Pet Care Market

Market Overview

The global pet care market size was valued at USD 168.8 billion in 2022. It is projected to reach USD 287.6 billion by 2031, growing with a CAGR of 6.1% during the forecast period (2023–2031).

Petcare products are aimed towards providing better facilities, food and nutrition, care, comfort, and healthcare services for pets or companion animals. The wide range of pet care products includes pet food, cleaning and grooming products, toys, furniture, nutritional supplements, and medical supplements. The growth of the pet care products market globally is directly influenced by the growing population of pets and their concerned needs in both developed and emerging economies.

Market Dynamics

What are the factors driving the market growth?

Growing Rate of Pet Humanization

Pet humanization refers to treating pets as family members. This shows a positive growth factor on the market with rising consumer interest in providing more humane and advanced care to the pet. Further, consumers who adopt these companion animals seek advanced care products and healthcare facilities. Globally, as pet humanization has become common, there has been an exponential rise in the demand for products and services from the concerned market to provide safer products for these animals. In addition, market growth is boosted by the rise in the number of product offerings from key players and various innovations in the distribution channel. The growing number of sicknesses has compelled pet owners to invest in healthcare services.

Regional Analysis

The global pet care market is divided into four regions, namely, North America, Europe, Asia Pacific, and LAMEA.

North America Dominates the Global Market

The North American pet care market is driven by the growing number of pet owners and increasing awareness about good veterinary health in the region. In addition, a growing number of governmental animal health organizations and awareness of veterinary health are rapidly surging manufacturers' investments in the industry. For instance, according to the American Pet Products Association, approximately 44% of U.S. households own dogs, while 37% own cats. This has led to growing investments in the region. There is a growing demand for natural pet food across the U.S., owing to obesity risks in pets.

As per the Association for Pet Obesity Prevention, an estimated 55% of dogs and cats in the U.S. are obese, further fueling the demand for remedial services and products. According to the American Pet Products Association, pet ownership has increased from 56% to 68% in the United States during the past three decades. In addition, robust economic expansion in the United States has resulted in a strong increase in both value and volume for the pet care business. This expansion can be ascribed to increased animal healthcare costs and a greater national awareness of animal health. In addition, the changing pet ownership in the United States and the increased preference for branded and nutrient-dense pet food will drive market expansion in the country. Moreover, the presence of strong market participants contributes to market expansion.

In addition to increasing their pet ownership, Europeans are seeking premium pet foods that are nutritionally packed and include beneficial properties. All of these factors are boosting the demand for pet food in Europe. In contrast to the static demand for pet food in the majority of EU nations, the pet food market in Eastern Europe is underdeveloped. Consumption of commercial pet food has increased significantly in Eastern Europe, propelling the pet food business in Europe. Europe's rising demand for protein in animal feed will have a favorable effect on the market expansion. According to a recently released article, over 66% of pet owners believe that the proper diet can improve their pet's quality of life. In order to assure the quality and safety of pet food products, the EU has enacted stringent laws controlling the use of ingredients. In addition, members of the Pet Food Food Manufacturers Association manufacture protein-containing products in accordance with the Nutritional Guidelines. As a result, the availability of pet foods containing added protein is developing dramatically, contributing to the region's increased demand for pet food products.

Asia-Pacific is anticipated to witness steady growth during the forecast period. India is expected to be the fastest-growing country within the APAC region on account of the developing economy and rising standard of living and disposable income in the country. The Indian International Pet Fair survey estimates that the pet population has proliferated. Approximately 6,00,000 pets are adopted every year, which is further driving the demand for food, accessories, and pet healthcare products in the region. Diverse countries in the Asia-Pacific region, such as Australia and Japan, have achieved a degree of maturity, while China, India, and others have rising markets. The Asia-Pacific pet care industry is primarily driven by rising urbanization and connectivity initiatives. In many nations, having a pet and focusing on and spending money on its care is viewed as a sign of social standing and sensitivity. People typically feed their pets human items, such as white rice and dairy products, rather than prescribed pet food, which is likely to limit the growth of the pet care business.

The Latin America, the Middle East, and Africa region is expected to witness substantial growth over the forecast period. Rapid economic and social transformations in these nations foster urbanization, income growth, and a heightened appreciation for aesthetics among consumers. As this tendency of humanization increases, pet owners are becoming more conscious of their pets' health, nutrient intake, and overall wellness. Brazil dominates the market. Brazil is the third largest market for pet items in the world, after the United States and China. Thousands of Brazilian households adopted pets during the first few months of the outbreak.

Demand for pet food is increasing, particularly for packaging that stands out for its sustainability, functionality, and assurances of food safety. Manufacturers are profiting from this situation by differentiating their products along these lines; natural and ethically derived items are particularly popular. Due to religious reasons, households in certain nations, such as Saudi Arabia and Egypt, choose to own cats rather than dogs. However, dog ownership has also increased in the region, with huge breeds dominating the dog population. As the region's pet care industry is still in its nascent stage, economically priced dry pet food enjoys the highest volume of sales. However, pet food manufacturers in the region are observing a growing demand for natural pet food products that are gluten-free and GMO-free, with increased health benefits.

Segmental Analysis

Based on product type, the market is segmented into pet food, pet care products, and services.

The pet food segment holds the largest chunk of the market. The rise in the number of pet adoption worldwide has significantly boosted the segment growth. The rising disposable income, especially in developing countries, has surged the demand for pets and pet food. Moreover, with the boom in e-commerce worldwide, there has been a growing demand for home delivery of food provided by online stores. Additionally, the grooming and boarding segment is expected to grow at a significant rate over the forecast period.

Based on animals, the market is segmented into dogs, cats, birds, fishes, and horses.

The dog segment is anticipated to lead the market during the forecast period. As per the American Society for the Prevention of Cruelty to Animals, roughly 3.3 million dogs enter animal shelters annually. Further, there are studies proving the positive impact of dogs in improving the physical and mental health of humans, which is considered a prime factor that is influencing the market. For instance, dogs help in reducing depression, encourage exercise, and enhance cardiovascular health. The segment, on the other hand, is projected to grow at a significant rate during the forecast period.

It is projected that the cat pet type category will experience significant growth. The increasing number of cat owners worldwide is anticipated to influence market expansion favorably. In addition, the rising number of single-person households and the growing desire to have at least one pet has contributed significantly to market growth in industrialized nations during the past few years.

Based on the distribution channel, the market is segmented into stores and distribution channels.

E-commerce is anticipated to have the highest growth rate. This results from the increasing penetration of e-commerce platforms, the rapid use of smartphones, and enhanced internet accessibility. The market is developing due to the increasing number of online customers and the rising popularity of specialized pet item shops.

Recent Developments

• July 2022- Personal care company Emami has acquired a 30% share in pet care firm, Cannis Lupus. The acquisition is consistent with Emami's overall aim to target new-age D2C commerce and to make a splash in the emerging pet care market.
• July 2022- Nestle has announced that it will acquire Purina Petcare India's pet food business for Rs 123.5 crore, giving it access to the rapidly expanding market in India. Nestle India and Purina Petcare India are both subsidiaries of the Swiss multinational corporation Nestle S.A.
• March 2022- Purina has begun building a new pet food factory in Brazil. By the end of 2023, the facility in the southern state of Santa Catarina will be completely operational. The new operation is anticipated to meet the rising domestic and international demand for food for dogs and cats, sustain growth in Brazil, and boost exports to Australia and Mexico.