No matter how hectic our day was or how the world entered into the COVID-19 pandemic, pets are positive and consistent companions in our lives. Whether you have a dog, cat, bird, fish, or other pet, they become an integral part of your family. In the last 25 years, the pet industry has evolved from a niche industry to a complex booming one. During this time, the number of people adopting a pet has incrementally increased.
More than half of the population worldwide is estimated to have a pet at home. Nearly seven out of 10 households have adopted a pet and purchased pet-related products, such as pet food, pet grooming products, and pet care services.
Globally, dogs are the most popular pets, present in around one in three homes and almost a quarter of pet owners have a cat. In the US, 70% of households owned a pet as of 2021 as compared to 68% in 2016.
The data given below represents the number of cats and dogs present across the globe.
Today’s pet owners are recognized as pet parents, pet mothers, or pet fathers and they generally refer to their pets, specifically dogs and cats as fur babies. People who want to adopt a pet generally prefer cats or dogs, as these are easy to train and offer companionship. Families in the US, the EU, and China have over half a billion dogs and cats.
Nowadays, pet owners are adopting not only cats and dogs but also snakes, freshwater fish, small animals, ferrets, gerbils, guinea pigs, and different types of birds. In the last 2-3 years, there was a sudden boom in pet adoption and one of the factors for this boom was the COVID-19 pandemic.
COVID-19 Bump
The COVID-19 pandemic forced everyone to stay at home for extended periods. With the pet humanization trend, the pet industry saw a surprising rise in pet adoption and fostering. According to the American Society for the Prevention of Cruelty to Animals (ASPCA), nearly one in five people nationwide adopted a pet during the pandemic. The pet food industry experienced a sudden boost in sales as pet owners became more aware of the well-being of their pets, as they considered their pets as family members.
With the growing pet adoption, pet owners prefer premium pet services such as grooming, insurance, and pet care. The emergence of e-commerce played a crucial role in the increased demand for premium pet services. Before the pandemic, pet stores and grocery stores were the primary sources for different types of pet services, but post-pandemic, the prevalence of online pet stores created a major impact on the pet industry. With 5 million more pets in the US, since the pandemic began, Growth Market Reports predicts 7% annual growth in the pet industry by 2030.
Pet Ownership
Pet ownership has bolstered in recent years, even the millennials adopted pets for the first time to deal with social isolation. Younger Americans fueled the pandemic pet craze, with 18- to 34-year-old respondents accounting for 32% of the total pet adoption in 2021.
Pet Ownership (2021)
|
Pet Type |
18-34 |
35-74 |
55+ (age) |
|
Dogs |
57% |
50% |
33% |
|
Cats |
35% |
38% |
27% |
|
Fish |
9% |
10% |
5% |
|
Horse |
1% |
2% |
1% |
|
Livestock |
2% |
2% |
1% |
|
Small Pet |
6% |
5% |
1% |
|
Other Pets |
5% |
5% |
3% |
|
Do not have Pets in Houses |
23% |
27% |
47% |
The pet services market is expected to have the highest growth of any segment of the pet industry, with spending now predicted to be $117 billion, with a rise of 142.5% by 2030.
Pet Ownership by Generation (2022)
According to the APPA National Pet Owners Survey 2023-2024: 86.9% million US households own at least one pet (66% of US homeowners)
|
Pet |
Number of US Households that Own a Pet |
|
Dog |
65.1 Mn |
|
Cat |
46.5 Mn |
|
Freshwater Fish |
11.1 Mn |
|
Small Animal |
6.7 Mn |
|
Bird |
6.1 Mn |
|
Reptile |
6.0 Mn |
|
Horse |
2.2 Mn |
|
Saltwater Fish |
2.2 Mn |
US Pet Industry Expenditure
Average Amount Spent on a Common Pet in the Past 12 Months (2022)
|
Service |
Dog |
Cat |
|
Surgical Vet Visit |
$ 458 |
$ 201 |
|
Food |
$ 287 |
$ 254 |
|
Routine Vet |
$ 242 |
$ 178 |
|
Other |
$ 90.5 |
$ 94.5 |
Pet Care
The pet care industry has undergone significant transformation in recent years, reflecting the changing dynamics of pet ownership and societal attitudes toward pets.
Pet owners are increasingly seeking high-quality and premium products for their furry companions. From specialized diets to organic treats, the demand for premium pet products is on the rise. This shift is attributed to a growing awareness of pet health and a willingness to invest in top-notch care of beloved pets.
Another factor for the boom of the pet care industry is sustainable and eco-friendly practices. With the increasing awareness of environmental issues, pet owners are leaning towards sustainable and eco-friendly pet care options. From biodegradable poop bags to eco-conscious pet food packaging, there is a growing emphasis on minimizing the ecological footprint associated with pet ownership.
Regional Industry Share
North America
Country-specific Sales of Pet Care Products and Services by Category
United States
The US holds the largest share of the pet care industry with 64% pet food sales and 36% sales of pet products.
- Pet Food: 64% (Dog Food: 44%; Cat Food: 18%; Bird Food: 1%; Mammal/Reptile Food: 1%)
- Other Pet Products and Services: 36% (Pet Dietary Supplements: 27%; Cat Litter: 5%; Pet Healthcare: 4%)
Canada
- Pet Food: 73% (Dog Food: 48%; Cat Food: 24%)
- Other Pet Products and Services: 27% (Pet Dietary Supplements: 18%; Other Pet Products: 11%; Cat Litter: 9%; Pet Healthcare: 1% )
Mexico
- Pet Food: 96% (Dog Food: 78%; Cat Food: 18%)
- Other Pet Products and Services: 4% (Pet Dietary Supplement: 3%; Other Pet Products: 1%)
Company Share North America
Europe
Country-specific Sales of Pet Care Products and Services by Category
United Kingdom
- Pet Food: 77% (Dog Food: 36%; Cat Food: 32%; Mammal/Reptile Food: 7%; Fish Food: 1%)
- Other Pet Products and Services: 23% (Cat Litter: 3%; Pet Healthcare:4%; Pet Dietary Supplements: 2%; Other Pet Products: 14%)
France
- Pet Food: 72% (Dog Food: 33%; Cat Food: 34 %; Mammal/Reptile Food: 3%)
- Other Pet Products and Services: 28% (Cat Litter: 5%; Other Pet Products: 14%; Pet Healthcare: 7%; Pet Dietary Supplements: 1 %)
Germany
- Pet Food: 70% (Dog Food: 32%; Cat Food: 34%; Mammal/Reptile Food: 2%; Bird Food: 1%; Fish Food: 1%)
- Other Pet Products and Services: 30% (Cat Litter: 7%; Other Pet Products: 21%; Pet Dietary Supplements: 1%; Pet Healthcare: 1%)
Company Share Europe
Asia
Sales of Pet Care Products and Services By Category
- Pet Food: 70% (Dog Food: 32%; Cat Food: 34%; Mammal/Reptile Food: 2%; Bird Food: 1%; Fish Food: 1%)
- Other Pet Products and Services: 30% (Other Pet Products: 21%; Cat Litter: 7%; Pet Healthcare: 1%; Pet Dietary Supplements: 1%)
Company Share Asia
- Mars Inc: 13.1%
- Nestle SA: 3.5%
- Unicharm Corp: 3.0%
- Colagate-Palmolive: 2.8%
- Charoen Pokphad: 1.6%
- Inaba Pet Food Co Ltd: 1.2%
- Shanghai Bridge Petcare: 1.0%
- DoggyMan HA Co Ltd: 0.9%
India
Country-specific Sales of Pet Care Products and Services by Category
- Pet Food: 84% (Dog Food: 82%; Cat Food: 2%)
- Other Pet Products and Services: 16% (Other Pet Products: 8%; Pet Healthcare: 5%; Pet Dietary Supplements: 3%)
Company Share India
Pet Food
Revenue in the Pet Food market amounts to $143.60 Bn in 2023. The market is expected to grow annually by 5.32% from 2023-2028.
Most revenue is generated in the US, which is expected to be around $57, 380 Mn in 2023.
Feed Facts:
500+ pet food manufacturers present in the US, not only provide balanced, safe meals for America’s dogs and cats, but also stimulate the overall agricultural economy through the purchase of ingredients, labor, and services from related industries.
$ 4.1Bn in materials, services, equipment, and labor sold to farm suppliers
- $ 5.3 Bn in materials and services sold to farmers
- $ 6.9 Bn in farm products sold to pet food manufacturers
- $ 9.8 Mn tons of cat & dog food produced by pet food manufacturers
- $ 30.3 Bn in dog & cat food sold to consumers
Products, including treats and fresh-from-the-fridge meals made without preservatives, are gaining popularity. Spending is predicted to increase 128% over the next decade from $70 billion in 2019 to $158 billion in 2030, as compared to an estimate of $151 billion by 2030 based on the previous survey.
Pet Insurance
Pet insurance is also a strong growth area, registering nearly 26% in annual growth between 2017 and 2021, with a 21.5% increase in pets coming under insurance in the same period—showing no signs of slowing.
The average monthly premium for accident and illness pet insurance in the US is about $32 per month for cats and $53 per month for dogs.
- The top-paid medical-related medical insurance claim for dogs was $60, 882 last year.
- The top-paid medical-related medical insurance claim for cats was $40,057 last year.
Naphia- Around 5.36 million pets were insured in North America at the end of 2022, which increased by 21.7% from 4.4 million in 2021.
- Total number of pets insured in the US in 2022: Dogs (3.885M) and Cats (0.964M)
- Total number of pets insured in Canada: Dogs (391.1K) and Cats (117.5k)
Basic Annual Expenses for Dogs & Cats (2021-2022)
Top Players in Pet Insurance
-
Embrace Pet Insurance Agency, LLC
Embrace Pet Insurance is a highly-rated provider of pet insurance for cats and dogs in the US. They offer a single comprehensive plan that covers accidents and illnesses. In March 2023, the company launched Apollo, an AI platform designed to automate routine claims processes such as adjudication, data extraction, and document handling. This platform is 75% faster than Embrace's standard claims processing methods. Since its introduction, Apollo has processed over 250,000 claims, representing more than 50% of all claims during that period.
Q1 2023 results
Top 5 claims in Q1
a. Diarrhea
b. Vomiting
c. Ear Infection
d. Skin Allergies
e. Lameness (limping or issues walking)Single Policy with the most dogs enrolled in Q1: 8
Single Policy with the most cats enrolled in Q1: 11 -
Pets Best Insurance Services, LLC
Pets Best was founded in 2005 by Dr. Jack Stephens, the "father" of the pet insurance industry in North America. The company ensures that pet owners across the US can better afford the best veterinary care.
Company Stats:
- By the end of June 2018, the company insured 100,000th pets across the US
- In Feb 2019, Pet Best Insurance paid out $200 million in claims to policyholders
- By the end of January 2022, the Company insured 500,000th pets across the US
- In July 2022, Pet Best Insurance paid out $500 million in claims to policyholders
- On July 12, 2023, Pets Best Insurance Services, LLC, a leader in pet health insurance, and JAB’s Independence Pet Group (IPG) announced an expanded partnership with IPG’s wholly-owned subsidiary, Independence American Insurance Company (IAIC). In this partnership, IAIC will provide comprehensive insurance underwriting services for Pets Best to meet the growing demand for pet insurance and the needs of four-legged family members and pet parents nationwide.
Pet Toys
The pet toys industry has seen a significant surge in the recent years. As more people see pets as an integral part of their families, the demand for sophisticated and engaging pet toys has escalated.
Smart pet toys equipped with sensors and connectivity features are gaining rapid popularity, as these allow pet owners a new way to engage with their pets. With the rising trend for sustainable toys, manufacturers prefer eco-friendly materials for manufacturing various types of toys.
Key players in the industry:
-
KONG Company: Renowned for its durable rubber toys, KONG has been a staple in the pet industry. It is a US-based company that develops designs and produces lines of dog toys and cat toys. The company focuses on products that provide mental and physical enrichment.
-
Chuckit: Known for its ball launcher and fetch toys, Chuckit has carved a niche for itself, providing engaging products that promote active play.
-
PetSafe: A leader in the interactive pet toy segment, PetSafe, offers a range of interactive and innovative toys designed to challenge and entertain pets. PetSafe brand introduced 9 products at the 2022 Global Pet Expo. These products were pet fences, travel accessories, training products, and others.
Pet Wearable
The growing popularity of pet wearables is one of the crucial factors that emphasize health monitoring. These devices are equipped with sensors that track various aspects of a pet’s well-being, including sleep patterns, activity levels, and vital signs. This real-time data empowers pet owners to proactively manage their pet’s health, allowing for early detection of potential issues and timely interventions.
Behavioral Analysis:
Advancements in sensor technology have enabled pet wearables to delve into the realm of behavioral analysis. These devices can monitor and analyze a pet’s behavior, providing valuable insights into patterns and potential changes. This information can be instrumental in addressing behavioral changes, such as excessive barking or anxiety.
Location tracking and safety:
Another crucial aspect of pet wear is the integration of GPS technology for location tracking. This feature offers peace of mind for pet owners, allowing them to track their pet’s real-time location. In addition to preventing lost pets, GPS-enabled wearables enhance pet safety by alerting pet owners in case of emergency.
In 2022, GPS-enabled pet wearables dominated the pet wearables industry with a market size of $410 million, followed by RFID and sensor-enabled pet wearables with a market size of $310 million and $180 million, respectively.
Key Players in this Space:
- Tractive: Tractive is a US-based company that offers Live Tracking with location updates every 2-3 seconds. Tractive is renowned for round-neck-clock and real-time location tracking for pets. Recently, it announced that it has closed $35 million in growth funding led by Guidepost Growth Equity. The investment will accelerate innovation and adoption of the company’s industry-leading pet tracking device, which currently serves over 400,000 active subscribers across 190 countries.
- K&H: It is a brand of Central & Garden Pet company, which is a market leader in the Garden and Pet industries. K&H offers high-quality pet products and up-to-date info about pet behavior and wellness.
- Zippypaws: It is a US-based company that designs and manufactures pet toys and accessories that push innovation in the pet industry. The company also provides customized services to help retailers to increase their toy category sales.
Company stats:
- In 2016: The ZippyPaws team grew to 10 employees
- In 2020: The company grew to 20 employees
- In 2021: The company launched a rebrand and added a second distributor center.
The pet industry continues to exhibit robust growth, presenting both challenges and opportunities. For in-depth analysis and market intelligence, we encourage you to explore the detailed reports available at Growth Market Reports. Discover the company’s insight into market trends, consumer preferences, and emerging prospects that will shape the future of the pet industry. For those keen on staying ahead in this evolving sector, the wealth of information offered by Growth Market Reports serves as an invaluable resource.