WASHINGTON — Senators examined the rapidly growing pet economy Wednesday as veterinarians and business owners warned that rising costs and workforce shortages are squeezing small businesses across the industry.
Each year, Americans spend more on their pets, reaching an estimated $157 billion in 2025, a roughly 75% increase since 2018, said Sen. Joni Ernst, R-Iowa, who chairs the Senate Small Business and Entrepreneurship Committee.
Witnesses said a surge in pet ownership has fueled demand for services ranging from veterinary care to pet food, training and boarding, helping drive growth across the broader pet services sector.
“What small businesses like ours need most is stability, predictability and peace of mind to plan investments, hire workers and grow methodically,” said Robert Van Sickle, co-founder of Boston-based pet treat company Polkadog.
The rapid expansion of pet ownership has created new opportunities for small businesses across the country, Ernst said.
“As the pet economy continues to grow, the number and variety of small businesses who support our pets continues to increase,” Ernst told the committee. She laughed as she described the industry as an example of “bi-paw-tisan” cooperation.
But ranking member Sen. Ed Markey, D-Mass., said that broader economic pressures are making pet ownership and pet care increasingly expensive for many families.
“Pet owners are getting squeezed, and not in a cuddly way,” Markey said.
Much of the hearing focused on veterinary medicine, which witnesses described as a central pillar of the broader pet economy.
“At their core, veterinary practices are community-based businesses that provide stable employment,” said West Virginia veterinarian Gary Brown.
While veterinary practices saw revenue increase by about 2.5% in 2025, clinic visits declined roughly 3%, according to the American Veterinary Medical Association. One reason for the declining visits could be that pet owners now face tighter budgets, and skip the vet rather than other priorities, said John Volk, an economic analyst for Brakke Consulting.
Most of the roughly 34,000 veterinary practices in the United States operate as small businesses, Brown said. A typical veterinary clinic generates more than $1.5 million in annual revenue, he told the committee.
Veterinary clinics also generate local economic activity, employing veterinary technicians, assistants and administrative staff while supporting broader networks of pet-related businesses and suppliers, he said.
Regulatory requirements can create challenges for companies selling pet products nationwide, Van Sickle said. Businesses like his must register products with agriculture departments in all 50 states, often navigating different forms and labeling requirements.
Lawmakers and witnesses pointed to several policy proposals aimed at supporting small businesses in the growing pet economy.
Ernst promoted the Made in America Manufacturing Finance Act, which would increase Small Business Administration loan limits for manufacturers, which includes pet products, from $5.5 million to $10 million. The bill has already passed the House with bipartisan support.
Brown also urged lawmakers to address veterinarian shortages.
“If the opportunity presents itself, I urge Congress to pass the Rural Veterinary Workforce Act, which would free up additional federal funds and allow more veterinarians to serve in rural and underserved communities,” Brown said.