As we enter 2025, startups and investors alike are taking stock: What lessons were learned in 2024? Where did we get it right? Where is there opportunity for growth? And more importantly, what are our goals for the year ahead?
Like many industries, venture investment in pet care fell in 2024, yet the overall industry saw no signs of losing steam. In fact, pet spending continues to grow: The U.S. market alone spent $186 billion on their pets in 2023 with estimates predicting that spending will have increased 2.5% by the end of 2024.
While this has led to some exciting solutions, in any growing industry the distance between competition and over-saturation quickly shrinks.
For innovative entrepreneurs looking to make an impact on the pet care industry, these are the three key areas I think are primed for disruption in 2025.
Supporting shelters
There is no way around it: animal shelters across the U.S. are struggling. Although we saw lower intake numbers in 2024, average stays are lengthening. Just halfway through 2024, 322,000 more pets had entered the shelter system than had left.
To address the shelter crisis, we urgently need solutions for every stage of the journey: preventing relinquishment, improving shelter efficiency to prioritize care, and supporting families post-adoption to ensure pets remain in their homes.
Inspirational examples include myBalto, which aims to make veterinary care more affordable to keep pets with owners; Pawlytics, a software service that works to streamline shelter operations; and Petcademy, which provides text-based training and support for adopters, fosters and pet parents.
I’d love to see what other creative solutions 2025 can bring to continue support for our shelters.
Veterinarian innovation beyond SaaS solutions
I’m going to be honest with you, though I love the creative ways technology can solve pain points, sometimes the greatest sources of friction are more human than anything an AI can solve.
When I think about the greatest troubles regarding veterinary clinics, many come down to user experience. How can we make the experience of companion animal care within veterinary clinics better for staff and pet parents? How might we alleviate the emotional tolls of these interactions?
There is no clear answer to these questions, but some are trying with novel approaches. For example, Petfolk is modernizing the clinic experience with features like price transparency, on-demand virtual care, and urgent care, in addition to other services. While this might not work for every clinic, it serves as a model for similarly disruptive solutions.
Products that increase quality time
While smart crates, pet cams and robot toys support pets when we’re away, the best gift we can give is our undivided attention. I’d love to see more innovations that simplify pet care management and help pet parents better understand and engage with their pets.
Regarding management, some existing solutions are destined for deeper penetration. Most obvious is veterinary telehealth solutions, which remain excellent tools for care. Additionally, platforms that optimize daily tasks — e.g., delivering essentials or managing vaccine schedules — mean more playtime. Though seemingly less “innovative,” fresh approaches to existing problems can be interesting.
Optimizing administrative tasks also creates room for solutions that enrich time spent together. I’m a huge fan of Gentle Beast’s app for educating users on their dog’s behavior, guiding training, and offering games and activities that enhance well-being. I want to see this same approach applied to cat or stage-of-life-specific populations.
At the end of the day, the real currency of pet care is spending quality time with our pets. If the year ahead brings us nothing else, it will be a year well spent.
Rachel Sheppard is the director of ventures at Mars Petcare and co-manager of Leap Venture Studio, a partnership between Mars Petcare, Michelson Found Animals and R/GA Ventures.
Illustration: Dom Guzman
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