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APPA Releases "2025 State of the Industry Report": Pet Ownership Rises, Generational Shifts Drive Personalized and Diverse Trends

Recently, the American Pet Products Association (APPA) released its "2025 State of the Industry Report." With pet ownership rates in the US continuing to climb and an influx of younger pet owners entering the market, the pet product consumption landscape is increasingly showing trends towards comprehensiveness, personalization, and diversification.

Sales data for US pet products in 2024 reveal varying degrees of change and growth across overall consumption, product categories, and online/offline channels. This article aims to systematically analyze this data, explore the deep integration of consumption trends with e-commerce, and provide comprehensive insights and recommendations for industry decision-makers.

I. US Market Overview

1. Overall Pet Product Market Data

The report indicates that by the end of 2024, an estimated 114 million US households are expected to purchase pet products, with average spending per consumer reaching $782, a 4.1% year-over-year (YoY) increase. This growth reflects the importance of pets in family life and consumers' increasing demand for higher quality and variety in pet supplies. Overall, the US pet product market achieved sales of $152 billion in 2024, a 3.4% increase from $147 billion in 2023.

Beyond direct sales, the pet industry significantly contributes to the broader economy through its supply chain. In 2024, the US pet industry's economic contribution reached $312 billion, a 3% increase from $303 billion in 2023. Concurrently, the industry directly or indirectly supported 2.8 million jobs, generated $144.2 billion in personal income, and contributed $22.4 billion in annual tax revenue. These figures fully demonstrate the pet industry's vital role and widespread impact on the US economy.

2. Market Segments and Trends

Different product categories showed varying market shares:

• Pet Food & Treats: Sales reached $65.8 billion, accounting for 43.3% of total sales, a 2.2% YoY increase.
• Veterinary Care & Products: Sales were $39.8 billion, accounting for 26.2%, a 3.9% YoY increase.
• Supplies, Live Animals & OTC Medicine: Total sales were $33.3 billion, accounting for 21.9%, a 4.1% YoY increase.
• Other Services: Sales were $13.0 billion, accounting for 8.5%, a 5.7% YoY increase.

These figures show pet food maintaining dominance, while spending on services and healthcare is gradually increasing. Compared to industry sales growth in 2021 (13.5%) and 2023 (7.45%), the 2024 data indicates the pet market is stabilizing and evolving towards a more rational consumption structure.

3. Market Forecast

Based on APPA data projections, pet industry sales are expected to reach $157 billion in 2025. Within this:

• Pet Food & Treats: $67.8 billion
• Veterinary Care & Product Sales: $41.4 billion
• Supplies, Live Animals & OTC Medicine: $34.3 billion
• Other Services: $13.5 billion

Long-term projections estimate the total pet market will grow to $192 billion by 2030, with:

• Pet Food & Treats: $78.0 billion
• Veterinary Care & Product Sales: $51.0 billion
• Supplies, Live Animals & OTC Medicine: $42.0 billion
• Other Services: $17.0 billion

Compared to the $250 billion projection for 2030 in the previous "2023 State of the Industry Report," the current forecast shows a more rational and conservative market growth trajectory, indicating the pet industry is gradually returning to a phase of steady growth after a period of rapid expansion.

This forecast reflects both changes in the broader economic environment and a shift in consumer habits – moving from enthusiastic, broad-based purchasing towards a focus on product quality, subscription models, and omnichannel consumption. For e-commerce businesses, this signifies increasingly higher demands for product quality, service experience, logistics speed, and user loyalty. Only through continuous innovation and refined operations can companies remain competitive in this intense market.

II. Consumer Behavior & Purchasing Channel Analysis

1. Online Shopping Trends

With the continuous development of internet technology and the promotion of e-commerce platforms, online channel penetration is steadily increasing. All age groups, including Millennials, Gen Z, and segments of older generations, are actively adapting to this shopping method. 51% of pet owners now purchase pet products online.

As online shopping becomes more common across generations, the volume purchased online per pet owner is also rising. Overall, 40% of pet owners reported increasing their online purchases in 2024, 50% reported purchases staying the same, and only 10% reported a decrease. Specifically, 52% of Gen Z and 48% of Millennials reported increased online shopping, while 54% of Gen X and 64% of Boomers reported their online shopping remained consistent over the past year.

The report shows that in 2024, 56% of Millennial pet owners preferred buying online, a 4% increase from 2023. Among Gen Z pet owners, the online shopping rate was 52% in 2024, a 2% YoY increase. Gen X (40-55 years old) and Boomers (55+) had online shopping rates of 49% and 46%, respectively, representing increases of 3% and 4%.

This widespread adoption across age groups reflects growing consumer trust in e-commerce platforms and improving platform service quality. Online shopping offers convenience and greater product selection, driving platforms to optimize user experience and logistics services.

2. Pet Food & Nutrition Products Are Most Popular

By product category, pet food constitutes a significant portion of overall pet spending. Dog owners spend the most on veterinary care (30% of total spending), pet products (28%), pet food (28%), and non-veterinary services (13%). Cat owners spend the most on pet products (39%), pet food (29%), veterinary care (28%), and non-veterinary services (3%).

Regarding specific products purchased online, pet nutrition products are the most popular. In 2024, 82% of online pet purchases were pet food, followed by pet treats (78%) and vitamins (54%).

Overall, 48% of pet owners reported spending about the same on their pets over the past year, down from 51% in 2023. However, 32% reported increased spending in 2024 (up from 30% in 2023), and 20% reported decreased spending (up from 19% in 2023).

3. Rapid Growth of Subscription-Based Purchases

Subscription-based purchasing has shown remarkable performance in the pet e-commerce sector in recent years. Statistics show 52% of pet owners used subscription services in 2024, a significant increase from 46% in 2023.

Pet nutrition products are the most popular items bought via subscription, with 31% of consumers choosing subscriptions for these. Pet treats and vitamins/supplements followed at 19% and 16%, respectively.

Gen Z and Millennials are the primary adopters of subscription pet purchases, with 61% and 59% using this model. However, Gen X and Boomers showed higher growth rates. In 2024, 47% of Gen X purchased pet products via subscription (up 5% YoY), and 39% of Boomers did so (up 4% YoY).

This model ensures regular access to quality products, alleviates stock-out concerns for consumers, and provides brands with stable revenue and customer loyalty. It represents a key trend in the convergence of e-commerce and physical retail.

III. Product Category & Consumption Trend Analysis

1. Rising Proportion of Premium Pet Product Purchases

Data shows pet food constitutes a large part of pet-related spending. Within pet food, categories and trends are becoming more segmented, with purchases of premium dog and cat food growing while standard formula purchases stabilize.

In 2024, 41% of consumers chose premium/high-quality dog food; 26% chose standard formula; 19% chose formulas featuring natural ingredients. For cat products, the distribution differed: 38% purchased premium food, 38% standard formula, and 18% natural ingredient-focused food. This indicates a growing emphasis on high-quality, premium trends in pet food.

However, distinct generational preferences exist. Older groups (Boomers, Gen X) lean towards premium products, likely due to higher incomes. Younger generations' sensitivity to price and brand perception creates space for both standard and natural products.

• Dog Food Premium Purchases 2024:Boomers: 48% (Up 3% YoY)Gen X: 44% (Up 1% YoY)Millennials: 37% (Up 4% YoY)Gen Z: 27% (Down 4% YoY)
• Cat Food Purchases 2024:Boomers: 41% Standard, 42% PremiumGen X: 37% Standard, 40% PremiumMillennials: 37% Standard, 37% PremiumGen Z: 35% Standard, 27% Premium

2. More Pronounced Trend for New Additives in Cat Food

Beyond basic pet food, food additives are gaining market attention. Data for dog products shows additive purchase rates vary by generation: 15% of Boomers, 16% of Gen X, and 16% of Gen Z bought dog food additives, while Millennials were slightly lower at 18%, indicating overall stabilization.

For cat products, additive purchase rates also show minor fluctuations, ranging from 15% of Boomers to 23% of Millennials trying this new product type.

As consumer awareness of pet nutrition grows, these additives improve palatability and supplement dietary deficiencies, becoming an important new sub-category on e-commerce platforms.

3. Younger Groups Value Organic Pet Food & Brand Influence More

Data on organic pet food purchases shows younger consumers favor these products, particularly Millennials and Gen Z for both dog and cat food.

• Organic Dog Food Purchases:Boomers: 4% (Down 2% YoY)Gen X: 8%Millennials: 13%Gen Z: 14% (Stable/slight decline YoY)
• Organic Cat Food Purchases:Boomers: 4%Millennials: 16%Gen Z: 19% (Up 6% YoY)

Furthermore, data reveals significant generational differences regarding brand importance:

• Gen Z: 79% (Dog), 75% (Cat) consider brand very important.
• Millennials: 70% (Dog), 73% (Cat).
• Gen X: 61%-65%
• Boomers: 59%-63%

Clearly, brands hold far greater appeal for younger consumers than older ones, prompting pet brands to focus more on engaging younger consumers and shaping brand image in e-commerce promotions.

4. Diverse Demand for Pet Treats & Health Products

Beyond pet food, pet treats and health support products are increasingly meeting diverse consumer needs. Specifically, for pet treats, high-protein, meat-based treats, and dental care treats are most popular.

• Meat-Based Dog Treat Purchases:Gen X: 54%Boomers: 51%Millennials: 49%Gen Z: 42%
• Dental Care Dog Treat Purchases:Boomers: 49%Gen X: 47%Millennials: 40%Gen Z: 31%
• Meat-Based Cat Treat Purchases:Gen X: 37%Millennials: 36%Gen Z: 32%Boomers: 30%
• Dental Care Cat Treat Purchases:Gen X: 24%-25%Millennials: 24%-25%Gen Z: 21%Boomers: ~20%

Additionally, natural treats are becoming a market favorite. Data shows Millennials have purchase rates of 31% (Dog) and 25% (Cat), indicating this category is favored by younger consumers.

With rising pet health awareness, demand for pet stress-relief products and pet vitamins/supplements is also growing rapidly. Particularly for anxiety, cannabidiol (CBD) products have become a popular choice for pet stress relief. All age groups are increasingly focusing on comprehensive pet health management.

IV. Pet Ownership & Generational Differences

1. Pet Ownership Data

Data shows that in 2024, 71% of US households (approx. 94 million) owned at least one pet, a significant increase from 63% (approx. 82 million) in 2023. Dogs remain the most popular pet type, owned by 51% of households (approx. 68 million), while cats are owned by 37% (approx. 49 million).

Furthermore, the number of multi-pet households remained stable at 63% between 2023 and 2024. Despite economic concerns, 77% of pet owners stated their pet ownership was unaffected by the economic climate. This data highlights Americans' commitment to pets and suggests a solidifying consumer base for the pet market.

2. Generational Differences & Ownership Shifts

While Millennials remain the largest group of pet owners (30%, approx. 28.2 million), the rise of the younger Gen Z is driving profound changes in the pet market.

Boomers and Gen X each account for about 25% (approx. 23.5 million each). Gen Z, though currently holding only a 20% market share, showed the largest growth in pet ownership, with a 43.5% YoY increase, signaling immense future potential.

• Dog Owners:Millennials: 32%Gen X: 25%Boomers: 22%Gen Z: 20%
• Cat Owners:Millennials: 32%Gen X: 24%Boomers: 23%Gen Z: 20%

Cat ownership among Gen Z has reached a record high, likely because many live in smaller spaces like apartments due to housing affordability.

Male pet ownership is also rising notably, especially among Gen Z and Millennials. In 2024:

• Dog Owners: 58% Gen Z Men (Up 15.2% YoY), 63% Millennial Men (Up 18.6% YoY)
• Cat Owners: 38% Gen Z Men (Up 17.8% YoY), 46% Millennial Men (Up 23.9% YoY)

This data series indicates that with the continuous influx of new generations of pet owners, the pet market's consumption structure, category demands, purchasing channels, and brand perceptions are undergoing profound transformations. For e-commerce platforms, this presents both opportunities and challenges. On one hand, new consumers prioritize personalized services, subscription models, and online shopping experiences. On the other hand, traditional brands and service providers must adapt to evolving trends, undergoing transformation and upgrading to meet changing market demands.

Conclusion
Overall, propelled by rising pet ownership rates and an influx of younger pet owners, the US pet market is exhibiting trends towards comprehensiveness, personalization, and diversification. All segments of the US pet product market showed growth in 2024, with pet food maintaining dominance while veterinary care and other services expanded. Simultaneously, the proliferation of online shopping channels and the rise of subscription models are accelerating shifts in consumer behavior and channel choice. Looking ahead, although market growth is becoming more rational and conservative, the pet industry continues to make significant contributions to the overall economy and demonstrates immense potential to meet diverse consumer demands through innovation and refined operations.