Values shape purchasing behaviour

By 2025, dog owners were no longer prioritising spending as much as possible, but rather getting the best value for money. As the report details, this presents new challenges for manufacturers, retailers, and service providers, but also new opportunities.

The number of US households with dogs increased to 71 million by 2025. This represented a 4 per cent increase on the previous year. However, this growth in the number of dog owners was not accompanied by a proportional increase in spending. Instead, many US dog owners are now more price-conscious and value-driven. They scrutinise their spending more closely, set priorities, and distinguish more clearly between necessary purchases and non-essential extras.

For the pet market, this means that not every product category benefits equally from the growth in dog ownership. The added value that a product or service offers to both pet and owner is becoming increasingly important.

There is clear prioritisation when it comes to spending. Basic needs, such as food, continue to be met. However, when it comes to more discretionary spending, owners are more willing to make cuts. This applies to certain products and services, as well as veterinary care in some cases.

At the same time, the definition of ‘value’ is changing. There is a growing demand for products that offer an immediately apparent benefit, such as health and safety benefits, or benefits relating to the dog’s daily care and maintenance.

Conversely, less essential purchases and products that are perceived as more optional luxuries are under increasing pressure to justify their cost. These purchases are either reduced, replaced with cheaper alternatives or postponed.

Nevertheless, there is no indication that the number of people owning dogs is generally declining. In fact, the report’s findings suggest that current behaviour can be described as a reallocation of spending.

Owners remain committed to their pets but are paying closer attention to how they allocate their budget. Therefore, the key question for the industry is not so much whether dog owners are spending money, but what they are spending it on and what value they expect in return.

This is of particular interest to retailers. According to the APPA survey, retailers who combine competitive prices with convenience are particularly attractive. Value for money and ease of…