The pet care industry continues to demonstrate significant growth, making it an exciting time for prospective franchisees to invest and join the momentum. Valued globally at $273.42 billion USD in 2025 and projected to reach $427.75 billion by 2032, this growth is expected to continue throughout 2026 and beyond, driven by various consumer trends that are shaping the market.

Pet care trends we can expect to see in 2026 include:

AN INCREASE IN PET SPENDING

According to the American Pet Products Association’s 2025 State of the Industry Report, 94 million U.S. households own at least one pet, up from 82 million reported in 2023. This continued rise in pet ownership supports a broader, long-term trend in the industry: sustained growth in pet-related spending.

Spending patterns help reinforce this trend, as the average annual household amount on pet spending in the U.S. is projected to reach $1,445 per pet by 2026 and increase further to $1,733 by 2030. As a result, total industry spending is expected to reach $261 billion by 2030, which is a 113% increase from $122 billion in 2019. It’s why Entrepreneur magazine recently named “pets” as one of the 10 hottest franchise sectors going into 2026.

PET SPENDING IN YOUNGER GENERATIONS

Younger pet parents play a significant role in shaping this spending trend, as those between the ages of 18 and 34 spend more on their pets than other age groups, particularly on premium food, products, and services, and are more likely to prioritize their pet’s preferences over price.

With Millennials making up the largest percentage of pet owners, and Gen Z showing a continued rise in pet ownership, including a higher likelihood of owning multiple pets, and one in five with a dedicated savings account to meet the needs of their pets, we can anticipate these generations to drive sustained demand for pet care well into the future.

READ MORE: Why Millennials are Driving Pet Industry Growth

GROWTH IN THE PET DAYCARE MARKET SIZE

The increase in pet ownership and household pet spending is directly contributing to expansion within service-based segments, including pet daycare. The U.S. pet daycare market is projected to reach approximately $2.85 billion by 2030, reflecting a compound annual growth rate (CAGR) of 8.78% between 2025 and 2030. By comparison, the market was valued at roughly $1.73 billion in 2024.

This growth is largely driven by rising pet ownership and increased willingness among pet parents to invest in services that support their pet’s daily care, which we can expect to continue in 2026.

AN INCREASED FOCUS ON PET WELLNESS

The demand for products that support pet health and wellness is a trend we can expect throughout 2026 and beyond, as current reports indicate that 76% of pet parents seek out products that can improve their pets’ health and wellness.

Growth in this area can be attributed to an ongoing shift in how pet parents view their pets. In recent years, the majority have said their pet is considered a family member, while a 2024 report found that 63% would give up years of their own life to make their pets live longer.

From the rise in popularity of supplements and premium, high-quality food to calming products for pets among Gen Z and Millennial pet parents, the humanization of pets, which has been a lasting trend, is largely to thank for this increased attention to pet wellness.

PET FITNESS MARKET GROWTH

Within the broader pet wellness market, the pet fitness sector has also seen growth. Valued globally at $6.65 billion in 2024, with a CAGR of 6.7% between 2025 and 2030, we can expect to see momentum in this market in 2026.

In the U.S., increased spending on pet wellness products and services, along with technological advancements, is driving growth in the pet fitness care market. Some of the products rising in popularity include agility equipment, treadmills, and other fitness gear that is tailored specifically for pets. In 2026, we can expect this trend of greater pet fitness to continue, as it aligns with the broader movement towards pet wellness.

PET WEARABLES MARKET GROWTH

Similar to pet fitness, the pet wearable market has also picked up steam, forecasted to grow from $4.16 billion USD in 2025 to $10.43 billion USD by 2032, with a 14% CAGR.

According to a recent pet wearables report by S&S Insider, GPS tracking and health monitoring are among the innovations driving this market’s growth, as more pet parents turn to smart pet devices that support safety and well-being. With 90% of dog owners saying their dog’s health is either just as important or more important than their own, demand for options that showcase their pet’s health is a trend we can expect in 2026.

At Dogtopia, we recognize how valuable health insight can be for pet parents, which is why we recently launched our DASH activity monitor. When attached to a dog’s collar, it can monitor their personalized activity level, covering how many steps they’ve taken, distance traveled, and more. By establishing an individual baseline for each dog, DASH data helps identify meaningful changes over time, which can serve as early indicators that allow for timely and potentially impactful intervention. It is something pet parents deeply appreciate, as it provides a tangible look into what their pup gets up to in a day and whether they need to implement more wellness practices to keep them more active.

CONSUMERS VALUE SUSTAINABLE, ECO-FRIENDLY PET CARE OPTIONS

Sustainability remains top-of-mind for many. 78% of U.S. consumers who say a sustainable lifestyle is important to them, and 80% are either very or somewhat concerned about how the products they buy impact the environment. This awareness is also prevalent among pet parents, as 70% express concern about climate change and are making an effort to positively impact the environment through their daily actions.

This awareness and concern can help explain the growth of the billion-dollar eco-friendly pet products market. Previously valued at $43.65 billion in 2024, it is projected to reach $85.9 billion USD by 2035, driven by a greater understanding of suitability and demand for nontoxic pet products.

Pet food, in particular, has been an area of increasing interest. The organic and natural pet food market is expected to exceed $57.2 billion by 2033, as many pet parents seek premium, sustainably sourced nutrition, which is driving this popularity. From biodegradable pet waste management to sustainable pet bedding and other more natural, organic options are among the largest segments of this market and are options we can anticipate seeing more of as we enter 2026.

READ MORE: How Eco-Friendly Initiatives Are Shaping Pet Franchises

FRANCHISING WITH DOGTOPIA

The pet industry is booming in 2026! As pet parents place greater emphasis on pet wellness, Dogtopia is well-positioned to help franchisees meet this growing demand through high-quality dog daycare, overnight stays, and spa treatments.

If you are interested in learning more about becoming a franchisee, check out our FAQ page for details about the pet industry, Dogtopia, and your investment. Already meet our initial franchising requirements? Please fill out our online inquiry form.

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