Archive for category: Pet Market

Now we will turn to Veterinary Services. For years, Veterinary Services have had high inflation. This has resulted in CU income becoming the dominant factor in spending and a reduction in visit frequency.

In 2017 low inflation drove a 7.2% increase in visit frequency and a $2.5B spending lift. In 2018 inflation returned to normal. Consumers spent $0.56B more (+2.7%), but inflation was 2.6% so almost all of the lift was from higher prices. In 2019 the situation got worse. Consumers spent $0.58B (+2.7%) more but inflation was 4.1% so there was a decrease in the amount Vet Services purchased. In 2020 the pandemic hit, and Pet Parents focused on needs – Food & Veterinary. Veterinary spending grew $3.05B, (+14.0%). In 2021, this behavior grew even stronger and produced a record $7.82B (+31.5%) increase. In 2022 inflation reached 8.8%. Spending fell -$2.95B (-9.0%) but the amount of Vet Services sold fell 16.4%. In 2023 inflation was 9.4% but Vet Care is needed so spending grew $5.95B (+20.0%) – with inflation, +9.7%. In 2024, inflation slowed to 7.4% and the lift was still $5.60B, +15.7%. With inflation, it was really +7.7%.

We’ll start with the groups who were responsible for most of Vet spending in 2024 and the $5.6B increase. The 1st chart details the biggest Vet spenders for 10 demographic categories. It shows share of CU’s, share of Vet spending and their performance (Share of spending/share of CU’s). In performance – 7 groups perform at 120+%, 2 more than 2023 & 1 more than 2018>2021. This is also 1 more than Supplies, 2 more than Food, but 1 less than Services. These big spenders are performing well but it also signals that there is still disparity between the best and worst performing demographics in this “needed” segment. Only the CU Size & Income groups are different from Total Pet and the categories are listed in the order that reflects their share of Total Pet $pending. Again, High Income is the most important factor in Spending.

1. Housing – Homeowners (81.7%) up from 81.2% Homeownership is a major factor in pet ownership and spending in all industry segments. In terms of importance to Veterinary spending, their 125.9% performance rating is up from 124.8%, but they dropped to 6th from 5th place in importance. Only Homeowners w/o Mtge spent less. Renters were +12.5% while All Homeowners were +16.5%. This produced the small gains in share & performance for Homeowners. We should also note that Homeownership is definitely not as important to Veterinary Spending as it once was. In 2015 their share was 88.4% with performance of 141.8%.
2. Race/Ethnic – White, not Hispanic (79.3%) down from 84.7%. This group accounts for the vast majority of spending in every segment but lost share in Vet $ again in 2024. Their 120.0% performance is also down from 127.6% and they fell from #4 to #7 in importance in Veterinary Spending. All spent more, but the Minority increase was +56.4%, while Whites were up +8.4%. This caused the drops in share and performance.
3. Area – Urban Areas (78.9%) down from 79.0% Suburban CU’s are the biggest spenders in every segment. All areas spent more and the lifts were in double digit % and very close in size. The Rural lift was slightly bigger. This explains why the drop in share was so small and caused their performance to stay at 97.6%. They’re still last in importance.
4. Income – Over $100K (66.2%) up from 61.1% Their performance also grew from 167.7% to 174.5%. Higher income is still the most important factor in Veterinary spending. The only drops were $30>49K, -$0.27B and $70>149K, -$0.18B. The $150K> groups spent $5.68B more. This drove the big lifts in share and performance.
5. # in CU – 2 or 3 People (62.5%) up from 61.9% This smaller group had a slight gain in share and their performance grew from 129.8% to 130.5%. CU Size’s rank in importance in Vet Spending moved up from #7 to #4. All but Singles, -$0.01B, spent more. 2/3 People CUs were +$3.69B, 66% of the overall lift in Vet Spending.
6. Occupation – All Wage & Salaried (71.6%) up from 68.6% and their performance increased from 112.6% to 115.9%. In the group, all spent more. Outside the group, only Retirees, -$0.83B, spent less. White Collar workers spent $4.52B, +22.3% more. They drove the lifts in share in performance. Mgrs/Prof had the biggest lift, +$3.89B. We should also note that their perfomance lift was slowed a little because they had 1.9 million more CUs than in 2023.
7. Education – College Grads (68.9%) up from 64.9%. Income generally increases with education. It is also important in understanding the need for regular Veterinary care. Their performance also increased from 135.8% to 143.2% and they stayed #2 in importance. Only <HS Grads & HS Grads w/some College spent less in 2023. College grads (48.1% of CUs) generated 94.6% of the 23>24 lift, which drove the increases in share and performance.
8. CU Composition – Married Couples (63.8%) up from 61.5% Their performance also rose to 132.9% from 127.7% and they stayed #3 in importance. Only Married, +Adults, No kids, Single Parents & Singles spent less. The lifts in share and performance were due to All Married being +$4.39B, +20.0%.
9. # Earners – 2+ CUs, 1 or 2 Earners (63.8%) up from 60.2% Their Performance also grew from 119.9% to 127.3%.  # Earners moved up from #6 to #5 in importance. Only No Earner CUs of any size spent less. 2 Earners, +$4.61B, +29.4%, drove the group’s lifts in share and performance.
10. Age – 35>64 (60.4%) down from 60.8% Their performance also slowed a little from 116.7% to 116.6% but they stayed 8^th in importance. Only 55>64, -$0.34B & 65>74, -$0.09B spent less. The 54>64 drop along with a +$2.13B lift by <35 were the big factors in the Group’s minor drops in share and performance.

Spending disparity rose in 6 categories. The average group performance was 128.4%, up from 125.4% in 2023 so spending became less balanced. Notably, a smaller group size made CU Size & # Earners more important. However, the 3 most important groups, $100K> Income, College Degrees & Married Couples are the same as 2023.

Now, we’ll look at 2024’s best and worst performing Veterinary spending segments in each category.

There are no surprising winners or losers but 6 are different from 2023, down from 9 last year. This is 3 more than Services, but 3 less than Supplies and 9 less than Food. Also, the average difference between Best & Worst was 99.4%, much more than 89.8% in 2023. There was considerable turmoil and 9 of 12 categories had increased disparity. The average difference grew considerably, so spending was less balanced. Changes from 2023 are “boxed”. We should note:

• Income– The Winner changed from $200K>. The gap is 205.0%, 30% more than 2023.
• Earners – No change in Winner or Loser, but the gap widened by 22.7%.
• Occupation – Service Workers replaced Blue Collar at the bottom but the gap only widened by +0.7%.
• Age – 45>54 replaced 55>64 yr-olds on top and the gap narrowed by -3.9%.
• Race/Ethnic; Asians replaced African Americans on the bottom. The gap narrowed a lot, -35.3%.
• Education; Housing; Area – These all had an expected repeat winner & loser and the performance gap increased for Education: +24.6%; Housing: +20.4%; Area: +1.3%.
• Region – Northeast replaced West at the top. The South has now finished last for 9 years in a row, but the win/lose gap increased by 9.1%. Also, just 2 regions performed at 100+%, down from 3 in 2023.
• CU Composition – Married, Child 18> replaced Couple Only on top. The gap widened, +42.7%.
• # in CU – No changes, but the gap grew by +5.7%. Only 1 & 5+ people CUs perform below 100%.
• Generation – No changes and the performance gap narrowed by -2.3%.

It’s time to “Show you the money”. Here are segments with the biggest $ changes in Veterinary Spending.

We saw some turmoil in performance. It lessens here. There were 10 repeats, and 4  segments flipped from 1^st to last or vice versa. Last year there was 1 repeat and 13 flips. There were no truly surprising winners and there were only 2 somewhat surprising losers – Boomers & the West. In 2024 there were 2 categories in which all segments spent more. In 2023, there were 4. Plus, in 2023, 82.3% of 96 demographic segments spent more. In 2024, that slowed a little to 81.3%. If you consider 7.4% inflation, 69.8% still spent more in 2024.

• Housing – Homeowners w/Mtges stayed on top and those w/o Mtges stayed on the bottom.
  • Winner – Homeowner w/Mtge – Veterinary: $24.46B; Up $5.36B (+28.0%)                                        2023: Homeowner w/Mtge
  • Loser – Homeowner w/o Mtge – Veterinary$: $27B; Down $0.59B (-6.0%)                                         2023: Homeowner w/o Mtge
  • Comment – In 2023, all segments spent more. In 2024, only Homeowners w/o Mtge spent less. Renters were +$0.84B, +12.5+. They account for 35.1% of CUs but only 18.3% of Veterinary spending, 52.0% performance. All Homeowners were +$4.77B, +16.5% and had 125.9% performance.
• # Earners – 2 Earners won again while No Earner, 2+ CUs replaced No Earner, Singles as the loser.
  • Winner – 2 Earners – Veterinary Spending: $20.30B; Up $4.61B (+29.4%)                                            2023: 2 Earners
  • Loser – No Earner, 2+ CU – Veterinary Spending: $3.03B; Down $0.39B (-11.3%)                               2023: No Earner, Single
  • Comment – Only No Earner CUs spent less. The 2^nd largest lift was +$1.13B by 3+ Earner CUs. We should note that the increase by 1 Earner, Singles was only +$0.01B.
• Occupation – Mgrs/Prof won again but Retirees replaced Blue Collar on the bottom.
  • Winner – Mgrs & Professionals – Vet Spending: $18.66B; Up $3.89B (+26.4%)                                      2023: Mgrs & Professionals
  • Loser – Retired – Vet Spending: $6.08B; Down $0.83B (-12,0%)                                                                 2023: Blue Collar
  • Comment – Only Retirees spent less. Amazingly, All Other, Unemployed had the 2nd biggest lift, +$0.79B. White Collar workers were +$4.52B, 80.7% of the Veterinary increase from 42.4% of CUs.
• Generation – Millennials are a new winner. Boomers flipped to the bottom.
  • Winner – Millennials – Veterinary: $12.99B; Up $3.77B (+40.8%)                                           2023: Baby Boomers
  • Loser – Baby Boomers – Veterinary: $10.27B; Down $1.67B (-14.0%)                                   2023: Born <1946
  • Comments – Only Baby Boomers spent less. This comes after a +$2.21B lift in 2023. Millennials were more consistent. In 2023, they finished a close 2^nd to the Boomers, +$2.09B. In 2024, they led the charge. Gen X is the most consistent. 23>24: +$2.34B; 22>23: +$1.13B; 21>22: +$0.46B (Note: Vet $ were -$2.95B in 2022.)
• Income – $150>199K stayed on top and $40>49K replaced <$30K at the bottom.
  • Winner – $150>199K – Veterinary Spending: $8.98B; Up $3.63B (+67.9%)                                     2023: $150>199K
  • Loser – $40>49K – Veterinary Spending: $1.52B; Down $0.24B (-13.4%)                                        2023: <$30K
  • Comment – Only the $30>49K, $70>99K & $100>149K groups spent less. All big groups, under/over $70K & $100K had increases. The $150K> group drove the lift. They were +$5.68B (101% of the total Vet increase)
• Region – The West flipped to the bottom and the Northeast replaced them on top.
  • Winner – Northeast – Veterinary Spending: $10.23B; Up $3.51B (+52.3%)                                    2023: West
  • Loser – West – Veterinary Spending: $9.69B; Down $0.62B (-6.0%)                                                2023: Midwest
  • Comment – All Regions but West spent more. The 2^nd biggest lift was +$2.28B by the South.
• CU Composition – Married, Oldest Child 18> flipped to the top. Married, + Adults replaced them on the bottom.
  • Winner – Married, Oldest Child 18> – Veterinary: $5.80B; Up $3.01B (+107.8%)                                 2023: Married, Couple Only
  • Loser – Married, + Adults – Veterinary: $1.16B; Down $0.56B (-32.6%)                                                 2023: Married, Child 18>
  • Comment – Single Parents & Singles also spent less. 2023 favored CUs with no children. 2024 had no clear pattern. However, Married, With Children were +$3.78B, +41.6%. The largest % lift by any big group.
• Education – Adv. College degree stayed on top. HS w/some College replaced HS Grads at the bottom.
  • Winner – Adv. College Degree – Veterinary Spending: $14.72B; Up $2.87B (+24.2%)                               2023: Adv Degree
  • Loser – HS Grads w/some College – Veterinary Spending: $5.11B; Down $0.44B (-8.0%)                       2023: HS Grads
  • Comment – In 2023, only <HS & HS Grads had spending decreases. In 2024, <HS & HS Grads w/some College spent less. Total <College was positive, +$0.30B. College Grads were +$5.30B, +22.9%. BA/BS finished a close 2^nd to Adv. Degrees, +$2.43B, +21.5%.
• Area Type – Both Winner & Loser held their spots.
  • Winner – Suburbs 2500> – Veterinary Spending: $19.99B; Up $2.78B (+16.2%)                                      2023: Suburbs 2500>
  • Loser – Rural – Veterinary Spending: $8.69B; Up $1.21B (+16.1%)                                                             2023: Rural
  • Comment – In 2020 & 2021 all groups spent more. In 2022, all spent less. In 2023 & 2024, all spent more again. Since 2020, all segments have the same spending pattern. In 2024, Center City stayed in 2^nd place, +$1.61B, +14.7%. The Suburbs 2500> have the biggest share of Vet $, 48.5% and generated 49.6% of the lift.
• # in CU – 2 People stayed on top and 1 Person replaced 4 People on the bottom.
  • Winner – 2 People – Veterinary Spending: $17.79B; Up $2.66B (+17.6%)                                       2023: 2 People
  • Loser – 1 Person – Veterinary Spending: $6.39B; Down $0.01B (-0.2%)                                         2023: 4 People
  • Comment: In 2022, all spent less. In 2023, only 4 People CUs spent less. In 2024, it was 1 Person, -$0.01B. 2 People still had the biggest increase but the other lifts were more balanced. 3 people: +$1.03; 4 people: +$1.04B.
• Race/Ethnic – Whites stayed on top while Asians replaced African Americans at the bottom.
  • Winner – White, Not Hispanic– Veterinary: $32.72B; Up $2.52B (+8.4%)                                           2023: White, Not Hispanic
  • Loser – Asian – Veterinary: $1.11B; Up $0.12B (+12.7%)                                                                        2023: African Americans
  • Comment– All groups spent more – more balance. Minorities were +$3.08B, 55% of the Vet lift. Only Asians had a minor lift. African Americans: +$1.86B, +164.0%; Hispanics: +$1.10B, +32.8%.
• Age – 55>64 flipped to the bottom. 35>44 replaced them on top. BTW: That’s the 3rd consecutive flip for 55>64.
  • Winner – 35>44 yrs – Veterinary Spending: $8.52B; werUp $2.02B (+31.2%)                                  2023: 55>64 yrs
  • Loser – 55>64 yrs – Veterinary Spending: $7.95B; Down $0.34B (-4.1%)                                          2023: 45>54 yrs
  • Comment: All segments spent more in 23. In 24, 65>74 also spent less, -$0.09B. Spending skewed a little younger. <45: +$4.15B; 45>: +$1.45B. The 2^nd biggest lift was +$1.67B by 25>34. #3 was +$1.53B by 45>54.

We’ve now seen the winners and losers in terms of increase/decrease in Veterinary Spending $ for 12 Demographic Categories. 2022 had a $2.95B drop. The decrease brought a lot of turmoil in the $ changes. In 2023 there was a huge turnaround as spending rose $5.95B, +20.0% and reached $35.66B. However, the turmoil in $ change continued. In 2024, the big lift continued, +$5.60B, +15.7% to $41.26B. Veterinary Services passed Pet Food and became #1 in spending by Pet Industry Segments. In 2024, in the change chart, 10 held their spot and only 4 flipped from 1^st to last or vice versa. In 2023 there was 1 hold and 13 flips. In 2024, there was far less turmoil and greater stability. There were similarities between 2023 & 2024 but 2024 wasn’t always best. In 2023, 82.3% of demographics spent more and there were 4 categories where all segments had increases. In 2024, 81.3% spent more and there were 2 categories where all segments spent more. The “hidden gems” were still easy to find. Here are some segments that didn’t win but helped drive the big lift in Veterinary spending. These groups don’t win an award, but they certainly deserve…

HONORABLE MENTION

The big lift by African Americans shows more racial balance & high income is not an absolute necessity. Gen Z continues to increase their commitment to Pet Parenting. Veterinary Services spending is skewing a little younger as the 25>34 yr-olds and Gen Z become more aware of its importance. Income matters most but the # earners is increasing in importance. 3+ earners have high income and increased their Vet $ by $1.1B.  2 & 3 People CUs spend the most but the key is 2+. 4 people CUs still earn their share of Veterinary spending with 105% performance. Higher Education usually means higher income which helps with growing Vet prices, but it is also important in understanding the need for a Vet. This group shows that the lift was widespread.

Summary

In 2020 the pandemic focused Pet Parents on the needed segments. This drove a $3B increase in Veterinary $. Boomers & Millennials led the way, but the lift was widespread as 85% of demographic segments spent more. In 2021 the lift grew to a record $7.82B with 93% of all segments spending more including 9 categories where all segments had increases. In 2022, the “binge” was not repeated. Inflation also increased radically to 8.8% and spending fell -$2.95B (-9.0%). Only 23% of demographics spent more and in 3 categories all segments decreased spending.

In 2023 Inflation grew to 9.4% but the higher income groups stepped up. The $30>49K segments also found the $. The result was a $5.95B, +20.0% increase as Veterinary Spending reached $35.66B. In 2024, Vet Spending was +$5.60B, +15.7% and reached $41.26B, now #1 in the Pet Industry. 81.3% of demographics spent more (down from 82.3%) and in 2 categories all segments increased spending (down from 4). Even considering the 7.4% inflation, 69.8% spent more.

The performance of big spending groups is very important in all industry segments. In Veterinary we identified 7 demographic categories with high performing (120+%) large groups, 2 more than 2023. It is also 1 more than Supplies & 2 more than Pet Food, but 1 less than Services. The big groups with a high-performance level in Veterinary are:

• Income: $100K> (174.5%) Performance increases with income but doesn’t reach 100+% until income reaches $100K
• Education: College Grads (143.2%) Performance increases with education, but only College Grads are 100+%.n
• CU Composition: Married Couples (132.9%) All Married CUs, but those with extra adults (no kids) perform at 100+%.
• CU Size: 2>3 People (130.5%) They are the top 2 performers, but only 5+ (93.8%) & 1 (51.5%) are <100%.
• # Earners: 2+ CUs, 1 or 2 Earners (127.3%) Only No Earner or 1 Earner CUs of any size perform <100%.
• Housing: Homeowners (125.9%) Only Homeowners w/Mtge (160.6%) perform above 100%.
• Race/Ethnic: White, Not Hispanic (120.0%). More Balanced, but Minorities still only perform between 52% and 68%.

Consumers have no control over Race/Ethnicity but can make decisions in the other categories. Income is still the most important factor. The others are important but lower in performance – 120>143%. Spending grew in 2024 and became less balanced, now with 7 big groups performing over 120% (up from 5). Another indication of this is that the average spending disparity between the best and worst performing segments grew from 89.8% to 99.4%. We should also note that the 50/50 spending dividing line increased from $124K to $141K, further emphasizing income’s importance.

Perhaps the biggest concern is high inflation. In 2021 spending grew 31.5% in the pandemic surge. Inflation was relatively high at 4.2% but 84% of the growth was real. In 2022 spending fell -9.0%. Inflation was 8.8% so the amount sold was really down -16.4%. In 2023, inflation reached a record 9.4%. Spending was +20.0% so the “real” increase was 9.7%. In 2024, inflation slowed to 7.4% but the lift also slowed to 15.7%. The “real” increase was 7.7%. If high inflation continues, it could have a major impact on Veterinary Spending. We’ll see.

Finally – The “Ultimate” Veterinary Services Spending CU consists of 3 people – a married couple with a child still at home. Their child is 18>. They are 45>54 yr-old Gen Xers. They are White, but not of Hispanic origin. Both work. At least one of them has an Adv. College Degree and is a Mgr/Professional. Their total income is $150>199K. They live in a rural area in the Northeast and are still paying off the mortgage on their home.

It’s time to continue with 2026 Inflation. The Consumer Price Index peaked back in June 2022 at 9.1% then began to slow until it turned up in Jul/Aug 2023. Prices fell in Oct>Dec 23, then turned up Jan>Oct 24 but fell in Nov. However, they rose 10 straight months to a record high in Sep 25, fell Oct>Dec, rose in Jan>Apr (Record). The CPI vs last year rose to 3.8% from 3.3%. Grocery prices increased 0.7% from Mar and their YOY inflation grew to 2.9% from 1.9%. BTW, Gas prices are up 38.7% from Feb. Even minor price changes can affect consumer pet spending, especially in the discretionary pet segments, so we will continue to publish monthly reports to track petflation as it evolves in the market.

Petflation was +4.1% in Dec 21 while the overall CPI was +7.0%. The gap narrowed as Petflation accelerated. It was 96.7% of the national rate in June 22. National inflation has slowed considerably, but Petflation generally increased until June 23. It passed the CPI in July 22, fell below it from Apr>Jul 24. It passed the CPI in Aug, fell below in Sep>Oct, rose above in Nov, fell below in Dec>Aug 25, passed it in Sep>Oct & Dec>Mar 26, now it’s equal in Apr. All reports will include:

• A rolling 24 month tracking of the CPI for all pet segments and the national CPI. The base number will be pre-pandemic December 2019 in this and future reports, which will facilitate comparisons.
• Monthly comparisons of 26 vs 25 which will include Pet Segments and relevant Human spending categories. Plus
  1. CPI change from the previous month.
  2. Inflation changes for recent years (25>26, 24>25, 23>24, 22>23, 21>22, 20>21, 19>20, 18>19)
  3. Total Inflation for the current month in 2026 vs 2019 and vs 2021 to see the full inflation surge.
  4. Average annual Year Over Year inflation rate from 2019 to 2026
• YTD comparisons
  1. YTD numbers for the monthly comparisons #2>4 above

In our first graph we will track the monthly change in prices for the 24 months from Apr 24 to Apr 26. We will use December 2019 as a base number so we can track the progress from pre-pandemic times through an eventual recovery. This chart is designed to give you a visual image of the flow of pricing. You can see the similarities and differences in segment patterns and compare them to the overall U.S. CPI. The year-end numbers & those from 12 and 24 months earlier are included. We also included and highlighted (pink) the cumulative price peak for each segment. In Apr, Total Pet prices were down -0.1% from Mar. The Service segments were up 0.01%, while Products fell -0.2%.

In Mar 24, the CPI was +22.0% and Pet was +23.7%. The Services segments inflatedDec after mid-20, while Product inflation stayed low until late 21. In 22, Food prices grew but the others had mixed patterns until July 22, when all rose. In Aug>Oct Petflation took off. In Nov>Dec, Services & Food inflated while Vet & Supplies prices stabilized. In Jan>Apr 23, prices grew every month for all segments except for 1 Supplies dip. In May Products prices grew while Services slowed. In Jun/Jul this reversed. In Aug all but Services fell. In Sep/Oct this flipped. In Nov, all but Food & Vet fell. In Dec, Supp. & Vet  drove prices up. In Jan>Mar 24 Pet prices grew. In April, prices in all but Vet fell. In May, all but Food grew. In June, Products drove a lift. In July, all but Services fell. In Aug, Food drove a drop. In Sep, Products fueled a drop. In Nov all were up. Prices dropped in Mar & Oct>Nov 25, rose Dec>Mar 26, fell Apr. All segments set records in Mar and/or Apr 26.

• U.S. CPI – Inflation was below 2% through 2020. It turned up in January 21 and grew until flattening out in Jul>Dec 22. Prices rose Jan>Sep 23, fell Oct>Dec, rose Jan>Oct 24, fell Nov, rose Dec>Sep 25, fell Nov>, but hit record highs in Jan>Apr 26. 23% of the lift since Dec 19 happened from Jan>Jun 22 – 8% of the time.
• Pet Food – Prices were at the Dec 19 level Apr 20> Sep /21. They grew & peaked May 23, then got on a roller which continues Jun/Jul 25↑, Aug↓, Sep↔, Oct/Nov ↓, Dec>Mar↑, Apr↓. Over 90% of the lift was in 22/23.
• Pet Supplies – Supplies prices were high in Dec 19 due to tariffs. They had a deflated roller coaster ride until mid-21 when they returned to Dec 19 prices & stayed there until 22. They turned up in Jan (record). They plateaued Feb>May, grew in June, flattened in July, then turned up in Aug>Oct to a new record. Prices stabilized Nov>Dec, grew Jan>Feb 23. fell in Mar, but the roller coaster hasn’t stopped. Jan>Feb 25↓, Mar>May↑, Jun↓, Jul↑, Aug↓, Sep↑, Oct>Nov↓, Dec↑(record), Jan 26↓, Feb>Mar↑ (record), Apr↓. Prices are only 0.3% below the Mar record
• Pet Services– Inflation is usually 2+%. Perhaps due to closures, prices increased at a lower rate in 2020. In 2021 consumer demand increased but with fewer outlets. Inflation grew in 21 with the biggest lift in Jan>Apr. Inflation was strong in 22 but prices got on a roller coaster. They turned up Jul>Apr 23, fell May. Jun>Aug↑, Sep>Dec↓, Jan>Mar 24↑, Apr↓, May↑, Jun↓, Jul>Nov↑, Dec>Mar 25↓, Apr>Aug↑, Sep↓, Oct>Apr 26↑(record).
• Veterinary – Inflation has been consistent. Prices turned up in Mar 20 and grew through 21. A surge began in Dec 21 which put them above the overall CPI. In May/Jun 22 prices fell below the CPI. However, they rose again & have been above the CPI since July 22. In 23>25 prices grew Jan>May, leveled Jun/Jul, fell Aug, grew Sep>Dec, fell Jan, grew Feb>May, fell Jun>Jul, grew Aug 24>Sep 25, fell Oct>Nov, grew Dec>Apr 26. (records)
• Total Pet – Petflation is a sum of the segments. In Dec 21 the price surge began. In Mar>Jun 22 the segments had ups & downs, but Petflation grew Jul>Nov, slowed Dec, grew Jan>May 23, fell Jun>Aug, grew Sep/Oct, then fell in Nov. Prices grew Dec>Mar 24 to a record high. Prices fell in April, rose May>Jun, fell Jul>Sep, rose Oct>Nov, fell Dec, rose Jan>Feb 25, fell Mar, grew Apr>Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec>Mar (record), then fell in Apr.

Next, we’ll turn our attention to the Year Over Year inflation rate change for April and compare it to last month, last year and to previous years. We will also show total inflation from 21>26 & 19>26. Petflation rose from 2.5% to 3.5% in Sep, fell to 2.6% in Nov, rose to 3.5% in Dec & 4.3% in Mar. In Apr it is down to 3.8%, equal to the National CPI. The chart will allow you to compare the inflation rates of 25>26 to 24>25 and other years but also see how much of the total inflation since 2019 came from the current surge. We’ve included some human categories to put the pet numbers into perspective.

Overall, prices were up 0.9% from Mar and were +3.8% vs Apr 25, up from 3.3% last month. Grocery prices rose 0.7% and inflation grew to +2.9% from 1.9%. There were 5 price drops from last month, up from 2 in Mar. In Feb, there were no drops. In Dec & Jan there was 1. In Nov there were 6 drops. The national YOY monthly CPI rate of 3.8% is up 65.2% from 24>25 but it’s 54% less than 21>22. The 25>26 rate is above 24>25 for all but Pet Supplies & Haircuts. In our 2021>2025 measurement you also can see that over 80% of the cumulative inflation since 2019 has occurred in all but 5 segments, Haircuts, Medical, Vet, Pet Services, Groceries. Service Segments have generally had higher inflation rates so there was a smaller pricing lift in the recent strong increase. Pet Products have a very different pattern. The 21>26 inflation surge provided 98% of their overall inflation since 2019. This happened because Pet Products prices in 2021 were still recovering from a deflationary period. Services expenditures account for 63.6% of the National CPI so they are very influential. Their current CPI is +3.8% while the CPI for Commodities jumped up from 3.4% to 4.6%. Services are the usual inflation driver, but Commodities are behind the current increase. The situation in Pet is closer to the “normal” national situation. Petflation: 3.8%. The CPI for the 2 Service Segments is 5.2%. The Pet Products CPI is 2.6%.

• U.S. CPI– Prices are +0.9% from Feb. The YOY increase is 3.8%, up from 3.3% in Mar. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are now 90+% higher than the target. The Mar/Apr lifts follow Feb stability, a lift in Jan, stability in Dec and 2 drops in Oct & Nov. The current rate is 65.2% above 24>25 and the 21>26 rate is +24.7%, 81.5% of the total inflation since 2019. The Inflation surge was growing in April 2021, +4.2%
• Pet Food– Prices are -0.2% vs Mar, but +2.2% vs Apr 25, down from 2.3%. They are now 24% below the Food at Home inflation rate of +2.9%. Remember that the YOY Pet Food CPI has deflated in 15 of the last 26 months. The 2021>2026 inflation surge has generated 94.6% of the 25.9% inflation since 2019. Inflation began for Pet Food in June 2021, +0.9%, after 12 straight deflationary months. Pet Food prices are still within 0.2% of the Mar record high.
• Food at Home – Prices are +0.7% from Mar and the YOY CPI rose from 1.9% to 2.9%. This is still radically lower than Jul>Sep 2022 when it exceeded 13%. The 32.7% Inflation for this category since 2019 is 8% more than the national CPI but is only in 5th place behind 3 Services expenditures and Total Pet. 79.2% of the inflation since 2019 occurred from 2021>26. This is slightly less than the CPI, but we should note that Grocery prices began inflating in 2020>21 then the rate accelerated. It appears that the pandemic supply chain issues in Food which contributed to higher prices started early and foreshadowed problems in other categories and the overall CPI tsunami.
• Pets & Supplies– Prices were -0.3% from Mar and YOY inflation slowed to 1.9% from 3.5%. They still have the lowest rate vs 2019. Prices were deflated for much of 20>21. As a result, the 2021>26 inflation surge accounted for 107.5% of the total price increase since 2019. Prices set a record in Oct 22 then deflated. 3 lifts pushed them to a record high in Feb 23. Prices fell in Mar & the roller coaster continued into 25. They fell Jan/Feb 25, rose Mar>May, fell Jun, rose Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec (record), fell in Jan, rose Feb>Mar – a new record, then fell in Apr.
• Veterinary Services– Prices are +0.2% from Mar and +5.5% from 2025, down from 5.6%. They are #2 in inflation vs last year, behind Pet Serv. but still #1 in the increase since 2019, +55.4% and 21, +43.9%. For Veterinary, high annual inflation is the norm. However, the rate has increased during the current surge, especially since 23. They have the highest Apr avg rate in 26, but only 79% of the cumulative inflation since 2019 occurred from 2021>26.
• Medical Services – Prices turned sharply up at the start of the pandemic but then inflation slowed and fell to a low rate in 20>21. Prices fell -0.1% from Mar and inflation vs last year slowed to +3.2% from +3.7%. Medical Services are not a big part of the current surge as only 59.5% of the 22.7%, 2019>26 increase happened from 21>26.
• Pet Services – Inflation slowed in 20 but grew in 21. In 24 prices surged in Jul>Nov, then fell to 3.9% in Dec>Mar 25. Apr grew, May fell, June rose, Jul rose to 6.3%. Inflation fell to 5.8% in Aug & to 4.2% in Nov. In Dec>Mar 26 it rose to 7.8%, then fell to 6.6% in Apr. They are #1 vs 25 and #2 vs 21 & 19. 79.8% of their 19>25 inflation is from 21>26.
• Haircuts/Other Personal Services – Prices are -0.7% from Mar but +3.6% from Apr 25. 20 of the last 28 months have been 4.0+%. Inflation has been pretty consistent. 67.3% of the 19>26 inflation happened 21>26.
• Total Pet– Petflation slowed to 3.8% from 4.3%. Only Veterinary & Pet Services had a higher rate. It is double the 24>25 rate but equal to the current U.S. CPI. Plus, it is 22.6% above the 3.1% average Apr rate since 1997. Apr prices fell -0.1%, driven by Products. The Mar>Apr decrease was very different from the 0.4% 97>25 average change and unexpected. Since 1997, there have been only 3 Mar>Apr price drops. A big factor in the current CPI drop was that prices rose 0.4% in Mar>Apr 25. The recovery is definitely slow. Now, we’ll look at YTD data.

The 25>26 rate is higher than 24>25 for all, but Veterinary. The 22>23 inflation rate was the highest for Tot Pet, Pet Food, Veterinary & Pet Services. 21>22 has the highest rate for Groceries, Pet Supplies & the Natl CPI. 20>21: Haircuts; 19>20: Medical Services. The average national inflation rate in the 7 years since 2019 is 3.8%. Only 3 of the categories are below that rate – Medical Services (3.0%), Pet Supplies (1.9%) and Pet Food (3.4%). It is no surprise that Veterinary Services has the highest average rate (6.5%), but all 4 other categories are +4.0% or higher.

• U.S. CPI – The 25>26 rate is 3.0%, up 15% from 24>25 but down 9% from 23>24. It is also 62.5% less than 21>22 and 21% below the average increase from 2019>2026. However, it’s still 52% more than the average increase from 2018>21. 83% of the 29.7% inflation since 2019 occurred from 2021>26. Inflation is a problem that started recently.
• Pet Food – Ytd prices are still inflating, 1.8%, up from 1.7%. That’s a big increase from -0.5% in 24>25, but it is still below 2.2% in 23>24 and even the 1.9% 18>20 average. Pet Food has the highest 22>23 rate but is only #6 in the 21>26 rates and #8 in 19>26. Deflation in the 1^st half of 2021 kept YTD prices low then they surged in 22 and especially in 23. 93% of the inflation since 2019 occurred from 2021>26.
• Food at Home – The 25>26 inflation rate is 9.5% above 24>25, but it is down 75% from 22>23 and 21>22. It’s even 21% less than 20>21. However, it is 70.4% higher than the average rate from 2018>20. It is only in 5th place for the highest inflation since 2019 but still beat the U.S. CPI by 7.1%. You can see the impact of supply chain issues on the Grocery category as 82% of the inflation since 2019 occurred from 2021>26.
• Pets & Pet Supplies – A roller coaster, prices rose Jan>Feb 24, fell Mar>Apr, rose May>Jun, fell July, rose Aug, fell Sep>Oct, rose Nov>Dec, fell Jan>Feb 25, then rose Mar>May. Prices vs 24 deflated in June, back to +0.7% in July, fell to 0.0% in Aug, rose Sep>Dec, fell Jan 26, rose Feb>Mar, fell Apr. Supplies still have the lowest inflation since 2019. Their biggest YOY lifts since 2019 were in 22 & 23. The 2021 deflation created an unusual situation. Prices are up 14.0% from 2019 but 111% of this lift happened from 21>25. Prices are up 15.6% from their 2021 “bottom”.
• Veterinary Services – Inflation was high in 2019 and steadily grew until it took off in late 2022. The rate may have peaked in 2023, but it is still going strong in 2026, +5.9%, the 2^nd  highest on the chart. However, they are still #1 in inflation since 2019 and since 2021. At +6.5%, they have the highest average inflation rate since 2019. It is 71% higher than the National Average but 2.2 times higher than the Inflation average for Medical Services. Strong Inflation is the norm in Veterinary Services.
• Medical Services – Prices went up significantly at the beginning of the pandemic, but inflation slowed in 2021. In Apr 2026 it is 3.7%, 23% above the 3.0% 2019>26 average rate. We should also note that 3.7% is 2.3 times higher than the 1.6% low point in 23>24.
• Pet Services – After falling in late 2023, prices surged in 2024, then fell in 2025 until an Apr>Aug lift followed by a Sep>Nov dip and a Dec>Apr 26 lift. The 25>26 6.8% CPI is #1 on the chart, passing Veterinary. It is 33% above their 19>26 avg and more than double their 2018>20 avg. Pet Services is also 2^nd in both 19>26 and 21>26 inflation.
• Haircuts & Personal Services – The services segments, essential & non-essential, were hit hardest by the pandemic. The industry responded by raising prices. 2026 inflation is 4.5%, 22.4% below its 20/21 peak, but 40.6% above the 18>20 average. Consumers are paying over 35% more than in 2019, which usually reduces the purchase frequency.
• Total Pet – Petflation is 3.7%, up 95% from 24>25, but 64.1% less than their 22>23 peak. However, It’s 61% more than their 18>21 avg and 23% above the CPI. Petflation is still growing. Except for Mar/Aug/Oct/Nov, Pet prices rose in 25, which continued in Jan>Mar 26, then paused in Apr. The overall gain is primarily being driven by a flip from deflation to inflation in Pet Products and continued strong inflation in Services, especially Non-Vet.

The Petflation recovery paused in Aug 24, came back Sep>Oct, paused in Nov, resumed in Dec>Jan 25, paused in Feb, restarted in Mar and paused Apr>Sep. It improved Oct/Nov but paused in Dec>Apr 26. We tend to focus on the monthly, YOY inflation in the current year and ignore the fact that inflation is cumulative. Pet prices are 28.2% above 2021 and 33.3% higher than 2019. Those are big lifts. In fact, Mar prices for the National CPI, Total Pet and all pet segments reached new record highs. In Apr, prices either set a new record or are within 0.3% of Mar. Only Supplies prices (+14.7%) are less than 25.9% higher than 2019. Since price/value is the biggest driver in consumer spending, inflation will affect the Pet Industry. Services will be the least impacted as it is the most driven by high income CUs. Veterinary will continue to see a reduction in visit frequency. Pet Parents will just pay more. The product segments will see a more complex reaction. Supplies are more discretionary so we will likely see a reduction in purchase frequency. In Pet Food, the most needed segment, some Pet Parents may choose to downgrade their Pet Food. However, the biggest impact in both product segments will be a strong movement to online purchasing and private label. We saw proof of this at both GPE 25 & SZ 25 as a huge # of exhibitors offer OEM services. At GPE 26, this trend continued. Strong, cumulative inflation has a widespread impact. We’ll continue to monitor the situation.

It’s time to continue with 2026 Inflation. The Consumer Price Index peaked back in June 2022 at 9.1% then began to slow until it turned up in Jul/Aug 2023. Prices fell in Oct>Dec 23, then turned up Jan>Oct 24 but fell in Nov. However, they rose 10 straight months to a record high in Sep 25, fell Oct>Dec, then rose in Jan>Mar (New Records). The CPI vs last year rose to 3.3% from 2.4% because of a 1% Feb>Mar lift. Grocery prices fell slightly, -0.04% from Feb and their YOY inflation slowed to 1.9% from 2.4%. Even minor price changes can affect consumer pet spending, especially in the discretionary pet segments, so we will continue to publish monthly reports to track petflation as it evolves in the market.

Petflation was +4.1% in Dec 21 while the overall CPI was +7.0%. The gap narrowed as Petflation accelerated. It was 96.7% of the national rate in June 22. National inflation has slowed considerably, but Petflation generally increased until June 23. It passed the CPI in July 22, fell below it from Apr>Jul 24. It passed the CPI in Aug, fell below in Sep>Oct, rose above in Nov, fell below in Dec>Aug 25, then passed it in Sep>Oct & Dec>Mar 26. All reports will include:

• A rolling 24 month tracking of the CPI for all pet segments and the national CPI. The base number will be pre-pandemic December 2019 in this and future reports, which will facilitate comparisons.
• Monthly comparisons of 26 vs 25 which will include Pet Segments and relevant Human spending categories. Plus
  1. CPI change from the previous month.
  2. Inflation changes for recent years (25>26, 24>25, 23>24, 22>23, 21>22, 20>21, 19>20, 18>19)
  3. Total Inflation for the current month in 2026 vs 2019 and vs 2021 to see the full inflation surge.
  4. Average annual Year Over Year inflation rate from 2019 to 2026
• YTD comparisons
  1. YTD numbers for the monthly comparisons #2>4 above

In our first graph we will track the monthly change in prices for the 24 months from Mar 24 to Mar 26. We will use December 2019 as a base number so we can track the progress from pre-pandemic times through an eventual recovery. This chart is designed to give you a visual image of the flow of pricing. You can see the similarities and differences in segment patterns and compare them to the overall U.S. CPI. The year-end numbers from 12 and 24 months earlier are included. We also included and highlighted (pink) the cumulative price peak for each segment. In Mar, Total Pet prices were up 0.8% from Feb. All segments were up & peaked. Supplies (+1.7%), Vet (+0.7%), Food (+0.4%), Services (+0.4%).

In Mar 24, the CPI was +21.5% and Pet was +24.0%. The Services segments inflated after mid-20, while Product inflation stayed low until late 21. In 22, Food prices grew but the others had mixed patterns until July 22, when all rose. In Aug>Oct Petflation took off. In Nov>Dec, Services & Food inflated while Vet & Supplies prices stabilized. In Jan>Apr 23, prices grew every month for all segments except for 1 Supplies dip. In May Products prices grew while Services slowed. In Jun/Jul this reversed. In Aug all but Services fell. In Sep/Oct this flipped. In Nov, all but Food & Vet fell. In Dec, Supp. & Vet  drove prices up. In Jan>Mar 24 Pet prices grew. In April, prices in all but Vet fell. In May, all but Food grew. In June, Products drove a lift. In July, all but Services fell. In Aug, Food drove a drop. In Sep, Products fueled a drop. In Nov all were up. Prices dropped in Mar & Oct>Nov 25, then rose Dec>Mar 26. All, including the CPI, set records in March 26.

• U.S. CPI – Inflation was below 2% through 2020. It turned up in January 21 and grew until flattening out in Jul>Dec 22. Prices rose Jan>Sep 23, fell Oct>Dec, rose Jan>Oct 24, fell Nov, rose Dec>Sep 25, fell Nov>Dec, but hit record highs in Jan/Feb/Mar 26. 25% of the lift since Dec 19 happened from Jan>Jun 22 – 8% of the time.
• Pet Food – Prices were at the Dec 19 level Apr 20> Sep /21. They grew & peaked May 23, then got on a roller which continues Jun/Jul↑, Aug↓, Sep↔, Oct/Nov ↓, Dec>Mar↑ – a new record. 93% of the lift was in 22/23.
• Pet Supplies – Supplies prices were high in Dec 19 due to tariffs. They had a deflated roller coaster ride until mid-21 when they returned to Dec 19 prices & stayed there until 22. They turned up in Jan (record). They plateaued Feb>May, grew in June, flattened in July, then turned up in Aug>Oct to a new record. Prices stabilized Nov>Dec, grew Jan>Feb 23. fell in Mar, but the roller coaster hasn’t stopped. Jan>Feb 25↓, Mar>May↑, Jun↓, Jul↑, Aug↓, Sep↑, Oct>Nov↓, Dec↑(record), Jan 26↓, Feb>Mar↑. Prices are now at a new record high.
• Pet Services– Inflation is usually 2+%. Perhaps due to closures, prices increased at a lower rate in 2020. In 2021 consumer demand increased but with fewer outlets. Inflation grew in 21 with the biggest lift in Jan>Apr. Inflation was strong in 22 but prices got on a roller coaster. They turned up Jul>Apr 23, fell May. Jun>Aug↑, Sep>Dec↓, Jan>Mar 24↑, Apr↓, May↑, Jun↓, Jul>Nov↑, Dec>Mar 25↓, Apr>Aug↑, Sep↓, Oct>Mar 26↑(record).
• Veterinary – Inflation has been consistent. Prices turned up in Mar 20 and grew through 21. A surge began in Dec 21 which put them above the overall CPI. In May/Jun 22 prices fell below the CPI. However, they rose again & have been above the CPI since July 22. In 23>25 prices grew Jan>May, leveled Jun/Jul, fell Aug, grew Sep>Dec, fell Jan, grew Feb>May, fell Jun>Jul, grew Aug 24>Sep 25, fell Oct>Nov, grew Dec>Mar 26. (records)
• Total Pet – Petflation is a sum of the segments. In Dec 21 the price surge began. In Mar>Jun 22 the segments had ups & downs, but Petflation grew Jul>Nov, slowed Dec, grew Jan>May 23, fell Jun>Aug, grew Sep/Oct, fell in Nov. In December prices grew through Mar 24 to a record high. Prices fell in April, rose May>Jun, fell Jul>Sep, rose Oct>Nov, fell Dec, rose Jan>Feb 25, fell Mar, grew Apr>Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec>Mar 26 (record)

Next, we’ll turn our attention to the Year Over Year inflation rate change for March and compare it to last month, last year and to previous years. We will also show total inflation from 21>26 & 19>26. Petflation rose from 2.5% to 3.5% in Sep, fell to 2.6% in Nov, then rose to 3.5% in Dec. In Mar it is 4.3%, 30.3% above the National CPI. The chart will allow you to compare the inflation rates of 25>26 to 24>25 and other years but also see how much of the total inflation since 2019 came from the current surge. We’ve included some human categories to put the pet numbers into perspective.

Overall, prices were up 1.0% from Feb and were +3.3% vs Mar 25, up from 2.4% last month. Grocery prices dropped, -0.04% and inflation slowed to +1.9% from 2.4%. Haircut prices were also down from last month. In Feb, there were no drops. In Dec & Jan there was 1. In Nov there were 6 drops. The national YOY monthly CPI rate of 3.3% is up 37.5% from 24>25 but it’s 61% less than 21>22. The 25>26 rate is above 24>25 for all but Vet, Groceries & Haircuts. In our 2021>2025 measurement you also can see that over 80% of the cumulative inflation since 2019 has occurred in all but 4 segments, Haircuts, Medical, Vet, Pet Services. Service Segments have generally had higher inflation rates so there was a smaller pricing lift in the recent strong increase. Pet Products have a very different pattern. The 21>26 inflation surge provided 98% of their overall inflation since 2019. This happened because Pet Products prices in 2021 were still recovering from a deflationary period. Services expenditures account for 64.0% of the National CPI so they are very influential. Their current CPI is +3.1% while the CPI for Commodities jumped up from 1.2% to 3.4%. Services are the usual inflation driver, but Commodities are behind the current increase. The situation in Pet is closer to the “normal” national situation. Petflation: 4.3%. The CPI for the 2 Service Segments is 5.6%. The Pet Products CPI is 3.1%.

• U.S. CPI– Prices are +1.0% from Feb. The YOY increase is 3.3%, up from 2.4% in Feb. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are now 65+% higher than the target. The lift follows stability in Feb, a lift in Jan, stability in Dec and 2 drops in Oct & Nov. The current rate is 37.5% above 24>25 and the 21>26 rate is +24.7%, 82.6% of the total inflation since 2019. The Inflation surge was just starting in March 2021, +2.6%
• Pet Food– Prices are +0.4% vs Feb. and +2.3% vs Mar 25, up from 1.4%. They are now 21% above the Food at Home inflation rate of +1.9%. Remember that the YOY Pet Food CPI has deflated in 15 of the last 25 months. The 2021>2026 inflation surge has generated 93.6% of the 26.7% inflation since 2019. Inflation began for Pet Food in June 2021, +0.9%, after 12 straight deflationary months. Pet Food prices just reached a new record high.
• Food at Home – Prices are -0.04% from Feb and the YOY increase fell from 2.4% to 1.9%. This is radically lower than Jul>Sep 2022 when it exceeded 13%. The 31.4% Inflation for this category since 2019 is 5% more than the national CPI but is only in 5th place behind 3 Services expenditures and Total Pet. 82.5% of the inflation since 2019 occurred from 2021>26. This is about the same as the CPI, but we should note that Grocery prices began inflating in 2020>21 then the rate accelerated. It appears that the pandemic supply chain issues in Food which contributed to higher prices started early and foreshadowed problems in other categories and the overall CPI tsunami.
• Pets & Supplies– Prices were +1.7% from Feb and YOY inflation rose to +3.5% from 1.8%. They still have the lowest rate vs 2019. Prices were deflated for much of 20>21. As a result, the 2021>26 inflation surge accounted for 111.0% of the total price increase since 2019. Prices set a record in Oct 22 then deflated. 3 lifts pushed them to a record high in Feb 23. Prices fell in Mar & the roller coaster continued into 25. They fell Jan/Feb 25, rose Mar>May, fell Jun, rose Jul, fell Aug, rose Sep, fell Oct>Nov, rose Dec (record), fell in Jan, rose Feb>Mar – a new record.
• Veterinary Services– Prices are +0.7% from Feb and 5.6% from 2025, up from 5.3%. They are #2 in inflation vs last year, behind Pet Serv. but still #1 in the increase since 2019, +55.5% and 21, +43.9%. For Veterinary, high annual inflation is the norm. However, the rate has increased during the current surge, especially since 23. They have the highest Mar avg rate in 26, but only 79% of the cumulative inflation since 2019 occurred from 2021>26.
• Medical Services – Prices turned sharply up at the start of the pandemic but then inflation slowed and fell to a low rate in 20>21. Prices rose +0.1% from Feb, but inflation vs last year slowed to +3.7% from +4.1%. Medical Services are not a big part of the current surge as only 58.5% of the 22.9%, 2019>26 increase happened from 21>26.
• Pet Services – Inflation slowed in 20 but grew in 21. In 24 prices surged , especially in Jul>Nov. Prices fell Dec>Mar 25 to 3.9%. Apr grew, May fell, June rose, Jul rose to 6.3%. Inflation fell to 5.8% in Aug & to 4.2% in Nov. In Dec>Mar 26 it rose to 7.8%. They are #1 vs 25 and #2 vs 21 & 19. 76.9% of their 19>25 inflation is from 21>26.
• Haircuts/Other Personal Services – Prices are -0.3% from Feb but +4.5% from Mar 25. 20 of the last 27 months have been 4.0+%. Inflation has been pretty consistent. 68.1% of the 19>26 inflation happened 21>26.

Total Pet– Petflation rose to 4.3% from 3.3%. Only Veterinary & Pet Services had a higher rate. It is 3.3 times the 24>25 rate and 30.3% more than the current U.S. CPI. Plus, it is 43.3% above the 3.0% average March rate since 1997. Feb prices rose 0.8%, driven by all. The Feb>Mar increase was well above the 0.3% 97>25 average change, but expected. Since 1997, there have been only 5 Feb>Mar price drops. Another factor in the current CPI lift was that prices fell 0.2% in Feb>Mar 25. The recovery definitely slowed. Now, we’ll look at YTD data.The 25>26 rate is equal to or higher than 24>25 for all, but Veterinary. The 22>23 inflation rate was the highest for Tot Pet, Pet Food, Groceries & Pet Services. 21>22 has the highest rate for Pet Supplies & the Natl CPI. 23>24: Vet; 20>21: Haircuts; 19>20: Medical Services. The average national inflation rate in the 7 years since 2019 is 3.8%. Only 3 of the categories are below that rate – Medical Services (3.0%), Pet Supplies (1.9%) and Pet Food (3.4%). It is no surprise that Veterinary Services has the highest average rate (6.5%), but all 4 other categories are +4.0% or higher.

• U.S. CPI – The 25>26 rate is 2.7%, the same as 24>25 but down 16% from 23>24. It is also 66.2% less than 21>22 and 29% below the average increase from 2019>2026. However, it’s still 45% more than the average increase from 2018>21. 83% of the 29.5% inflation since 2019 occurred from 2021>26. Inflation is a problem that started recently.
• Pet Food – Ytd prices are still inflating, 1.7%, up from 1.4%. That’s a big increase from -0.5% in 24>25, but it is still below 3.0% in 23>24 and even the 2.0% 18>20 average. Pet Food has the highest 22>23 rate but is only #6 in the 21>26 rates and #8 in 19>26. Deflation in the 1^st half of 2021 kept YTD prices low then they surged in 22 and especially in 23. 92% of the inflation since 2019 occurred from 2021>26.
• Food at Home – The 25>26 inflation rate is the same as 24>25, but at 2.1%, it is down 89% from 22>23, 76% from 21>22 and even 40% less than 20>21. However, it is 2.1 times higher than the average rate from 2018>20. It is only in 5th place for the highest inflation since 2019 but still beat the U.S. CPI by 7.1%. You can see the impact of supply chain issues on the Grocery category as 82% of the inflation since 2019 occurred from 2021>26.
• Pets & Pet Supplies – A roller coaster, prices rose Jan>Feb 24, fell Mar>Apr, rose May>Jun, fell July, rose Aug, fell Sep>Oct, rose Nov>Dec, fell Jan>Feb 25, then rose Mar>May. Prices vs 24 flipped to deflation in June, back to +0.7% in July, fell to 0.0% in Aug, rose Sep>Dec, fell Jan 26, rose Feb>Mar. Supplies still have the lowest inflation since 2019. Their biggest YOY lifts since 2019 were in 22 & 23. The 2021 deflation created an unusual situation. Prices are up 13.8% from 2019 but 112% of this lift happened from 21>25. Prices are up 15.5% from their 2021 “bottom”.
• Veterinary Services – Inflation was high in 2019 and steadily grew until it took off in late 2022. The rate may have peaked in 2023, but it is still going strong in 2026, +6.1%, the 2^nd  highest on the chart. However, they are still #1 in inflation since 2019 and since 2021. At +6.5%, they have the highest average inflation rate since 2019. It is 71% higher than the National Average but 2.2 times higher than the Inflation average for Medical Services. Strong Inflation is the norm in Veterinary Services.
• Medical Services – Prices went up significantly at the beginning of the pandemic, but inflation slowed in 2021. In Mar 2026 it is 3.9%, 30% above the 3.0% 2019>26 average rate. We should also note that 3.9% is 3 times higher than the 1.3% low point in 23>24.
• Pet Services – After falling in late 2023, prices surged in 2024, then fell in 2025 until an Apr>Aug lift followed by a Sep>Nov dip and a Dec>Mar 26 lift. The 25>26 6.9% CPI is #1 on the chart, passing Veterinary. It is 35% above their 19>26 avg and more than double their 2018>20 avg. Pet Services is also 2^nd in both 19>26 and 21>26 inflation.
• Haircuts & Personal Services – The services segments, essential & non-essential, were hit hardest by the pandemic. The industry responded by raising prices. 2026 inflation is 4.8%, 15.8% below its 20/21 peak, but 47.7% above the 18>20 average. Consumers are paying over 35% more than in 2019, which usually reduces the purchase frequency.
• Total Pet – Petflation is 3.7%, up 95% from 24>25, but 7.5% less than 23>24. However, It’s 63 % more than their 18>21 avg and 37% above the CPI. Petflation is growing again. Except for Mar/Aug/Oct/Nov, Pet prices rose in 25, which continued in Jan>Mar 26. This is primarily being driven by a flip from deflation to inflation in Pet Products and continued strong inflation in Services, especially Non-Vet.

The Petflation recovery paused in Aug 24, came back Sep>Oct, paused in Nov, resumed in Dec>Jan 25, paused in Feb, restarted in Mar and paused Apr>Sep. It improved Oct/Nov but paused in Dec>Mar 26. We tend to focus on the monthly, YOY inflation in the current year and ignore the fact that inflation is cumulative. Pet prices are 29.0% above 2021 and 33.8% higher than 2019. Those are big lifts. In fact, March prices for the National CPI, Total Pet and all pet segments reached new record highs. Only Supplies prices (+15.4%) are less than 26.7% higher than 2019. Since price/value is the biggest driver in consumer spending, inflation will affect the Pet Industry. Services will be the least impacted as it is the most driven by high income CUs. Veterinary will continue to see a reduction in visit frequency. Pet Parents will just pay more. The product segments will see a more complex reaction. Supplies are more discretionary so we will likely see a reduction in purchase frequency. In Pet Food, the most needed segment, some Pet Parents may even choose to downgrade their Pet Food. However, the biggest impact in both product segments will be a strong movement to online purchasing and private label. We saw proof of this at both GPE 25 & SZ 25 as a huge # of exhibitors offer OEM services. At GPE 26, this trend continued. Strong, cumulative inflation has a widespread impact. We’ll continue to monitor the situation.

As we continue to drill ever deeper into the demographic Pet spending data from the US BLS, we have now reached the level of individual Industry segments. We will start with Pet Food, now the 2nd largest, but arguably the most influential. We have noted the trendy nature of Pet Food Spending. In 2018 we broke a 20 year pattern – 2 years up then spending goes flat or turns down. We expected a small increase in 2018 but got a $2.27B decrease. This was due to the reaction to the FDA warning on grain free dog food. The warning lost credibility and spending rebounded in 2019, +$2.35B. In 2020 the market was hit by a bigger outside influence – the pandemic. In Pet Food, it created a wave of panic buying and a $5.65B lift. The panic buying was over, so spending fell -$2.44B in 2021. In 2022 spending returned to more “normal” behavior with a strong $4.29B, +12.5% increase to $38.69B. In 2023, spending skyrocketed with a record $6.81B lift and reached $45.5B. In 2024, spending fell -$5.46B, -12.0% to $40.04B, now 2^nd to Veterinary. Let’s take a closer look.

First, we’ll see which groups were most responsible for the bulk of Pet Food spending and the -$5.46B decrease. The first chart details the biggest pet food spenders for each of 10 demographic categories. It shows their share of CU’s, share of pet Food spending and their spending performance (Share of spending/share of CU’s). To reach the 60% goal, 4 are different from Total Pet – Education, Occupation, Area and CU Size. The categories are presented in the order that reflects their share of Total Pet Spending. The big difference is that $70K> income has the smallest share of Food $. This difference is magnified in performance. Being Married is the most important factor in Food spending. In Total Pet and other segments, Income is the most important. Food spending is also more balanced than Total Pet Spending. This is evident by the fact that the Performance of only 5 groups exceeds 120%. In Total Pet there were 7. In 2024, Pet Food accounted for 62.6% of Pet Products $ and 33.7% of Total Pet $, down significantly from 66.4% and 38.7% in 2023. Pet Food is no longer the largest segment (Veterinary) but it is still very important & impactful to the Pet Industry.

1. Housing – Homeowners (81.3%) – up from 77.6%. Homeownership is a huge factor in pet ownership and pet spending. In 2024, homeowners gained share and their performance rose from 119.2% to 125.3%. They rejoined the 120% club and are tied for 4th in importance. Only w/o Mtge spent more, +$1.3B. W/Mtge were -$4.1B. The increase in share and performance was driven by a -$2.7B, -26.5% drop by Renters.
2. Race/Ethnic – White, not Hispanic (83.4%) – up from 79.9%. This large group accounts for the vast majority of spending in every segment. They gained share and their performance increased to 125.3% from 120.4%, but this category stayed #3 in terms of importance in Pet Food Spending. Hispanics, African Americans and Asians account for 33.9% of U.S. CU’s & they spend 16.6% of Food $, down from 20.1% in 2023. Only Asians spent more, +$0.55B. Whites were -$2.94B, -8.1%. Minorities were -$2.53B, -27.6%. This % disparity drove the share/performance lifts.
3. Area – Suburban + Rural (72.7%) down from 73.8%. Their performance fell from 112.7% to 112.0% and their importance dropped to #9, from #8. All segments spent less. The Suburbs had the biggest $ drop, -$2.73B and Center City had the smallest, -$1.01B. Overall, the drop was rather balanced.
4. Income – Over $70K (66.2%) – up from 61.0%. Their performance rose from 120.9% to 126.4% but they stayed 2nd in importance. High income is still very important in Pet Food Spending but is not at the top of the list. The 50/50 $ divide rose from $93K in 2023 to $98K in 2024 but it is still 6% below the average CU income. Only $40>49K, +$0.56B and 70>99K, +$0.53B spent more. The biggest drop was by <$40K groups, -$4.68B. The $100K> were all down, but the drop was only -$1.8B. The share and performance for $70K> strongly increased because they were only down  -$1.27B, -4.6%, while <$70K was -$4.19B, -23.6%.
5. # in CU – 2/3 people (60.0%) – up from 54.7%. Their performance also rose from 114.7% to 125.3% and their rank is now tied for 4th. Only 2 people CUs spent more, +$0.43B, +2.6%. In 2024, 2 & 3 People CUs spent -$0.88B, 3.5% less. In 2023 they spent $3.5B more – a big change. Singles led the way down with a -$3.09B, -29.9% decrease in Food spending. Together, 1,4 & 5+ were -$4.58B, -22.2%. This caused the big lifts in share & performance.
6. Occupation – Wage & Salaried + Self-employed (65.3%) – down from 66.9% – The group’s performance is even lower from 98.7% to 96.0%. Occupation is again last in importance. Only Mgrs/Prof, +$0.91B & All Other, Unemployed, +$0.14 spent more. The widespread spending decreases caused the drops in share & perform ance.
7. Education – Assoc. Degree> (67.0%) – up from 64.7%. Performance rose from 110.9% to 113.6% but higher education fell from 6th to 8th in importance. Only Associates & HS grads w/some college spent more. Assoc.> were -$2.61B, -8.9%. <Assoc. were -3.09B, -19.2%. This caused the lifts in share and performance.
8. CU Composition – Married Couples (64.0%) – up from 59.4%. They gained share and their performance rose from 123.3% to 133.3%. They stayed #1 in importance. Only Married, Couple Only & Child 18> CUs spent more. Married CUs were -$1.41B, -5.2%. All others were -$4.05B, -21.9%. This caused the Married Group’s big lifts.
9. # Earners – 2+ CU, 1 or 2 Earners (59.7%) – up from 57.4% Their performance also rose from 114.3% to 119.2% and they moved from 9^th to 6^th in importance. Only No Earner, 2+ CUs spent more, +$0.60B. The 1 or 2 Earners, 2+ CUs spent -$2.17B, -8.3% less. All other CUs were -$3.29B, -17.0%. This drove the lift in share & performance.
10. Age – 35>64 (60.0%) – up from 53.5%. Their performance rose from 102.5% to 115.8% & age moved up from #8 to #7 in importance. All but 45>64 spent less, the reverse of 2023. Age Share: 25>34: 13.9%; 35>44: 17.6%;45>54: 20.6%; 55>64: 21.8%; 65>74: 16.4%. 35>64 have the 3 highest incomes but there’s still some Balance!

The 4 top performers for Pet Food are the same as Total Pet. In 2023 there was a record lift that was widespread and more balanced. This is best illustrated by the fact that in 2023 the performance for only 3 groups exceeds 120% with the highest at 123.3%. In 2024, there was a huge drop and 120+% rose to 5, with the highest at 133.3%. To put the current balance situation into better perspective, we should note that in 2020 there were 8 at 120+%, 5 over 130%.

Now, we’ll look at 2024’s best and worst performing Pet Food spending segments in each category.

Almost all of the best and worst performers are the ones that we would expect. 2024 produced just 1 surprise winner – Married, + Adults in a repeat. There are 7 different winners from 2023 and 8 different losers. This total is 4 more than 2023, which had 6 new winners and 5 new losers. More new losers reflects the widespread nature of 2024’s huge decrease in Pet Food spending. Changes from 2023 are “boxed”. We should also note the performance gap between winner and loser widened in 9 of 12 categories. Overall, the average gap rose from 59.1% in 2023 to 77.4% in 2024. This is strong evidence of decreased spending balance. Here are some more performance specifics:

• Income – The winner & loser are new but expected. The gap stayed at 86% and is again below 100%.
• # Earners – Winner & loser are new. The loser has a very low income. The gap widened from 39% to 84%.
• Occupation – Blue Collar replaced Service Workers on bottom. The gap widened from 38% to 61%.
• Age, Generation – Gen X is now on top in both and Gen Z on the bottom. Both gaps widened. Age:+42%; Gen:+28%
• Race – The usual winner. African Americans replaced Asians on the bottom. The gap widened from 83% to 107%.
• Education – Both are new but, like income, very expected. The gap increased from 35% to 76%.
• Housing – Owning a home is always important. The usual winner & loser returned. The gap widened – 74% to 79%.
• Area – The usual winner/loser – Rural on top & Center City on the bottom. The gap narrowed a little 82% to 79%.
• Region – Both are new and this category also had a small decrease in the performance gap – 30% to 29%.
• CU Comp, CU Size – Comp: No change. Size: 2 replaced 3. Both gaps widened. Comp: +24%; Size: +15%

It’s time to “Show you the money”. Here are segments with the biggest $ changes in Pet Food Spending.

There are no repeats from 2023 and 17 flipped from 1^st to last or vice versa. Last year there were 4 repeats and 4 flips -much more turmoil in 2024. The Surprise winners were w/o Mtge, $40>49K, Asians, Associates, A/O and Center City. The surprising losers were Boomers, w/Mtge, Whites, BA/BS and Suburbs. Spending fell -12.0% as 82.3% of demographic segments spent less. (In 23, 87.5% spent more) Plus, there was no category where all segments had increases. (5 in 23) However, in 2024 in Area, all segments spent less. Here are the specifics:

• Generation – Gen X flipped to the top, replacing Millennials. Boomers are the new loser.
  • Winner – Gen X – Pet Food Spending: $12.91B; Up $1.48B (+13.0%)                                   2023: Millennials
  • Loser – Baby Boomers – Pet Food Spending: $13.24B; Down $3.31B (-20.0%)                 2023: Gen X
  • Comment – Much of the 2020>21 Pet Food spending boom and bust was due to the Boomers. Gen X took over the top spot in 21 & 22. In 2023, they had the only spending decrease. Millennials edged out Boomers for the win. In 2024, Gen X had the only Food lift. BTW – Millennials were -$2.0B.
• Housing – The winner and loser flipped.
  • Winner – Homeowners w/o Mtge – Food: $12.96B; Up $1.30B (+11.2%)                        2023: Homeowners w/Mtge
  • Loser – Homeowners w/Mtge – Food: $19.60B; Down $4.06B (-17.2%)                          2023: Homeowners w/o Mtge
  • Comment – Only Homeowners w/o Mtge spent more. Renters spent -$2.70B, -26.5% less. Like 2023, all changes were double digit %. However, all were positive in 2023. In 2024, that number fell to just 1.
• Age – The Winner and loser both flipped but the result was not surprising.
  • Winner – 45>54 yrs – Pet Food Spending: $8.23B; Up $0.78B (+10.4%)                                2023: 65>74 yrs
  • Loser – 65>74 yrs – Pet Food Spending: $6.58B; Down $2.42B (-26.9%)                               2023: 45>54 yrs
  • Comment: Only 45>64 spent more while <45 and 65> spent less. The lift was driven by Gen Xers while Millennials & Boomers drove the drop. This spending pattern is the exact opposite of 2023.
• CU Composition – The 2023 winner flipped to the bottom. The 2024 winner is new, but not surprising.
  • Winner – Married, Couple Only – Food: $12.66B; Up $0.65B (+5.4%)                                  2023: Singles
  • Loser – Singles – Food: $7.51B; Down $3.09B (-29.2%)                                                            2023: Single Parents
  • Comment – Only Married, Couple Only and those with a Child 18>, +$0.02B, spent more. All other CUs spent $4.7B less. Married, w/children were -$1.89B, but Singles had by far the biggest drop after their huge, +$2.96B, +38.8% increase in 2023.
• # Earners – No Earner, Singles flipped to the bottom. No Earner, 2+ CUs replaced them on top.
  • Winner –– No Earner, 2+ CUs – Pet Food Spending: $4.88B; Up $0.60B (+14.1%)                 2023: No Earner, Single
  • Loser – No Earner, Single – Pet Food Spending: $2.55B; Down $2.12B (-45.5%)                   2023: 3+ Earners
  • Comment – No Earner, 2+ CUs had the only spending increase. No Earner CUs were at the top & bottom. All CUs with any workers spent less on Pet Food.
• Income – Both the winner & loser flipped, and the winner is again a surprise.
  • Winner – $40>49K – Pet Food Spending: $2.66B; Up $0.56B (+26.5%)                                    2023: <$30K
  • Loser – <$30K – Pet Food Spending: $3.92B; Down $2.71B (-40.9%)                                        2023: $40 to $49K
  • Comment – Only the $40>49K & $70>99K groups spent more, +$1.09B. <$40K spent -$4.68B less, which was more than double the -$1.80 decrease by $100K>. All groups over $70K still have 100+% performance.
• Race/Ethnic – Both the winner and loser from 2023 flipped.
  • Winner – Asians – Pet Food Spending: $1.49B; Up $0.55B (+58.4%)                                         2023: White, Not Hispanic
  • Loser – White, Not Hispanic – Pet Food Spending: $33.40B; Down -$2.94B (-8.1%)             2023: Asian
  • Comment – The U.S. is becoming more racially/ethnically diverse, especially with Hispanics & African Americans but White, Not Hispanics are by far the biggest spender in every Pet Segment. Only Asians spent more, but the Minorities were still -$3.53B, -38.5%.
• Education – Both winner and loser flipped and are surprising.
  • Winner – Associate’s Degree – Food Spending: $4.55B; Up $0.54B (+13.4%)                       2023: BA/BS Degree
  • Loser – BA/BS Degree – Food Spending: $12.03B; Down $2.40B (-16.6%)                             2023: Associate’s Degree
  • Comment – Only Associate’s degrees and High School Grads with Some College spent more. The other <College groups were -$2.98B, -33.9%. Advanced Deg. were only -$0.75B, -6.8%, so College Grads were -$3.15B, -12.4%.
• # in CU – 1 Person flipped to the bottom and was replaced on top by 2 People.
  • Winner – 2 People – Pet Food Spending: $16.89B; Up $0.43B (+2.6%)                                 2023: 1 Person
  • Loser– 1 Person– Pet Food Spending: $7.51B; Down $3.09B (-29.2%)                                 2023: 4 People
  • Comment: Only 2 People CUs spent more. Singles were the big loser, but 3 & 4 People CUs both spent -$1.3B less. In fact, 2+ CUs were -$2.37B, -6.8%. Only 2, 3 & 5+ People CUs perform above 100%.
• Occupation – Both winner & loser are new. The Winner, All Other, Not listed includes Unemployed was surprising.
  • Winner – All Other, Not Listed – Pet Food Spending: $4.79B; Up $0.34B (+7.7%)                2023: Retired
  • Loser – Tech/Sls/Clerical – Pet Food Spending: $5.45B; Down $1.49B (-25.8%)                    2023: Mgrs/Professionals
  • Comment – Only A/O, Unemployed spent more. Self-employed were -$0.64B, -17.5%; Retirees were -$1.48B, -14.0% and All Wage & Salary Workers were -$3.68B, -13.7%.
• Region – The South flipped from last to 1^st and the Northeast replaced them on the bottom.
  • Winner – South – Pet Food Spending: $14.96B; Up $0.15B (+1.0%)                                            2023: West
  • Loser – Northeast – Pet Food Spending: $6.22B; Down $2.38B (-27.7%)                                   2023: South
  • Comment – Only the South spent more. The drop by the Midwest, -$2.37, was virtually equal to the Northeast.
• Area Type – The Winner and Loser both flipped.
  • Winner – Center City – Pet Food Spending: $10.90B; Down $1.01B (-8.4%)                            2023: Suburbs;
  • Loser – Suburbs 2500> – Center City: $17.23B; Down $2.73B (-13.7%)                                    2023: Ctr City/Rural – Tie          
  • Comment – In an unusual situation, all segments spent less. In 2023 Center City tied for the bottom, despite a $1.86B lift. In 2024, they won with a -$1.01B drop. Rural was -$1.73B, -12.7%.

We’ve now seen the “winners” and “losers” in terms of increase/decrease in Pet Food Spending $ for 12 Demographic Categories. In 2020, very specific segments binge bought Pet Food. In 2021, their pets “ate up” the overstock so Pet Food spending fell. 2022>23 brought a new challenge, strong inflation. However, most of America remains firmly committed to high quality Pet Food. Super premium Food already had high prices, so income is still very important in Pet Food spending. The 2023 result was 87.5% of all demographic segments spent more which drove a record lift of $6.81B, +17.6% to $45.5B. 2024 was a different story. 82.3% of demographics spent less. The result was $40.04B in spending, -$5.46B, -12.0%. We have identified the winning segments in performance and $ increase but they were not alone. Not every good performer can be a winner. Some “hidden” segments should also be recognized for their performance. They don’t win an award, but they get…

HONORABLE MENTION

Because the drop was so widespread, the possible members of this group was very limited. With 5 different categories, the group was diverse. The lifts were small, under 10% with 4 under 4%. No young groups were included. The Gen X/Boomer 55>64 yr olds spent $0.23B more. The biggest % lift came from the urban  1>2.5M people group. They are the only <100% performer, which is unusual. The smaller urban area with 100>249K people also spent $0.10B more, not unexpected in Food. A college degree mattered less as HS Grads w/some college spent more. Marriage & children matter as those with a child 18> had a miniscule, +$0.02B lift. Income matters in Pet Food spending, but the below avg $70>99K group had the biggest increase, +$0.53B. However, we should note that 3 segments had above avg income and 3 were below  avg. The group is definitely diverse.

Summary

Pet Food has been ruled by trends over the years. The drop in 2018 due to the FDA grain free warning broke a 20 year pattern of 2 years up followed by 1 year of flat or declining sales. This trendy nature increased with the move to premium foods in 2004. The 2007 Melamine crisis resulted in a series of “waves” which became a tsunami with the introduction of Super Premium Foods. The 25 to 34 yr old Millennials were the first to “get on board” with Super Premium in the 2^nd  half of 2014. In 2015, many more groups began to upgrade. The result was a $5.4B spending lift. These consumers were generally more educated with higher incomes. Unfortunately, they often paid for the upgrade by spending less in other segments. In 2016, spending dropped as many value shopped, especially online. They spent some of the $3B “saved” Food $ in other segments but not enough so Total Pet Spending was down -$0.46B. In 2017, due to a price competitive market, we got a deeper penetration of Super Premium. These upgraders were mostly middle-income and not college educated. The result was a $4.6B increase but this time there was no trading of segment $.

In 2018 we were “due” a small annual increase in Pet Food, but spending fell $2.26B in reaction to the FDA warning on grain free dog food. The big decrease came directly from the groups who had fueled the 2017 increase. In fact, 71% of the demographic groups with the biggest change in Pet Food $ switched from first to last or vice versa from 2017.

That brought us to 2019. The FDA warning was false, so Pet Parents returned to Super Premium or even pricier options. Supplement $ also grew as the health of their Pet Children remained the #1 priority. Pet Food $ grew $2.35B with 75% of demographic segments spending more. Income and related categories mattered more, and Pet Food Spending became less demographically balanced. In 2020 the Pandemic accelerated this trend. Fear of shortages led to binge buying and a $5.65B increase. This behavior was driven by very specific groups. This spending disparity was manifested in the fact that the performance of 8 of 10 big spending groups exceeded 120% while 49% of all segments spent less.

In 2021, the retail market strongly recovered but the turmoil in Pet Food continued. The 2020 binge buying didn’t increase usage, so Pet Food spending fell by $2.44B. Every segment with the biggest increase in 2020 had the biggest decrease in 2021. The resulting drop in $ hid the fact that 65% of all demographic segments spent more on Pet Food.

In 2022 the situation returned to a more normal, balanced pattern in spending. Pet Parents renewed their commitment to high quality food for their children. Despite strong inflation, 82% of demographic segments increased spending generating a $4.29B (+12.5%) lift and reaching a new record high of $38.69B – even exceeding the 2020 binge by $1.85B.

In 2023 inflation grew to +10.6%, but spending was +$6.81B, a record. The lift was widespread. In 5 categories, all spent more and overall,  87.5% of demographics increased spending. 2023 was also more balanced as only 3 big groups performed over 120% and the best/worst discrepancy fell from 73.5% to 59.1%. 2023 was a great year for Pet Food.

In 2024, inflation plummeted to 0.2%, but so did Pet Food spending, -$5.46B, -12.0% to $40.04B. They are now the 2nd largest segment, behind Veterinary. The drop was widespread as 82.3% of demographics spent less and in the Area category, all segments were down. Spending  was also less balanced, as 5 big groups performed over 120%, up from 3 and the best/worst performance discrepancy rose from 59.1% to 77.4%. 2024 was a bad year for Pet Food.

Finally – The Ultimate Pet Food Spending CU is 3 people – a married couple and 1 other adult. They are 45>54 yr-old Gen Xers, White, but not Hispanic. At least one has an Advanced Degree and both work in their own business. This generates an income of $200K>. They are still paying the mortgage on their house in a rural area <2500 in the West.