The U.S. pet industry is set to hit $157 billion by 2025—Canada’s is booming too. See what’s driving trends in both countries, from puppy love to inflation, innovation and AI, to sustainability, social media and omnichannel shopping.
As pet parents and business owners, we always keep a close eye on how the pet industry is evolving. . Here’s a look at where the pet industry is going in 2025, with insights from Canada and the U.S., based on the latest research from APPA, Global Pet Expo, Pet Industry Network, and more.
APPA President and CEO Pete Scott said at Global Pet Expo 2025, “The pet industry continues to demonstrate resilience, even amid economic uncertainty. What’s encouraging is that pet ownership itself is expanding, with 94 million U.S. households now owning at least one pet, up from 82 million in 2023. 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. “
U.S. Pet Industry at a Glance
- Market value in 2024: $152 billion in sales Projected Market Value by 2025: $157+ billion
- Overall Pet Ownership Increased increased for both dogs and cats, with 51% of U.S. households (68 million) owning a dog and 37% of U.S. households (49 million) owning a cat.
- In 2024, Gen Z comprised 20% (18.8 million) of U.S. households that owned a pet, a 43.5% increase from 2023.
- Fifty-eight percent of Gen Z and 63% of Millennial dog owners are men, a 15.2% and 18.6% increase from 2023, respectively.
- Annual spend per pet by 2026: $1,445
- Top growth driver: Pet health & veterinary services (projected to hit $112B)
- Pet owners shop across online and in-store, making a strong omnichannel presence essential to pet retailers. Fifty-one percent of buyers typically shop for pet products online. Forty-seven percent of buyers shop for pet products in-store.
- Biggest opportunities: Personalization, tech, sustainability, calming products (Seventy-eight percent of Gen Z dog owners and 71% of Gen Z cat owners use calming products. Seventy-two percent of Millennial dog owners and 66% of Millennial cat owners use calming products.)
“Standing out requires more than great products—it requires innovation and adaptability.” — Pet Industry Network
Canadian Pet Market Highlights
- 2023 market value: $3.8 billion
- Online shopping is up, but in-store brands like Pet Valu and Global Pet Foods remain strong
- Eco-consciousness is growing: 20% of dogs are on fully vegan diets, and packaging sustainability matters
- Pet food imports (mainly from the U.S.): $1.8B | Exports: $960M
- Pet-friendly workplaces = happier employees
Top Trends Shaping the Pet Industry in 2025
Gen Z
Ingrid Chu, APPA’s vice president of Insights and Research: “Gen Z is driving a remarkable shift in pet ownership, with a 43.5% increase in pet-owning households from 2023 to 2024. This generation is also leading in multi-pet ownership. What’s particularly exciting is how they discover and engage with pet products; social media platforms like TikTok, YouTube, and Instagram play a crucial role in their purchasing decisions. As pet brands look to the future, leveraging visual and digital-first strategies will be key to capturing the attention of this rapidly growing demographic.”
Personalization via AI
U.S. pet businesses are using AI to tailor experiences, automate inventory, and analyze customer behavior. Expect:
- Personalized shopping carts
- Smart nutrition recommendations
- Targeted marketing using customer data
Omnichannel Is a Must
Pet parents want to move between in-store, mobile, and online seamlessly. Brands are succeeding when they:
- Offer fast local delivery
- Connect in-store advice with online loyalty
- Make social media shoppable
3. Sustainability = Competitive Advantage
In both countries, consumers want:
- Less packaging waste
- Eco-friendly ingredients
- Ethical sourcing and brand transparency
4. Speed & Convenience Rule
From Amazon and Chewy to small local shops, the name of the game is fast, easy service. Pet parents prioritize:
- Fast delivery
- Auto-reordering
- In-stock essentials
5. Inflation Still Influences Behavior
- Canada: 22% more spent on pets in 2023 vs 2019
- U.S.: Pet costs rose 32% since 2019 in 2024.
- Both markets report switching to more affordable food and gear
What It Means for Pet Parents & Small Pet Brands
Whether you’re shopping for your own fur baby or running a small pet business, here’s what to keep in mind:
- Sustainability isn’t a nice-to-have—it’s a decision-maker
- AI and tech tools can make your business smarter and your service more personal
- Make your customer journey frictionless (especially if you’re selling online)
- Stay human: Education, transparency, and community still win hearts
Pets Are Family
From Canada to the U.S., one thing is clear: pets are family, and people are willing to invest—but they expect better, faster, and greener.
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