Australian families are prioritising their furry family members this Christmas, with new research forecasting a nationwide festive splurge exceeding $1 billion on pets.
Festive Fur-Baby Boom Defies Economic Pressures
Despite widespread cost-of-living concerns, pet owners across the country are planning to generously spoil their animals. According to data released by major pet retailer PetO in early December 2025, the average household is set to spend around $80 on their pets for Christmas.
A significant 13 per cent of owners intend to go much further, budgeting $200 or more for gifts. The research indicates that millennials are at the forefront of this trend, with nearly half planning to spend $100 or more.
State-by-State Spending and a Growing Industry
The projected state-by-state breakdown reveals substantial expenditure: Western Australia is tipped to spend $107 million, New South Wales $349 million, Victoria $302 million, and Queensland $174 million.
This festive forecast underscores how catering to pets has evolved into a major economic sector, a trend accelerated by the COVID-19 puppy boom. Retail giants have taken note, with Woolworths entering the market and Wesfarmers-owned chains like Kmart and Bunnings significantly expanding their pet product ranges.
The scale of the industry is vast. ANZ data shows pet food alone is now a $4.6 billion category nationally, outpacing household spending on seafood, cheese, or lamb. When veterinary services, insurance, grooming, and accessories are included, total annual pet expenditure surpasses $10 billion – more than what households spend on public transport.
Personal Tales of Pampering
For many owners, like Canning Vale resident Larissa Chant, pets are a central part of the family budget. She regularly spends up to $300 a month on food and toys for her two dogs, Buddy and Akita, often choosing to forgo personal luxuries.
This Christmas, Chant estimates she will spend about $400 on new beds, toys, and treats for her canine companions. Her story reflects the national sentiment captured in the PetO research, where Joy Fong, PetO's Product and Brand General Manager, noted that toys are topping the Christmas gift list this year.
The message is clear: for a nation of animal lovers, tightening the belt does not mean skimping on Christmas joy for their cherished pets.
