Generational shifts will increasingly factor into growth, as 34% of respondents—particularly those aged 18 to 34—said they intend to get a pet compared with 28% in 2022. These owners tend to spend more than other age groups on their pets, especially on premium food and services, and are more likely to put their pet’s preferences before price.
Among spending categories, pet services such as animal health are expected to be the main driver of growth, more than doubling to $112 billion in 2030 from $48 billion in 2019 and outpacing growth in pet consumables, the largest spending category.
Vet services, in particular, will likely experience a surge in demand over the next decade. This year’s survey, conducted among 2,300 consumers in March and April 2024, found that 80% of pet owners had visited the vet at least once in the past six months, while nearly two-thirds visited one to three times, up four percentage points from the 2022 survey. And respondents said they relied on vet recommendations when buying pet food and treats, which make up about 44% of all pet spending, totaling $147 billion in 2023.
“Taken with our survey results, we can infer that vets directly influenced up to $12 billion of that spend and up to $26 billion indirectly on pet care above and beyond what pet owners spent on animal health,” says Gutman.
That said, fewer respondents said they counted on a vet’s referral compared with the previous survey as the younger generation increasingly turns to social media and personal networks for information.
Meanwhile, the rise of standalone animal health companies has spurred innovation, which could add as much as 3% to market growth in such areas as monoclonal antibodies, vaccines and other injectable treatments. Enhanced diagnostic capabilities, AI and expanded point-of-care services should boost the use of a wider range of products and services within the animal health sector, while elevating the levels of care.
“Animal health is perhaps the most important segment of U.S. pet care for investors to focus on over the next decade,” says Gutman.
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