With household budgets in the US under pressure, the country's 94 million pet parents appear to be making cuts to their spending on pet food and veterinary services.
 

The cost of living in the United States has been rising steadily in recent years. The latest data from the US Bureau of Labor Statistics (BLS) show that the consumer price index rose 2.3% in the 12 months to April 2025, the smallest increase in more than 3 years, but still above the Federal Reserve's preferred 2% level.
 

High inflation in vet


A new report from the Bank of America Institute (BofA) analyzes current consumer spending and inflation data, finding that pet food inflation is near zero, having peaked at nearly 16% in 2022–2023. However, inflation for pet services, including vets, while rising to less than 12% in recent years, remains relatively high at 4.6%.  

 

The cost of pet services has increased by 42% since 2019, compared to a 22% rise in the price of pet food and treats over the same period. 

 

Examining BofA's debit and credit card data, spending at pet stores (down approximately 4% year-over-year in April) and direct veterinary spending (down 1%) is running below inflation rates. 

 

This suggests that American pet parents may be trading down to purchases in grocery stores while growing levels of pet insurance (up 20% since 2020, according to the North American Pet Health Insurance Association) may be reducing direct vet services spending. 

 

Demographic differences


According to the BofA report, lower-income millennial households are showing the largest pull-back in pet spending (around 5%) compared to better-off pet parents in this cohort and both lower- and higher-income consumers in older generations. 

 

Spending in pet stores and on pet care services is significantly higher in Seattle and San Francisco (30% more than the US average), followed by New York, San Diego and Boston (all around 15% higher than the US average). 

 

Spending in San Antonio, St Louis and Atlanta is all well below the US average by almost 20%. 

 

Cost decisions


A recent survey by consumer analytics platform CivicScience of 400 pet parents reveals that 32% of respondents report a time in the last 6 months when they were unable to take their pet to the vet due to prohibitive costs. 

 

The data also shows that cost is the top factor influencing consumers' pet spending choices, increasing 4 percentage points to 50% in 2025 compared to 2 years earlier, while 'healthy choice' slips back 1 point to 49%, taking second place. 

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Safety (37%), vet recommendation (35%), convenience (29%), friend or family recommendation (27%), pet store displays or assistance (12%), and advertising or media recommendation (11%) are all relatively stable. 

 

Premium choices


A separate study from academics at the University of Arkansas has considered the factors that drive pet parents to pay a premium price for pet food. 

 

Some health-related claims are associated with significant price premiums, while price discounts accompany others or show no significant effect. 

 

The highest price premium is for allergy relief products (17.8%) and sensitive digestion (3.8%), indicating potential in combining these premium attributes. 

 

Price discounts are associated with immune support (-2.7%) and dental breath care (-7.4%), and these features may no longer serve as compelling premium differentiators, potentially necessitating bundling with other higher-value attributes. 

 

'Premium' labeled products and those with claims like non-GMO or chicken-free command significantly higher prices, while those labeled 'with grain' and those with chicken as a primary flavor are associated with discounts.


Source: GlobalPets

You could be interested: Pet Food Label Modernization


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