Despite Inflation, Pet Owners Haven’t Stopped Spending

While inflation continues to erode the U.S. dollar and force budget reductions, many pet owners are refusing to surrender. As prices rise all around them, pet owners have not changed their spending habits, and even splurge, when it comes to their animals.

According to data from the U.S. Bureau of Labor Statistics, pet products and services have increased nearly 26% since 2019. Also affected are veterinary services, which have gone up nearly 39% in the last four years. These figures beat the overall inflation rate of 23% over the same period.

Industry experts, like Pete Scott of the American Pet Products Association (APPA), are blaming higher production and distribution costs along the whole supply chain. Ingredients, packaging, and transportation are simply costing more, forcing companies to adjust pricing across the board. Even retailers are feeling the pain through higher wages and passing the extra expense on to consumers.

Despite the numbers, pet owners are not deterred. A majority of households consider their animal a valued member of the family. Due to this bond, they continue to spend on higher-quality food and vet care.

Accordingly, the pet industry is benefiting. Per the APPA, Americans spent $97.1 billion on their pets in 2019. Compare that with the association’s projected $150.6 billion expected in 2024 — a 55% increase. Even though prices have gone up, the roughly 82 million U.S. households with pets are still spending the money.

Meanwhile, many Americans are cutting back on splurge spending, such as eating fast food. Per CNBC, food chains like McDonald’s and Taco Bell are seeing fewer customers buying. To increase foot traffic, the restaurants are rolling out or extending menu discounts, such as the McDonald’s $5 Meal Deal, which is now extended through August. Whether these lower menu prices are helping bring people in the door is yet to be seen, but it could certainly help pet owners keep on spending for all their animals’ needs.