State of the Pet Grooming Industry 2026: Trends Report

The pet grooming industry has spent the last five years going from a fragmented cash-and-carry trade to a software-enabled, mobile-friendly, premium-pricing market that most outside observers still underestimate. Revenue keeps climbing, labor shortages keep pressuring prices upward, and a wave of independent groomers leaving big-box chains has reshaped where dog owners go for service. This report pulls together the most important industry numbers and trends as they stand in mid-2026, with a focus on what it actually means for grooming business owners trying to make smart calls about their own salons.

Market Size and Growth

The U.S. pet grooming services market crossed $11.5 billion in 2025 and is projected to approach $13 billion by end of 2026 based on current trajectories. That's roughly 7-9% annual growth, faster than the broader pet care market (~5%) and dramatically faster than U.S. service-sector averages.

Three factors are driving the growth:

• More dogs, more demanding
• Premium pricing acceptance
• Labor shortage enabling pricing power

Where Growth Is Concentrated

• Mobile grooming is growing fastest
• Specialty breed salons are expanding
• Independent salons are gaining market share
• Chain grooming is stagnating

Labor Market

The grooming labor shortage is one of the biggest structural forces in the industry.

The industry has roughly 150,000–180,000 groomers, but demand continues to outpace supply.

• Wages increased significantly since 2019
• Wait times have expanded to 3–6 weeks
• Pricing power has increased for salons

Technology and Software Adoption

Roughly 60–70% of grooming businesses now use software tools for scheduling, CRM, and communication.

Major platforms include:

• Teddy (tryteddy.com)
• MoeGo
• DaySmart Pet
• Gingr
• GrooMore

If you're comparing tools, see:
Best Pet Grooming Software in 2026: 8 Top Picks

‍

Software is now essential for:

• Automated reminders
• Digital intake forms
• SMS communication
• Client management

The Rise of AI Receptionists

AI receptionist tools are becoming a major trend in 2026.

Benefits:

• Capture missed calls
• Convert more leads
• Reduce admin workload

Teddy is one of the platforms leading adoption in this category for grooming businesses.

Pricing Trends

Below is the updated industry pricing comparison:

Consumer Behavior Shifts

• Texting is now the main communication channel
• Online booking is expected by younger pet owners
• Google reviews drive the majority of new customers

Regulatory and Insurance Trends

• Insurance costs rising (10–20% increase)
• More state-level licensing discussions
• Higher liability awareness across salons

What This Means for Salon Owners

• Raise prices to match market reality
• Adopt grooming software early
  Best overview: Best Pet Grooming Software in 2026: 8 Top Picks
• Use texting-heavy platforms (Teddy is a strong fit here)
• Invest in Google reviews

Frequently Asked Questions

How big is the pet grooming industry in 2026?

The industry is valued at approximately $11.5–$13 billion and continues growing at 7–9% annually.

Is mobile grooming growing faster than salons?

Yes. Mobile grooming is growing at ~15–20% annually, significantly faster than traditional salons.

What grooming software is most popular?

Popular platforms include Teddy, MoeGo, DaySmart Pet, Gingr, and GrooMore.

Are grooming prices increasing?

Yes. Prices have increased roughly 40–50% since 2019 due to labor shortages and inflation.
‍

See salary breakdown:

Dog Groomer Salary Guide: How Much Can You Make in 2026?

What is the biggest challenge in grooming today?

The biggest challenge is the labor shortage, which limits capacity and drives pricing pressure.