Industry Report: Pet Q3 2025 [Bridgepoint IB]

Key Report Highlights

• Pet Industry Growth Accelerates with Shift Toward Services and Tech
  The global pet industry is expected to grow from $256 billion in 2024 to $476 billion by 2034, representing a 6.4% CAGR. This growth is fueled by trends like premiumization, the humanization of pets, and surging demand for tech-enabled services including telehealth, diagnostics, and automated wellness platforms
• Fresh Food and Telehealth Lead Category Disruption
  Fresh pet food is gaining significant market share, growing at an anticipated 29.9% CAGR through 2030—far outpacing the broader pet food category at 4.3%. Simultaneously, pet tech and telehealth are projected to reach $15.7 billion by 2029. Notably, platforms like Chewy’s “Connect with a Vet” and Dutch’s tele-vet services have demonstrated strong consumer traction.
• M&A Activity Surges Across All Deal Sizes
  M&A in the pet sector is gaining momentum, with a 153% increase in $1B+ deals in 1H 2025 compared to 2024, alongside a 17% rise in smaller deals. Consolidation is most notable in veterinary services, grooming, and boarding, with larger “super groups” expanding geographic coverage and intensifying competition for independent operators.
• Strategic Investors Zero In on Differentiated Wellness Platforms
  Recent deals highlight the appetite for specialty assets. Mission Veterinary Partners acquired digital-first provider Dr. Treat and merged with Southern Veterinary Partners to form Mission Pet Health, now one of North America’s largest veterinary platforms. Patterson Companies was also acquired for $4.1B by Patient Square Capital, reflecting strong private equity interest in health distribution and tech-enabled service platforms.
• Tariffs and Macro Pressures Shift Competitive Dynamics
  While long-term fundamentals remain strong, smaller pet brands are navigating challenges including rising tariffs, inflation, and shifting consumer behavior. Many are responding by adjusting sourcing strategies and focusing on niche categories such as functional supplements and grooming wellness. Big-box retailers and online platforms are capturing more premium spend, raising the bar for mid-market differentiation.

Bridgepoint Investment Banking is a boutique investment bank focused on providing capital raising and M&A advisory services to middle-market companies across North America. Founded in 2012, the firm specializes in sectors including industrials, transportation, healthcare, business services, consumer, and technology.

With over 360 years of combined experience and more than 460 completed transactions totaling over $380 billion, Bridgepoint’s senior team brings deep expertise to every engagement. Headquartered in Omaha with offices in Chicago, Denver, New York, and Lincoln, the firm conducts securities transactions through M&A Securities Group, Inc., member FINRA and SIPC.

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