Pet food is the largest category in the pet industry, at $68.3 billion in 2025, according to the American Pet Products Association. That's roughly 43 percent of every dollar spent on pets. But the category isn't moving as one block - industry analysts see it splitting in two.
Clarkston Consulting's 2026 Pet Care Industry Trends report says the divide between premium and budget pet food will continue to shape the industry and, as the middle shrinks, brands have to choose a direction. Wealthier consumers keep spending more, while middle- and lower-income shoppers look for value. Cascadia Capital's Winter 2025/2026 industry overview points the same way: the divergence between premium and price-sensitive consumers suggests continued pressure on mid-tier offerings.
Private labels are part of the story. IndexBox reports that private label growth is pressuring the mid-tier hardest, where national brands with undifferentiated positioning and moderate pricing are most vulnerable. Store brands are also building premium lines of their own, so the premium end isn't uncontested.
A brand in the middle offers neither the lowest price nor a distinct reason to pay more. When shoppers are watching their budgets, that's a hard place to be. They either trade down to value or trade up to something that clearly earns its price.
Premium wins on transparency and education. Clarkston says premium brands need to prioritize transparency, education, quality, and expert-approved ingredients for health-focused consumers. That's a natural fit for Pet Wants. The food is slow-cooked, limited-ingredient, and made in small batches. And the model gives owners a way to do the "education" part in person. Kariann Harker in Colorado Springs, for example, sells at farmers markets, community festivals, and pet events, where she can explain what's in the food to the people who will feed it to their pets.
Premium isn't for every shopper and it's worth being honest about that. Petfood Industry reports that premium offerings stay strong among higher-income households, while value-conscious consumers want affordable options without giving up quality. APPA's own read on 2026 is a reallocation of spending, not a retreat. About half of pet owners kept spending steady and products that clearly justify their value are still finding success. For an owner, that means the job is to make the value obvious: what's in the food, how it's made, and why it matters for the pet.
For someone evaluating a pet franchise, positioning is a big part of the decision. A brand in the shrinking middle has to fight on price or differentiation. Pet Wants is clearly on the specialist side, with small-batch food and a boutique model built around smaller inventory and fewer employees. Owners can also add grooming, through professional grooming or wash bays, as an additional revenue option outside of food, so growth doesn't have to depend on a single product line.
When you compare pet franchises, ask who the business is for and why customers would choose it over the alternatives. In a market that's splitting, a clear answer is a real advantage.