Pet News

In 2025, the Canadian pet insurance market experienced a notable slowdown in its expansion rate, even as it achieved a new peak in gross written premiums. Despite a record year for financial intake, the pace of growth in the insured pet population was the lowest observed in half a decade. This trend highlights a maturing market where an increasing number of pets are covered, but the speed of new adoptions into the insurance fold is moderating.

Data from the North American Pet Health Insurance Association (NAPHIA) for 2025 indicates that over 643,000 pets in Canada held insurance policies, comprising more than 473,600 dogs and nearly 170,000 cats. When juxtaposed with Statista's estimate of 17.3 million pet dogs and cats in Canada as of May 2026, this suggests an overall insurance penetration rate of approximately 3.7%. Specifically, dogs demonstrated a higher penetration rate at 5.6%, significantly surpassing cats, which stood at 1.9%. The 3.9% year-over-year increase in insured pets, while positive, represented the slowest annual growth rate recorded over the past five years, as detailed in NAPHIA's State of the Industry Report 2026, published on June 21.

Financially, the market achieved a record CA$660.5 million in in-force gross written premiums (GWP) in 2025. However, the 13.1% year-over-year increase in GWP was the smallest since the onset of the pandemic and fell below the five-year average annual growth rate of 20.5%. This pattern was mirrored in both dog and cat insurance segments. Dog insurance GWP saw a 12.2% rise to CA$556.3 million, while cat insurance GWP increased by 18% to CA$104.2 million. Provincially, Ontario led with the largest share of GWP at 37.6% and pet ownership at 36.2%, followed by British Columbia, Alberta, and Quebec.

The cost of premiums also saw an upward trajectory. For policies incorporating wellness products, the average annual premium for dogs surged by 12.6% year-over-year to CA$2,623, marking the highest level since at least 2021. Cats experienced an even sharper increase of 21.9% to CA$1,499. Accident and illness policies also became more expensive, with dog premiums rising 9.9% to CA$1,176 and cat premiums increasing 9.1% to CA$601. Conversely, accident-only policies for dogs saw a 6.9% decline to CA$251, while those for cats grew by 4.4% to CA$212 in 2025.

Regarding claims, gastrointestinal (GI) conditions emerged as the most frequent reason for insurance claims for both dogs and cats across North America in 2025. Beyond GI issues, dogs commonly received treatment for ear infections, various skin conditions, anxiety, and neurological issues. For cats, prevalent conditions included dental disease, urinary tract infections, anxiety, behavioral and neurological problems, and respiratory ailments.

Overall, Canada's pet insurance sector reached new financial heights in 2025, yet the expansion in policyholders slowed, signaling a shift in market dynamics. The data highlights the sustained importance of pet health coverage, particularly for dogs, and sheds light on the common health challenges faced by insured pets, influencing premium adjustments and claim trends.

The landscape of pet care shopping in the United States is undergoing a notable transformation, largely influenced by the purchasing habits of younger generations. Recent findings indicate a substantial pivot towards online platforms for pet product acquisition, challenging conventional retail models. This shift extends beyond mere transactional preferences, impacting subscription services and even the integration of pets into public life. Understanding these evolving dynamics is crucial for businesses operating within the pet care sector.

Detailed Insights into the Evolving US Pet Care Market

In 2025, American pet owners demonstrated an unprecedented embrace of digital retail channels, with 53% making online purchases. This marks a peak in the last four years, contrasting sharply with a decline in in-store shopping, which fell to 45% from 50% in 2022, according to the 2026 State of the Industry report by the American Pet Products Association (APPA). Millennials have consistently led this digital charge, accounting for 57% of online shoppers last year, a figure that has shown steady growth over time. Gen X pet owners also significantly contributed, reaching a 53% share in online transactions, their highest to date. Conversely, the Boomer generation maintained its preference for brick-and-mortar stores, leading in-store purchases at 50%. These insights are based on an extensive survey of 9,221 pet owners conducted in October 2025.

Further analysis by NielsenIQ within the APPA report highlights the dominance of "omni-shoppers"—those who engage with both online and in-store channels. This segment represents a remarkable 84.6% of all expenditure on pet care, indicating a 6.8% increase year-over-year. Similarly, the proportion of omni-shoppers among all buyers grew by 6.6% year-over-year, reaching 65.2%.

Online purchases for pet food reached a record 83% in 2025, solidifying its position as the leading category. Treats and toys also experienced significant growth, peaking at 80% and 78% respectively. Other categories such as grooming supplies (67%), litter and bedding (61%), and vitamins and supplements (55%) also saw record online engagement. Interestingly, medication was the sole category to register a slight dip, from 55% in 2024 to 54% in 2025.

Despite the overall digital migration, subscription services experienced fluctuations. While overall penetration peaked at 54% in 2020, it stood at 49% in 2025. Gen Z and Millennials were the primary adopters, both at 55%, though their subscription rates saw a year-over-year decline of 6 and 4 percentage points, respectively. This decline is attributed to these younger generations spending more time browsing in physical stores. Food remained the most popular subscription item at 30%, followed by treats (17%), vitamins and supplements (15%), and medication (14%).

Beyond retail, the integration of pets into daily life continues to expand. The number of pet owners working in pet-friendly environments has surged by 30% over the past seven years, with Millennials and Gen Z being most represented. Moreover, public spaces are becoming increasingly accommodating; visits to pet-friendly hotels by dog owners have jumped by 39%, and pet-friendly restaurants by a staggering 130% over the same period. This trend, again spearheaded by Gen Z and Millennials, underscores a broader societal recognition of pets as integral lifestyle companions.

This comprehensive data underscores a pivotal moment in the pet care industry, driven by generational shifts and evolving consumer behaviors. The increasing reliance on online channels, coupled with a desire for pet-inclusive public experiences, presents both challenges and opportunities for businesses. Adapting to these changes by investing in robust e-commerce platforms, flexible subscription models, and advocating for pet-friendly environments will be key to future success in this dynamic market.