The global pet industry has transformed into one of the most resilient and fast-growing consumer markets, now exceeding $130 billion annually in the U.S. alone and projected to continue expanding worldwide.
What was once viewed as a discretionary category has evolved into a necessity, with households prioritizing spending on their pets even during economic downturns.
Three forces are driving this secular growth:
- Higher rates of pet ownership
- The premiumization of food and care products
- The humanization of pets as full family members.
From specialty diets and subscription services to advanced veterinary care, owners are spending more per pet each year, creating a powerful recurring revenue base for industry leaders.
Here are 10 top companies positioned to capture lasting gains from this expanding market.
| Company Name (Ticker) | Analyst Upside | P/E Ratio |
| Zoetis (ZTS) | 22.9% | 23.65 |
| Idexx Laboratories (IDXX) | 7.4% | 49.00 |
| Chewy (CHWY) | 11.3% | 31.11 |
| Freshpet (FRPT) | 56.6% | 32.96 |
| Trupanion, (TRUP) | 21.1% | 12.59 |
| Elanco Animal Health Incorporated (ELAN) | -1.5% | 20.39 |
| Petco Health and Wellness Company (WOOF) | 13.9% | 17.51 |
| PetIQ (PETQ) | -1% | 18.28 |
| BARK (BARK) | 61.8% | -13.71 |
| Central Garden & Pet Company (CENT) | 17.8% | 13.51 |
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Here are 3 top pet industry picks that analysts think can deliver compounding returns over the long-term.
Zoetis Inc. (ZTS)
Zoetis is the clear leader in the global animal health market, with a broad portfolio of vaccines, pharmaceuticals, and diagnostics that serve both companion animals and livestock. What makes Zoetis uniquely compelling for long-term investors is its scale advantage and pipeline innovation, particularly in the companion animal segment, where growth is outpacing livestock. As pet ownership rises globally and owners increasingly view pets as family members, demand for preventive and therapeutic care continues to climb. Products like Apoquel and Librela have become blockbuster franchises, addressing chronic conditions such as dermatitis and arthritis in dogs, a market with recurring, long-duration demand.
Financially, Zoetis pairs steady mid-single-digit revenue growth with strong profitability, underpinned by pricing power and high-margin consumables. Its $6 billion share repurchase program and consistent dividend growth reflect management’s confidence in sustainable cash flow generation. The company’s moat is reinforced by high regulatory barriers and entrenched veterinarian relationships, which make competition less threatening. For investors, Zoetis represents a defensive growth play: resilient in downturns, yet capable of compounding earnings steadily over the long haul.
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IDEXX Laboratories (IDXX)
Idexx Laboratories has built a powerful economic engine around veterinary diagnostics, imaging systems, and practice management software. Its recurring-revenue model is particularly attractive; once veterinary clinics adopt Idexx’s in-clinic analyzers or cloud-based platforms, they tend to remain long-term customers due to high switching costs and workflow integration. This creates a sticky ecosystem where consumables and diagnostic tests drive repeat purchases, producing a consistent growth profile that outpaces general healthcare spending.
The structural tailwind is clear: pet owners are demanding higher standards of medical care for their animals, paralleling human healthcare. With pets living longer and chronic conditions becoming more common, veterinarians increasingly rely on advanced diagnostics to inform treatment. Idexx sits at the center of this shift, with strong international expansion opportunities as veterinary care adoption deepens outside North America. Its combination of high-margin consumables, razor-and-blade business model, and global growth optionality makes Idexx a quintessential long-term compounder in the pet industry.
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Chewy (CHWY)
Chewy is the e-commerce leader in pet supplies and is one of the most direct beneficiaries of the ongoing migration from brick-and-mortar to online retail. Its Autoship program, which now accounts for roughly 80% of sales, locks customers into recurring deliveries of food, treats, and health products. This not only smooths out revenue volatility but also creates predictable, subscription-like cash flows that Wall Street rewards with premium multiples. The company has also made strong inroads into higher-margin categories such as pet pharmacy and insurance, positioning itself beyond retail into holistic pet wellness.
What sets Chewy apart is its customer acquisition efficiency and deep engagement, with loyal pet owners driving repeat purchases at industry-leading retention rates. Even in economic slowdowns, pet owners prioritize food and care, making Chewy relatively recession-resistant compared to other e-commerce peers. Looking ahead, Chewy’s ability to leverage data, expand private-label offerings, and cross-sell higher-margin services provides a multi-year runway for margin expansion. For investors, Chewy offers a blend of secular e-commerce growth, sticky recurring revenue, and exposure to the durable trend of increasing pet humanization.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
