Younger generations are directing more of their disposable income to pets as traditional milestones such as homeownership and having children feel increasingly out of reach, Freshpet’s chief operating officer said. As the younger generations, particularly Millennials and Gen Z, increasingly view pets as family members or even substitutes for children due to their delayed marriage and parenthood, this trend has been amplified.

The shift is occurring against a backdrop of tens of millions of pets in the United States and rising consumer interest in premium, fresh pet food, according to industry observations and company statements. The burgeoning pet ownership surged, with reported growth in recent years among Gen Z households, reflects a broader cultural shift that recognizes the emotional importance of pet companionship. That spending now includes not only everyday supplies but also higher-cost diets and wellness products positioned as better for long-term health. Graph: Cats and dogs lead US pet ownership growth 2023-2025

Nicki Baty, chief operating officer at Freshpet, said the trend has accelerated. “I think it’s kind of gone on steroids, really,” she said, linking the surge in pet-focused spending to changing life choices and priorities among younger consumers. This prioritization mirrors the evolving landscape where many individuals are deferring larger life events traditionally associated with adulthood, further cementing the pet’s role in these households.

Baty, whose company produces pet food with premium, locally sourced, fresh ingredients, described a consumer base willing to pay more for animals they treat like family. “In consumer insights we get, they spend more on their pet, and they value their pet more than their children,” she said. Such insights underscore how pet ownership has grown steadily in the U.S. over the last few decades, rising from 56% of households in 1988 to 66-70% in recent years (around 86-90 million households). Pet Ownership Statistics, Trends And Facts (2025) – ElectroIQ

Industry measures of lifetime care underline the financial commitment owners are making. Estimates show the average lifetime care for a 10-year-old dog costs about $34,550, while the average lifetime care for a 16-year-old cat costs about $32,170. Those figures are part of a larger set of cost comparisons and consumer research compiled by pet-care and financial services firms. Pet owners are advised to budget by prioritizing preventive care like regular wellness visits and vaccinations, which can help avoid costly treatments later. Ultimate Guide to Budgeting for Your Pet Care Business in 2024

Companies such as Rover and LendingTree have supplied statistics used to frame those comparisons: Rover with data on pet ownership costs, reflecting the increasing burden of these expenses, and LendingTree with figures on the expense of raising a human child. Market observers say those comparisons help explain why spending on premium food formats — including fresh, raw, and freeze-dried options — has gained traction, with manufacturers promoting potential long-term health benefits for animals who consume them.

Baty said many owners mix premium products into their pets’ diets as a practical compromise. “Even if you can’t afford to feed it every single meal or always on the main meal, we do have a really large number of consumers that start off mixing,” she said, noting that partial adoption of higher-end foods is common as households balance budgets and preferences. Establishing a pet health savings account with monthly automatic transfers could also serve as an effective budgeting strategy for owners aiming to manage these expenses.

Freshpet’s focus on fresh, locally sourced ingredients ties directly to that consumer demand. Company messaging positions fresh food as a healthier and more life-sustaining option compared with traditional kibble, a framing that has helped drive trial and purchase among pet parents who prioritize nutrition. This shift towards fresh or minimally processed products presents both a growth opportunity for pet-food companies and a strategic repositioning of pet food as human-grade and health-focused.

Analysts and company spokespeople point to broader cultural shifts — including younger adults delaying or foregoing parenting and homebuying — as contextual forces behind the rise in pet spending. For pet-food companies, this evolving consumer behavior is a primary driver of premiumization in pet care. As younger generations reframe their priorities, pets remain a consistent source of emotional support and joy.

Baty summed up the role pets play in many households: “It’s one of the most constants in life,” she said, casting pet ownership as a steady emotional and financial priority for a significant subset of consumers. This acceptance only further illustrates the profound human-animal bond that has become a hallmark of modern life.

Source material for Baty’s comments and company positions appeared in Fortune’s lifestyle coverage, where the Freshpet executive discussed these trends and their impact on product strategy. Freshpet and other industry sources continue to point to evolving consumer behavior as a primary driver of premiumization in pet care.

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