Spending on pet services and products such as pet food, healthcare and accessories in the US is expected to grow 2% to 3% in 2024, according to a forecast by Morgan Stanley. That is a substantial reduction from the 8% growth in total pet spending in 2023 and an even larger decrease from the 16% witnessed in peak growth year 2021. Both the pet population as well as spending per pet has increased. Between 2019 and 2023, annual spending per pet increased an estimated 53% to USD 1,272. Over the long-term, spending per pet is likely to increase further due to younger pet owners, who become a greater part of the total, buying more premium products. Also, the pet population is aging, driven by an increase in pet healthcare spending. What direction the pet population is going to take is less clear, with only 20% of households saying they will take (another) pet in the next year, down from 25% in 2019.
Source: AlphaWise, Morgan Stanley Research, June 2024.