Are Vets Feeling the Pinch? What Pet Spending Data Really Shows
As the U.S. continues to be a nation of animal lovers, new insights from Bank of America and the American Pet Products Association (APPA) shed light on how pet ownership and spending habits are evolving in 2025. With nearly 94 million households owning at least one pet, dogs remain the most popular companion, followed closely by cats, fish, birds, and other animals.
Shifting Spending Habits
According to the Bureau of Labor Statistics, the cost of pet services—including veterinary care—has risen steadily over the past five years, increasing more than 40% since 2019. While inflation in pet food prices has leveled off in recent months, service-related costs remain elevated.
However, Bank of America’s internal data on aggregated credit and debit card transactions reveals that consumer spending at both pet stores and veterinary clinics is growing more slowly than overall inflation in these sectors. This suggests that pet owners may be making thoughtful adjustments in how they manage pet-related expenses.
What’s Driving the Shift?
There are several potential factors behind these changes:
Pet Insurance: Enrollment in pet insurance has grown significantly since 2020. While the overall share of insured pets is still modest, this trend may be helping some owners manage unexpected veterinary costs more predictably.
Value-Oriented Purchasing: Surveys indicate that cost and convenience are top considerations when it comes to buying pet food. Many consumers may be “trading down” to more affordable brands or purchasing from general grocery retailers instead of specialty pet stores.
Demographic Trends: Spending behavior varies by age and income. For example, lower-income Millennials appear to be the demographic group showing the largest decline in pet-related transactions compared to previous years.
Regional Differences
Geography also plays a role in pet spending. Metropolitan areas such as Seattle and San Francisco are currently leading the nation in average monthly pet-related expenditures, with spending more than 30% above the national average. In contrast, cities such as Atlanta, St. Louis, and San Antonio are seeing below-average spending. These disparities are likely influenced more by regional cost-of-living differences than by variations in pet affection or commitment.
A Resilient Pet Economy
Despite inflation and changing consumer habits, pet ownership remains strong across generations. Millennials now represent the largest share of pet-owning households, and many Americans continue to adopt their pets from shelters and rescues, reflecting a continued commitment to animal welfare.
What This Means for Pet Care Providers
While overall spending growth in pet care services may not be keeping pace with inflation, this does not necessarily signal a decline in demand. Instead, it points to a more cost-conscious and diversified consumer base. Practices may benefit by offering flexible care models, exploring partnerships with pet insurance providers, and considering community-focused options such as wellness plans or subscription services.
Veterinary teams and pet retailers alike can use these insights to better understand client priorities and adapt services to meet evolving expectations—ensuring they continue to support both pets and their people in meaningful, sustainable ways.
Read the full report here: https://institute.bankofamerica.com/economic-insights/us-pet-ownership.html
