2026: what’s next in the pet business?

Global economic and political pressures, tariff turbulence and an overall picture of uncertainty remain the backdrop for the pet industry. From economic headwinds to the growth of Al, hyper-personalized purchasing models and functional nutrition, the GlobalPETS 2026 Trends Report reveals what pet businesses need to take note of in the coming year.

The onward march of Al

2026 promises to be the year that Al becomes an integral part of everyday life for many consumers, including pet parents. Companies are becoming increasingly aware of the need to make Al enablement a top priority in areas as varied as loyalty programs and supply chain logistics.

Powered by sophisticated Al capabilities, consumers are coming to expect higher levels of personalization. We look at how tailored purchasing models look set to become even more finely tuned in the drive to win and retain customers.

Using Al to analyze complex datasets provides the opportunity for predictive health monitoring, virtual veterinary consultations, nutrition plans and tailored feeding solutions. And high-tech applications have the potential to expand even further into pet training tools, toys and more.

A business model for every pet owner

The consumers of 2026 demand flexibility and tangible benefits in exchange for their business. As they seek value for money at the same time as they want options that fit seamlessly with their lifestyles, companies that offer an attractive range of choices, hyper-personalization and low commitment will be making the running. Close analysis of generational trends, both in terms of income profiles and attitudes towards pets, can help effectively target different demographics.

Retail: comfort and convenience

Owners express concern when they feel their pets could be missing out and want the reassurance of knowing their pets’ needs can be easily and swiftly taken care of – something which is part of what is becoming known as a ‘comfort zone mindset’.

As consumer expectations for fast and convenient delivery intensify, major retailers are enhancing their in-house delivery options, while also working with the proliferation of global and local q-commerce operators.

In-store experiences and apps will aim to become more comprehensive and attractive. Retailers are also experimenting with compact brick-and-mortar retail models in strategic, often urban, locations such as metro stations. These can offer a carefully curated product selection, act as a collection hub and aim to become a part of everyday consumer routines.

Building loyalty

Despite a challenging and sometimes volatile economic environment, consumers nonetheless demonstrate a consistent loyalty to their pets and their care. Businesses must look for ways to capitalize on this enduring sentiment to inspire loyalty to their own brands. In a similar vein, major retailers are aiming to improve the quality and appeal of their private labels to take a greater market share.

Providing flexible options, promising a commitment to sustainability and building community are all strategies we have identified in the pet sector. In the online arena, we also consider how brands need to adopt more targeted and savvy strategies to attract customers searching for pet solutions.

Macroeconomics and geopolitics

In an inter-connected global landscape, where changes in circumstances can happen very quickly, there is no doubt that events such as regional conflicts and the ups and downs of currencies (most crucially the dollar) have far-reaching effects.

Although inflation is plateauing, there are indications from holiday spending data that consumer confidence is fragile – even if pet spending is so far holding its own. In the wake of the vicissitudes of the past decade, economists highlight the deepening of the ‘K-shaped’ economy – a trend that sees better-off families continue to spend heavily and increase their wealth, while those on lower incomes bear the brunt of economic hardship.

We also consider additional factors, including the EU’s Packaging and Packaging Waste Regulation (PPWR), which comes into effect this year. A reorganization of taxation within the EU could also have major implications throughout the pet industry.

Inflation, tariffs and supply chains

While predictions are for rates of inflation to continue to level off, both the threat and implementation of higher levels of tariffs continue to present challenges. The American Pet Products Association (APPA) reports that the pet category saw an increase of approximately 29% in tariffs over the past year, underlining the pressing need for manufacturers and brands to find strategies to minimize their impact – in the US and beyond.

As well as the possibility of more international agri-food agreements and partnerships, we can expect supply chain reorganization and an accelerating drive towards self-sufficiency. Al will be used to maximize efficiency and optimize the supply chain.

Gut health and functional nutrition

With a projected 14% year on year growth of the supplements category last year in the US – a rate higher than the overall pet industry – this is a segment that pet nutrition businesses, large and small, can’t afford to ignore.

An interest in wellness and longevity for pets continues to gather pace, pushing owners to increase their demand for supplements and proactive health products. Spearheaded by dog owners, products targeting digestive and joint care lead the charge in the rising demand for functional and targeted pet supplements.

Download the GlobalPETS 2026 Trends Report now.