Vericast: Consumers Increase Spending on Pet Products

Consumers have no plans of cutting spending on pet products despite sustained inflation, according to new data from Vericast, signaling a major opportunity for retailers to expand private label assortments.

According to recent consumer survey data of more than 700 pet owners and Vericast's annual 2023 Retail TrendWatch, pet parents view their animals as members of the family, and plan to increase spend on food, treats, supplements and hygiene products as well as birthday and holiday gifts. Pet spending in 2022 was $136.8 billion in total industry sales, nearly an 11% increase over 2021, according to the American Pet Products Association.

Vericast found that about 78% of survey respondents are willing to spend more on pet food and treats in 2023 than in 2022, indicating an interest in premium products. Nearly four in 10 consumers (38%) are willing to spend more on health products like vitamins and supplements this year, and 38% of respondents also said they will spend more on pet hygiene products compared to last year.

Despite the willingness to spend more, pet parents are still seeking deals wherever possible. About 37% of consumers surveyed seek discounts for pet spending, and 28% are using loyalty programs. Almost one third (32%) of pet parents shop for their pets at big brand specialty stores, and 30% shop at supercenters or “big box” retailers.

"Amid cautious spending behaviors, there is still a strong appetite to spend on pets," said Taylor Coogan, pet industry expert and client strategist at Vericast. "However, external factors such as the end of the student loan repayment pause, a shifting job market and other factors may influence how a consumer thinks about pet spending later this year. With the holiday season approaching, now is an opportune time for brands to evaluate how they will communicate the value they provide to pet owners."

According to the Vericast survey, 76% of pet owners view their pet as their child, with Millennials leading the way at 82%, followed by Gen X (75%), Gen Z (70%) and baby boomers (67%). Over 62% of respondents consider quality time with pets equally (47%) as important as time with a partner or even more important (15%) as time with a partner.