This episode “2025 Pet Economic Report” was recorded at the 2025 PetFood Forum event in Kansas City, Missouri.
Episode 2: 2025 Pet Economic Report: Trends and Insights
Timestamps:
Diana predicts the global pet industry to reach about $500 billion by the end of the decade. This is compared to $380 billion currently. The US will remain the largest market, comprising about 40%. It is predicted to reach $200 billion compared to $150 billion currently. Healthcare is expected to be the biggest driver over the next five years. Additionally, food will remain the largest expense. (5:37)
The panel begins by discussing some of the key drivers behind pet owner decisions, including the growing trend of pet humanization. For instance, Nicole highlights findings from her company’s market research, noting that most pet owners describe their pets as either family members or best friends. Additionally, when financial pressures arise, people tend to cut back on their own healthcare expenses rather than reduce spending on their pets. In fact, they often prefer not to trade down in their pet-related expenditures. Later in the discussion, the panel shifts focus to generational differences in pet owner behavior. Nicole adds that pet longevity is a major factor influencing many of these decisions. (7:51)
Diana and Nicole discuss how pet trends tend to follow human trends. They cover ingredient quality, snacks/treats, supplements in a treat form and preventative veterinary care. (17:55)
Jeremy notes from a commercial perspective, more pet food/treat companies are requisitioning 100% human-grade ingredients. The panel talks more about customization trends in the pet industry. They also discuss the movement of luxury brands into the pet sector. There is the presence of large food companies at every price point for dog and cat food. (25:56)
During the panel, the speakers begin by exploring how the significant rise in pet ownership during the pandemic has impacted the industry. As the discussion progresses, they also examine how this ongoing trend continues to shape the industry’s future. (31:50)
Diana mentions e-commerce continues to be a significant driver. In 2025, 30% of surveyed pet owners plan to purchase items through e-commerce, up from 23% in 2023. Amazon and Chewy make up 70% of the pet e-commerce sector. (34:53) Panelists share their take-home thoughts. (39:25)
Conclusion
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