What's Happening?
Pet ownership in the United States is becoming increasingly expensive, according to a new analysis by the Bank of America Institute. The rising costs, particularly in veterinary care, have led to a decline in pet adoption rates and ownership, especially
among lower-income households. The U.S. pet market, while still growing, is expanding at a slower pace, with 95 million households owning a pet as of 2025. Spending on pets reached $158 billion in 2025, with a notable increase in veterinary service costs, which rose nearly 6% year over year. This increase is partly attributed to the consolidation of veterinary services by private equity firms, which can reduce competition and drive up prices. The analysis also highlights a disparity in spending among different income groups, with lower-income Millennials and Gen Xers reducing their spending on pet-related goods and services.
Why It's Important?
The rising costs of pet ownership have significant implications for the U.S. economy and society. As expenses increase, particularly in veterinary care, fewer people are able to afford pets, leading to a decline in adoption rates. This trend could impact the pet industry, which has been a robust sector of the economy. The consolidation of veterinary services by private equity firms may further exacerbate the issue by reducing competition and increasing prices, making pet care less accessible. Additionally, the financial strain on lower-income households could lead to difficult choices about pet ownership, affecting the well-being of both pets and their owners. The economic divide in pet spending also reflects broader issues of income inequality and affordability in the U.S.
What's Next?
If the trend of rising costs continues, it could lead to further declines in pet ownership and adoption rates, particularly among lower-income households. This may prompt industry stakeholders to explore ways to make pet care more affordable, such as offering more competitive pricing or expanding access to affordable veterinary services. Policymakers might also consider regulations to address the consolidation of veterinary services to ensure fair pricing. Additionally, pet owners may need to adjust their budgets or seek alternative solutions, such as pet insurance or community-based veterinary services, to manage costs.
