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 , with over 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 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 of sales, reflecting a broader shift towards organic or specialty diets. 

Food company General Mills 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, 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 , with veterinary inflation outpacing general consumer inflation at . In fact, the average pet insurance premium in the U.S. has risen to an , 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 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 , as consumers increasingly rely on companies like Chewy and Zooplus for fast delivery of specialized products. Experts project the pet tech market to 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 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 for organic pet food and eco-friendly toys. Additionally, as 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.