There's no denying the cost of everything is up these days, but that's not stopping people from spending on their pets.
According to the Pew Research Center, 97% of pet owners will still splurge on their animals because they consider pets to be part of their family.
The annual cost of owning a dog can range from $1,000–$5,225 a year, while the typical monthly cost lies between $80-$440, according to Rover. The annual cost of having a cat can range from $710-$2,865 a year, with the typical monthly cost landing between $60-$240.
"Many pet parents are concerned about the rising costs of pet care and agree the cost of pet-related items has increased more than their own groceries and personal care products," Rover noted. "Pet parents are cutting back spending in other areas and are still concerned about affording the essentials, food, vet visits, supplements/medications, and toys and treats their pup needs."
Even as prices rise and budgets tighten, pet owners are still splurging. That's because more people are continuing to humanize their pets, treating them like members of their families and wanting the best products for them.
"It makes people feel good," Pete Scott, president of the American Pet Products Association (APPA), told NPR. "Ultimately I think it's more psychological than rational financial behavior."
Despite inflation impacting consumer spending, Americans spent $147 billion on their pets in 2023, according to APPA's annual State of the Industry Report. That's up from $136.8 billion in 2022, and $123.6 billion in 2021. Here's the breakdown of actual sales:
• $64.4 billion was spent on pet food and treats
• $32 billion was spent on supplies, live animals and OTC medicine
• $38.3 billion was spent on vet care and product sales
• $12.3 billion was spent on other services (boarding, grooming, insurance, training, pet sitting, walking and all services outside of veterinary care)
While millennials may own more pets than any other generation, they aren't the biggest spenders. Generation X spends more on their pets than their generational counterparts, an average of $866 annually, according to a MarketWatch analysis of U.S. Bureau of Labor Statistics data. That's followed by baby boomers spending $793, millennials spending $731 and the silent generation spending $356.
Women also spend more than men. According to MarketWatch's analysis, single women spend an average of $647 per year on their pets (1.57% of their income), while single men spend an average of $282 (0.56% of their income).
"Single women tend to view their pet as their kid, while single men view their pet as a companion. And you always spend more money on your children," certified dog trainer and blogger Aleksander Mishkov of The Daily Tail told MarketWatch.
The MarketWatch analysis also shows pet parents in the Midwest spend the most on their fur babies at an average $820 annually. That's followed by the Western U.S. at $801, the Northeast at $716 and the South at $673.
"Once regarded as merely a pet, dogs and cats are now recognized as a member of the family, with their own beds, insurance policies and ugly Christmas sweaters," Daniel Caughill, co-founder of The Dog Tale, told MarketWatch. "People form a deep and meaningful bond with their pets, and as culture is more accepting of these bonds, people are spending more."