Pet spending is resilient, not runaway — and inflation explains much of the surge

Pet expenses are among the last cut when household budgets tighten. Even as Americans trimmed spending on entertainment and hobbies in real terms between 2021 and 2024, outlays for pets held steady — not because households are suddenly spending far more on animals, but because they treat them as family. Sixty percent of younger adults, especially Gen Z and millennials, say they prioritize their pets over their own discretionary spending. Seventy percent maintain a separate budget for their animals, and 30% carry pet-related debt — a sign of both emotional commitment and financial weight.

The headline $147 billion in projected pet spending for 2024 sounds explosive, but much of that increase reflects inflation, not a surge in consumption. Nominal spending grew 4.5% annually from 2021 to 2024 — faster than some measures of broad inflation, but slower than spending on food (7%), housing (5.1%), and alcoholic beverages (5%). Adjusted for inflation, per-household pet spending in 2024 still falls below its 2017 peak. The real shift isn’t in total spending, but in priorities: 82% of pet owners see their animals as children, a mindset that sustains demand for premium food, veterinary care, and insurance even during economic strain. Gen Z, the highest-spending cohort, shells out about $6,000 a year — a figure that, while high, remains below the cost of raising a child. In a tighter economy, pet care isn’t discretionary. It’s essential.