Vets Warn Pet Care Costs Are Pricing Out Owners, Survey Finds

American veterinary practices are masking a troubling contraction by raising prices to offset falling patient visits, according to a new Morgan Stanley survey — and industry insiders say the strategy cannot last. Veterinarians responding to the survey expressed alarm that the rising cost of pet ownership is pushing families to forgo routine and emergency care altogether, with some professionals warning bluntly that "owning a pet has become a luxury."

The data paints a picture of a sector caught in a dangerous feedback loop: as clinics charge more to maintain revenue, cost-sensitive pet owners visit less frequently, which in turn pressures practices to raise prices again. Analysts reviewing the findings described this dynamic as fundamentally unsustainable, raising concerns about both the long-term financial health of veterinary businesses and the welfare of animals whose owners delay or skip medical attention.

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The shrinking number of vet visits also signals a broader demographic shift — a potential contraction in the overall U.S. pet population, or at minimum a reduction in the level of care pets receive. Either outcome carries significant downstream consequences for the multibillion-dollar pet-care industry, which boomed during the pandemic as Americans adopted animals in record numbers and treated them increasingly like family members.

The Morgan Stanley findings arrive as inflation-weary consumers continue to reassess discretionary spending, and pet care — once considered recession-resistant — is no longer immune to household budget pressures. Industry observers say clinics that fail to adapt their pricing and service models risk accelerating the very decline they are trying to avoid, potentially opening the door for lower-cost alternatives to capture market share.

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