The U.S. pet market reached $158 billion in expenditures in 2025, while Chewy reported $12.6015 billion in fiscal 2025 net sales. Together, the figures show a large market in which recurring online orders, specialty-pet needs, and cautious household spending all matter. The statistics below separate market estimates, household survey results, channel preferences, and company-reported ecommerce performance.
Table of contents
- U.S. pet market size and outlook
- Pet ownership and household spending
- Specialty-pet ownership and information sources
- How small-animal and horse owners shop
- Chewy’s fiscal 2025 ecommerce performance
- Autoship and customer value
U.S. pet market size and outlook
The American Pet Products Association (APPA) reported that U.S. pet industry expenditures reached $158 billion in 2025. APPA also said spending grew 3.7% year over year in 2025. These are industry-level expenditure figures, so they describe the broad U.S. pet economy rather than ecommerce alone.
APPA projects U.S. pet industry spending will reach $165 billion in 2026. That forecast represents projected growth of about 4.4%. APPA said roughly 2% of the expected 2026 growth is expected to come from inflation. The forecast is therefore an estimate for 2026, not a reported result.
| Measure | 2025 reported or observed | 2026 APPA projection |
|---|---|---|
| U.S. pet industry expenditures | $158 billion | $165 billion |
| Year-over-year growth | 3.7% | About 4.4% |
| Inflation contribution | Not stated in the supplied measure | About 2% of growth |
For pet ecommerce readers, the distinction between industry expenditure and online sales is important. The APPA figures cover the total U.S. pet industry, while retailer results provide a narrower view of digital commerce. The market outlook indicates continued expansion, but it does not mean every channel or product category will grow at the same rate.
Pet ownership and household spending
APPA reported that 95 million U.S. households owned at least one pet in 2025. Dog ownership reached 53% of U.S. households, equivalent to 71 million households. Cat ownership reached 39%, equivalent to 53 million households. These household counts describe the U.S. market in 2025 and are useful context for the potential customer base behind pet product demand.
Spending behavior was mixed. About half of pet owners reported unchanged spending in 2025. Meanwhile, 22% said they spent less on pets. APPA said that 22% share was a 10% increase from 2024. The supplied APPA measure reports the change in the share, but does not state whether the increase is percentage points or a relative increase, so those descriptions should not be converted into an additional dollar estimate.
The ownership picture also shifted among Gen X households. APPA reported that Gen X pet ownership increased 12% year over year. Gen X dog ownership also increased 12%, while Gen X cat ownership increased 8%. Among other pets, bird ownership among Gen X rose 25%, reptile ownership rose 20%, and freshwater fish ownership rose 17% year over year. These are year-over-year changes reported by APPA for 2025 and should be read as ownership trends rather than ecommerce growth rates.
These figures point to two simultaneous conditions for online pet retailers: a large established household base and a customer population that is not uniformly increasing its spending. Product education, replenishment convenience, and clear value may matter especially when a meaningful share of owners reports spending less.
Specialty-pet ownership and information sources
APPA’s Bird, Small Animal & Horse Report 2025 reported that six million U.S. households own birds, six million own small animals, and two million own horses. Those categories are smaller than the dog and cat household base, but they represent distinct purchasing needs and information journeys.
Bird ownership showed several notable demographic and product patterns. Gen Z accounted for 22% of bird owners, and that share was up 22% from 2023. Among bird owners, 28% had a parakeet and 19% had a cockatiel. Cockatiel ownership among bird owners rose 58% from 2023.
Bird owners also used specialist retail settings for information and acquisition. Twenty-five percent relied on bird stores for bird-care information, while 28% relied on bird-store personnel for that information. Twenty-one percent obtained their pet at bird stores, and that bird-store acquisition share was up 62% over six years. These measures come from APPA’s 2025 report and refer to bird owners, not all pet owners.
The information figures have a practical ecommerce implication: a product page may compete with specialist advice as well as with another retailer. For bird-care products, explaining use, species fit, and routine care can address the same information need reflected in the APPA survey. The statistics do not quantify conversion or revenue from educational content, so they support a customer-context observation rather than a performance claim.
How small-animal and horse owners shop
Small-animal owners showed a strong preference for in-person purchasing for routine food and treats. APPA reported that 55% preferred to shop in person for food and 52% preferred to shop in person for treats. Pet superstores were a notable destination: 40% bought food treats there, 40% bought bagged pellets there, 38% bought bagged feed there, and 37% bought cages there.
Small-animal spending also extended beyond basic supplies. Eighty-seven percent of small-animal owners gave gifts to their pets. Forty-nine percent bought gifts for Christmas, and 44% bought gifts for any occasion. These percentages overlap as shopping behaviors; they are not categories that should be added together.
Horse owners likewise reported gift purchasing. Seventy-three percent gave gifts to their animals, 38% bought gifts for any occasion, and 28% bought gifts for Christmas. Horse owners spent an average of $96.92 per gift. This average is a reported per-gift figure and should not be treated as the average annual spend of a horse-owning household.
Horse purchasing mixed physical retail, online channels, and direct manufacturer sales. For saddles and accessories, 60% purchased in person and 28% online. For bridles and accessories, 63% purchased in person and 25% online. Grooming tools were purchased in person by 56% and online by 29%.
| Horse product category | In person | Online | Direct from manufacturer |
|---|---|---|---|
| Saddles and accessories | 60% | 28% | Not stated |
| Bridles and accessories | 63% | 25% | 36% |
| Grooming tools | 56% | 29% | Not stated |
| Hoof care products | Not stated | 28% | 21% |
| Halters | Not stated | 29% | 28% |
| Shampoo and conditioner | Not stated | Not stated | 24% |
| Blankets | Not stated | Not stated | 41% |
The remaining horse-product figures reinforce the value of comparing channels by category. Twenty-eight percent purchased hoof-care products online and 21% bought them directly from the manufacturer. Twenty-four percent purchased shampoo or conditioner directly from the manufacturer. Twenty-nine percent purchased halters online and 28% bought halters directly from the manufacturer. Direct-manufacturer purchasing reached 41% for blankets and 36% for bridles and accessories.
Chewy’s fiscal 2025 ecommerce performance
Chewy’s fiscal 2025 earnings release reported net sales of $12.6015 billion, up 6.2% year over year. Gross margin was 29.8%. Net income was $222.8 million, producing a reported net margin of 1.8%. Chewy also reported adjusted EBITDA of $719.2 million, an adjusted EBITDA margin of 5.7%, adjusted net income of $540.5 million, adjusted basic earnings per share of $1.31, adjusted diluted earnings per share of $1.27, and free cash flow of $562.4 million.
Chewy ended fiscal 2025 with 21.327 million active customers, up 4.0% year over year. Net sales per active customer were $591, up 2.2% year over year. These are company-reported measures for Chewy’s fiscal 2025 and are not estimates of the average value of all U.S. pet ecommerce customers.
The fourth quarter provides a more recent period within that fiscal year. Q4 fiscal 2025 net sales were $3.2647 billion, up 0.5% year over year. Q4 gross margin was 29.4%, net income was $39.2 million, adjusted EBITDA was $162.3 million, and adjusted EBITDA margin was 5.0%. Q4 free cash flow was $232.0 million. Q4 active customers were 21.327 million, and Q4 Autoship customer sales were $2.7437 billion, equal to 84.0% of Q4 net sales.
Autoship and customer value
Recurring purchasing was central to Chewy’s fiscal 2025 results. Autoship customer sales reached $10.4971 billion for the fiscal year, grew 11.8% year over year, and represented 83.3% of net sales. The fiscal-year share and the Q4 share are separate measurements: in Q4, Autoship customer sales were $2.7437 billion and 84.0% of net sales.
Chewy’s Q2 fiscal 2025 earnings release gives another point in the year. Q2 net sales were $3.1 billion, described as nearly 9% year-over-year growth. Autoship customer net sales increased 15% year over year and represented 83% of total net sales. Q2 active customers were 20.906 million, or nearly 21 million, up 4.5% year over year. Net sales per active customer were $591, up 4.6% year over year.
Q2 Autoship customer sales were $2.5769 billion, up 14.9% year over year. Chewy reported Q2 free cash flow of $105.9 million and net cash provided by operating activities of $133.9 million. These Q2 figures should not be added to Q4 figures to create an annual total, because the fiscal-year figures already cover the full reporting period and the supplied measures do not establish whether every quarter is represented.
Taken together, the company-reported figures show why recurring orders are a defining feature of pet ecommerce: Autoship sales grew faster than total fiscal-year net sales, and Autoship represented more than four-fifths of Chewy’s reported sales in both the fiscal year and Q4. The APPA household and category figures add the broader context: online demand exists inside a market where many owners still prefer physical shopping, specialist advice, or direct manufacturer relationships for particular products.