Pet Industry Outlook: Five Takeaways from the 2025 Petfood Forum
Experts offer economic insights — and predictions for the future.
No one has a crystal ball in the present economy. The data changes too quickly, and experts work diligently to find trends from previous cycles to share insights for pet food, agriculture and the human food sector, which remain inextricably linked in important ways. The 2025 Petfood Forum in Kansas City, Mo., brought together experts to explore the market and offer guidance to navigate the current economic headwinds.
From corn, eggs and beef to pet food and veterinary services, Ernie Tedeschi, director of economics at the Budget Lab at Yale, headlined the event with a keynote on spending patterns that could reshape business strategies across the pet industry, along with actionable advice to navigate what’s ahead.
Here are our five key takeaways from the Forum:
1. Making pet products recession-resistant
You can think of dividing consumer spending into one of three types, Tedeschi says. Most of the spending we think of is procyclical, meaning spending rises as the economy improves. Some spending is countercyclical – meaning spending rises when the economy deteriorates and then falls again when the economy improves. Some spending is acyclical, meaning there’s not a significant relationship between spending and any given business cycle.
The good news for pet food manufacturers: While we’re all watching tariff uncertainty in pet food, there’s little imported content in the United States. This means overall pet food prices will likely increase one third to three fourths of a percent.
2. Understand the agriculture-pet food connection
Corn and sorghum are two examples of ingredients often used in nutritious pet foods. If the price of an ingredient rises, this can affect the price of the end product — in this case, pet food.
3. Many pet owners prioritize their pets’ healthcare above their own
Historically, when times are tough, fewer people seek veterinary services for their pets (see chart above). Veterinarians have sometimes responded by increasing their fees, which means fewer pets are seeing the veterinarian while veterinary practices are doing their best to keep income stable and keep the businesses alive. Data shows pet owners are more likely to spend on their pets’ health before their own when their budgets are limited.
4. Market expansion: Projecting the path to $500 billion by 2030
Diana Rosero-Pena, equity research analyst of Consumer Staples at Bloomberg Intelligence, reported data from Bloomberg’s 2025 research into the consumer pet food market. Rosero-Pena says the humanization of pets is helping drive that growth, with the transition of pets historically in the backyard to moving into the bedroom (and maybe even onto your bed). With this transition, pet owners are more likely to open their wallets for pet spending, because they view pets as a valued member of the family.
5. Pain points driving pet owner purchasing decisions
Shannon Landry, brand manager at Packaged Facts, shared data about pet owners’ biggest pet-focused pain points. Topping the list are the high cost of the following products and services:
- Pet food
- Pet health care
- Veterinary services and medications.
What this means: Pet owners are aware of even subtle changes in pricing. While they will not stop feeding and caring for their pets, there is a possibility that they will look to more products they perceive as offering value for money.
Even so, the pet’s health remains as the guiding force in spending. For example, about 76 percent of pet owners look for products to improve their pets’ health and wellness.
As the current market remains in flux, Tedeschi recommends following the data, not the vibes.
“Know your customers, and be honest about pricing power and strategy,” he says. “Build supply chain resilience, and don’t get left behind in innovation. It’s important to take the long view.”
Portia Stewart, a senior Companion Animal consultant with Curious Plot, is the former team channel director for dvm360 and former editor of Firstline magazine. She spent 19 years working in companion animal health media before joining Curious Plot.