Pet Industry Hits $158 Billion, With AI and New Products Leading Growth
The U.S. pet industry reached $158 billion in 2025, with momentum accelerating at Global Pet Expo 2026 in Orlando last month. The show revealed where product developers should focus: AI-powered consumer devices, cat-focused offerings, and safety features integrated into everyday pet gear.
Cat ownership and spending among Gen Z and millennials drove much of the recent growth, according to APPA leadership at the show. The industry is projected to reach $165 billion in 2026.
AI Products Move Beyond Tracking Into Health Insights
Pet companies are embedding AI across operations-from inventory management for retailers to consumer-facing health monitoring. The Satellai Collar Go converts activity and vital-sign data into AI-powered health insights for dogs, while also providing GPS tracking and an adjustable light.
Retailers are adopting AI platforms like ETAILPET's to automate inventory, marketing, and point-of-sale operations. For product developers, this signals that independent retailers need tools to compete with larger chains.
AI for Product Development skills are increasingly relevant as pet companies integrate machine learning into wearables and health-monitoring systems.
Cat Products Address Specific Pain Points
New cat products shown at the expo tackled distinct problems. Pacagen, a spray developed by biochemist Gary Zhao, neutralizes up to 98% of cat allergens from saliva using llama proteins-addressing the top reason cat owners surrender their pets.
Pawbiopet introduced Acai Superfood Pet Mousse, targeting picky eaters with antioxidants and immune-boosting claims. Both products address unmet needs rather than simply adding variety to existing categories.
Safety Features Become Product Differentiators
Barkly integrates a panic button, alarm, and strobe light directly into a dog leash. Developed by veterinarian Holly Jordan and partner Drew Evenson, the product treats the leash as a safety device for the person walking the dog, not just the dog itself.
This reflects a broader trend: product developers are solving for the human experience alongside the pet experience.
Established Brands Refresh Design and Technology
Petmate's Chuck-It brand redesigned its dog toy line with bright white colorways and new technology. Purina, Milkbone, JIF, Dole, and Burt's Bees brands are also introducing refreshed products through Pets + People.
Even trusted brands recognize the need to update design and functionality to stay competitive in a growing market.
Aquatics Remains Undercovered Despite Growth
The aquatics section at Global Pet Expo showed steady growth, yet receives minimal coverage in pet media. Companies like 5D Tropical are active in the space, suggesting an opportunity for product developers and retailers focused on ornamental fish.
AI Design Courses can help product teams understand how AI informs design decisions-from color selection to user interface design for health-monitoring devices.
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