Pet Care Market

Global  Pet Care Market Forecast

• market for pet care that recorded a revenue of US$151.5 Bn in 2022 likely to reach US$220.3 Bn in 2030
• Revenue growth of market for pet care poised to see a healthy CAGR of 5.5% during 2023 - 2030

Market Size and Share Analysis

1. The key trend anticipated to drive the market for pet care growth is an increasing demand for technology advancement. Furthermore, GPS trackers, pet cameras, and smart feeders are just a few of the advanced pet technology products that give pet owners access to real-time data about their animals' location, behavior, and health.
2. Another major market trend expected to drive the pet care market growth is the rapidly expanding pet adoption. Newly adopted pets require a range of requirements, including food, bowls, bedding, toys, grooming equipment, and medical supplies. This initial increase in demand helps the pet care industry's sales.
3. Strict rules regulating pet food production, labeling, and product safety can raise the cost of compliance for pet care businesses and hinder them from entering new markets or growing.
4. In 2022, the dog category dominated the industry. Dogs enjoy company, and dogs are social creatures. Spending quality time with the dog and showing it love and care might deepen their relationship with it.
5. In 2022, the pet food category dominated the industry. Dry food is the most popular type of pet food, accounting for more than half of the market. Just a few of the ingredients are grains, meat, vegetables, and vitamins. Dry food is affordable, handy, and has a long shelf life.
6. During the forecast period, the online stores category is expected to grow significantly. Online pet stores provide pet owners with unmatched convenience. Customers can stay in their homes to shop for pet supplies because they can do so around any time online.
7. The North America region is expected to dominate the market for pet care during the forecast period. North America has one of the highest rates of pet ownership in the world, with a huge population of dogs, cats, and other pets. The rise in pet ownership is driving increased demand for pet care products and services.
8. Asia Pacific is expected to be the fastest-growing market for pet care region. Pet-related products and services, such as pet food, accessories, and healthcare, are seeing an increase in demand as a result of the developing middle class in countries like China and India.

A Look Back and a Look Forward - Comparative Analysis

Premium and specialty diets designed to meet particular demands, such as formulations that are grain-free, hypoallergenic, or breed-specific, are examples of innovation in pet food. These products are aimed at pet owners who care about their health. The availability of fresh and raw pet food options takes advantage of the trend towards natural, less processed pet diets.

Pet food manufacturers are creating nutritional programs that are specific to each pet's age, breed, level of exercise, and health issues. Innovative pet food includes various protein sources, such as insect- or plant-based proteins, to meet dietary and environmental problems.

The market witnessed staggered growth during the historical period 2018 - 2022. This is due to the potential pet owners being more concentrated in urban regions because of the larger population concentrations there. The client base for pet care goods and services has grown as a result of the rising population density.

The busy lifestyles and limited access to natural areas that come with urban living are common. Pet ownership increased as a result of individuals turning to their furry friends for company and emotional support. Pet taxis and other forms of public transportation that are friendly to animals were needed by urban pet owners.

DTC models give pet owners convenience by enabling them to buy pet supplies and products directly from manufacturers or specialized web shops. Pet owners with busy schedules or those looking for specific goods that might not be widely available in physical locations would value this ease in particular in the coming years.

Additionally, DTC models have the potential to reach a global audience, opening and expanding the market to new geographic areas and bringing pet care items there. Furthermore, DTC brands have better control over the quality of their goods and may make sure they adhere to a number of certifications and standards. This emphasis on quality might increase consumer confidence during the next five years.

Key Growth Determinants

• Increasing Trend of Pet Ownership

The client base for pet care products and services grows as more people acquire pets, increasing the market for companies in the pet care industry. Pet care needs a variety of products, including pet food, toys, grooming equipment, bedding, and accessories. There is a rising demand for these products due to the rising pet ownership rate.

Pet owners need services like boarding, training, grooming, pet sitting, and veterinary care in addition to merchandise. There is a growing need for these services as pet ownership increases, which fuels the expansion of the pet services sector.

As more people welcome pets into their homes, they increasingly see their pets as part of their families. This humanization of pets increases people's willingness to spend money on upscale and specialized pet care goods and services, which further expands the market.

• Rapidly Growing Humanization of Pets

Pet owners who view their animals as members of the family are more likely to spend more on high-end pet supplies. This includes premium pet supplies, including designer pet apparel, organic and natural snacks, and high-end pet accessories. The pet care business is expanding as a result of consumer demand for these high-end goods.

Humanization emphasizes the well-being of pets. Regular veterinary checkups, preventive care, and specialized diets are more likely to be prioritized by pet owners, who also tend to spend more on veterinary services and prescription pet drugs.

Pet insurance is becoming more popular as people view their dogs as members of the family and want to protect their well-being. As a result, more pet owners are choosing coverage, which has increased the market for pet insurance.

• Greater Emphasis on Preventive Care Services

Pet owners are taking more initiative to ensure the health and welfare of their animals. They understand the value of preventive care in maintaining the well-being of their dogs. Pets now live longer because of advances in veterinary treatment and better methods of pet care.

With pets living longer, the need for continued preventative treatment to address age-related health conditions is increasing. Veterinarians are able to identify health problems early on because of routine examinations and preventive care services.

Pet owners are encouraged to spend money on preventive care because early discovery can result in more successful treatments and better outcomes.

Major Growth Barriers

• Premium Product Ranges Available at Pet Food Stores

Price sensitivity is a common trait among pet owners, and the high cost of quality goods may dissuade them from buying them. They might choose less expensive substitutes as a result, which would affect the market for high-end goods. Consumers may reduce discretionary expenditure, which includes buying high-end pet care goods, during economic downturns or recessions.

Premium brand sales may suffer as a result of this. Because premium goods are frequently more expensive, a wider number of consumers find them to be less accessible. As a result, the market for premium pet care brands is constrained.

• Prevalence of Allergies, and Health Concerns

Some people have allergies to pet saliva, dander, or urine. These allergies may result in breathing problems, skin rashes, or other allergic reactions, among other health problems. They might decide against getting a pet or choose hypoallergenic breeds as a result of these health issues.

Health issues and allergies may limit the pool of potential pet owners, especially for people or families who have a history of allergies or certain medical disorders. This decline in pet ownership may have an impact on the entire pet care industry.

Key Trends and Opportunities to Look at

1. Rising Demand for Organic and Sustainably Sourced Pet Food

The carbon footprint of consumers' pets is a growing concern as consumers become more environmentally conscious. As they frequently have less of an impact on ecosystems and wildlife, organic and sustainably sourced pet food products are consistent with these environmental objectives.

Consumers are more likely to trust brands that place a strong emphasis on sustainable and organic sourcing. Pet owners wanting better quality and moral standards are drawn to the openness of ingredient sourcing and production procedures.

2. Growing Consumer Interest in Personalization

Companies that provide pet care are now able to provide specialized goods and services that are tailored to each pet's unique needs because of personalization. This includes specialized grooming and training programs, unique pet accessories, and specially formulated pet food.

Customer engagement can be increased by using personalized marketing and communication techniques like targeted email campaigns and recommendations based on pet data. Increased sales and higher brand loyalty follow from this.

3. Soaring Popularity of Pet Subscription Services

Pet subscription services make it easier to buy necessary pet items, such as food, treats, toys, and grooming equipment. Regular shipments are sent to subscribers, so they no longer need to make numerous journeys to pet retailers.

Many pet subscription services let consumers alter their orders in accordance with the needs, tastes, and nutritional requirements of their dogs. Pet owners seeking specialized solutions are drawn to this level of personalization.

How Does the Regulatory Scenario Shape this Industry?

Over the last three years, the pet care industry has been governed by a multitude of regulatory mechanisms to ensure the safety and well-being of both pets and clients. The US FDA regulates pet food, treats, and medications to ensure their safety and high quality. FDA rules establish standards for ingredients, labeling, and product safety. Manufacturers must abide by these rules in order to sell pet food and pharmaceuticals and inspire consumer confidence.

Pet food items containing meat, poultry, or specific substances of animal origin are subject to the US Department of Agriculture (USDA) regulations for labeling and inspection. Pet food items with animal-derived ingredients, such as meat and eggs, are impacted by USDA rules. For these products to hit the market, compliance is required.

Animal and Plant Health Inspection Service (APHIS), a branch of the USDA, is in charge of regulating the importation and interstate transportation of animals, including pets, in order to stop the spread of illness. APHIS regulations affect pet breeders, sellers, and transportation services. These regulations also have an impact on the transportation and trading of pets.

Fairfield’s Ranking Board

Top Segments

1. Dog Category Continues to Dominate Cat Segments

The dog segment dominated the market in 2022. Dogs are popular because they are believed to reduce anxiety, stress, and depression as well as loneliness, encourage exercise, and boost cardiovascular health.

People who live in condos and apartments, where there isn't a yard or porch where their pets can live, frequently choose pet furniture. Furthermore, the cat category is projected to experience the fastest market growth. The growing number of cat owners around the world is anticipated to have a beneficial effect on market growth.

Additionally, during the past several years, the market growth in industrialized countries has been greatly influenced by the rising proportion of one-person families and the increased desire to possess at least one pet.

2. Pet Food Remains the Top Revenue Generator

The pet food segment dominated the market in 2022. The tremendous demands among owners for delicious and nourishing food products for their everyday dietary needs. The European Pet Food Industry Association (FEDIAF) has provided data that estimates that in 2021, sales of pet food products in Europe will total 10.2 million tonnes and US$27.7 Bn, respectively.

Additionally, the range of animal food products is readily available, which increases the amount of money that can be made from this market area.

The veterinary care category is anticipated to grow substantially throughout the projected period. The growing commercial situations associated with animal veterinarian treatment in various nations across the world.

The US Department of Veterans Affairs reported that from 4.5% in 2020 to 6.5% in 2021, the number of pet veterinary practices grew. Additionally, increased awareness of health and hygiene among pet owners globally will promote segmental growth.

3. Offline Retail Stores Lead in Revenue Generation

The offline retail stores segment dominated the market in 2022. because these stores supply a variety of pet necessities. Additionally, expanding infrastructure surrounding pet stores is projected to enhance the consumption rate of pet products from these retailers, spurring category growth.

The online stores segment is anticipated to experience significant growth during the projection period. The rising demand for animal feeding products among pet owners globally for online subscription services. This will drive segmental growth by boosting online product sales from pet service subscriptions.

Nowadays, businesses may efficiently monitor the sales performance of the many pet product categories from their online shops. This makes it possible for businesses to grow through the online channel mode, which boosts segmental income.

Regional Frontrunners

North America Holds the Lion’s Share

North America is anticipated to lead the pet care market throughout the projection period. In North America, the market for pet care is mature in terms of both consumers and the products that are offered. For instance, millennial adults in their early to mid-20s, who now make up one-third of pet owners in the US, are well-informed on the kinds of pet supplies they use.

In North America, premiumization is a major factor in the growth of the pet care industry. Due to the concerns of obesity in pets like dogs and cats, there is an increasing demand for natural pet food among US-based customers.

According to the Association for Pet Obesity Prevention, an estimated 55% of dogs and cats in the United States are obese. This presents a greater opportunity for manufacturers to add quality ingredients and diets and launch added-value products to cater to the growing consumer interest in premium products.

Market in Asia Pacific Gains from Growing Friendliness of Asian Consumers

The region with the fastest-growing market for pet care is expected to be Asia Pacific. Because of the quickening of economic growth and the rise in disposable income, which are predicted to increase consumer spending on pet care items.

Additionally, factors that contribute to the regional market growth include increasing pet ownership and increasing expenditure on pet care items. Asia Pacific's pet services market is expanding quickly, and there are more pet hotels, grooming salons, daycare centers, and training facilities than ever before.

There is an increasing demand for high-end and specialized pet food products in the Asia Pacific area, including organic, natural, and grain-free choices.

Fairfield’s Competitive Landscape Analysis

In the highly competitive global pet care market, fewer well-known companies are competing. The major corporations are introducing new products and enhancing their distribution systems in an effort to enhance their market share. Moreover, Fairfield Market Research is expecting the market to witness more consolidation over the coming years.

Who are the Leaders in the Global Pet Care Space?

• Ancol Pet Products Limited
• Blue Buffalo Co., Ltd.
• Champion Petfoods L.P.
• Hill`s Pet Nutrition, Inc.
• Mars, Incorporated
• Nestle Purina PetCare
• Petmate Holdings Co
• Saturn Petcare GmbH
• Tail Blazers
• The Hartz Mountain Corporation
• General Mills Inc. (Blue Buffalo)
• The J.M. Smucker Company
• Heristo Aktiengesellschaft
• WellPet LLC
• Diamond Pet Foods

Key Company Developments

New Product Launches

• November 2022: The Central Garden & Pet Company's well-known brand, Nylabone, launched its innovative range of pet toy products that will offer entertaining pet activities.
• August 2022: The Indian pet care company Wiggles has expanded its line of pet foods and launched new items for dogs that are free of gluten and sugar called 'Every Dawg.'
• December 2021: Unilever joined the market by launching its new pet care brand, "Cafune," in Brazil. This line comprises items for pets, such as shampoos, conditioners, kitty litter, wipes and home disinfectants.

Distribution Agreements

• August 2023: Rover Pet Care has signed an exclusive distribution deal with Pet Palette Distribution for the entire country. Customers of Pet Palette Distribution will now have access to the entire array of branded products from Rover thanks to this collaboration.
• April 2022: Fresh pet food manufacturer JustFoodForDogs recently announced an agreement with Walmart to sell its products at specific Walmart stores. Through this partnership, Walmart will be able to increase the variety of fresh pet foods it offers and provide JustFoodForDogs access to its enormous customer base.

An Expert’s Eye

Demand and Future Growth

The demand for veterinarian services and pet medications is driven by pet owners with higher disposable incomes who are more likely to prioritize preventive healthcare, routine doctor visits, and advanced medical treatments for their animals.

Furthermore, Pets with longer lifespans may require more continuous care, which may cost more, as a result of higher investments in their health and welfare. However, the pet care market is expected to face considerable challenges because of the high cost of premium products.

Supply Side of the Market

According to our analysis, North America is the world's largest production market, accounting for more than 40% of global sales in the pet care sector. The United States is the region's main market because of the high rate of pet ownership and the rising demand for high-end pet products and services.

The supply side of the market for pet care is dominated by numerous big businesses, including Mars, Nestlé, and J.M. Smucker. Among the goods that these companies produce are pet food, treats, toys, and grooming equipment. They also operate veterinary hospitals and pet stores. The largest pet product market globally is in North America, which accounts for over 35% of global consumption. The US, followed by Canada, has the biggest individual markets.

Europe is the second-largest region, accounting for roughly 20% of global consumption. The UK is the largest individual market in Europe. The consumption of pet care products varies by nation depending on a range of elements, including climate, cultural standards, and economic development.

The Global Pet Care Market is Segmented as Below:

By Pet Type:

• Dog
• Cat
• Fish
• Others

By Product Type:

• Pet Food
• Veterinary Care
• Grooming Products

By Distribution Channel:

• Offline Retail Stores
• Online Stores

By Geographic Coverage:

• North America 
  • U.S. 
  • Canada 
• Europe 
  • Germany
  • U.K.
  • France
  • Italy
  • Turkey
  • Russia
  • Rest of Europe 
• Asia Pacific 
  • China
  • Japan
  • South Korea
  • India
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America 
  • Brazil 
  • Mexico 
  • Argentina
  • Rest of Latin America 
• Middle East & Africa  
  • GCC 
  • South Africa
  • Egypt
  • Nigeria
  • Rest of Middle East & Africa