Pet owners aren't giving up on their animals, but they're getting more selective about where their money goes. Cat food is emerging as a bright spot for retailers, while dog food sales struggle to recover from the pandemic-era adoption boom.
General Mills reported double-digit percentage growth in cat food sales this month, against a high-single-digit decline in dog food, leaving its North American pet segment roughly flat year over year.
Chewy and Petco Health and Wellness flagged the same divide in recent earnings calls. Petco credited its new Candy Shop cat treat brand for part of its second-quarter strength, while Chewy CEO Sumit Singh summed up the shift:
Cats are winning the pet aisle
The American Pet Products Association found cat ownership increased 5% in 2025 to an estimated 53M households, following a 23% surge in 2024. Executives point to lower care costs and cats being better suited to apartments and rental housing.
Dog adoption is still normalizing after the pandemic-era boom, with new pet formation flat to slightly negative.
General Mills believes its troubles go beyond adoption rates, with COO Dana McNabb calling for a broader rethink of its dog food products.
McNabb said a similar turnaround for the company's Tastefuls cat food line took 18 to 24 months, suggesting any recovery in dog food could take time.
Costs are squeezing owners
Pet inflation reached 3.2% year over year in August, up from 3.0% in July, according to Pet Business Professor. Veterinary costs drove the increase, rising 1.1% for the month, while pet food and supplies prices slipped 0.1% and 0.4%, respectively.
Pet services inflation climbed to 4.8% annually, leaving overall pet prices 32.5% above 2019 levels. Yet owners appear reluctant to sacrifice care, with an Elanco survey finding 95% unwilling to cut health and wellness spending.
Instead, spending is shifting between retailers. Walmart's pet supplement share surged more than 20%, while Amazon commands roughly 70% of the supplements channel. Brick-and-mortar specialty retailers, meanwhile, remain flat.
Chewy has grown annual revenue from $8.97B to $12.60B over five fiscal years, while Petco carries a debt-to-equity ratio of 233.8%. Both face a market where stronger cat demand is helping offset weaker dog sales rather than delivering broad-based growth.
Until dog adoption recovers, retailers may have to work harder just to keep sales moving in the right direction.
