Insightful Pet Spending Statistics: Americans are Spending More on Pets Than Ever
US spending on pet care and products has seen a substantial rise over the past few decades, both overall and per capita. According to American Pet Products Association, 66% of US households have at least one pet - the highest level reported on record.
To better illustrate the growing size of the US pet market, we’ll be presenting the most important data in this article.
Key Pet Statistics for 2024 - Editor’s Choice
- The value of the pet industry in the US reached $136.8 billion in 2022.
- Average annual expenses for a pet dog amount to about $4,512.
- Only 2.48% of all pets in the US are insured.
- At 33%, dogs are the biggest influence driving first-home purchases among millennials.
- Buying pet supplies online is a preferred shopping method for 77% of millennials.
- More than half of millennials buy gifts for their pets on a monthly basis.
- In the past decade, American pet spending has more than doubled.
- About 46% of American pet owners spend the same amount of money or more on their pets’ health care as they do on their own.
- One in 10 American pet owners is delaying starting a family or having more children because of ongoing pet expenses.
US Pet Industry Analysis and Expenses
The pet industry is growing rapidly in the US and Americans are spending more on their pets than ever before, as the numbers clearly indicate. Here are some interesting statistics on that subject.
The US pet industry reached $136.8 billion in sales in 2022.
(Statista)
According to data from last year, the amount Americans spend on their pets keeps increasing every year, and the pet food industry makes up the biggest portion of the market, while also growing the fastest. In 2022, the spending on pet food rose to $58 billion, compared to $50 billion the year before.
Americans spend an average of $4,512 on their pet dogs every year.
(USA Today)
The recent survey from USA Today in October 2023 found that Americans spend an average of $376 per month on their dogs, with Gen Z responders being well above that average with $590 per month, or $7,080 per year.
Dogs were the biggest influence driving first-home purchases among 33% of millennials.
(USA Today)
The same report found that 42% of the millenials who still have not purchased a home are likely to be influenced by their dog or a desire to have one, indicating the real scale of dog ownership issues in rented properties, not only from landlords who aren't too keen on pets, but also from the fact that many feel that apartments simply don't offer enough space for dogs and their owners to live comfortably together.
Over the past decade, the amount of money Americans spend on pets has more than doubled.
(Statista, Now Habersham)
In 2010, the total money spent on pets was roughly $45.53 billion. Within the next decade, this spending reached $123.6 billion annually. The biggest annual increase was between 2017 and 2018, when spending jumped from $69.51 billion to $90.5 billion, which represented a whopping 30% increase.
By 2023, online sales are expected to make up about a quarter of the total American pet supply market.
(Packaged Facts)
Despite its rapid rise in popularity, particularly among the younger demographic, online shopping is yet to reach its true potential when it comes to pet products. In 2018, online sales of pet products only reached an estimated $9.5 billion.
However, this sector currently has one of the fastest growth rates of any channel. By the end 2023, eCommerce is expected to double its share and make up 26% of the total pet market, and grow to $28.08 billion.
78% of Americans are willing to spend more on pet food and treats in 2023 compared to the year before.
(Vericast)
The same survey found that 38% of pet owners are willing to spend more on vitamins, supplements and pet hygine products than they were in 2022.
Nearly a third of pet owners make pet-specific purchases for the purpose of social media posts.
(AAHA)
Unsurprisingly, Gen Z pet owners are the most likely to spend money on their pets for social media posts with 47% of survey respondents, followed by Millenials at 40%.
Pet Insurance Numbers
Pet owners want their furry friends to be happy and healthy, that much is certain. As such, it’s only natural that the pet insurance industry has also been on the rise in recent years.
Only 4% of dogs and 1% of cats in the US are insured.
(NAPHIA)
Out of the total amount of 5.36 million insured pets in 2023, dogs represent 80.1% while cats are at 19.9%.
However, this percentage is certainly set to grow, as the pet insurance industry is showing rapid growth. Last year alone, the market grew by 22.1%.
The rising US pet insurance market had more than $3.2 billion in gross written premiums in 2023.
(NAPHIA)
The US market has seen another year of massive growth, but it must be noted that the growth rate has slowed down compared to 30.4% last year, and is at the lowest rate in the past five years.
The average annual insurance premium for accidents and illnesses in 2023 stands at $640 for dogs and $387 for cats.
(Business Insider)
Pet insurance market data indicates that pet owners primarily seek to cover illness-related costs with their premiums, which is understandable, considering that digestive tract problems, infections, and cancer are relatively common pet health issues.
On the other hand, monthly insurance for accidents only costs an average of $16.70 for dogs and $10.18 for cats in 2023.
The market for pet insurance increased considerably during the COVID-19 pandemic, as 14% of previous and existing pet owners got new pets.
(APPA)
According to APPA’s biennial survey, about 25% of pet owners who acquired a new pet during the pandemic said that their decision was influenced by COVID-19.
Pet Industry Trends
Moving on, let’s take a look at some interesting general trends that have been noticed in the pet industry in recent years.
Pet apparel is among the fastest-growing categories in pet eCommerce, with the global industry being valued at $11 in 2022.
(Transparency Market Research)
Between 2017 and 2018, sales of pet dresses, T-shirts, and sweaters grew by over 200%. In the case of pet hoodies, sales grew by a staggering 622%. Estimates from 2023 indicate that the pet apparel market is expected to continue growing at a 6.1% CAGR until 2031, reaching $18.7 billion by that time.
An estimated 61% of cats and 59% of dogs in the US are considered overweight or obese.
(The Association for Pet Obesity Prevention)
Obesity is a prevalent and highly concerning problem among pets in the country, especially when we compare the 2023 data to the results of the same survey from just two years before, as now 16% more cats and 20% more dogs are considered obese or overweight by their owners and veterinarians.
American pet spending on dog walking services surpassed $1.3 billion at the end of 2022.
(IBIS World)
Dog walker jobs are on the rise as more and more Americans are opting to pay for dog walking services to ensure their canine companions’ exercise needs are met. In 2022, the dog walking market size increased by 4.7%, growing at an average of 2.4% in the period since 2017.
The global pet grooming industry is woth $7.43 billion in 2023.
(TBRC)
The latest pet grooming industry report for 2023 shows that the grooming sector is made up of diverse products, including pet shampoos and conditioners, pet toothpaste, detangling brushes, special scissors, and clippers.
The industry is expected to grow at an annualized rate of 7.2% to reach a total market value of $9.83 billion in 2027.
46% of American pet owners spend the same amount of money or more on the health care needs of their pets than they do on their own.
(LendEDU)
In a national pet owners survey of 1,000 pet owners conducted by the financial website LendEDU, it was found that nearly half of all Americans spend the same or more on their pets’ health care than on their own health care.
Of those respondents, 24% have incurred debt while caring for their pets in 2023, with the average owed amount being $1,566.96.
Pet Industry Demographics
The majority of Americans own pets, but are there any major differences in terms of age groups? Here are some facts relating to pet ownership demographics that you may find intriguing.
Millennials are the largest age group of pet owners in the US, with 33% of them owning at least one.
(APPA)
Gen X are the second largest group with pets in their home with 25%, followed by Baby Boomers at 24% and Gen Z at 16%. This represents a shift compared to the previous report where Baby Boomers were still at the second place a year ago.
More than half of millennial pet owners buy their pets gifts at least once a month.
(Zulily)
Younger generations are particularly generous toward their pets, whom they often treat as part of the family, or even better.
In total, 92% of millennials who own pets buy their pets gifts, while 51% do so on a monthly basis. Millennials are also twice as likely to purchase clothes for their pets as baby boomers are.
77% of millennials prefer to buy pet supplies online.
(Zulily)
The recent data tells us that the majority of younger pet owners prefer to shop online for their A to Z pet supplies, rather than opting to do so at a brick-and-mortar pet store.
The most commonly purchased items online include toys, accessories, and pet food. Furthermore, 70% of millennials who shop online choose to buy pet products via subscription.One in 10 American pet owners are putting off having kids or more children because of pet expenses.
One in 10 American pet owners is putting off having a child because of pet expenses.
(LendEDU)
11% of respondents said that the cost of pet care was the reason why they were putting off having their first child or putting off having more children, if they already had a family.
Other commonly missed milestones included delaying marriage and buying or renting a house. Who would’ve thought that pet ownership could have such a profound impact not only on people’s financial health but also on their personal lives, too?
Sources
FAQ
How much do pet owners spend on their pets?
Taking into account how much money is spent on pets in the US every month, we can see that dogs will set you back around $50 per month, whereas the figure is roughly $30 for cats. Dogs are typically the most expensive household pets to keep, followed by birds and cats. Pet fishes are the most affordable animals, incurring a yearly cost that’s below $20 in most cases.
How much do millennials spend on pets?
According to recent data, millennials spend an average $679 each year on pet care and products, while the Gen X pet owners spend an average of $949.
What is the most profitable pet business?
As pet owners are spending more than ever on their four-legged friends, sales in the pet business are booming. Among the most profitable ventures are high-quality pet food sales, as pet owners are increasingly willing to pay a premium to treat their furry friends. Pet treats and end-of-life services also generate significant revenues.
How much money is in the pet industry?
Pet spending statistics reveal that the global pet industry is currently worth $246.66 billion in 2023. Some estimates indicate that it will reach $368.8 billion by 2030, with a 5.92% CAGR.
How many peoples in the United States are dog owners?
Of all types of pets, dogs remain the most popular among Americans, as per APPA pet statistics. Approximately 65.1 million US households own a pet dog compared to 46.5 million that own a cat and 11.5 million that own freshwater fish.
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