Annie Miller is a 25-year-old art teacher at a high school.

Additionally, she identifies as a dog mom to her 4-year-old mini goldendoodle named Norman.

Living in Broadview Heights, Ohio, Miller has just finalized her budget for the upcoming year. She plans to spend around the same amount as this year on Norman: $850 each month, totaling $10,200 for the entire year. Her major expense comes from doggie daycare, where she leaves him for four days each week at a cost of $650 a month. On the fifth day, her mom takes care of him, giving them both some “grandma puppy time.”

This Gen Z individual acknowledges that her dog expenses are substantial, including $100 earmarked for Christmas gifts. This spending represents about 25% of her salary. Yet, Miller recognizes that many other pet owners are also investing similarly in their pets.

“It’s my responsibility to provide him with the best life possible,” she explained. However, with aspirations of getting married and having children, she indicated that many young adults face challenges in affording homes, prompting them to invest more in their pets instead.

The surge in pet ownership

Miller is not by herself in this trend.

Over the past thirty years, pet ownership has surged, along with the spending associated with it.

Data reviewed by Forbes Advisor reveals a significant increase in U.S. pet ownership over the last three decades. Currently, 66% of U.S. households have at least one pet, a rise from 56% in 1988.

Pets are not just animals; 97% of pet owners see them as family members, according to Forbes Advisor.

Similar findings are reported by the American Pet Products Association, which serves the pet industry.

“The last thirty years have shown an impressive rise in pet ownership, highlighting a societal shift towards a deeper emotional connection between people and pets,” explained Peter Scott, President & CEO of the American Pet Products Association, to YSL News. “Today, pets are regarded as cherished family members by 76% of owners worldwide.”

The strong bond between pets and their owners, combined with research proving the health benefits of pet companionship, has led to more people welcoming pets into their lives, he added.

The booming pet industry

This year, pet owners are anticipated to spend around $150.6 billion, as reported by the association. In 2018, this figure was $91 billion, and by 2022, it surged to $137 billion, according to the same association.

Looking at the 2024 State of the Industry report, the trade group predicts that pet-related spending could reach $207 billion by 2030.

“The statistics show that despite economic challenges, most pet owners continue to prioritize their spending on pets,” noted Scott.

Currently, approximately 82 million U.S. households have pets, with dogs being the most common at 58 million and cats following at 40 million. Other popular pets include freshwater fish, reptiles, birds, and both freshwater and saltwater fish.

Dr. Whitney Miller, the chief veterinarian at Petco, confirms this growth trend.

“Over the years, pets have become more than just animals; their place in our lives has significantly evolved,” Miller shared with YSL News. “When Petco was established nearly 60 years ago, most dogs were kept outside. Now, they share our beds and are integral parts of our families. Today, pets truly are family.”

A rise in pet ownership during the pandemic

Since 2010, pet ownership in the U.S. has remained relatively stable, according to the trade group. However, the COVID-19 pandemic in 2020 greatly affected Americans, leading to increased pet ownership and spending.

“The pandemic brought about a notable increase in pet ownership caused by adoptions and purchases, as well as a rise in households with multiple pets, which supported the pet industry at a time when many other sectors faced challenges,” the report concluded.

Data from the National Pet Owners Survey in 2022 indicates that 66% of U.S. households owned two or more pets post-pandemic. This reflects a consistent increase compared to the data from 2018 and 2020, largely influenced by pet owners’ attitudes toward bringing more pets into their homes, according to the organization.

Younger generations are the frontrunners in pet ownership

There was a notable rise in pet ownership among Millennials and Gen Z during the pandemic. The association’s report revealed that 73% of Millennials and 71% of Gen Z families have two or more pets, positioning them at the forefront of multi-pet ownership.

According to a report from Forbes Advisor, Millennials represent the largest group of pet owners at 33%, followed by Gen X at 25% and Baby Boomers at 24%.

In January 2021, during her college days of online classes, Miller welcomed Norman into her life.

“I was a stay-at-home puppy mom,” she recalled. She believes this experience is partly why Norman is so attached to her, describing him as a “velcro” dog with anxiety issues.

Holiday spending on pets

An impressive 81% of those surveyed in a Blueprint/YSL News poll from September indicated their intention to buy holiday gifts for their pets, including dogs and cats. Most pet owners are opting for food, treats, and festive toys this holiday season.

Fifteen percent of pet owners plan to spend between $51 and $75 on these gifts, while 11% are looking to spend $126 to $150, and 7% expect to spend $201 to $500. Additionally, 6% of those surveyed intend to spend over $1,000 on pet gifts.

About 49% of respondents said they would purchase clothing for their pets, and 28% plan to indulge in a special pet portrait for themselves and their furry friends.

The trade organization noted that 52% of dog owners and 41% of cat owners intended to buy Christmas gifts for their beloved companions.

A survey conducted by Petco in July 2024 showed that a staggering 97% of shoppers planned to buy gifts for their pets.

Miller mentioned that she would be getting Norman two dog bones and three toys for Christmas.

Changing perspectives on pet care

Miller reminisces about how her grandparents fed their dog whatever leftovers they had, and how her family’s dog, Jack, ate food from the dollar store.

In contrast, Miller opts for premium food for Norman, asserting that she cares deeply about what he eats, especially since he tends to be selective. She also spends about $100 monthly on his medications and preventive care, an additional $100 every two months on grooming, and a $30 monthly pet fee as part of her apartment rent, along with $20 a month for dog treats and toys.

Having moved from her parents’ house to her own apartment, Miller anticipated significant expenses like dog daycare, as Norman tends to bark a lot, and she did not want to disturb her new neighbors.

According to Miller, Norman enjoys daycare and has even made a dog friend there.

To afford these expenses, Miller has chosen to cut back on her personal spending, opting for inexpensive items for herself so she can allocate more for Norman.

“I’ll be shopping at Aldi while giving him $50 food,” she stated. Additionally, she treats herself to coffee just once a week.

As pets are increasingly viewed as family members, “this emotional connection has spurred a demand for specialized products – high-quality foods, wellness items, and innovative toys that enhance their well-being and joy,” explained Scott. “Modern pet stores now provide experiences and products that go beyond the limited selections available previously, making them a fundamental part of our lifestyles.”