What's Happening?
In the first half of 2025, dog adoptions in the U.S. experienced a modest decline, while cat adoptions remained stable, according to Bank of America global research. The share of households with pets has decreased over the last two years, particularly
among lower-income households. Despite rising costs for pet goods and services, the U.S. pet market continues to grow, though at a slower pace. Spending on pet goods and services is increasing, with a notable rise in veterinary care costs. The Bank of America Institute analysis suggests that affordability is playing a larger role in pet adoption decisions.
Why It's Important?
The decline in pet adoptions and ownership highlights the growing financial strain on U.S. households, particularly among lower-income groups. As the cost of pet care rises, it may lead to fewer families being able to afford pets, impacting the pet industry and related sectors. The trend also reflects broader economic challenges, where discretionary spending is being adjusted due to budget constraints. This shift could affect businesses in the pet care industry, from veterinary services to pet supply retailers, as they navigate changing consumer spending patterns.
What's Next?
If the trend of rising costs continues, it may lead to further declines in pet ownership, particularly among economically vulnerable groups. Businesses in the pet industry might need to adapt by offering more affordable options or services to retain customers. Additionally, there could be increased advocacy for policies that support pet ownership affordability, such as subsidies or tax incentives for pet care expenses. Monitoring these developments will be crucial for stakeholders in the pet industry and policymakers concerned with consumer welfare.
