Pandemic pets reshape the global pet industry

Pets have gone from companions to full-fledged family members, and the world’s wallets are proving it. From gourmet pet meals to high-tech grooming, spending on furry friends is skyrocketing and showing no signs of slowing down.

This surge isn’t just about pampering, however— it’s a reflection of shifting lifestyles, rising disposable incomes, and a post-pandemic trend where pet ownership has reached new heights. Since COVID, lockdown saw adoption and fostering rates explode and continue to rise.

Particularly in Europe, pet ownership has surged, with countries like Germany, France, and the United Kingdom seeing a significant rise in households welcoming pets. In the former, the number of pet-owning households increased by 20% since 2020, with over 34 million cats and dogs now residing in German homes. France has followed a similar trend, with nearly half of all households owning a pet, fueled by a growing emphasis on companionship and wellness. Meanwhile, in the U.K., pet adoption rates spiked during the COVID-19 pandemic.

Especially in recent years, an increasing number of pet owners have demonstrated higher willingness to spend on premium pet food, veterinary care, and wellness services. In the United States alone, high-end pet food now accounts for over 42% of sales, reflecting a broader shift towards organic or specialty diets. 

Food company General Mills recently acquired Cloud Star and Tiki Pets for $1.45 billion to strengthen its presence in the wet food pet category, a segment experiencing high annual increases in sales. Similarly, in Europe, 59% of pet owners prioritize sustainability when choosing pet food, prompting investment in eco-friendly and alternative protein options for their companions.

Rising veterinary costs are another factor reshaping the industry; over the past decade, pet healthcare expenses have surged by 60%, with veterinary inflation outpacing general consumer inflation at 10.6% in 2023. In fact, the average pet insurance premium in the U.S. has risen to an estimated $640 per year, not only contributing to the financial burden on pet owners, but also expanding the pet insurance market. As a result, some governments are even considering price controls or subsidies to ensure that pet healthcare can be accessible.

In addition to increased attention being paid to pet comfort, convenience for owners is another draw that is accelerating industry growth. E-commerce and technological developments are making it easier for owners to access higher quality pet purchases, and innovations like AI-powered health monitoring devices, GPS pet trackers, and automated feeders are growing in popularity. For example, online pet product sales in Germany went up by 34% in 2023, as consumers increasingly rely on companies like Chewy and Zooplus for fast delivery of specialized products. Experts project the pet tech market to grow at 20% through 2028, displaying increasing consumer interest in high-tech solutions for their animals.

Notably, demographics are significantly influencing market trends, particularly as Millennials and Gen Z now make up 33 and 25% of all pet owners in the U.S., respectively. These younger consumers tend to prioritize high-end, health-focused, and sustainable pet products, influencing corporate strategies as a result; their spending habits have led to a growing market for organic pet food and eco-friendly toys. Additionally, as studies display that companion animals provide significant mental and emotional health benefits, pet ownership among older adults.

The pet care industry is in the midst of a fundamental transformation, shaped by economic shifts, technological advancements, and changing consumer priorities. What began as a pandemic-driven surge has become a lasting trend, with businesses continuously innovating to meet the evolving needs of pet owners. As the global perception of pets continues to shift, the industry is poised for continued growth, investment, and expansion.