The GHWIN Blog
Where the Dollars Are Going: A Breakdown of Pet Health Spending
Understanding how pet owners allocate their resources provides key insight into the evolving priorities of the pet health economy. According to the American Pet Products Association (APPA), the largest share of pet-related expenditures, nearly $67 billion, goes toward food and treats, accounting for 44% of total spend. This reflects a growing demand for premium, organic, and specialty nutrition products.
Veterinary care and product sales follow closely, reaching $39.1 billion (26%), as more pet parents prioritize routine wellness visits and advanced medical treatments. Another $32 billion (21%) is funneled into supplies, over-the-counter medications, and even live animals, showcasing the ongoing demand for everyday essentials and preventive care.
Finally, $12.6 billion (8%) is invested in other services like grooming, boarding, training, pet sitting, and insurance, an increasingly important category as pet owners seek convenience, expertise, and peace of mind in how their animals are cared for.
This diversified spending highlights the breadth of opportunity in the pet health sector, one that touches every aspect of a pet's well-being.
Pet Owners Prioritize Food, Treats, &
Premium Nutrition
Pet owners have varying needs when it comes to spending on food and treats. Generational differences, wealth, and new trends are influencing purchasing habits.
Younger generations are driving premium purchases: Millennials and Gen Z, who now make up over half of all pet owners, are fueling a surge in spending on premium pet food and treats. Their focus on pet wellness, organic ingredients, and sustainable brands reflects broader lifestyle values, and they’re willing to pay more for quality ingredients.
Gen Z is leading in overall pet spending: Gen Z pet owners may be younger, but they’re leading the pack in pet care investment, spending an average of $6,100 per year compared to Millennials’ $5,150. Their preference for specialized options like grain-free diets and subscription-based treat boxes is helping drive this higher level of spend.
Boomers prioritize health over indulgence: While Baby Boomers spend less overall, their purchases are often health-driven, purchasing vet-recommended diets or supplements, rather than pricey food products.
The emergence of niche pet food: Recently, pet food brands are gaining market share with niche pet foods. Search growth for “Freeze Dried Dog Food” is up 79% over the last decade by pet owners seeking alternatives. Another growing pet food niche is raw dog food where searches have increased similarly in recent years
The Influence of Veterinary Care 0n Pet Health Spending
As pets are advised to seek regular health check-ups by veterinarians, pet owners are continuing to prioritize wellness visits and preventive care. Health-conscious pet owners are more likely to purchase niche specialized health and hygiene products that satisfy their pet’s needs.
Veterinary care is leading pet industry growth: Spending on vet services is expected to more than double by 2030, rising from $48 billion in 2019 to $112 billion. A growing number of pet owners, particularly younger generations, are prioritizing wellness visits and preventive care, with 80% reporting at least one vet visit in the past six months.
Vets continue to strongly influence pet-related product sales: Veterinary recommendations are a powerful driver of consumer choices, influencing up to $12 billion directly and $26 billion indirectly in spending on pet food and health products.
Innovation in pet health products is accelerating: As demand for proactive pet care grows, specialized health and hygiene products are rapidly gaining traction. From cat toothpaste to over 200 brands of pet wipes on platforms like Amazon, consumers are embracing innovative solutions that support everyday wellness.
Necessity is Driving Demand
Beyond food and healthcare, pet ownership comes with essential day-to-day needs. The right supplies are critical for ensuring pets are safe, comfortable, and well cared for.
Necessities for pet care: Core necessities include collars, leashes, ID tags, beds, towels, and basic first aid items. Younger pet owners, often caring for multiple animals, are driving increased demand in this category, with spending that quickly adds up as products are tailored to the specific needs of their pets.
Preventive products in the OTC market: Preventive care is gaining momentum in the over-the-counter (OTC) pet medication market, which reached an estimated $3.4 billion in 2024. This category includes chewables, topical treatments for parasite control, sprays, and pain relief solutions. Notably, flea and tick preventatives alone accounted for half of the global OTC market, underscoring a growing priority among pet owners to proactively protect their animals’ health.
The Growing Role of Services in Pet Owner Budgets
Pet care services such as grooming, boarding, insurance, and training are here to stay. Pet owners continue to invest in their pet’s future, setting aside money for care and maintenance.
Pet insurance is gaining traction as a long-term investment: Searches for "pet insurance" have doubled over the past decade, reflecting growing awareness. The global pet insurance market reached $9.4 billion in 2022 and is projected to increase over 17% annually through 2030, driven by innovation in diagnostics and advanced treatment options.
Tech is transforming insurance accessibility and care quality: Startups like Lemonade and established players like Healthy Paws and ASPCA are reshaping the pet insurance landscape with AI-driven platforms and broader coverage. These shifts make insurance more accessible while encouraging higher spending on vet visits and wellness services amongst pet owners.
Spending on grooming and training is on the rise: While insurance and health dominate the conversation, services like professional grooming and behavior training are key growth areas. Younger, urban pet owners are especially likely to invest in these services, viewing them as essential to their pets' overall well-being and lifestyle.
Pet Health: The Next Big Opportunity for Smart Investors
Millions of Americans are investing thousands of dollars each year in their pets to keep them healthy. With over 60% of households owning at least one pet, there is a great need to capitalize on the innovation and growth surrounding pet health, services, and products.
Here is why investors should be paying attention to this lucrative sector:
Explosive growth in pet health services: Veterinary care and wellness services are projected to more than double by 2030, with vet spending expected to hit $112 billion, making pet health one of the fastest-growing sub-sectors in the industry.
Increased humanization of pets drives demand: As more pet owners treat animals like family, they’re prioritizing preventive care, diagnostics, and advanced treatments, leading to a surge in demand for high-quality health services and products.
Younger generations are health-conscious and willing to spend: Millennials and Gen Z, the biggest spenders on pets, are fueling growth in pet insurance, supplements, and specialized veterinary services, creating strong tailwinds for health-focused companies.
Tech and innovation are transforming pet healthcare: From AI-powered insurance platforms to new treatments like monoclonal antibodies and vaccines, the sector is ripe for disruption, offering investors early entry into scalable, tech-driven pet health solutions.
Sources:
The Pet Economy Boom: What’s Driving Pet Owner Spending in 2025 & Beyond
Logan Mitchell
July 2025
For many people, pets are not just animals, but cherished members of the family. Researchers project that financial growth in the pet industry could rise by 7% annually through 2030. Gen Z and Millennials are leading the charge, allocating more of their budgets to pet-related purchases than any other age group, especially on premium food. With categories ranging from veterinary care to grooming, this blog explores exactly where pet owners are directing their dollars and what trends are shaping their purchasing behavior. Investors should take note: the pet health market is expanding rapidly, driven by human-grade wellness expectations, increased consumer investment, and a growing emphasis on preventive, personalized veterinary care.