Morgan Stanley predicts 8% annual growth in pet industry with spending to increase by 134% in next decade; primary source of increased spending comes from people aged between 18 and 34 years with dogs as number one pet for every generation

May 22, 2023 (press release) –

If you added a pet to your family during the pandemic, you’re not alone. Reports show between five and 11 million pets have been adopted in the U.S. since 2019.

But was the pandemic pet era just that — a trend that’s bound to fade like homemade sourdough? According to a new article by Morgan Stanley, it’s quite the opposite. Unlike a home gym or big screen TV, pets require ongoing expenses like food, grooming and more. Not only are there more pets than ever, but people are spending more on them.  

If you’re interested in owning a dog franchise, that’s great news for you. Take a look at the most recent industry stats, see what Franchise Owners are saying, and see why Pet Supplies Plus could be the best dog franchise for you.  

Pandemic pets are here to stay  

Morgan Stanley, a company that tracks market trends, recently published an article predicting 8% annual growth in the pet industry — one of the largest rates in any retail segment. Overall, they found that people are spending more every year on their pets.  

In a survey of 2,500 American adults, 34% of respondents expected to increase their spending on pet food alone in the next six months. Not only have pet budgets increased, but people are considering them more non-negotiable. According to the report, people will cut back in other areas before doing so at the pet store. Even treats and fresh meals are considered essential to many pet owners’ budgets.  

Over the next decade, total spending in the industry is predicted to increase by a staggering 134%. Pet services are expected to have the highest growth while pet products make up the biggest industry segment. In other words, dog care franchises are well positioned to thrive in this growing industry.  

Where is the growth coming from?  

People 18 to 34 years old are the primary source of increased spending in the pet industry. As this generation tends to delay having children, they naturally spend more on their pets. And though it may seem counterintuitive, recessions can sometimes lead to spikes in pet adoption as people tend to stay home more. In the 2021 Morgan Stanley survey, respondents showed a shift in the way people think about their pets.   

While the pandemic certainly led to a spike in pet ownership, it’s this cultural shift that largely contributes to the overall spending increase.  

Dogs are the #1 pet for every age group, with cats as a close second and other small pets following. So, if you are looking to open a dog food franchise, be sure to consider one that appeals to multiple demographics likes like Pet Supplies Plus.  

What are dog Franchise Owners saying? 

Naturally, more spending in the pet industry is a good sign for dog Franchise Owners. Michelle Lambert, a Pet Supplies Plus Franchise Owner, says, “Being in the pet industry is the way to go. The pet industry is solid and growing. It’s a great investment.”  

Like any industry, however, you need a solid business model to capture profit. Partnering with a top dog franchise like Pet Supplies Plus has helped many other Franchise Owners find success.  

Doug DeLozier, another Franchise Owner, says, “My next goal is 100 stores. I’ve already exceeded all my goals I set out for originally.” 

If you are interested in getting into this industry as a business owner, Pet Supplies Plus has dog franchise opportunities across the nation. Not only have they been the #1 pet franchise for nine years in a row, but they also offer an impressive $2.7M Average Unit Volume.* For more industry insights and Franchise Owner stories, visit our news section. To get connected with someone from our Franchise Development Team, simply fill out the form below.  

*This information can be found in Item 19 of the 2023 Franchise Disclosure Document issued by PSP Franchising, LLC.  The data reflects the calendar year beginning January 1, 2022, and ending December 31, 2022, and shows the data for 320 reporting stores which were open and operating 12 months as of December 31, 2022. 42.8% of reporting stores achieved or surpassed this figure.  A new franchisee’s results may differ from the represented performance. 

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