Why Millennials & Gen Z Are Spending Big on Pets (And How Retailers Can Keep Up)?

The pet industry is booming — and not just in size, but in meaning. For Millennials and Gen Z, pets are more than companions; they’re family members, status symbols, and even substitutes for children. Surveys show that 43% of young adults would rather raise pets than kids — a choice fueled by lifestyle flexibility and emotional fulfillment.

But here’s the key: pets may be less costly than children, but today’s pet parents are anything but frugal. They’re investing heavily in premium nutrition, services, and tech. In fact, younger generations spend more than twice as much on their pets compared to older generations — reshaping the way stores manage pet store inventory and plan product sourcing.

Let’s break down the numbers, behaviors, and opportunities that matter for your business.elated

Related Read：An Overview of the Pet Industry in the U.S.

Industry Growth: The Big Picture

• Market size: The U.S. pet industry hit $150 billion in 2024 and is on track to approach $200 billion by 2030.
• Household ownership: 66% of U.S. households have at least one pet. Dogs lead at 44%, with cats close behind.
• Insurance growth: 6.25 million pets were insured in North America by the end of 2024, a 16% rise in two years — proving wellness is a top priority.

Breakdown of spending (APPA, 2024):

• Pet food & treats: $66.9B (44.4%)
• Veterinary care & product sales: $39.1B (26%)
• Supplies, live animals & OTC meds: $32.0B (21%)
• Services (grooming, boarding, training, insurance): $12.6B (8%)

Takeaway for retailers: Essentials like food will always dominate, but the fastest growth is in nonessentials — premium, indulgent, and lifestyle-driven purchases. That’s where differentiation lies.

Generational & Lifestyle Spending

Not all pet parents shop the same way. Understanding differences helps optimize your pet product sourcing.

• Gen Z (25% of owners): Spend about $6,100/year, with strong interest in eco-friendly brands, smart pet tech (GPS collars, treat-dispensing cameras), and subscription services.
• Millennials (33% of owners): Around $5,150/year, often choosing natural food, supplements, and premium treats. They’re also the most engaged in sustainability and brand storytelling.
• Boomers (24% of owners): Spend less ($2,450/year), focusing on vet care, diet-specific food, and reliable essentials.

Other key drivers:

• Income: Families making $100k+ often own multiple pets and buy luxury services like boarding, daycare, and spa treatments.
• Urban vs rural: City pet owners spend more on services (walking, grooming, daycare), while rural owners prioritize affordable feed and supplies for multiple pets.
• Living situation: Apartment dwellers spend more on cats, small breeds, and convenience services like delivery; homeowners lean toward dogs and long-term pet products.

Retailer strategy: Stock a balanced pet store inventory — everyday basics, budget-friendly lines, and premium lifestyle items — to meet different shopper profiles.

Emerging Pet Spending Trends

1. Subscription Everything

From auto-ship food to curated monthly treat boxes, subscription sales are growing fast. They save time, guarantee convenience, and create loyalty.

✔ Retailer tip: Explore subscription bundles (treats + toys + supplements) to lock in repeat buyers.

2. Tech-Powered Care

Younger pet owners love gadgets: GPS trackers, smart feeders, automatic litter boxes, and even fitness wearables for pets.

✔ Retailer tip: Consider adding a pet tech section to your store or e-commerce site.

3. Human-Grade Food & Treats

Fresh, freeze-dried, and functional treats (like calming chews or joint support) are surging. Pets are eating closer to how their humans eat.

✔ Retailer tip: Partner with wholesale pet supplies distributors offering natural and functional products.

4. Wellness as Non-Negotiable

Insurance, supplements, CBD products, dental chews, and vet-recommended diets are becoming part of everyday routines.

✔ Retailer tip: Educate customers through signage, blogs, or short videos on why wellness products matter.

5. Values-Based Shopping

Eco-friendly packaging, sustainable sourcing, cruelty-free brands, and “buy one, give one” models resonate strongly with Gen Z and Millennials.

✔ Retailer tip: Use shelf tags, website filters, or product labels to highlight sustainability.

What Pet Stores Can Do Now

The rise of the “all-in” pet parent means retailers must go beyond stocking shelves. Success will come from matching product strategy with customer lifestyle:

• Small towns / older shoppers → Mobile grooming, wellness products, joint chews, pill pockets, easy-lift harnesses.
• Big cities / busy professionals → Fast delivery, dog walking, daycare, smart bundles. Focus on convenience over square footage.
• High-income suburbs → Premium food, luxury accessories, wellness programs, birthday cakes for pets, hiking gear.
• Budget-conscious areas → Loyalty rewards, bulk-buy discounts, affordable but reliable essentials.

And don’t forget digital convenience: if high rent makes a storefront tough, online stores with door-to-door delivery or local pickup can keep your business competitive. Partnering with online pet suppliers gives you flexibility without heavy inventory risks.

The Bigger Shift: Pets as Family

This isn’t just a trend. It’s cultural. Pet parents are planning insurance policies, rearranging budgets, and even including pets in inheritance planning.

• 1 in 3 pet owners would give up $100,000 for more time with their pets.
• 47% would leave pets an inheritance if possible.

That level of devotion signals long-term change. As one industry analyst puts it:

“Pet owners today don’t want stores that just sell products. They want partners who understand what their pets mean to them.”

For retailers, this is your chance to strengthen loyalty, personalize offerings, and build a brand that feels like family.

How Petfairs Can Help You Turn Trends Into Action

Spotting trends is one thing. Acting on them is another. That’s where Petfairs comes in.

We help pet retailers and online pet suppliers move from insight to execution by offering:

• Smarter pet product sourcing → Access trending products in categories like eco-friendly toys, tech gadgets, and wellness supplies — all in one place.
• Flexible order quantities → Start small (as low as 1 carton) to test new products before scaling up.
• Global delivery options → From door-to-door to FBA warehouse delivery, Petfairs makes logistics hassle-free.
• Competitive pricing → Source at wholesale pet supplies rates without sacrificing quality.
• Curated recommendations → We track industry shifts so your pet store inventory always stays relevant to what pet parents want.

Instead of chasing dozens of suppliers, Petfairs lets you streamline sourcing and focus on what matters most: building stronger connections with your customers.

👉 Explore Petfairs today and see how easy it is to bring the right products — at the right time — to the pet parents who trust you.