Pet Care Market Assessment, By Product Type [Grooming Products, Supplements, Food Products, Clothing Products, Hygiene Products, Others], By Pet Type [Dogs, Cats, Birds, Others], By Price Range [Mass, Premium], By End-user [Household, Commercial], By Dist

Pet Care Market Assessment, By Product Type [Grooming Products, Supplements, Food Products, Clothing Products, Hygiene Products, Others], By Pet Type [Dogs, Cats, Birds, Others], By Price Range [Mass, Premium], By End-user [Household, Commercial], By Distribution Channel [Online, Offline], By Region, Opportunities and Forecast, 2017-2031F

Global pet care market was valued at USD 173.21 billion in 2023, expected to reach USD 276.49 billion in 2031, with a CAGR of 6.02% for the forecast period between 2024 and 2031. The growth is mainly attributed to several people adopting pets, especially the millennials and Gen-Z, who consider them as part of their families. It has resulted in a greater need for high standard pet care products, premium services such as advanced pet foodstuffs, good veterinary attention, and grooming items. Capitalizing on the trend, in April 2024, the Swedish furniture giant IKEA, launched its pet accessories collection, UTSÅDD, featuring 29 products for cats and dogs at home. The playful product range focuses on four varied activities, i.e., sleep, eat, hide, and play.

The largest segment is pet food, resulting from the increasing demand for healthier and organic pet meals that are nutritious and promote pet health. More options in the pet food sector include innovative practices such as incorporating functional ingredients in them. Veterinary care is another important sector that has been driven by greater knowledge among people about the health needs of their pets and rising cases of pets where some vets need to provide advanced services.

In addition to revolutionizing markets, e-commerce platforms are expanding fast, hence offering a variety of goods to customers who prefer convenience by getting them delivered to their doorstep. Technological advancements are changing the market terrain due to the emergence of smart pet devices, the use of telehealth services and better veterinary diagnostics, thus making it possible for pet owners to take care of their pets in a better way, leading to enhanced market growth. Retailers observe an increase in demand for pet supplies subscription services, capturing how consumer buying habits have evolved in the online shopping space.

In terms of location, North America has great control over the industry with its good infrastructure set up around pet care services, and high expenditures made by individuals regarding their pets. Nevertheless, as Asian families continue getting richer and more pets become members of their homes, Asia-Pacific is expected to achieve market share increments. Driven by consumers' growing environmental awareness, the market is shifting towards sustainable and eco-friendly pet products.

Increasing Number of Exotic Pet Owners to Drive the Market Demand

An increasing demand for premium pet food and veterinary treatment for non-traditional species has been observed lately due to the increasing number of exotic pet owners.

Millions of exotic animals are purchased and traded globally these days. In recent years, demand for these pets has surged, particularly in Asia-Pacific and Latin America. More pet stores are providing a greater selection of food, toys, and medications designed for non-conventional animals.

Another indication of popularization of exotic pets is the recent expansion of product availability among certain e-commerce businesses. A few years ago, Minnesota-based Mazuri, a provider of exotic animal nutrition with more than 500 brand references in its portfolio, began focusing on customers who purchase exotic animals as pets. It took advantage of the internet to enter this new market.

Moreover, in March 2024, Petcover New Zealand launched a new line of insurance policies made especially for exotic animals. The insurance plan serves New Zealanders who own legally recognized exotic pets, which includes small mammals, reptiles, and birds. Pet owners can choose from a range of coverage choices designed to accommodate different demands and budgetary limits offered by the initiative.

Furthermore, according to the World Animal Foundation, the United States is home to more than 17 million exotic animals, with nearly ten percent of American households keeping an exotic pet.

Government Policies to Fuel the Global Pet Care Market Growth

Government policies play a considerable part in fueling the growth of the global pet care market by establishing favorable regulations and promoting innovations in the sector. Rules that guarantee the quality and safety of pet foodstuffs and veterinary products increase buyers' trust and make them more marketable.

Moreover, firms are motivated to develop advanced products for new demands of pet owners, supported by state measures designed to stimulate investigation into pet healthcare and nourishing. Furthermore, increased spending on pet health and welfare is attributed to policies promoting animal welfare.

In May 2024, in addition to releasing advice to assist pet owners with financial difficulties, the United Kingdom's Competition and Markets Authority (CMA) said that it would begin a market probe into the veterinarian industry. Also, in January 2024, legislators and political advisors in Shanghai proposed at the yearly meetings of the city's legislative and political advisory bodies that, measures should be implemented to make the city more pet-friendly, as it might have an impact on young people's decisions to live and work there. They recommended making a specific percentage of public spaces and public transportation more pet friendly.

Pet Food Products Hold the Larger Market Share

Among the various product types in the pet care market, pet food products dominate and have the highest share. Pet food represents the largest segment due to the essential and recurring nature of the expenditure. Pet owners prioritize high-quality nutrition, leading to significant spending on premium, organic, and specialized dietary products.

The demand for pet food is driven by the increasing awareness of pet health and nutrition. Pet owners are becoming more conscious of the ingredients and nutritional value of the food they provide, often opting for products that promote health benefits such as improved digestion, joint health, and weight management. Additionally, innovations in pet food, including the incorporation of superfoods and functional ingredients, have further bolstered the segment's growth. In April 2023, Scottish biotech firm MiAlgae Ltd introduced NaturAlgae, an omega-3 powder made from microalgae, grown using co-products from the Scotch whisky industry. The product serves as a nutritious ingredient for fish feed and pet food.

While grooming products, supplements, and hygiene products see substantial market shares due to the rising trend of pet humanization and the emphasis on overall pet well-being, they do not match the consistent and fundamental demand for pet food. The high frequency of purchase and the critical role of nutrition in pet health ensure that pet food remains the dominant product type within the pet care market.

North America Dominates the Global Pet Care Market Share

North America dominates the global pet care market due to several key factors, including high pet ownership rates, significant disposable income, and a well-established pet care infrastructure. The region's pet care market is driven by the United States, where a substantial portion of households own pets and are willing to spend generously on their care. It includes spending on high-quality pet food, advanced veterinary services, grooming, and pet accessories. The cultural view of pets as family members has significantly boosted the spending on premium pet products and services in North America. Consumers are increasingly seeking out specialized, health-oriented products, such as organic pet food, sustainable alternatives, and therapeutic pet treatments, contributing to the market growth. For instance, in January 2024, PawCo Foods Inc. launched two new variants of plant-based dog food, InstaBites, and LuxBites. InstaBites offers fresh, shelf-stable, plant-based dog food, combining the quality of fresh food with the convenience of dry food, while LuxBites provides premium fresh dog food with postbiotics and fermented protein for enhanced gut health.

Additionally, the prevalence of pet insurance in the region further supports high expenditures on veterinary care, ensuring pets receive optimal healthcare. Technological advancements and the rise of e-commerce have played a crucial role in North America's market dominance. Online platforms provide a convenient shopping experience for pet owners, offering a wide range of products and subscription services.

Future Market Scenario (2024 – 2031F)

The global rise in pet ownership, particularly among millennials and Gen Z, continues to fuel demand for pet care products and services. The demographic shift towards viewing pets as family members leads to higher spending on premium and specialized products.

Innovations in pet care technology, such as smart pet devices, telehealth services, and advanced veterinary diagnostics, are set to transform the market. These technologies provide convenience and enhanced care, appealing to tech-savvy pet owners. For instance, in February 2024, Veterinarians Without Borders (VWB) North America launched Canada’s first-ever veterinary telehealth. The program aims to provide benefits to pet owners residing in isolated areas with poor access to veterinary care in the Northwest Territories and Nunavut.

There is a rising trend towards sustainable and eco-friendly pet products. Consumers are increasingly aware of pet care products' environmental impact and seek sustainable options.

Key Players Landscape and Outlook

Global pet care market is highly competitive, with several key players leading the industry through innovative product offerings and strategic expansions. Major companies dominate the market share by consistently launching new products, expanding their geographical presence, and enhancing their production capabilities.

The competitive landscape is characterized by robust research and development activities aimed at meeting evolving consumer demands for premium, nutritious pet foods, and advanced veterinary care products. Additionally, the increasing trend of online sales and subscription-based pet services are reshaping the market dynamics, with companies enhancing their e-commerce platforms to capture a larger market share.

The market outlook remains positive, driven by rising pet adoption rates, increasing spending on pet healthcare, and the growing demand for sustainable and health-focused pet products. The continuous innovation and expansion by key players are expected to sustain market growth and competitiveness.

In June 2023, Mars, Incorporated acquired Heska, making it a part of Mars Petcare’s Science & Diagnostics division. The acquisition aims to accelerate research and development and increase access to pet healthcare products globally, while enabling expanded coverage across diagnostics and technologies.