Americans Spent a Record $158 Billion on Pets in 2025

The Numbers Behind America’s Pet Spending Record

Americans spent a record $158 billion on their pets in 2025, according to data compiled by the World Animal Foundation drawing on American Pet Products Association figures – continuing a decade-long surge that has nearly doubled total industry spending since 2018. The U.S. pet care market was valued at approximately $273 billion globally in 2025. Average annual spending per pet reached approximately $1,445 for U.S. households, with dog owners reporting the highest individual expenses.

An estimated 95 million U.S. households – roughly 71.6% of all households – now own at least one pet, the highest level ever recorded since the APPA began tracking ownership trends in 1988. In that year, the comparable figure was 56%.

What Americans Are Spending On

The growth is not limited to food and veterinary care. Spending has expanded across premium services including pet insurance, grooming, daycare, boarding, and technology products such as GPS trackers and health monitoring devices. Nearly 6.4 million pets were covered by insurance in 2024, a 17% increase over the prior year.

Americans spent approximately $69.7 billion on pet food and treats alone in 2025, according to World Animal Foundation data. The U.S. pet daycare market is projected to reach $2.85 billion by 2030 as demand for professional care services continues to grow.

Younger Generations Are Driving the Increase

Gen Z pet owners report the highest average monthly spending across all age groups – approximately $148.50 per month – while millennials rank second at around $136 per month. These generational figures reflect a broader shift in how younger Americans relate to their pets. According to APPA survey data, 92% of millennial pet owners buy gifts for their animals, and 51% do so at least monthly.

A separate Newsweek survey found that 88% of Americans across all age groups consider their pet as much a part of the family as any human member of the household. Pet industry analysts describe this as the “humanization” of pets – a cultural shift in which animals are no longer seen as property or companions but as family members whose needs justify premium spending.

A Market With No Signs of Slowing

The U.S. pet industry is projected to continue expanding at an annualized rate of approximately 7.9% between 2025 and 2029, according to market forecasts cited by the World Animal Foundation. The $158 billion in 2025 spending represents a significant increase from $152 billion in 2024 and $147 billion in 2023. Even the period of elevated inflation in 2022 and 2023 – which dampened growth in many consumer categories – did not slow pet spending meaningfully, as owners continued to prioritize their animals.

For context, the pet industry’s 2025 spending total exceeded what Americans spent on alcoholic beverages or women’s clothing in the most recent comparable periods. The data positions pet care as one of the most inflation-resistant sectors in the consumer economy, driven not by necessity alone but by the emotional bonds that continue to deepen between Americans and their animals.

References: Pet Spending Statistics 2025 | Pet Ownership Statistics 2025