Pet Care Industry

The “Fur-Baby” adoption craze has been sky rocketing day by day and that can be certainly
said as there are more than 5 million pets in the U.S. than that were in 2019.And the adoption
has seen about 4% more households now including pets and it has been proclaimed by
Morgan Stanely Research and findings by its proprietary survey and data arm-AlphaWise.

And, for sure it is a piece of good news for the pet care industry, there’s more increment to be
seen in the same. Morgan Stanely has predicted a nearby 8% compound annual growth rate
for this industry by the end of 2030. This would be one of the largest rates of return in any
retail segment.

When households being considered, the spending in the pet care industry would likely to rise
to $1,320 per pet by 2025, while reaching $1,897 by 2030.This shows a boom in the market
with total spending to increase by 134% over the next decade, from $118 billion in 2019 to
$277 billion by 2030.This has been claimed by Simeon Gutman, the equity analyst covering
hardline, broad-line and food retail at Morgan Stanley.

The Millennials and Gen-Z Pet Owners-Younger Americans, aged 18-to-34 years old have
accounted for 32% of those who bestowed themselves with a pet in the past six months. It is a
trend now that millennials delay having their children and have started spending more on pet
care and pet food than the older generations.

With advancement in this era, it is more likely to see an ever-growing trend in the pet
humanization factor and the market growth is proportional to it. Over 90 % and more of the
individuals see pets as a part of their family, says Pets International. This trend got a boost as
a consequence of the Post-Pandemic outcomes.

Not just the pet food and grooming objects are seeing a rise in their usage, but certain
accessory elements are seeing the boom as well. For example, one popular device is the pet
tracking collar that keeps tabs on the movement and play activities of the pet. About 100,000
dogs in the United Kingdom possess these devices, as shared by PitPat. PitPat is a
manufacturer of tracking collars.

The Indian scenario in the pet care industry is seeing a notable surge in growth and this is
attributed by factors like the increasing rates of pet adoption which accounts for nearly 20%,
humanization and calorific value conversion.The pet food industry is seeing a boom and the
one of the major reasons is the shift in the feeding practices of fur babies. The days are gone
where homemade food is the only source of nutrition for the pets. That place is now adorned
by commercial pet food.
The another reason for such a surge in the growth is the increase in pet adoption by the Gen
X and Gen Z generation.The market is expected to grow at a ccompund Annual Grwoth Rate
of 25% with a time span of next 5 years.This is will be accounting to $5 billion by 20230. Pet
care is considered as a sticky category because the pet parents are prone in building trust with
certain brands or service providers. Thereby such habits directly implies that repeat business
from such loyal customers is fixed.As a result startups in this domain are receiving
substantial investments from venture capitalists and private equity firms.
India is currently witnessing a rise in the investment in this sector.Large funds and behemoths
like Saama Capital,DSG consumer partners,Fireside Ventures, Sequoia Capital have actually
diversified their investments in the pet care industry.This incremental nature directly signifies
the confidence of investors in the capabilities of the Indian pet care industry.A 58% increase
was spectated by the online market for pet care products and services in 2022.
The Global pet care market is growing behemothically with contributing countries like China
Brazil and South Korea. Though North America and Europe are two of the largest markets
for pet care products and services, geographically, the Asia Pacific region is experiencing the
fastest ballooning in the global pet care market.
The Euromonitor report says that this industry is contemplated to reach $366 billion by 2027.
Besides the cat and dog food, other segments such as pet grooming products, pet accessories,
pet health care products are simultaneously witnessing sky rocketing growth.
How big is the Pet Care Market?

The Pet Care market is likely to experience and increase and reach by USD 211.1 billion and
again grow at a CAGR of 7.4% to reach USD 430 billion by 2033.

Dominance by Asia Pacific Region

It is expected that the Asia Pacific region would dominate the global pet care market.The
rapid economic expansion and increase disposable income has been fuelling the aforesaid
statement.

The various reasons for the growth in the Asia Pacific pet care market are as follows-

1.Increased Veterinarian health consciousness

2.Growing Pet ownership

3.Rising number of governmental animal healthcare organizations.

The severe outcomes from obesity in pets such as dogs and cats, the owners have shown a
significant rise in their usages of healthy pet food.And, this gaining a huge popularity among
the pet owners across the Asia Pacific region.

The scenario in India and the Pounce of Investors in Pet Care Industry of India:

Between 2021 and 2022, the pet care industry has witnessed a total investment of $77
million, as claimed by Venture Intelligence. The pet population of India, estimated at 32
million , is expanding with an annual rate of 11%. Reflecting to this surge, about 70 new pet
care companies have emerged over the past two years, as mentioned in the Decipher Report.

The appetite of investors to invest in this skyrocketing sector is also on the upscale. This can
be rightly proven by saying that L Catterton, a global player in pet food investments, has
plunged into the Indian market for the same with a behemothic $60 million investment in
Drools.
The CEO of Drools Pet Food , Shashank Sinha, quoted- “We were the first Indian brand to make
inroads into the category which was discovered by Western brands and imported products.The
investment has brought a lot of credibility to the brand and the business that has been built.”

In India, currently the pet food sector is commanding the largest share of the market. This is
followed by the pet healthcare, grroming and pet accessories.

Currently, the entire pet industry sums up to Rs. 65,000 crore, out of which 65% is comprised of
pet food. Sinha envisioned that the pet food industry itself will become a billion-dollar business
within three years alone.

India has put forward itself as one of the world’s fastest- growing pet care markets where Drools
have forecasted an annual growth rate of nearby 20% encompassing the next 5 years.It is expected
to reach $1.2 billion by 2028.Even though the pet ownership is low with 10% household having a
pet , the trends suggest an elephant of growth in the upcoming years.

Pet Care Market:Pet Industry Sales, In USD Billion

55
50

45

34.3
35
29.8

25

15
9.5

Pet Food & Treats Suuplies and OTC Vet care and Product Other services
Medicine sales
Series1 50 29.8 34.3 9.5

Pet food and medicines (50 billion): .

This segment contributes the most to pet industry sales, indicating high demand for
high-quality pet foods and treats.
Consumers are likely to place more emphasis on the welfare and nutrition of their
pets, creating a huge market for premium pet foods.

Supplies and OTC Treatments (29.8 billion):

Demand for pet products and over-the-counter (OTC) products is high, indicating that
pet owners are actively investing in the health and comfort of their pets.
The addition of OTC medications signals a growing awareness of preventative health
care for pets.

Veterinary services and products (34.3 billion):

Veterinary medicine is an important part of the pet care industry, and high sales
figures reflect the importance pet owners place on maintaining the health and well-
being of their animals
The combination of vet care and product sales means a broader approach to pet
health, with professional services and related products contributing to overall revenue.

Other services (9.5 billion):

The "other services" category should include a variety of pet-related services, such as
grooming, hotels, training, and more.
Keeping this group relatively small compared to the others does not diminish its
importance; That means that although services beyond food, supplies and vet care are
important, they may not be as strong in terms of overall revenue
All trends and implications:

The pet care industry in the United States is complex and diverse, with significant
spending in different categories.
There is a clear tendency for pet owners to prioritize the health and well-being of their
pets, as evidenced by the higher spending on food, supplies, OTC and veterinary care

CAGR of Pet food sales in India between 2021 amd

2026(Projected)

22.50%
20.10%

17.20% 17.10%
17.50%
14.90%

12.50% 11.70%

7.50%

2.50%

Fish Food Dog Food Bird Food Cat Food Total Pet Food
CAGR 20.10% 17.20% 14.90% 11.70% 17.10%
The Compound Annual Growth Rate (CAGR) estimates for the pet food market in
India from 2021 to 2026 show different growth rates for different segments of the
industry .

Fish Food (CAGR: 20.10%):

The high CAGR indicates strong growth potential in the fish segment.
Possible reasons for this increase could include ornamental fisheries, increasing
aquaculture practices and increasing interest in managing aquatic biodiversity.

Dog Food (CAGR: 17.20%):

The dog food segment is also showing strong growth, reflecting the growing demand
for dog pets, especially in urban areas.Increasing awareness of the nutritional needs of
dogs and the willingness of pet owners to invest in premium and specialty dog foods
may be contributing factors.

Poultry Food (CAGR: 14.90%):

The bird food segment is showing positive growth, which can be linked to the
popularity of pet birds.The trend can also be influenced by increased awareness of pet
food quality among poultry farmers, leading to increased demand for specialty poultry
feeds.

Cat Food (CAGR: 11.70%):

Although the CAGR of the cat food segment is relatively low, it still shows a steady
growth.Slow catches can be attributed to small stocks of cats compared to dogs, but
are likely to increase as cat stock trends evolve.

Total Pet Food (CAGR: 17.10%):

The overall pet food market in India is expected to grow at a significant CAGR,
reflecting the growing number of pets and changing consumer attitudes towards pet
care and nutrition.A holistic approach to the nutritional needs of different pets can
lead to overall improvement.
https://www.morganstanley.com/ideas/pet-care-industry-outlook-2030
https://www.mordorintelligence.com/industry-reports/pet-care-market
https://www.futuremarketinsights.com/reports/global-pet-care-market
https://www.cnbctv18.com/startup/india-pet-care-food-investment-drools-startup-
17717141.htm
https://brandequity.economictimes.indiatimes.com/news/marketing/petcare-an-investor-
friendly-segment-in-india/99897850