While global markets grapple with slowdowns and trade-fueled inflation, one sector is holding steady: #petcare. Even as economic unpredictability looms, demand for #petproducts and services stays consistent—and that’s good news for brands, retailers, and investors alike. Let’s break down what leading financial firms are saying about the rest of 2025, and why the #petindustry is emerging as a reliable bright spot.
The 2025 Economic Landscape: Uncertainty Takes Center Stage
As we head into Q4 and wrap up 2025, “predictability” has become hard to come by. The only sure thing? Volatility and uncertainty will stick around—especially in the U.S.
Invesco, the American investment management firm, puts it plainly in its mid-year outlook: “Policy uncertainty is weighing on consumer sentiment, pointing to a challenged outlook for the U.S. economy.” They’re not alone. Big names like J.P. Morgan, Goldman Sachs, and BlackRock all highlight this unpredictability as a defining feature of 2025’s financial and economic scene.
Key Economic Shifts to Watch
Two trends are shaping the global economy for the rest of the year: trade tariffs and uneven growth—plus a weaker U.S. dollar.
1. Tariffs: Inflation Risks Linger
August brought new tariffs for some countries, while negotiations with major partners (Canada, Mexico, and China included) are still ongoing. Analysts warn this could push “tariff-related inflation” higher in the months ahead.
Invesco notes that even a quick resolution to trade tensions won’t erase all impacts: “Supply chain shocks and other disruptions will likely leave significant effects.” Goldman Sachs offers a small silver lining, though—they expect “the breadth of price rises to be narrower than what we saw in 2022.”
2. Uneven Growth Across Economies
Slow growth is taking hold, especially in the U.S. J.P. Morgan points to three factors keeping momentum in check: a “still-tight labor market,” “resilient wage growth,” and “delayed fiscal stimulus.” Invesco adds that while U.S. growth will slow in the coming quarters, “strong household balance sheets should help limit the hit.”
For other countries, domestic policies will make or break growth. “The U.S. pulling back globally creates challenges for surplus nations, but more stimulus should soften the worst effects,” Invesco explains. “Overall, non-U.S. economies will feel less of a growth impact from trade tensions than the U.S.”
3. A Weaker U.S. Dollar
All major reports agree: the U.S. dollar will keep depreciating. J.P. Morgan says this is due to the dollar’s “elevated level” and a shift in key drivers—“interest rate differentials are taking a backseat.” Invesco adds a notable trend: “Foreign investors have poured surpluses into USD assets for over a decade. That trend may be starting to reverse.”
Regional Breakdown: Where Growth Could Happen
While the global picture is uncertain, some regions have clearer paths forward:
- Europe: Financial firms are betting on fiscal stimulus (from countries like Germany) and interest rate cuts (in the EU and UK) to drive growth. Goldman Sachs calls Europe “appealing,” noting “investment opportunities across sectors.”
- Japan: Real wage growth is expected to give the economy a much-needed boost.
- China: Government support is helping—Invesco notes “greater fiscal spending” and “signs of improvement in the property and consumer sectors.” Goldman Sachs highlights opportunities in advanced manufacturing, tech innovation, and premium-focused “resilient consumption.”
The Pet Industry: Defying the Downturn
Here’s the standout news: the pet industry is thriving, even when other sectors struggle.
Garyth Stone, Managing Director at Houlihan Lokey’s Consumer Group, says economic instability can actually be an opportunity for #petbrands. “When there’s uncertainty, investors focus on reliable areas—and pets are right up there with consumer health and wellness,” he explains. “Even in downturns, you still need to feed your pet; they eat every day. That demand doesn’t go away.”
This “protected” consumption is why investors are taking notice. Andrea Binder, VP and Pet Industry Insights Leader at Nielsen IQ, adds that the worst of investment hesitation is over: “The sector will pick up soon, especially as consumer confidence improves.”
It all boils down to consistent spending. People prioritize their pets, even when budgets are tight. That resilience makes the pet industry attractive for long-term growth—and right now, investors are revisiting pet-related ventures with fresh interest.
What This Means for You
For pet brands, retailers, and anyone in the space, 2025’s uncertainty doesn’t have to mean stress. The sector’s steady demand and investor interest are signs of strength. Whether you’re launching a new product, expanding into new markets, or seeking investment, the pet industry’s resilience is your greatest asset.
As the rest of the economy navigates volatility, the pet industry keeps moving forward—proving that when it comes to caring for furry family members, people don’t cut corners.
Source: GlobalPETS