The pet industry is booming, with sales reaching nearly $133.9 billion in 2023, according to Pet Food Processing.
As the industry continues to grow, many investors are looking to get in on the action.
However, with concerns about animal welfare and ethical considerations, some investors are wondering if it’s possible to invest in the pet industry in a socially responsible way.

Ethical investing in the pet industry involves making investment decisions that align with an individual’s values and beliefs.
This can include investing in companies that prioritize animal welfare, sustainability, and social responsibility. With the pet industry expected to more-than-double to $275 billion by 2030, there are many opportunities for ethical investors to make a positive impact while also earning a return on their investment.
Investing in the pet industry can take many forms, from pet food and supplies to pet health and wellness to pet services.
By understanding the pet industry landscape, key players, and trends and opportunities, investors can make informed decisions about where to invest their money. Additionally, ethical considerations such as animal welfare and sustainability should be taken into account when making investment decisions.
Key Takeaways
- Ethical investing in the pet industry involves making investment decisions that align with an individual’s values and beliefs.
- The pet industry is expected to more-than-double to $275 billion by 2030, providing many opportunities for ethical investors to make a positive impact.
- Understanding the pet industry landscape, key players, and trends and opportunities, as well as ethical considerations such as animal welfare and sustainability, can help investors make informed decisions about where to invest their money.
Understanding Ethical Investing

Ethical investing is an approach that integrates personal values, societal concerns, and environmental considerations into investment decisions.
The pet industry is no exception to this trend, and there is a growing interest in ethical investing in pet-related companies.
Investors who practice ethical investing seek to align their values with their investments, and they often prioritize companies that demonstrate strong ethical standards. These standards may include a commitment to animal welfare, environmental sustainability, and social responsibility.
One popular framework for ethical investing is ESG investing, which stands for environmental, social, and governance. ESG factors are used to evaluate a company’s performance in these areas, and investors use this information to make investment decisions.
Investors who practice ethical investing in the pet industry may prioritize companies that use sustainable and humane practices in their operations, such as those that avoid animal testing or use eco-friendly packaging.
They may also seek out companies that prioritize social responsibility, such as those that donate a portion of their profits to animal welfare organizations.
While ethical investing can be a way to align one’s investments with their values, it is important to note that it does not necessarily guarantee higher returns.
However, some studies have suggested that companies with strong ESG performance may be more resilient in the long run, and may be better able to weather financial or reputational risks.
Overall, ethical investing in the pet industry is a growing trend that reflects a growing interest in aligning one’s investments with their values.
By prioritizing companies that prioritize animal welfare, environmental sustainability, and social responsibility, investors can make a positive impact on the world while also potentially achieving strong returns.
The Pet Industry Landscape
The pet industry has been experiencing significant growth in recent years, and it shows no signs of slowing down. According to a report by Morgan Stanley, the pet industry is poised to nearly triple to $275 billion by 2030, thanks to a surge in new pet owners, favorable demographics, and increased per-pet spending.
Currently, more than 65% of U.S. households own a pet, resulting in increased demand for pet products and services.
Pet ownership is not just limited to families with children, as millennials and baby boomers are also adopting pets at a higher rate. This trend is expected to continue as more people view pets as part of their family.
As personal disposable income increases, pet owners are spending more on their pets. This increased spending is not limited to just food and basic care but also includes preventive care and pet services.
The humanization of pets has also led to increased demand for high-quality and innovative pet products that cater to the needs of pet owners.
The growth rate of the pet industry has also resulted in increased investment activity in the market space. According to Petfood Industry, the pet industry has experienced a surge in M&A and investment activity, and this trend is expected to continue in the coming years.
Overall, the pet industry landscape is evolving, and ethical investing in this industry is becoming increasingly important. Investors who are interested in ethical investing can consider investing in companies that prioritize animal welfare, sustainability, and ethical business practices.
Key Players in the Pet Industry

The pet industry is a rapidly growing market, with numerous companies vying for a share of the profits. Here are some of the key players in the pet industry:
General Mills
General Mills is a multinational food company that has expanded into the pet food industry with its acquisition of Blue Buffalo in 2018. Blue Buffalo is a premium pet food brand that offers a range of natural and organic pet food products.
Mars Petcare
Mars Petcare is a subsidiary of Mars, Incorporated, and is one of the largest pet food manufacturers in the world. The company owns a number of popular pet food brands, including Pedigree, Whiskas, and Royal Canin.
Purina
Purina is a subsidiary of Nestle and is one of the largest pet food manufacturers in the world. The company offers a wide range of pet food products, including dry and wet food, treats, and supplements.
Iams
Iams is a pet food brand owned by Mars Petcare that offers a range of pet food products for dogs and cats. The company’s products are designed to meet the nutritional needs of pets at every stage of life.
Chewy
Chewy is an online retailer of pet food and supplies that was founded in 2011. The company offers a wide range of pet food products, including dry and wet food, treats, and supplements, as well as toys, grooming supplies, and other pet-related products.
Trupanion
Trupanion is a pet insurance company that offers medical insurance for cats and dogs. The company’s policies cover a wide range of medical conditions and treatments, including surgeries, medications, and diagnostic tests.
IDEXX Laboratories
IDEXX Laboratories is a company that provides diagnostic and information technology solutions for the veterinary industry. The company offers a range of products and services, including diagnostic tests, software, and consulting services.
Petco
Petco is a pet retailer that offers a wide range of pet food and supplies, as well as grooming services and veterinary care. The company operates over 1,500 stores across the United States and also offers online shopping.
Petco Health and Wellness
Petco Health and Wellness is a subsidiary of Petco that offers veterinary care services, including wellness exams, vaccinations, and diagnostic tests. The company operates veterinary clinics within Petco stores and also offers telehealth services.
Trends and Opportunities
The pet industry has been growing steadily over the past decade, with an increasing number of people treating their pets as family members. This trend is expected to continue in the coming years, presenting several opportunities for ethical investing.
One of the key drivers of this trend is the rise of millennials, who are now the largest pet-owning demographic group. Millennials tend to view their pets as “fur babies” and are willing to spend more on their pets than previous generations. In fact, a recent survey found that millennials spend an average of $1,285 per year on their pets, compared to $908 for baby boomers.
The COVID-19 pandemic has also had an impact on the pet industry, with many people adopting pets for companionship during lockdowns. This trend is expected to continue even after the pandemic ends, as people have grown attached to their pets.
Social media has also played a role in the growth of the pet industry, with many pets becoming social media stars with millions of followers. This has led to an increase in demand for pet-related products and services, such as subscription boxes and pet-friendly travel accommodations.
Another demographic group that presents opportunities for ethical investing in the pet industry is empty nesters. As their children leave home, many empty nesters adopt pets for companionship and to fill the void left by their children.
Investors interested in ethical investing in the pet industry should consider investing in companies that prioritize animal welfare and sustainability. This includes companies that use eco-friendly materials in their products, prioritize ethical sourcing of ingredients, and support animal welfare organizations.
In summary, the pet industry presents several opportunities for ethical investing, driven by trends such as the rise of millennials, the COVID-19 pandemic, social media, and the growing number of empty nesters adopting pets. Investors should consider investing in companies that prioritize animal welfare and sustainability to take advantage of these trends.
Investing in Pet Food and Supplies
The pet food and supplies industry has seen a significant growth in recent years, and investors have taken notice. According to the American Pet Products Association (APPA), the pet industry generated sales of nearly $124 billion in 2021, up from about $97 billion in 2019. This growth has been driven by an increase in pet ownership, which has been steadily rising over the years.
Investors looking to invest in the pet food and supplies industry can consider various options, including pet food and treat manufacturers, pet supply retailers, and e-commerce platforms. Pet food and treat manufacturers have been seeing strong demand, with consumers looking for high-quality and healthy options for their pets.
Pet supply retailers have also been seeing growth, with many retailers expanding their product offerings to include a wider range of pet supplies. Some retailers have also been investing in their e-commerce capabilities, allowing them to reach a wider audience and increase sales.
Investors should also consider the scale of the companies they are investing in. Larger companies may have more resources and be better positioned to weather any economic downturns, but smaller companies may have more room for growth and provide higher returns.
Looking ahead, the pet food and supplies industry is expected to continue to see growth, driven by an increase in pet ownership and a growing demand for high-quality pet products. Pet services, in particular, are expected to see significant growth, with spending predicted to rise 143% by 2030 to $118 billion, according to a report by Morgan Stanley.
Overall, investing in the pet food and supplies industry can provide investors with opportunities for growth and potentially high returns, but investors should carefully consider the companies they are investing in and the potential risks involved.
Investing in Pet Health and Wellness
Investing in pet health and wellness is a growing trend in the pet industry. As pet owners become more aware of the importance of preventive care and wellness products for their pets, the demand for these products and services has increased. This trend has led to the growth of the pet health and wellness industry, which is expected to continue to grow in the coming years.
One area of pet health and wellness that is particularly important is veterinary care. Investing in veterinary care can help ensure that pets receive the best possible medical treatment when they need it. This can include everything from routine check-ups and vaccinations to more complex procedures and treatments. Investing in veterinary care can also help pet owners save money in the long run by preventing more serious health problems from developing.
Another important area of pet health and wellness is pet insurance. Pet insurance can help pet owners cover the cost of veterinary care and other medical expenses for their pets. This can be especially important for pet owners who have limited financial resources or who want to ensure that their pets receive the best possible care without having to worry about the cost.
Investing in diagnostics and vaccines is also important for pet health and wellness. Diagnostics can help veterinarians identify health problems early on, which can improve the chances of successful treatment. Vaccines can help prevent a range of diseases and illnesses, which can help keep pets healthy and happy.
Overall, investing in pet health and wellness is a smart choice for pet owners and investors alike. By investing in veterinary care, pet insurance, diagnostics, vaccines, and other products and services that promote pet health and wellness, investors can help ensure that pets receive the best possible care while also benefiting financially from the growing demand for these products and services.
Investing in Pet Services
Pet services are expected to have the highest growth of any segment in the pet industry. According to Morgan Stanley, the spending on pet services is predicted to rise 143% by 2030 to $118 billion, versus the previous outlook for $127 billion for pet services by 2030 [1]. This growth can be attributed to the increasing number of pet owners who are willing to spend more on their pets’ well-being.
Pet owners are increasingly seeking out premium services like pet insurance, grooming, boarding, and training. Pet insurance is becoming more popular as it provides pet owners with peace of mind in case of unexpected medical expenses. Grooming services are also in high demand as pet owners want their furry friends to look and feel their best. Boarding facilities are becoming more luxurious, offering amenities like webcams, private suites, and playtime with other dogs. Pet training services are also in high demand as pet owners want to ensure their pets are well-behaved and obedient.
Investors who are interested in ethical investing in the pet industry can consider investing in companies that provide pet services. These companies can include pet insurance providers, grooming salons, boarding facilities, and pet training services. Investors can also consider investing in companies that provide high-quality pet food and other pet products.
It is important to note that investors should do their research before investing in any company. They should ensure that the company aligns with their values and ethics. Investors should also consider the company’s financial performance and growth potential before investing.
Overall, investing in pet services can be a lucrative opportunity for ethical investors who are interested in the pet industry. With the increasing demand for premium pet services, investors can consider investing in companies that provide these services.
[1] Pet Care Industry Outlook for 2030 | Morgan Stanley
Ethical Considerations in the Pet Industry
Investing in the pet industry requires careful consideration of various ethical factors. Here are some ethical considerations that investors should keep in mind:
Disclosure
Investors should ensure that companies in the pet industry are transparent about their business practices. This includes disclosing information about their supply chain, animal welfare policies, and environmental impact. Companies that are open and transparent about their operations are more likely to build trust with investors and consumers.
Trust
Investors should look for companies that prioritize building trust with their customers and stakeholders. This includes companies that have a track record of ethical behavior, such as those that have received awards for their business practices. Companies that prioritize trust are more likely to have a loyal customer base and strong brand reputation.
Animal Welfare
Investors should consider the impact that pet companies have on animal welfare. This includes looking for companies that prioritize the health and well-being of animals throughout their supply chain. Investors should also consider companies that support animal welfare organizations and initiatives.
Autonomy
Investors should consider the impact that pet companies have on the autonomy of animals. This includes looking for companies that prioritize the natural behavior and instincts of animals. Investors should also consider companies that support initiatives to reduce the use of animal testing and the use of animals in entertainment.
Overall, investors should consider a range of ethical factors when investing in the pet industry. By prioritizing transparency, trust, animal welfare, and autonomy, investors can support companies that are committed to ethical and sustainable practices.
Role of Millennials and Baby Boomers

The pet industry has seen significant growth in recent years, and a large part of this growth can be attributed to the increasing interest of both millennials and baby boomers in pet ownership. These two demographics make up a significant portion of pet owners, and their attitudes towards pet ownership have helped shape the industry.
Millennials, in particular, have been a driving force behind the growth of the pet industry. This generation is known for placing a high value on their pets, often treating them as members of the family. As a result, they are willing to spend more money on their pets than previous generations. According to a report by the American Pet Products Association (APPA), millennials spend an average of $1,285 per year on their pets, compared to $942 spent by baby boomers and $958 spent by Gen X.
Baby boomers, on the other hand, have been a significant force in the pet industry for decades. This generation has been responsible for the growth of many pet-related businesses, including pet stores, grooming services, and veterinary clinics. They are also known for their high levels of pet ownership, with many boomers owning multiple pets.
Both millennials and baby boomers have played a crucial role in the growth of ethical investing in the pet industry. As consumers become more aware of the impact their purchases have on the world around them, they are seeking out companies that align with their values. This has led to an increase in demand for products and services that are environmentally sustainable, socially responsible, and ethically sourced.
In addition to driving demand for ethical products and services, millennials and baby boomers are also becoming more interested in investing in companies that align with their values. This has led to a rise in socially responsible investing, which involves investing in companies that have a positive impact on society and the environment.
Overall, the role of millennials and baby boomers in the pet industry cannot be overstated. Their attitudes towards pet ownership, as well as their interest in ethical investing, have helped shape the industry and will continue to do so in the future.
Conclusion and Future Outlook

Ethical investing in the pet industry is a growing trend that is expected to continue into the future. As more investors prioritize social responsibility and sustainability, companies that prioritize animal welfare and environmental stewardship are likely to see increased demand for their products and services.
According to a report by Morgan Stanley Research, the pet care industry is expected to experience significant growth in the coming years. The report predicts that per-pet spending will increase to $1,897 by 2030, up from $1,320 in 2025. This growth is expected to be driven by a surge in new pet owners, favorable demographics, and increased spending on preventive care and wellness products.
Investors interested in ethical investing in the pet industry can use tools like the Alphawise ESG scorecard to identify companies that prioritize environmental, social, and governance factors. This can help investors make informed decisions and select companies that align with their values.
Looking ahead, the future of ethical investing in the pet industry looks bright. As consumers become more aware of the impact of their purchasing decisions, companies that prioritize animal welfare and sustainability are likely to see increased demand for their products and services. By investing in these companies, investors can help drive positive change and promote a more sustainable future for the pet industry.
Frequently Asked Questions

What are the environmental impacts of the pet industry?
The pet industry can have significant environmental impacts, including waste production, deforestation, and greenhouse gas emissions. The production of pet food, for example, requires large amounts of resources, including water and land, and can contribute to deforestation. Additionally, pet waste can contribute to water pollution and other environmental issues. However, some companies are taking steps to reduce their environmental impact through sustainable packaging and production methods.
What are some investment opportunities in cruelty-free pet products?
Investors interested in ethical investing in the pet industry may want to consider companies that offer cruelty-free pet products. These products are made without animal testing or other forms of animal cruelty. Some examples of companies that offer cruelty-free pet products include Chewy, Petco, and PetSmart.
Are there any pet industry companies that prioritize animal welfare?
Many pet industry companies prioritize animal welfare, including companies that produce pet food, toys, and other products. Some companies have even established animal welfare programs and policies to ensure that their products are made ethically and humanely. Some examples of these companies include Purina, Mars Petcare, and Hill’s Pet Nutrition.
What is the current state of sustainability in the pet industry?
The pet industry is becoming more sustainable, with many companies taking steps to reduce their environmental impact and promote sustainability. Some companies are using sustainable materials in their products, while others are implementing sustainable production methods and packaging. However, there is still room for improvement, and investors interested in ethical investing in the pet industry may want to consider companies that are actively working to reduce their environmental impact.
Are there any pet industry ETFs that focus on ethical investing?
There are several pet industry ETFs that focus on ethical investing, including the ProShares Pet Care ETF and the Global X Video Games & Esports ETF. These ETFs invest in companies that produce pet products and services, and prioritize ethical and sustainable practices.
What are the potential ethical concerns with pet ownership?
While pet ownership can bring joy and companionship, there are also potential ethical concerns to consider. These include overpopulation, animal welfare, and environmental impact. Pet owners can help address these concerns by adopting from shelters, spaying or neutering their pets, and choosing products that are made ethically and sustainably.