Gen Z, millennials willing to go into debt for their pets

With pet ownership on the rise and more parents considering their beloved animals as family members, America is experiencing a pet economy boom and younger generations are leading the way.

A survey by The Harris Poll conducted from May 24 to 26 asked 2,125 adults aged 18 and over about pet preferences and spending habits on their pets. The results revealed younger generations are spending more on their pets, with some even going into debt.

American pet owners spend an average of $4,366 annually on their pets. The survey outlined a stark contrast that Gen Z (ages 18-27) and millennials (ages 28-43) are outspending Gen X (ages 44-59) and baby boomers (ages 60-78).

Gen Z spends an average of $6,103 annually on their pets, followed by millennials dishing out about $5,150. Those averages continue to decrease as the age of owners increases. Gen X spends about $3,878 annually and baby boomers $2,454.

The spending on food, vet care, insurance, grooming, clothing, toys and more has led to a new normal: pet-related debt.

About 24 percent of all pet parents admitted they face debt because of expenses related to pet ownership. The survey found 34 percent of millennials are in debt because of their pets, followed by Gen Z at 29 percent.

Younger pet parents reported that they are willing to prioritize spending on their pets over themselves. Seven in 10 Gen Z and millennials have dedicated a part of their budget specifically to their pets.

Libby Rodney, CSO and futurist at The Harris Poll, told Newsweek that the findings made sense—younger people spend more than older generations because they view pets as a more integral role in their lives. However, it surprised her to see how much they were willing to spend and go into debt.

“Pets are really becoming a persona or child-like experience in people’s relationships where finance and funneling of funds are going to them,” she said.

She explained because people care deeply about their pets, they look at these spending habits as “selfless” splurges. It makes them feel like they are being responsible for their pets, leading to the pet debt phenomenon.

What Are Pet Owners Spending On?

The days of bare minimum spending on pet ownership are no longer. Instead, owners are splurging to increase their pets’ quality of life through experiences and items.

The survey found owners across different generations have spent or are willing to spend money on GPS trackers, monthly pet box subscriptions, birthday party items and designer pet clothing, to name a few.

While spending on pets is nothing new, the industry’s worth has increased yearly. The American Pet Products Association estimates the pet industry to be worth $150.6 billion at the end of 2024, compared to the $147 billion spent in 2023.

The reason for the debt isn’t necessarily because of careless spending. A report from U.S. News found the biggest source of pet debt is veterinary bills, with the most common being emergency visits. Others found themselves in pet-related debt because of food, supplies and prescription medications.