This is Part One of a two-part series on APPA’s “2025 State of the Industry Report.” Read more about pet parent purchasing behaviors in Part Two.

STAMFORD, CONN. — Gen Zers and Millennials are flipping the script when it comes to pet ownership, leading to record high sales for the pet industry and shifts in purchasing behaviors, as demonstrated by the American Pet Products Association’s (APPA) “2025 State of the Industry Report” released during Global Pet Expo last week. 

According to the report, the US pet industry reached $152 billion in sales in 2024, a 3.4% increase from $147 billion in 2023. Pet food and treats remain top dog in terms of sales, reaching $65.8 billion in sales (a 2.2% increase from 2023) and representing 43.3% of total pet sales.

Veterinary care and products was the second-highest category, reaching $39.8 billion in sales (a 3.9% increase from 2023) and representing 26.2% of total industry sales. Supplies, live animals and over-the-counter (OTC) medicines totaled $33.3 billion in sales (a 4.1% increase from 2023), representing 21.9% of total industry sales. Lastly, other services totaled $13 billion in sales (a 5.7% increase from 2023) representing 8.5% of total sales. 

Compared to industry sales growth in 2021 (in which total industry sales rose 13.5%) and 2023 (in which total industry sales rose 7.45%), it’s clear that the pet industry is stabilizing to normal sales levels.

For 2025, the association projects industry sales will total $157 billion in 2025, with pet food and treats at $67.8 billion; vet care and product sales at $41.4 billion; supplies, live animals and OTC medicines at $34.3 billion; and other services at $13.5 billion. 

Additionally, the pet industry provided an economic contribution of $312 billion in 2024, a 3% increase from $303 billion in 2023. And 2.8 million US jobs were directly or indirectly tied to pet-related expenditures, with an associated $144.2 billion in personal earnings. The industry also generated a total of $22.4 billion in annual tax revenue.  

Looking to the future, APPA is now forecasting more conservative growth for the pet industry, with sales reaching $192 billion by 2030. Of this, pet food and treats are expected to reach $78 billion, vet care and product sales are expected to reach $51 billion; supplies, live animals and OTC medicines are expected to reach $42 billion; and other services are expected to reach $17 billion in sales. For reference, in APPA’s “2023 State of the Industry Report,” the association forecasted sales would reach $250 billion by 2030.

Evolving ownership

Though pet industry sales may not have witnessed as much growth last year as in previous years, pet ownership continues to flourish throughout the United States. According to the report, 71% (about 94 million) of US households owned a pet in 2024, an increase from 63% (about 82 million) in 2023. Dogs and cats continue to be the most popular pets. Fifty-one percent (about 68 million) of US households own dogs, an increase from 44% (about 58 million) in 2023. Thirty-seven percent (about 49 million) of US households own cats, an increase from 30% (about 40 million) in 2023. Additionally, the number of multi-pet owning households has remained steady from 2023 to 2024 at 63%. 

“The pet industry continues to demonstrate resilience, even amid economic uncertainty. What’s encouraging is that pet ownership itself is expanding, with 94 million US households now owning at least one pet, up from 82 million in 2023,” shared Pete Scott, president and chief executive officer of the APPA. “These figures reaffirm that pet care remains a top priority for Americans, reflecting the deep and lasting bond between people and their pets, especially with the Millennials and Gen Zs who are more likely to have multiple pets than their Boomer and Gen X counterparts.”

Despite concerns about the economy, 77% of pet owners reported that their pet ownership had not been affected by the economy. 

Ingrid Chu, vice president of research insights at the APPA.

| Source: Sosland Publishing Co.

“This is a testament to the human-animal bond and the strength of that bond,” said Ingrid Chu, vice president of research insights at APPA, during the organization’s presentation on the report on March 27. “And also, the humanization of pets, as pets are now part of the family. So, bad economy or not, most people are going to want to keep their pets.”

Generationally, Millennials still make up the largest cohort of pet owners, but more ownership growth is coming from Gen Zers. In 2024, Millennials accounted for 30% (about 28.2 million) of total pet ownership, down slightly from 31% in 2023. Boomers and Gen Xers tied for the second largest cohorts of pet owners, both accounting for 25% (about 23.5 million) of total ownership. And Gen Zers still represent the smallest cohort of pet owners, accounting for 20% (18.8 million) of total ownership, however, this group experienced the largest increase in ownership, rising 43.5% year-over-year.

According to Chu, Gen Z is “reshaping” pet ownership.

“Gen Z is coming in a big way, so we need to be paying attention and we need to be responding accordingly,” she said, “And, if this is going to be an indicator of what the future is going to look like, Gen Z is also more likely to have more than one pet in the household.”

Millennials account for 32% of all dog owners, Gen Xers account for 25%, Boomers 22% and Gen Zers 20%. In the feline space, Millennials account for 32% of all cat owners, Gen Xers account for 24%, Boomers 23% and Gen Zers 20%. According to the APPA, it has seen an uptick in cat ownership, witnessing an all-time high amongst the Gen Z cohort, which could be attributed to the fact that a majority of Gen Zers are living in smaller spaces, like apartments, due to the unaffordability of homes. 

Additionally, APPA found more ownership growth in Gen Z and Millennial males versus females from 2023 to 2024. Fifty-eight percent of Gen Z males and 63% of Millennial males owned a dog in 2024, a 15.2% and 18.6% increase respectively from 2023. Thirty-eight percent of Gen Z males and 46% of Millennial males owned a cat in 2024, a 17.8% and 23.9% increase respectively from 2023.

Read more of our Global Pet Expo coverage.

This is Part One of a two-part series on APPA’s “2025 State of the Industry Report.” Read more about pet parent purchasing behaviors in Part Two.