlook 2023: Trends, Statistics & Insights

The pet industry is experiencing a remarkable boom, with pet ownership on the rise and pet-related spending reaching new heights year after year. 

As of 2023, the pet industry continues to thrive, capturing the hearts and wallets of millions of people worldwide, and there is no sign of it slowing down.

Key Statistics

• A significant 66% of U.S. households, accounting for a staggering 86.9 million homes, own a pet (American Pet Products Association, 2023). 

• Dogs (65.1 million) are the most popular pet, followed by cats (62 million) (American Pet Products Association; World Animal Foundation, 2023).

• The pet industry’s global worth is a jaw-dropping $261 billion (World Animal Foundation, 2023). 

• Pet food sales witnessed a remarkable 18% increase in the United States in 2020 due to a surge in demand for quality pet nutrition by pet owners (Pet Food Industry, 2021). 

Overview Of The Pet Industry In 2023

According to projections from Exploding Topics (2023), the pet industry is expected to reach a value of $358.62 billion by 2027. 

This growth is driven by a compounded annual growth rate (CAGR)** of 6% over the next five years, fueled in large part by the rapid expansion of eCommerce, innovative pet technology products, mobile apps, and social media. 

Many new (and old) pet parents are also looking for ways to provide the best possible care for their furry friends, and there has been a notable shift towards premium and organic pet foods, with an emphasis on pet health and wellness. 

The pet insurance industry is also growing, with more pet parents opting for an insurance policy to ensure their pets’ health.

This dynamic growth is accompanied by a significant surge in pet ownership, with millennials emerging as the largest demographic of pet owners (Forbes, 2023).

These factors all highlight the industry’s ongoing success, as it embraces technological advancements and adapts to the changing preferences of pet owners.

The pet industry is expected to continue its growth in the coming years, with younger generations driving the demand for pet care products and sustainable practices.

Market Size And Growth Rate

According to recent pet industry statistics as reported by Exploding Topics (2023), the pet industry has grown 450% over the past 25 years. 

Currently, there are over 630 different pet food brands available on the market and over 22,000 unique SKUs*. 

Global Pet Market

The pet industry is worth a staggering $261 billion globally (World Animal Foundation, 2023). 

Pet owners are willing to spend more money on their pets, and companies are responding by providing high-quality products and services to meet their needs.

How U.S. Pet Owners Spend Their Money

Americans spent $136.8 billion on their pets in 2022, up 10.68% from 2021 (American Pet Products Association, 2023). 

This includes spending on:

• Pet food and treats ($58.1 billion)
• Supplies, live animals and over-the-counter medications ($31.5 billion)
• Vet care and product sales ($35.9 billion)
• Other services such as boarding, grooming, insurance, training, pet sitting, and walking ($11.4 billion)

Cost Of Pet Ownership

Pet ownership can be expensive, and veterinary care, grooming, food, treats, and other outlays can add up quickly. 

Per Forbes, Americans spend an average of $730 per year on their dogs and $687 per year on their cats, with cat owners spending the most on food, veterinary care, and toys. 

Meanwhile, U.S. pet-owning households spent an average of $326 on veterinary care in 2020. 

Forbes reports that pet industry spending has increased 115% since 2011, with pet food and treats making up 40.5% of all pet product spending.

Pet Ownership Statistics

Pet ownership in the United States has been on the rise for the past few decades. 

As of 2023, 66% of American households (86.9 million homes) own a pet, according to the 2023-2024 American Pet Products Association National Pet Owners Survey. 

Forbes reports that households with annual incomes of $100,000 and over are most likely to own pets, and that homeowners are more likely to own pets than renters.

Types Of Pets Owned

Dogs (65.1 million) are the most popular pet in the U.S., followed by cats (62 million).

Freshwater fish (11.1 million) are next in line, followed by small animals (6.7 million), birds (6.1 million), reptiles (6 million), saltwater fish (2.2 million), and horses (2.2 million).

The current 66% of US households owning a pet is a significant increase from 56% in 1988, indicating that pets have become an essential part of many people’s lives (American Pet Products Association, 2023).

Purchased Pets vs. Rescued Pets

According to Forbes (2023), 42% of dog owners and 43% of cat owners got their pets from a store, while 38% of dog owners and 40% of cat owners adopted their pets from an animal shelter or rescue.

As a proud fur parent of multiple rescue cats and dogs over the years, I find it encouraging that 4.1 million animals are adopted from shelters every year, and that pet adoptions are becoming increasingly popular.

Unfortunately, many pets never get a second chance.

According to the ASPCA, each year, approximately 920,000 shelter animals are euthanized (390,000 dogs and 530,000 cats).

So please, if you are thinking of adding a pet to your household, consider checking with your local animal shelter or rescue first to give one of their animals a much-deserved loving home. 

The bond between humans and their beloved pets will continue to bring joy and happiness for many years to come. 

Pet Ownership Trends

But back to the stats.

Millennials are the largest pet-owning demographic, making up 32% of all pet owners, followed by Gen X (25%) and baby boomers (24%). 

Gen Z pet owners are far more likely than other age groups to have a variety of pets. 

Gen X pet owners are the least likely to own pets that aren’t cats and dogs (American Pet Products Association, 2023).

Future Of The Pet Industry

The pet industry is expected to continue its growth trajectory, with pets potentially becoming a $200 billion industry by 2030. 

Technology will play a larger role, with new products such as GPS tracking collars and at-home DNA tests becoming more popular. 

Demand for sustainable and eco-friendly products for pets is increasing.

Pet Care Products And Services

Pet owners are spending more on their pets than ever before, with pet care products and services a significant part of this spending.

Pet food and treats are the largest category of pet spending, followed by veterinary care and pet supplies. 

Pet owners are also spending more on services such as grooming, boarding, and pet insurance.

The pet grooming industry alone is expected to reach $14.5 billion by 2025 (Forbes, 2023).

Pet Food Sales

The global pet food industry has seen significant growth over the past decade, influenced by factors such as the COVID-19 pandemic, demographic changes, and increased disposable income. 

Pet Food Industry (2021) reports that pet food sales saw an 18% increase in the United States in 2020, and that the average U.S. household spent $230.38 on pet food in 2020 (also an 18% increase).

Pet owners are also increasingly “humanizing” their pets (and rightly so!), leading to higher spending on pet food. 

Trends in the pet industry include a rising demand for premium quality products with natural ingredients, superfoods like chia and kale, and clean-label options. 

Alternative protein-based pet food products have gained popularity for pets with allergies, while sustainability concerns drive the adoption of eco-friendly choices. 

Overall, the industry is shifting towards healthier and more conscious pet food options to meet evolving consumer preferences (Statista, 2023).

Pet Insurance

The global pet insurance market size is expected to be worth around $17 billion by 2032, up from $6 billion in 2019, growing at a CAGR of more than 16% from 2019 to 2026 (KaleidoScot, 2023). 

Unsurprisingly, the pet insurance industry is becoming more competitive, with new products and services being offered by online retailers and traditional insurance companies.

Pet Accessories

The pet accessories market is also experiencing steady growth, with an estimated CAGR of 6.2% between 2022 and 2027, to reach an estimated $13.24 billion (Technavio, 2022). 

When it comes to specialized pet accessories, pet toys and pet furniture are the most popular choices among pet owners. 

However, there is also a rise in the availability of smart accessories, such as smart beds, smart pet feeders, smart toys, and GPS or AirTag pet collars. 

Pet Technology And E-commerce

The rise of e-commerce has played a significant role in the significant growth and evolution of the pet industry over the past decade or so.

E-Commerce

E-commerce has been a game-changer for the pet industry, making it easier for pet owners to purchase pet products and accessories online. 

For their part, online retailers have been quick to respond to the needs of pet owners, offering a wide range of pet care products and services at competitive prices. 

Leading online retailers for pet products in the U.S. include Amazon, Target, Walmart, Costco, and Chewy (Statista, 2022).

Online Pet Industry

As part of this significant shift towards e-commerce in recent years, more and more pet owners are opting to purchase pet products and accessories online.

According to Statista (2022), approximately a fifth of global household and pet care sales were generated through e-commerce in 2020, while the remainder was made in-store. 

Worldwide e-commerce sales are estimated to reach about 30% by 2025.

Pet Technology

Pet technology is another area that has been fueled by significant growth in recent years. 

In tandem with the increasing demand for pet care products and services, pet technology has become an important tool for pet owners to monitor their pets’ health and well-being. 

From mobile apps to social media platforms, pet technology has made it easier for pet owners to stay connected with their furry friends and ensure their health needs are met.

Frequently Asked Questions

What Are The Pet Industry Growth Projections For 2023?

The pet industry is projected to continue its steady growth in 2023. 

According to recent statistics, the global pet market is currently worth over $261 billion, and is expected to grow even more in the coming years. 

In the United States, people spent close to $136.8 billion on their pets in 2022 (American Pet Products Association, 2023).

What Are The Latest Pet Industry Trends For 2023?

The latest pet industry trends for 2023 include a focus on pet health and wellness, increased demand for natural and organic pet products, and a growing interest in sustainable and eco-friendly pet products. 

Other popular trends include the use of technology in pet care, such as GPS and AirTag collars, smart toys, and pet cameras, and the rise of pet-friendly workplaces and travel accommodations.

How Much Is Spending In The Pet Industry In 2023?

The pet industry in 2023 is expected to continue its upward trend. 

According to Forbes (2023), pet industry spending is projected to reach $143.6 billion.

What Is The Largest Sector In The U.S. Pet Industry?

The pet food industry is one of the largest sectors within the pet industry, with sales of $58.1 billion in 2022 (American Pet Products Association).

Is The Pet Industry Still Growing?

Yes, the pet industry is still growing. 

Despite the challenges posed by the COVID-19 pandemic, the pet industry has continued to experience steady growth in recent years. 

In fact, many pet industry sectors, such as pet food and pet supplies, saw an increase in sales during the pandemic.

Which Is More Popular In 2023, Dogs Or Cats?

It is difficult to predict which will be more popular in 2023, dogs or cats. 

However, as of 2022, dogs were more popular than cats in the United States, with 65.1 million households owning a dog compared to 46.5 million households owning a cat. 

*A SKU (Stock Keeping Unit) is a unique identifier assigned to a specific product or item within a product range.

**CAGR stands for Compound Annual Growth Rate. It is a measure used to calculate the average annual growth rate of something, such as a market or an investment, over a specific period of time. It takes into account the compounding effect of growth over multiple years.

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Resources

• 50 Alarming Animal Cruelty Statistics – Enough to Crush One’s Heart – Worldwide Animal Foundation
• 75+ Amazing Pet Industry Stats (2023) – Josh Howarth/Exploding Topics
• E-Commerce And Store-Based Share Of Global Household And Pet Care Retail Sales From 2015 To 2020 With A Forecast From 2021 To 2025 – Daniela Coppola/Statista
• Pet Accessories Market Growth by End-user, Product, Distribution Channel, and Geography – Forecast 2023-2027 – Technavio
• Pet Food – Worldwide – Statista
• Pet Industry Market Size, Trends & Ownership Statistics – American Pet Products Association
• Pet Industry Statistics – Interesting Numbers of Global Pet Market! – Jen Flatt Osborn/World Animal Foundation
• Pet Insurance Market 2023, Emerging Growth Prospects, and Developing Eminent Players Profile By 2026 – Tan May/KaleidoScot
• Pet Ownership Statistics 2023 – Michelle Megna/Forbes
• Pet Statistics – ASPCA
• US Pet Food Spending, Worldwide Pet Food Sales Up In 2020 – Debbie Phillips-Donaldson