Pet Parents Aren’t Spending Less — They’re Spending Smarter

Independent pet retailers are navigating a consumer environment shaped less by cutbacks and more by recalibration. Pet parents are still spending, but they are making more intentional choices, prioritizing products and services that support their pets’ health and wellbeing.

According to the American Pet Products Association’s (APPA) 2026 State of the Industry Report, the U.S. pet industry reached $158 billion in expenditures in 2025 and is projected to grow to $165 billion in 2026. At the same time, 95 million U.S. households own at least one pet. Even amid economic pressure, pets remain essential family members.

Value Has Become More Nuanced

What is changing is how consumers define value. APPA research found that 22% of pet owners spent less on their pets in 2025, a 10% increase from 2024, while half reported spending stayed the same. Younger consumers are driving much of that shift, with 25% of Gen Z and Millennial pet owners saying they spent less on pets in 2025.

For independent retailers, this is not a signal to abandon premium products or innovation. Instead, it is an opportunity to help customers make informed choices. Across species, spending is increasingly concentrated around essentials such as food, wellness and veterinary care. Retailers that educate shoppers about ingredient quality, nutrition and long-term health benefits can reinforce why certain products deliver greater value over time.

Affordable Premium Is the Sweet Spot

Consumers are still willing to invest in quality, but many are looking for ways to manage budgets more carefully. Independent retailers can respond by creating “affordable premium” pathways through smaller package sizes, curated assortments, wellness-focused products and strong private-label options.

This is especially important as Gen Z and Millennials continue reshaping the market. Gen Z cat ownership rose 15% year over year in 2025, while Millennial cat ownership increased 10%. Retailers that balance affordability with authenticity and expertise will be best positioned to retain these younger consumers.

Discovery Still Happens In-Store

One of the strongest findings in APPA’s report is that in-store browsing remains highly influential, even among digitally native consumers. In 2025, 57% of Gen Z pet owners and 61% of Millennials said they discover new pet products by browsing in stores.

That reinforces the ongoing importance of merchandising, knowledgeable staff and experiential retail. Independent stores have an advantage here because they can offer personalized recommendations and community-driven experiences that large marketplaces often cannot replicate.

Omnichannel Convenience Matters

Digital engagement also continues to influence purchasing decisions. 78% of pet owners use social media to learn about pet products online, while NielsenIQ reports that 85% of all pet care dollars are spent by shoppers who buy both online and in-store.

For independents, omnichannel does not mean matching the scale of national chains. It means reducing friction through practical tools such as curbside pickup, local delivery, updated online inventory and educational digital content. Consumers increasingly expect convenience alongside trusted expertise.

Trust Is the Competitive Advantage

The broader takeaway from APPA’s research is clear: pet owners are not walking away from pet care. In fact, 82% said their ownership had not been affected by the economy in 2025, a four-year high.

Independent retailers have always excelled at building relationships, educating customers and fostering community trust. In today’s value-driven market, those strengths matter more than ever. Consumers are not simply looking to spend less — they are looking to spend wisely, and independent pet retailers are uniquely positioned to guide them.