U.S. Pet Spending Resilience in 2025 Highlights Shift in Consumer Behavior
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 25 2025
0mins
Source: Benzinga
- Resilience in Pet Spending: In 2025, U.S. pet spending demonstrated resilience despite ongoing cost-of-living pressures, with pet and pet product inflation easing to 0.3% in November, providing relief to consumers and highlighting the sector's defensive appeal.
- Shift in Consumer Behavior: A survey revealed that 97% of U.S. pet owners consider their pets family members, driving demand for pet technology and health-oriented products, which reflects younger pet owners' balancing act between wellness and affordability.
- Emergence of a Two-Speed Market: Industry experts noted a bifurcation in spending patterns, where affluent households continue to purchase premium products while approximately 75% of households shift towards value brands, benefiting private-label producers.
- Investor Focus: Despite a slowdown in overall deal activity, the pet care sector remains attractive to investors due to its stable demand and lower tariff exposure, with analysts predicting a significant increase in transaction activity in 2026 and 2027, particularly in premium and value segments.
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Analyst Views on CHWY
Wall Street analysts forecast CHWY stock price to rise
20 Analyst Rating
17 Buy
3 Hold
0 Sell
Strong Buy
Current: 19.010
Low
42.00
Averages
47.06
High
52.00
Current: 19.010
Low
42.00
Averages
47.06
High
52.00
About CHWY
Chewy, Inc. is an e-commerce business geared toward pet products and services. The Company’s products consist of pet food and treats, pet supplies and pet medications, other pet-health products, and pet services. It serves its customers through its retail websites, and its mobile applications and focuses on delivering customer service, competitive prices, convenience, including Chewy’s Autoship subscription program, and a range of pet food, treats and supplies, and pet healthcare products and services. It partners with approximately 3,200 of the brands in the pet industry, and it creates and offers its own private brands. It owns a number of trademark registrations and applications in the United States and in foreign jurisdictions. These trademarks include American Journey, Blue Box Event, Careplus, Chewy, Chewy.com, Chewy Vet Care, Dr. Lyon’s, Frisco, Goody Box, Onguard, PetMD, PracticeHub, Tiny Tiger, True Acre Farms, Tylee’s, Vibeful, and The Zoo.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Performance Comparison: Chewy's revenue for FY 2025 reached nearly $12.6 billion, reflecting a growth of approximately 6.2%, while Tractor Supply's revenue was close to $15.5 billion, growing about 4.3%, indicating Tractor Supply's relative advantage in revenue growth.
- Profitability Differences: Chewy reported a net income of roughly $222.8 million with a net margin of 1.8%, whereas Tractor Supply generated approximately $1.1 billion in net income with a net margin of 7.1%, highlighting the latter's superior profitability.
- Financial Health Status: As of February 2026, Chewy's debt-to-equity ratio was 1.1 and its current ratio was approximately 0.9, indicating weaker short-term liquidity; in contrast, Tractor Supply had a debt-to-equity ratio of 2.3 and a current ratio of 1.3, suggesting a more robust financial position.
- Market Risk Assessment: Chewy faces intense competition from e-commerce giants like Amazon and must navigate complex regulations, while Tractor Supply is sensitive to weather and climate events, and also faces integration risks from its newly acquired veterinary services.
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- Revenue Comparison: Chewy's revenue for FY 2025 reached nearly $12.6 billion, reflecting a growth of approximately 6.2%, while Tractor Supply reported revenue of about $15.5 billion, growing roughly 4.3%, indicating strong performance in their respective markets.
- Net Income Analysis: Chewy generated a net income of approximately $222.8 million with a net margin of 1.8%, whereas Tractor Supply achieved a net income of around $1.1 billion with a net margin of 7.1%, highlighting Tractor Supply's superior profitability.
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