56% of pet industry companies integrate sustainability into corporate strategy

Source: Pet Sustainability Coalition

BOULDER, COLO. — As sustainability becomes the norm, the pet industry continues to work on its efforts to reduce its environmental impact. Half of pet industry companies are currently at the “early stage” of their sustainability journeys, according to the Pet Sustainability Coalition’s inaugural “State of Sustainability in the Pet Industry” report.  

“At the Pet Sustainability Coalition, our mission is to advance sustainability in the pet industry through collaboration, education and innovation,” shared Jim Lamancusa, chief executive officer of the PSC. “We work to align companies across the value chain, establish shared standards, and create the tools and partnerships that empower businesses of every size to act with confidence. This inaugural ‘State of Sustainability in the Pet Industry’ report reflects that mission in action. Funded by the World Pet Association and guided by data from PSC’s Benchmark Assessment, PSC Accredited member insights and leading research partners, it offers both a snapshot of where we stand today and a roadmap for where we must go next.”

Consumer trends

According to the report, 84% of pet parents hold companies responsible for addressing climate change, meaning the pressure has never been greater. Though consumers continue to be price sensitive, with affordability dominating their purchasing decisions, sustainability has become a significant factor in how they evaluate brands. According to NielsenIQ’s (NIQ) 2025 Mid Year Consumer Outlook, sustainability was the top purchase driver in addition to affordability. 

Additionally, according to GlobeScan’s 2025 Health and Sustainable Living Study, pet owners are much more likely to purchase sustainable products at 62% versus non-pet consumers at 46%. 

Despite this, a gap remains in consumer education. According to Nextin’s Pet Consumer Trends research, product claims like “recyclable packaging,” “sustainable protein” and other eco-friendly attributes are most likely to influence pet owners’ purchasing decisions. However, only 5% of cat parents and 11% of dog parents claimed they would prioritize purchasing a more sustainable pet product. 

Source: NielsenIQ, 2025 Mid Year Consumer Outlook” (data) and the Pet Sustainability Coalition (graphic)

“This shows a clear gap in consumer understanding of positive product attributes correlating to sustainability, and highlights the need for increased education across the pet industry on what makes a product more sustainable and how that helps to deliver on the positive attributes influencing consumer purchasing decisions,” the PSC shared in the report.

Generationally, younger pet owners (Millennials and Gen Zers) are more invested in sustainability, expecting it from brands. In fact, when it comes to their purchasing decisions and sustainability, these generations prioritize packaging attributes, particularly recyclable packaging; responsible ingredient sourcing; tangible community involvement and impact; and statements backed by data, certifications and science-based evidence. 

Industry progress

Though economic uncertainties continue, investment in sustainability continues to rise. According to research from Bain & Company, 54% of CEOs linked sustainability to business performance in 2025, an increase from 34% in 2018. With this in mind, 62% of business leaders plan to increase their sustainability investments in 2025, a 10% increase from 2024, according to Capgemini’s “Navigating Uncertainty with Confidence: Investment Priorities for 2025” report. 

Additionally, companies that have invested in environmental actions have noted additional value, from cost savings to supply chain stability, throughout their organization. According to GlobeScan’s “The Sustainability Value Triangle” report, 56% of companies claimed that sustainability actions have driven supply chain resiliency in 2025, up from 44% in 2024. 

Within the pet industry, specifically, the PSC revealed the industry’s sustainability progress collected from its Annual Benchmark Assessment. The association found that more than half (54%) of companies that completed the assessment have a public-facing sustainability statement. 

Fifty-four percent also shared sustainability is integrated into their company strategy and financial planning, and 56% said sustainability is integrated into corporate strategy. To make this commitment even clearer, 79% have a formal sustainability role or team within their company, with these roles often holding a high level of leadership. And 42% issue a regular, formal sustainability report. 

Source: Pet Sustainability Coalition

“Despite economic pressures and a complex regulatory landscape, the message from leading companies is clear: sustainability is a growth strategy,” Lamancusa said. “Consumers — especially younger generations — are rewarding responsible brands. Business leaders are embedding environmental and social progress into the core of their competitive advantage. Yes, challenges persist, from inflation and fragmented regulations to the environmental footprint of emerging technologies like artificial intelligence. But within these challenges lie powerful opportunities for innovation, collective problem solving and bold leadership.”

Regarding their approaches to sustainability, the PSC found that 64% of companies measure their Scope 1 and 2 emissions, but only 40% measure Scope 3 (value chain) emissions. Half (50%) shared they are in the “early stages” of the sustainable journeys and that their “climate action plan is evolving.”

The top reported environmental areas throughout the pet industry are focused on energy usage and efficiency, with 81% of Benchmark respondents detailing an increasing renewable energy use and 75% reducing overall energy use. 

“We’re starting to see a shift from simply reporting on GHG emissions to decarbonization efforts, such as actively transitioning to alternative energy sources, both out of opportunity and necessity,” the PSC shared.

Additionally, companies are focusing their efforts on aligning with global sustainability goals, like the United Nations Sustainable Development Goals (SDGs). The top SDGs pet industry companies are focused on include: 

• SDG 12: Responsible consumption and production with 77% of companies
• SDG 13: Climate action with 68% of companies
• SDG 3: Good health and wellbeing with 59% of companies

Actions for the future

As consumer sustainability expectations evolve and regulations loom, pet industry companies will need to ramp up their environmental efforts and change how they communicate them to pet parents. 

“In our conversations with retailer members, we are hearing that some purchasing behavior is shifting and products that link health and sustainability are selling well, but just pure sustainability marketed products are starting to suffer on shelf due to global economic uncertainty,” the PSC revealed.

This means moving beyond simple environmental and marketing claims and providing data to back claims up. The PSC advises companies focus on gathering data, from raw material, water and energy usage to sourcing, supply chain and more; use third-party certifications to verify traceability; report data in alignment with credible frameworks; and make information available to consumers. 

From a regulatory perspective, PSC expects:

• More states to announce Extended Producer Responsibility (EPR) laws. Currently, California, Colorado, Maine, Maryland, Minnesota, Oregon and Washington have passed EPR laws, and Connecticut, Hawaii, Illinois, Massachusetts, Nebraska, New Jersey, New York, North Carolina, Rhode Island and Tennessee have introduced EPR laws 
• Sustainability claims to become more regulated in an effort to reduce misleading marketing and support consumer trust. The European Union has introduced this with its Green Claims Directive, which requires companies to scientifically substantiate their environmental claims with a mission to stop greenwashing
• Packaging rules from the European Union to influence US standards on recyclability and recycled content
• Advanced scale and reduced costs in recycle-ready/mono-material flexible plastic packaging, making this packaging the new standard
• More detailed packaging oversight, particularly on single-use plastic packaging to help consumers understand where and how materials can be recycled
• A stronger push for pet industry companies to report their greenhouse gas emissions, packaging impacts, sourcing practices and other sustainability factors. This comes as the Canadian Sustainability Disclosure Standards become increasingly mandatory

“Early adopters will be better positioned to meet retailer expectations, secure investment and demonstrate true leadership in a market that increasingly rewards verified sustainability performance,” the PSC shared.

Additionally, the association anticipates continued conversations in protein usage and alternatives, an increase of investments in packaging circularity and the evolution of sustainability as an enhancement to pet health and wellness.

Read PSC’s full “State of Sustainability in the Pet Industry” report. 

Read more about sustainability efforts across the pet food and treat industry.