PSC outlines 2026 sustainability outlook for the pet industry

According to the Pet Sustainability Coalition (PSC), more than 7 in 10 (73%) pet owners believe people should take responsibility and address climate change. And even more – around 8 in 10 (84%) – think that companies also share responsibility.

These beliefs translate into conscious consumption, with 62% of pet parents saying they bought an environmentally friendly product in the month prior to being surveyed in 2025, compared to 46% of non-pet owners. The results come from a survey conducted by Nextin and acquired by PSC, which polled over 2,400 cat and dog owners in the US.

More conscious consumers help explain the 3 major forces that the association establishes as the Strategic Outlook for 2026 for the sector in its State of Sustainability in the Pet Industry report.

Surge in demand for transparency

In 2026, consumers, particularly younger generations, are expected to demand greater transparency as regulations around sustainability claims become more stringent, requiring them to be accurate, substantiated and transparent, PSC notes.

“In our conversations with retailer members, we are hearing that some purchasing behavior is shifting and products that link health and sustainability are selling well, but just pure sustainability-marketed products are starting to suffer on shelf due to global economic uncertainty,” the report says.

For brands, this means they will have to go one step further and show data that backs up their labels. “The EU Green Claims Directive (adopted by the European Commission) now places binding obligations on environmental claims in the European Union/European Economic Area, including requirements for life-cycle thinking and third-party verification,” PSC explains.

Legislation and sustainability reporting

This is directly related to the second forecast: US and EU legislative pressure will intensify. For instance, California’s climate laws SB 253 and 261, approved in 2023, have first deadlines for 2026. The laws require large companies operating in the state to publicly disclose greenhouse gas (GHG) emissions and create climate risk reports.

In Canada, PSC expects the Canadian Sustainability Disclosure Standards, issued in December 2024, will move from voluntary to mandatory status as a baseline for transparent reporting. “For pet companies, this will mean a stronger push to measure and report GHG emissions, packaging impacts, sourcing practices and other material sustainability risks that influence cost, resilience and consumer trust,” it adds.

Meanwhile, the EU has committed to reducing emissions by 55% by 2030 and reaching net zero by 2050. For the coalition, this will strengthen compliance with regulations such as the Corporate Sustainability Reporting Directive (CSRD), which expands mandatory sustainability reporting, and the Packaging and Packaging Waste Regulation (PPWR), which mandates that all packaging must be recyclable by 2030.

Compliance with standards has started. In the US, pet food producer Freshpet earned the Clean Label Project Purity Award for ingredient quality and safety across its portfolio, becoming the first pet company to have its full range certified, it says. Awarded by the nonprofit Clean Label Project, the certification tests products for contaminants not listed on labels, such as heavy metals, pesticides and environmental pollutants, to assess ingredient quality and safety.

Innovation

Finally, the report expects innovation to be driven by novel proteins, circularity and health. Waste reduction in pet care is now closely linked to health and is becoming a key area of innovation and differentiation. Tools such as wearables, feeding apps and tailored diets are being marketed not only to improve pet health but also to reduce overfeeding and food waste.

According to PSC, as regulations focus primarily on conventional recycling streams, pet food brands will need to invest in solutions for materials that remain difficult to recycle, particularly plastic films and flexible packaging such as pouches and bags. Initiatives may include dedicated film recycling programs, piloting new collection models or supporting infrastructure upgrades that enable true circularity.

As “protein use and availability remain the most significant environmental impacts in pet food,” PSC says, “whole-animal utilization can help reduce waste and emissions.” Additionally, novel sources, such as insects, invasive fish species, and fermentation-derived ingredients, “are also playing an increasingly important role in balancing nutrition, climate resilience and biodiversity protection,” it analyzes.

For companies, it is an opportunity to partner to develop and scale circular and innovative solutions that reduce individual burden.