As we are all adjusting to the rising cost of living, even as inflation rates calm, you have likely noticed that the cost of keeping your pets happy and healthy has gone up as well. From food to vet bills, pet ownership expenses can get in the way of balancing your budget. We’re here to support all our credit union members, including the four-legged ones.

The state of pet ownership in Canada

About 61 percent of Canadian households have at least one pet according to a survey by GfK, with 35 percent owning a cat and 33 percent owning a dog. While exact figures vary according to the source, this number has been fairly consistent for several years and surpasses global rates of pet ownership. While Canadians love their pets and the pet lifestyle as much has ever, the increasing financial responsibility has people feeling the pinch.

According to Rover, the typical monthly cost of owning a dog in 2024 was between $80 and $340, an increase of $70 per month on average from last year, depending on the animal’s size, diet, and health. Dog owners are facing rising costs in essentials like pet food (up 58%), treats and toys (up 55%), and vet visits (up 49%). The upfront costs of bringing a new dog home have also gone up 44 percent. Still, despite rising costs, pet ownership continues to rise, which is no surprise to those who know how rewarding and enriching it can be.

What’s behind rising costs

Similar to rising costs in other areas of life, there are several factors to blame for pets becoming so expensive to care for. These include inflation, supply chain issues, and consumer trends.

Food and nutrition

As sticker shock at the supermarket becomes the norm, the trend towards premium and specialized pet diets has contributed to increasing costs even more, as we’ve seen with human food (vegan gluten-free low-carb oat beverage, anyone?). Pet owners are increasingly choosing organic, grain-free, or breed-specific pet food varieties.

Preventative healthcare and vet visits

The cost of routine check-ups, vaccines, and emergency care has been increasing as well. The increase is due to advancements in veterinary technology and the rising operational costs for clinics providing the care. According to a Global News report, in 2023, the average cost of a routine vet visit in Canada was around $100-$150, while an emergency visit could easily exceed $1,000.

Avoid expensive surprises with pet insurance

One way to handle the rising costs of veterinary bills is to purchase pet insurance, which more and more Canadians are doing. According to the North American Pet Health Insurance Association (NAPHIA), the industry is stronger than ever with year-over-year growth surpassing 20 percent. Canadians paid $485.5 million in pet insurance premiums in 2023, up almost 30 percent from the year before. Pet parents are clearly looking for increased stability and predictability when it comes to the cost of caring for their pets. Premiums can be affected by the pet's age, breed, and location, as well as the level of coverage selected.

Coastal Community offers pet insurance through our partnership with Pets Plus Us.*

Managing pet ownership costs for more cuddles and less stress

Knowing how important pets are to families, here are a few ways to avoid the financial drain that they could bring.

Budgeting: make sure you include pet care in your comprehensive household budget that includes everything from food to annual checkups and medications.

Smart shopping: look for deals on pet food and supplies. Buying in bulk or using subscription services for regular purchases is a great way to save money while still feeding your pet high quality food.

Prevention is key: a healthy diet and regular checkups can prevent costly issues down the line while keeping your furry friend feeling their best.

Pet insurance: as mentioned, the right pet insurance policy can help manage unexpected healthcare costs and vet visits.

DIY where you can: learn to handle basic grooming tasks at home to save on expensive professional grooming services.

Explore alternatives: having a pet join your family full time might be too expensive or too much of a time and energy commitment for you. Pet-sitting, dog walking, or fostering could be good alternatives.

As pet ownership costs continue to rise, Canadian pet owners need to be proactive by implementing smart financial strategies, as with other areas of their lives. The data shows that people are dedicated to their pets, trying times or not.

Talk to us today for more information about pet insurance, budgeting, or for up-to-the minute financial planning advice.