Americans spent $158 billion on their pets in 2025, according to the American Pet Products Association (APPA), up 3.7% on the year before. APPA expects spending to reach $165 billion in 2026. About 95 million US households own at least one pet, and dog ownership rose to 53% of households in 2025, roughly 71 million homes.
For someone starting a business, the most useful fact is not the headline number. It is where the money goes, and which parts of the market a small, local operator can realistically win.
Where the money goes
APPA splits 2025 spending into four buckets:
| Category | 2025 spending | What it includes |
|---|---|---|
| Food and treats | $68.3 billion | Kibble, wet food, fresh and frozen food, treats |
| Veterinary care | $41.0 billion | Clinics, hospitals, procedures |
| Supplies and OTC medicine | $34.4 billion | Toys, beds, leashes, flea and tick products |
| Other services | $14.3 billion | Grooming, boarding, training, sitting, walking, insurance |
Food and supplies are dominated by large brands and by big-box and online retailers. Veterinary care needs a licensed vet. That leaves services, the smallest bucket, as the natural entry point: low startup costs, no inventory, and customers who need someone nearby.
What is changing
Owners are becoming more value-conscious. In APPA’s survey, about half of pet owners kept their spending flat in 2025, but 22% said they spent less, a larger share than the year before. Spending is shifting away from nice-to-have items toward essential care.
For a new business, that means pricing clearly, offering packages that save money (a 10-walk bundle, a monthly grooming plan), and selling reliability rather than luxury.
Younger owners are driving growth. APPA reports that cat ownership rose in 2025, led by Gen Z and millennial owners. These customers book online, read reviews and expect text updates, so a simple booking page and fast replies matter more than a glossy brochure.
Demand for workers is strong. The US Bureau of Labor Statistics projects employment of animal care and service workers to grow 11% between 2024 and 2034, much faster than average, with about 81,700 openings a year. The median wage was $33,860 in 2024. Staff will be available, but turnover will be real, so plan for training and retention from the start.
Best entry points for a small business
| Business | Startup cost | Why it works now |
|---|---|---|
| Dog walking and pet sitting | Under $5,000 | Lowest cost to start; recurring weekly clients |
| Mobile dog grooming | $30,000 to $100,000 | Convenience owners will pay for; higher ticket per visit |
| Dog training | Under $5,000 | Group classes in rented space or one-to-one sessions at home |
| Boarding or daycare | $100,000+ | Higher revenue ceiling, but needs a facility, zoning and staff |
Startup costs are Advanton estimates based on typical equipment, insurance and vehicle prices. Get local quotes before you budget.
Risks to plan for
Liability. You are responsible for someone else’s animal. Insurance and, for in-home services, bonding are not optional.
Seasonality. Holidays and summer bring a surge in sitting and boarding requests, followed by quieter months. Build cash reserves in busy periods.
Local rules. Boarding, daycare and grooming facilities may need kennel licenses, zoning approval or inspections. Check with your city and county before you sign a lease.
Our take
The pet market is large, steady and resilient, but it is not booming. The opportunity for a new owner is in dependable, convenient local services, priced with care for budget-conscious households. Start small, build a base of repeat clients, and add services once demand is proven.
Ready to start? Follow the Start a Business A–Z guide.
Sources
- American Pet Products Association, 2026 State of the Industry release
- American Pet Products Association, Industry Trends and Stats
- Pet Worldwide, spending breakdown from the APPA report
- US Bureau of Labor Statistics, Animal Care and Service Workers
Last reviewed October 17, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
