Pet Service Market - Growth, Trends, and Forecasts (2023 - 2028)

Pet Service Market - Growth, Trends, and Forecasts (2023 - 2028)

The pet service market is projected to register a CAGR of 5.4% during the forecast period.

• The recent rise in pet humanization, wherein pets are treated with utmost care and hygiene, is proving to be a major driver for the market and is leading to the development of the pet service industry. Being the largest pet market in North America, United States pet food market’s growth is attributed to the increase in pet ownership. According to the 2021-2022 National Pet Owners Survey conducted by the American Pet Products Association (APPA), 70% of US households, or about 90.5 million families, own a pet. Total pet industry expenditures in United States totaled USD 123.6 billion in 2021, up by 19% from USD 103.6 billion in 2020.
• Although North America and Europe are some of the most dominant regions, countries in Asia-Pacific, such as Australia, are also witnessing an increase in the adoption of pets. The increasing popularity of pet services among pet owners is expected to have a positive impact on the market and contribute to its growth significantly over the forecast period. Some pet owners, especially affluent ones, are notably particular about representing their lifestyles by spending on comfortable and luxurious products for their pets. This is encouraging many market competitors to launch numerous products in the grooming segment. The pet services include pet sitting, pet grooming, pet traveling, pet training, pet hotels, and customized subscription boxes for the pet.
• The demand for professional pet grooming centers is also leading to the growth of the market, as they aid in facilitating healthy skin and fur for the pet and decrease the risk of infection. However, factors such as low income in developing countries and lack of knowledge in pet handling may hamper the growth of the market during the forecast period.
• In short, the increasing pet fashion among pet owners, increasing demand for pet grooming centers, and increase in the development of smart technology in pet grooming are anticipated to drive the growth of the market during the forecast period.

• According to National Pet Owner's Survey (2021-2022) conducted by the American Pet Products Association (APPA), in United States, almost 90.5 million households have a pet. Over the last 30 years, pet ownership has gone from 56.0% to 68.0% of all households. The boom in pet care spending has resulted in a huge increase in products and services aimed toward affluent pet owners.
• The rising aging population in developed countries is driving the growth of the global pet daycare and lodging market, as they are considered good companions for the elderly. Customization holds more appeal to the customers, as it adds a personal touch to the pet, and this factor is expected to play a large role in the growth of the pet service market.
• Manufacturers are using organic or natural materials for manufacturing grooming products, such as shampoos. The introduction of advanced, cost-effective, and customized services, rising concerns toward pet care, and an increase in health expenditure for animals are leading to the growth in the demand for pet services worldwide.
• With the growing ownership of pets, pet owners are increasingly spending on service packages with more options, including food and grooming options. The desire for improved pet care products and accessories, such as pet furniture, has increased owing to the growing importance of pets and services.

• Pet parents in North America are spending more on their pet's well-being, appeal, and safety. According to the American Pet Productions Association (APPA), in 2021 alone, US pet care industry expenditures hit USD 123.6 billion, a 19.3% increase from the previous year.
• United States and United Kingdom have long been the leaders of the world pet market. United States witnessed dramatic growth in the pet industry in recent years. For instance, as per the report published by the North American Pet Health Insurance Association (NAPHIA), approximately 4.41 million pets were insured in North America at the end of 2021. The pet health insurance marketplace grew by 27.7% over the past year.
• In addition, as per NAPHIA, total premium volume in United States amounted to USD 2.6 billion, a 30.4% annual increase over 2020. In Canada, the total premium volume totaled CAD 313.4 million, an increase of 28.1% over the previous year. The boom in pet care spending has resulted in a huge increase in products and services aimed toward affluent pet owners.
• Some pet owners are extremely particular about representing their lifestyles by spending on comfortable and luxurious products for their pets. This encourages market competitors to launch numerous new products and customized products in the North American market.

The pet service market is highly fragmented, with the presence of many domestic and international players operating in the market. Some of the notable players in the market include Petsfolio, Global Pet Relocation, PetSmart Inc., AirPets Relocation Services Pvt. Ltd, and PetBacker. The major players in the market are mainly focusing on adopting different strategies, such as new services, partnerships, expanding operations into new areas, and mergers and acquisitions in order to obtain a stronghold in the market and to bring more revenue share to the overall market.

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