Headlines

‘Petflation’ Update: Spending Growth Was 4.7% in January

That was down from 5.1% in December but significantly higher than the overall U.S. inflation.

Published

3 months ago

February 18, 2024

PETS+ Staff

“Petflation” ⁠— meaning inflation in the pet products and services sector ⁠— hit 4.7% in January, according to a new report from John Gibbons, the Pet Business Professor.

That was down from 5.1% in December but significantly higher than the overall U.S. inflation rate of 3.1% for the month.

In a blog post, Gibbons outlined the specific situation for various segments of the pet industry, including food, supplies, services and veterinary.

He noted:

Petflation is slowing, but it is still strong, with the 4^th highest rate for January and 2023 had the 2^nd highest annual rate in history. It is also 1.5 times the National CPI. In 2021 it was only 75% of that rate. Even if it slows to 0%, you can’t ignore the fact that inflation is cumulative. Pet prices are 20.9% above 2021 and 26.1% higher than 2019. Those are big lifts. Since price/value is the biggest driver in consumer spending it is likely to affect the Pet Industry. The Non-Vet Services segment will be the least impacted as it is the most driven by high income CUs. Supplies and Veterinary will likely see a reduction in purchase frequency. Food is the most needed segment so the response will be complex. It could include a movement to online shopping, switching to private label or even downgrading the quality of food.

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