In uncertain times, people often adjust their spending habits. That seems to be happening now (as this issue goes to press), with consumers practicing “doom-spending” in reaction to U.S. tariffs and a global trade war. Surveys earlier this year showed consumers stocking up on items or making large purchases before tariffs took effect.
In a survey from CreditCards.com, 19% of 2,000 U.S. respondents said they were buying significantly more (5%) or slightly more (14%) than usual. Of those, 29% said fear of tariffs definitely affected their making additional purchases; 37% said it was having some impact.
In addition, 42% were stocking up or planning to stockpile items, mainly non-perishable food and toilet paper (remember those early COVID-19 days?), followed by medical supplies and over-the-counter medications. Pet food did not appear on the list; yet I have heard at least one pet food company executive say his customers are “panic buying” at a level 10 times higher than during the pandemic.
Another survey, from YouGov, showed 27% of 3,320 U.S. adults have made, or planned to make, purchases because they expected prices to increase due to tariffs. Also, 67% said they expected the prices of goods they typically purchase to increase as a result of tariffs.
The tariffs are already affecting smaller pet food companies. How can they and others respond? There are industry-wide efforts under way to collaborate on this; in addition, economists at the Budget Lab at Yale Law School (including Ernie Tedeschi, keynote speaker for Petfood Forum 2025) suggested these steps:
- Consider if, and how much, you can absorb higher costs. Even if your company isn’t affected by tariffs, you may want to keep your pricing steady as a competitive advantage.
- Ensure your promotions strike a balance between frequency and offers. Effective promotions provide value to shoppers while also delivering incremental volume. Be sure to regularly monitor and analyze their effects.
- Optimize SKU mix and “offer the right brand in the right pack at the right price.”
- Examine and possibly revise your value proposition and brand messaging. “Value is not rational; it’s relative,” the economists said. Consider both conscious and non-conscious drivers for your target consumers and adjust your messaging accordingly
- Look to innovation and renovation to fulfill emerging consumer needs. While tariffs pose a significant challenge, their effects on the market can also open up new opportunities to fill gaps.