The GHWIN Blog

Gen Z: The New Powerhouse of Pet Ownership

Gen Z is reshaping the pet industry with their deep emotional connection to pets, viewing them as family members. According to the American Pet Products Association (APPA) 2025 State of the Industry Report, 94 million U.S. households owned pets in 2024, with Gen Z making up 20% (18.8 million) of these households, a 43.5% increase from 2023. Notably, 70% of Gen Z pet owners have multiple pets, amplifying their spending on health and wellness products. 

This demographic is driving significant growth in pet ownership, with 20% of dog owners and 20% of cat owners belonging to Gen Z, reflecting year-over-year increases of 18% and 25%, respectively. Their commitment to pet care is unwavering, with 77% of U.S. pet owners reporting that economic conditions haven’t curbed their pet spending, per the APPA. 

Surging Spending on Pet Health and Wellness

Gen Z’s focus on proactive pet wellness is fueling explosive growth in specific categories. According to Numerator’s 2025 Pet Trends Report, Gen Z’s pet product buy rate grew by 11% year-over-year, outpacing Boomers’ 4% growth. They spend 55% more at Petco and 52% more at PetSmart than the average pet owner, favoring specialized retailers for premium products like dental care, probiotics, and skin care, which saw a 9.2% increase in buy rate. 

The global pet supplements market is projected to grow at a 5.9% CAGR through 2030, per Dogster’s 2025 Pet Industry Statistics, while the pet fitness market is expected to reach $8.91 billion by 2029, according to Dogtopia. Gen Z is also driving the pet wearable market, valued at $2.7 billion in 2023 with a 14.3% CAGR through 2030, as they adopt devices like activity monitors to track pet health. 

On average, pet owners spent $1,452 annually ($121 monthly) on pets in 2024, but Gen Z outspends Boomers by $1,056 per year, according to Newsweek. This is particularly evident during holidays, with Gen Z spending $50 per pet, just behind Millennials at $51. 

The Humanization
of Pets

The trend of pet humanization is at the heart of this spending surge. 97% of pet owners see their pets as family, and 83% report no spending limit to ensure their pets’ health and happiness, per Dogtopia. Gen Z leads this charge, prioritizing mental health enrichment (e.g., calming supplements, interactive toys) and holistic products like CBD oil treats. 69% of pet owners prioritize their pets’ care over their own, with Gen Z being the most vocal about this sentiment. 

Digital Influence &
E-Commerce Growth

Gen Z’s digital-first lifestyle is reshaping how pet products are discovered and purchased. 70% of pet owners bought pet products online in the past six months, a 9-point increase from 2022, per Morgan Stanley’s Pet Industry Outlook for 2030. Social media platforms like TikTok and Instagram are key drivers, with Gen Z relying on influencers and visual content to discover premium pet health products. This creates opportunities for brands to leverage digital marketing and e-commerce platforms to capture this tech-savvy audience. 

Why This Matters
for Investors

The pet industry’s 7% annual growth rate and projected $261 billion valuation by 2030 make it a standout investment opportunity. Here’s why investors should take note: 

  • Resilient Market: Pet spending is recession-resistant, with 6% growth in vitamins and supplements during the 2008–2009 recession and 77% of owners unaffected by current economic conditions. 

  • Gen Z’s Economic Power: With $12 trillion in spending power by 2030, Gen Z’s 43.5% growth in pet ownership and 11% higher buy rate signal long-term demand. 

  • High-Margin Products: Gen Z’s preference for premium products like supplements, wearables, and organic foods offers strong profit margins. 

  • Service and Tech Growth: The $10.18 billion growth in daycare and lodging by 2027 and 14.3% CAGR in wearables highlight opportunities in pet services and technology. 

  • Digital Opportunity: Gen Z’s 70% online purchase rate and social media engagement make e-commerce and digital marketing ventures highly lucrative. 

Conclusion: A Pet-Powered Investment Boom

Gen Z’s dedication to pet health and wellness is transforming the $157 billion pet industry into a $261 billion powerhouse by 2030. Their focus on premium products, digital purchasing, and pet humanization creates a fertile ground for investors. Opportunities abound in pet health products (e.g., probiotics, CBD), pet tech (wearables), services (daycare, grooming), and e-commerce platforms. With 65% of 18–34-year-olds planning to add pets in the next five years, the pet industry is poised for sustained growth, making it a must-watch sector for investors looking to capitalize on Gen Z’s pet-loving revolution. 

Sources:

The Gen Z Effect: Driving the Future of Pet Health & Investment

Taryn Chase
July 2025

The pet industry is experiencing a seismic shift, driven by Gen Z and younger generations who are redefining pet ownership with their focus on health and wellness. With $157 billion projected for U.S. pet industry expenditures in 2025, and a trajectory toward $261 billion by 2030, this rapidly growing market is catching the eye of savvy investors. Here’s why Gen Z’s pet spending habits are creating a unique opportunity, backed by the latest 2025 industry data.