Sticker Shock in the Pet Aisle: How Pet Parents are Coping with Heightened Prices

Written by Jordan Tyler

Euromonitor International recently released its Top Global Consumer Trends of 2025. While these trends speak to broad consumer sentiments about the overall consumer goods markets, it doesn’t take much imagination to see how they translate to the pet care space.

In previous articles, I’ve shared a surface-level overview of all five trends identified by Euromonitor, as well as a more in-depth exploration of their first trend—Healthspan Plans. In this article, I’ll take a deep dive into their second trend—Wiser Wallets, wherein consumers are shopping strategically to find the greatest added value and seeking incentives to purchase a particular good. Stick around to get the scoop on inflationary pressures facing modern pet product consumers, how they are reprioritizing their purchases accordingly, and considerations for industry professionals to help them retain loyal customers amid a fraught economic landscape.

The Price Pinch

Price sensitivity is holding fast among pet parents, thanks in part to lingering inflation and weakened consumer confidence. According to a survey published by Loop, a market research platform by ingredient supplier Symrise, in July 2024, 82% of pet parents surveyed said inflation continues to impact their standard of living.

Despite the stabilization of pet food ingredient costs, prices of finished products remain elevated above pre-COVID levels. In fact, though the inflation rate for pet food has plateaued since mid-2023, prices are still nearly 22% higher today than they were pre-COVID.

This is a big deal, as pet food typically accounts for most of an average owner’s pet-related budget. To make ends meet, some have switched to cheaper products, while others are taking different approaches—like treating less—to cut costs on pet-related expenses.?

According to the same Loop survey, 60% of pet owners surveyed said they would switch brands if the price of their usual brand went up. However, quality is still critical to today’s pet food shoppers, meaning most would only swap brands if they believed they weren’t sacrificing nutritional efficacy.

Private Label to the Rescue

Private label sales have grown steadily across the pet food and treat categories over the last few years, particularly since COVID. According to data from Circana, private-label dry dog food sales grew 7.1% from June 2023 to June 2024, while private-label dry cat food sales were up 10.3% over the same period. The highest annual growth rate over this time was seen for private-label wet cat food products at 22.9%, and private-label sales for both dog and cat treats were up in the mid-teens.

Clearly, these brands have struck a chord with inflation-laden pet owners and are now reaping the benefits in terms of sales. What’s more—according to a survey by Packaged Facts, 37% of pet parents said they believe private-label pet food brands offer “the same or better quality” as national brands. With the question of quality out of the way, dog and cat owners have found a new Robin Hood of the pet industry, able to meet both their needs for nutritional excellence and affordability.

It's also important to note how heightened prices for veterinary care are playing into this trend. According to a previous article by my colleague Eric Rittenhouse, private equity firms have identified the veterinary space as a “low-risk, high-reward” category—in other words, a potential cash cow. These firms invested more than $51 billion in the veterinary sector from 2017 to 2023 and another $9.3 billion in the space in the first four months of 2024 alone.

Veterinary expenses are often the second-largest expense owners invest in their pets, according to Loop, and heightened prices in this department could be leading some down the path of preventive care. For example, while the upfront costs of feeding a dental treat daily may seem exorbitant, professional dental care for pets is expensive and only getting more so. Taking a more preventive approach to care means better care for the pet and better preservation of pet parents’ purses.

Learn more about the trend toward preventive care in a recent article I wrote about another top trend Euromonitor identified for 2025—Healthspan Plans.

But, That’s My Son!

Here’s where the “Wiser Wallets” trend goes a little off the rails regarding pet parents. People are generally averse to anything that may make their pet more uncomfortable today than it was yesterday.

According to BSM Aperture, a powerful knowledge and research platform by BSM Partners, 90% of dog owners consider their pup part of the family. Would you really want to skimp for someone you considered a child or sibling? I mean, just look at those puppy-dog eyes.

Pet supplement buyers are a prime example here. According to a 2023 survey by MarketPlace, pet supplement shoppers said they would cut non-essential purchases like entertainment (64% of respondents) and apparel (38%) before pinching pennies on pet products. Some of these pet parents are even more reluctant, with 19% willing to cut their own food spending before that of their pets, 8% opting to cut costs on transportation first, and 5% prepared to spend less on healthcare if it meant their furry companion didn’t have to trade down or go without a product.

This was corroborated by Loop, which surveyed 420 US pet parents in May 2024. Of these, 68% said they would rather cut back on their personal expenses than on their pet-specific budget. This sentiment speaks volumes about the lengths we will go to ensure our furry companions want for nothing, regardless of economic pressures.

Fuel for the Future

Lastly, I’d like to turn this trend on its head for a moment and speak directly to pet industry professionals. After all, they have a role to play here, too!

Remember earlier when we were talking about pet food inflation? Well, as shopping for pet products becomes increasingly difficult for pet parents, companies are fattening up. Dollar sales for brands continue to rise in the face of flat or declining unit and volume sales, which is a clear indicator of inflationary growth and in no way a sustainable strategy for industry players, pet parents, or pets themselves.

Don’t get me wrong—the future of the industry remains promising, so much so that Morgan Stanley’s analysts are predicting pet spending to surge to $261 billion by 2030. However, in order to meet this unprecedented demand, industry companies will need to make bold investments in innovation and capacity if they want to continue capturing market share. Otherwise, they risk losing their customers’ hard-earned dollars to more agile, innovative brands that can offer competitive and compelling solutions in this evolving market.

In other words, now is not the time to sit back and cash in—it’s the time to reevaluate your product portfolio and identify your consumers’ unmet needs so you’ll still be in business by the end of the year.

Balancing the Budget

The pet care industry is at a pivotal juncture, in which heightened costs, evolving consumer preferences, and economic pressures have collided. Pet parents are being forced to make difficult decisions about their spending, and industry players face the dual challenge of meeting increased demand without losing loyal customers along the way.

To thrive in this environment, pet industry professionals must strike a delicate balance: offering value without sacrificing quality, innovating to meet shifting expectations, and staying attuned to their customers' financial realities. Success will come to those who can navigate these challenges with empathy, agility, and foresight.

In the end, it’s critical to know your consumers and how market trends like this one are impacting their purchasing decisions. With more than 400 years of combined pet industry experience, our experts at BSM Partners stand ready to help brands capitalize on market trends and consumer sentiments. We remain committed to helping pet parents navigate this increasingly complex market with confidence.

About the Author

Jordan Tyler is the Director of Media at BSM Partners. She has more than five years of experience reporting on trends, best practices and developments in the North American pet nutrition industry. Jordan resides in Bentonville, Arkansas, with her husband and their four furry family members.