INDUSTRY REPORT
Pet Products Q3 2025: Strategic insights for brands
Pet Products demonstrated exceptional resilience through Q3 2025, with sales growth significantly outpacing traffic increases. While economic headwinds and tariff pressures challenged most categories, Pet Products brands found success through strategic inventory positioning and conversion optimization.
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Key takeaways
- Sales climbed but margins compressed: OPS rose 13.9% YoY, yet unit margins fell 0.3% as brands absorbed higher input costs and relied on Prime Day promotions to drive volume.
- Inventory builds supported demand: On-hand inventory increased 24.7% YoY and fill rates improved 10.9%, enabling brands to meet order volumes despite cost and logistics pressures.
- High-value stockouts drove outsized revenue loss: Revenue lost to OOS surged 139% YoY while overall OOS rates declined 0.8%, indicating availability gaps on top-selling, high-priced items.
- Retail media efficiency improved: Ad spend grew 14.9% YoY while ROAS jumped 22.1% and CPC fell 10.2%, reflecting better targeting and conversion optimization.
- Consumer engagement strengthened: Glance views rose 0.8% YoY and conversion rates increased 4.1%, with Prime Day driving the most significant traffic and purchase activity.
- Pricing power remained limited: Average selling price (ASP) increased just 3.6% YoY while discount levels declined 1.4%, as tariff costs and competitive pressure constrained brands' ability to raise prices meaningfully.
