As of 2023, 66% of U.S. households (86.9 million homes) own a pet. Pet ownership has increased significantly over the past three decades; in 1988, only 56% of U.S. households owned a pet.
The Rise of Pet Insurance
The steady rise in pet ownership in the U.S. comes at a time when pet insurance is also rapidly gaining in popularity. Pet insurance prevents you from having to pay the full cost of unexpected vet bills if your pet is injured or gets sick. It’s a smart way to add a layer of financial security to your budget.
Market Resilience and Projected Growth
The market for pet products is resilient too – growth continued during the financial crisis of 2008-2009, and it has continued even amid COVID-19. Increased pet ownership as a result of COVID-19 and increased spending on pets are two important reasons why the animal health market is poised to grow.
In 2022, U.S. pet owners spent $136.8 billion on their pets. In 2023, a total of $143.6 billion in sales is projected in the U.S. category. The global pet insurance market was worth more than $2.83 billion at the end of 2021 and is projected to reach $32.7 billion by 2030.
While pet ownership accelerated during the COVID-19 pandemic, investment banking companies predict millennials and Generation Z will sustain growth up to 14% by 2030. The global natural pet food market has a value of $22.8 billion.
Families in the U.S., Brazil, EU, and China alone account for over half a billion dogs and cats. Pet ownership is rising globally, particularly in millennial households, which tend to be smaller families and have children later in life. Pet ownership leads to improved human health outcomes for people including better heart health, lower levels of depression and anxiety, and more.
Demographics and Expenditure Growth
The number of pet dogs and cats in the US increased from 140 million in 2019 to 149 million in 2020, representing approximately 7% growth. The growth rate in pet ownership is expected to slow to 2%-4% in 2021 and slightly positive growth is expected until 2025. Millennials have the highest percentage (32%) of pet ownership in the United States. Peoples’ love towards their animal companions goes beyond any age border. From 2010 to 2020, U.S. pet industry expenditure grew by 114%.