An end to doggy domination?

The US is just one example of a country where the popularity of dogs has long been a driver of economic growth for the nation’s pet industry.

However, recent trends suggest that ‘man’s best friend’ is losing ground to feline rivals. While pet dogs still far outnumber pet cats, the gap is shrinking.

What the data says

Analysis by Packaged Facts found that dog ownership rates slipped from 42% to 38% of US households between 2018 and 2024, while cat ownership rates ticked up slightly, from 23% to 24%.

Data from Shelter Animals Count suggests a similar trend. The US non-profit organization concluded that in 2024, nationwide dog adoptions decreased by 1% compared to 2023, and by 13% compared to 2019. Conversely, cat adoptions grew by 2% from 2023 and surpassed 2019 levels by 3%.

Insight into consumer spending

Without pets, there is no pet industry, and without dogs, that industry would be significantly smaller. Pet owners generally spend much more money on goods and services for dogs than for cats.

Excluding adoption and purchase costs, pet parents in the US spent on average $1,700 (€1,618) in the last two years. The amount for cat owners was lower at $1,350 (€1,285), according to the American Veterinary Medical Association (AVMA).

Cause for concern?

While it’s unclear whether the market penetration growth of cats will continue to outpace that of dogs in the long term, some industry officials have publicly voiced concern.

Central Garden & Pet CEO Niko Lahanas called the trend a “headwind”. “Dog is really the category that drives everything; it drives the footsteps into the stores, it drives consumer engagement,” he says.

Pete Scott, CEO and President of the American Pet Products Association (APPA), shares his apprehension that many sectors of the industry could be impacted by a shift away from dogs.

“Cats are cheaper,” he states. “They don’t require the grooming, the boarding, some of the veterinary visits. They don’t need as many toys.” That could mean less spending if the trend persists.

At pet retailer Pet Supplies Plus, they acknowledge that customers spend significantly more on their dogs than their cats. Therefore, they are keeping an eye on the trend.

However, because the chain already has a range of options for cats, it is not noticeably disrupting their business. “It’s not really causing too much concern at this point,” comments Marketing Manager Monica Lemming in an interview with PETS International.

Will the trend continue?

The shift towards cat ownership could be a temporary response to inflation. More consumers may be adopting cats because they want a pet, but don’t have the money to care adequately for a dog.

“Is it temporary? I don’t know,” admits APPA’s Scott. But according to him, even a short-term shift could have a lasting effect on the industry. Since pet ownership is a long-term commitment, it may take years before the full impact becomes clear.

Generational wealth gap

While the millennial generation is still dominating sales, Gen Z (people born between 1997 and 2012) is a growing demographic for the pet industry.

Generally, Gen Z consumers are considered to be less well-off than other groups, due to student loan debts and the prohibitively high cost of buying a home.

Some of that is part and parcel of being young, but such factors do not offer encouraging prospects for the generation’s ability to build wealth in the short to medium term.

According to recent research by American consumer credit reporting agency TransUnion, 22- to 24-yearolds in the Gen Z cohort are making less money and have more debt than millennials did at the same age (10 years ago).

The study found that 20-somethings today are taking home around $45,500 (€39,200), while millennials at their age were earning $51,852 (€44,670) when adjusting for inflation. Debt is also taking a bigger bite out of Gen Z’s earnings than the generation before them.

The debt-to-income ratio for Gen Z is 16.05%, compared to 11.76% for the millennials a decade ago. This leaves Gen Z consumers with little over $40,000 (€34,460) of their annual salary left after their mortgage, student loans and other debts have been paid, while millennials had around $47,000 (€40,490) when they were 22 to 24 years old.

Impact of affordable choices

All this could be putting pressure on young consumers’ pet-related purchases. “Regardless of those being conscious of spending, [are the facts of] generational income and where they stand,” Lorraine Shirley from Clarkston Consulting tells PETS International.

Shirley highlights the potential impact of the increased difficulty of buying a house. “Consumers are going to have to make a choice… being able to manage maybe a more affordable pet while still getting the interaction that they’re seeking,” she concludes.

If Gen Z consumers do prove to be adopting dogs at a lower rate and driving strong growth in smaller animals, the industry effects of this shift in consumer behavior are unlikely to be limited to the short term.