U.S. pet industry expenditures reached $158 billion in 2025 and are projected to reach $165 billion in 2026, according to the American Pet Products Association’s 2026 State of the Industry Report.
Pet owners throughout the United States are facing rising costs for food, veterinary services, and everyday necessities in 2026, despite the ongoing growth of the overall pet industry. A MetLife Pet Insurance survey published earlier this year found that the average pet owner spent approximately $2,360 on their pet in 2025, up from $2,086 the previous year, with health-related costs alone surpassing $1,100 each year, as previously reported by The Dallas Express.
Pet owners allocated $1,135 to health-related expenses, comprising $472 for insurance and $663 for veterinary visits.
A growing number of Millennials and Gen Z view their pets as full family members, driving demand for premium products, better nutrition, and pet-friendly travel options, reported WFTV9.
The American Pet Products Association reported that 95 million U.S. households own at least one pet. Dog ownership rose to 53% of households, adding roughly 4 million new dog-owning homes, while cat ownership increased to 39% of households, or 53 million homes.
Growth in dog ownership was led by Gen Z, Millennials, and Gen X. Growth in cat ownership was propelled by Gen Z and Millennials, who favor cats for their compatibility with smaller living spaces and flexible routines.
As Americans continue to view pets as part of the family due to increasing workplace stress, travel that accommodates pets has become one of the leading trends redefining vacations in 2026. A recent analysis reveals that pet-friendly vacations rank among the top travel influences for 2026, alongside journeys inspired by fandoms, as previously reported by The Dallas Express. Travelers are looking for experiences that resonate with their lifestyles, including options that enable them to bring their pets along for relaxation and bonding.
Spending patterns show both resilience and caution. While overall demand grows, consumers have become more price sensitive. About half of pet owners report spending remains unchanged, while others reallocate budgets toward essentials such as food and veterinary care. Brands that emphasize value, quality, and longevity stand to benefit.
The trend aligns with lifestyle shifts. Cats have gained ground as apartment-friendly companions, while dogs often integrate into active routines. Some younger adults cite pets as fulfilling companionship amid high living costs and changing family priorities.