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With expenses such as food, vet care and the purchase of their pet, humans doled out roughly $72 billion in 2018. That number is expected to swell to upward of $75 billion in 2019. That number surpasses the $45 billion pet owners spent a decade ago.
Globally, however, the pet care industry is worth more than $100 billion and is continually growing with more than 67 percent of U.S. households owning a pet, which equates to roughly 84.9 million homes, according to the 2019-2020 APPA National Pet Owners Survey.
The breakdown in 2018 indicates that owners spend more than $30 billion in food, more than $18 billion in vet care, more than $16 billion in supplies and over-the-counter medicine and nearly $2 billion for the purchase of the animals. Another $6.31 billion was spent on "other services," according to the association.
The basic expenses for dog and cat owners include surgical and routine vet visits, food, treats, kennel boarding, vitamins, grooming and toys.
The way humans are now splurging on their pets is part of a trend called "pet humanization," which is becoming more common. It refers to the trend in which consumers increasingly see their pets as family members and spend more on them, according to a report from global research firm Edge by Ascential.
"We are seeing the pet humanization trend proliferate, being increasingly influenced by human trends, such as ethical spending, which means there is a bigger focus on health, wellness, sustainability and transparency," said Ioli Macridi, an analyst at Edge by Ascential.
Analysts say consumers are prepared to spend more on food and products that are said to be healthier for their loved ones. But they are also offering their pets human-like experiences such as throwing them a birthday party.
According to the 2017-2018 National Pet Owners Survey from the American Pet Products Association, 28 percent of dog owners and 17 percent of cat owners give gifts for their pets on their birthdays. Meanwhile, 11 percent of dog owners and 5 percent of cat owners hold holiday or birthday parties for their pets.