Pets Market Size, Share, Trends & Growth Opportunity [2031]

Report Description

Pets Market Outlook 2031

The global pets market size was USD 16.66 Billion in 2022 and is likely to reach USD 32.75 Billion by 2031, expanding at a CAGR of 7.8% during 2023–2031. The market growth is attributed to the high adoption of cats and dogs.

Increasing adoption of dogs and cats is expected to boost the pets market during the forecast period. Pet adoption is a lifesaving and heart-expanding endeavor that saves the life of a homeless pet and provides them with love and companionship. Adopting a pet positively impacts a person’s life and physical & mental health benefits. Pet provides friendship and companionship helping with loneliness and depression. Pet owners prefer direct-to-consumer (D2C) brands, as they offer personalized options for pet food, accessories, and toys. Several people are adopting cats and dogs from shelters and rescue centers is expected to boost the market.

• According to the American Society for the Prevention of Cruelty to Animals (ASPCA), in the US, approximately 4.1 million animals are adopted yearly, 2.1 million cats and 2 million dogs respectively.

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The market report finds that the COVID-19 pandemic hindered the pets market due to the strict lockdown imposed by the government. During the pandemic, the growth of consumer spending on pet health and grooming decreased, which heavily impacted the market. However, several people adopted pets during the pandemic, which fueled the pet market. During the pandemic, the pet humanization trend was at its peak. This created some favorable opportunities for the market.

Pets Market Dynamics

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Major Drivers

Rising trend of pet humanization is anticipated to drive the pets market. Pet humanization is often used with the term anthropomorphism. Pets give unconditional love and have human-like emotions. Pet owners endow their pets with special care, buy a comfy bed, and provide high-quality food. However, the growing popularity of adopting premium-breed dogs and cats is anticipated to boost the pet market. Several people want to have a specific breed of dog such as hybrid breed and purebred.

• According to the American Public Power Association (APPA), around 34% of dogs are purchased from breeders and only 23% of dogs are adopted from shelters.

Existing Restraints

High maintenance costs associated with pets hampers the market. Pets are entirely reliant on their owners as they need to be maintained timely, especially high-energy breeds such as Labrador retrievers and Australian shepherds need a lot of exercise and training. Sometimes, pet owners are not able to handle pets due to aggressive and problematic behaviors, which is expected to impact the market. For instance,

• According to the American Society for the Prevention of Cruelty to Animals (ASPCA), pet problems are the most common reason that owners rehome their pets, approximately 42% of rehomed cats and 47% of rehomed dogs.

Strict rules and regulations on adopting specific pets hinder the market. According to a report published by MassLegalHelp, domesticated animals are commonly kept as household pets such as cats, dogs, hamsters, and gerbils. Other animals such as snakes and monkeys are not allowed to pet in some countries. For instance, Indian snake species are not allowed to be kept as pets within the country.

Emerging Opportunities

Increasing demand for pet insurance is expected to create lucrative opportunities for the market players. Several people are adopting cats and dogs where pet insurance is needed, as it reduces hospital expenses and authorizes medical treatment. Pet owners can give advanced treatments to their pets, with the help of pet insurance. The breed of pet is a significant factor for pet insurance, as some of the breeds are more prone to certain illnesses. It helps in covering the cost of veterinary healthcare for pets and reimbursing the costs of illness and accidents of pets, which boosts the market.

• As per a report published by the North American Pet Health Insurance Association (NAPHIA), in North America around 5.36 million pets were insured at the end of 2022, increased by 21.7% from the 4.4 million total pets insured in 2021.

Scope of Pets Market Report

The market report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Pets Market Segment Insights

Type Segment Analysis

Based on type, the pets market is divided into cats, dogs, parrots, fish, birds, rabbits, and others. The dogs segment is expected to expand at a significant pace during the projection period, owing to the increasing adoption of dogs as a pet compared to other animals. Dogs are more trainable and are able to protect the owner. One of the major reasons for increasing dog adoption is, they offer companionship and promote an active lifestyle. The segment growth is further attributed to the increase in disposable incomes, which leads to a growing adoption of premium breed dogs.

• According to the American Veterinary Medical Association (AVMA), dog ownership increased by 6% from 38.4% in 2016 to 44.6% in 2022.

The cats segment is anticipated to hold a key share of the market in the coming years, due to the increasing number of cat pet parents. U.S. residents adopted around 2% more cats than in the previous year. Around 528,526 cats were adopted from shelters in 2021, rising to 539,015 in 2022. Cats require low maintenance and also affectionate and make great companions. Another factor for the rising adoption of cats is that cat breeds are less expensive than dog breeds.

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Pet Food Segment Analysis

In terms of pet food, the global market is segregated into wet pet food, dry pet food, treats & snacks, veterinary diets, and others. The dry pet food segment is projected to register a considerable CAGR during the forecast period, owing to its low moisture content and cost-effectiveness which make it easier to handle during storage and processing. Kibble is another name for dry pet food, as it is made from ground-up ingredients including legumes, grains, fruits, meats, and vegetables. Dry food provides good oral hygiene in pets, reduces the accumulation of tartar on teeth, and helps dental plaque. The high moisture content of dry food helps keep pets hydrated and is also beneficial for the urinary tract.

The treats & snacks segment is anticipated to account for a major market share in the coming years, due to the use of organic ingredients, delicious taste, and higher-quality food. Pet treats & snacks are food products that are offered to numerous pets as these are full of nutrients and are derived from plant and animal materials. There are different kinds of treats & snacks and beverages available for pets. The products are available in the form of dried vegetables & fruits, and biscuits. Treats & snacks are offered to the pets to bring out the positive behavior in them. Moreover, companies are launching a variety of multipurpose and healthy snacks which is anticipated to boost the segment in the market.

• In August 2023, HelloFresh introduced the Pets Table, a new premium pet food brand. It is an important step in diversifying the company’s portfolio. WHelloFresh is well-positioned to enter the pet food category, which provides customers with high-quality healthy pet food.

Price Range Segment Analysis

On the basis of price range, the pets market is segmented into premium and economy. The premium segment is expected to register a robust growth rate during the forecast period, owing to the increasing disposable income. Premium refers to a variety of things such as premium pet insurance, premium pet food, and premium pet care services. Several people are looking for premium-breed pets, which boosts the segment. The segment growth is further attributed to the increasing promotional activities of the pet business through social media activities.

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Sales Channel Segment Analysis

Based on sales channel, the global market is bifurcated into e-commerce, specialty stores, and others. The others segment is further divided into shelters and rescue centers. The specialty stores segment is projected to expand at a fast growth rate during the projection period. It is an essential retailer that sells premium breed animals and pet care resources to the customers. Specialty pet stores provide pet owners with the convenience and expertise needed to choose the right type of pet and personalized pet services.

The shelters and rescue centers segment is anticipated to register a robust growth rate during the forecast period. Shelter and rescue center pets are already housetrained and have learned to live with other animals. Most of the rescue and shelter pets already have all of their vetting completed including a spay/neuter. The preference for adopting pets from shelters and rescue centers is increasing as they cost less than specialty stores. For instance,

• According to the Rainwalk Pet Insurance Survey, the number of animals that enter shelters is around 6.3 million each year, of which 3.2 million cats and 3.1 million dogs. Around 920,000 pets in shelters are euthanized every year.

Regional Analysis

In terms of region, the global pets market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, owing to the increasing adoption of pets for entertainment and companionship. The regional market growth is further attributed to the rising disposable income and culture of pet cafes. The adoption of hybrid pets is increasing in the region as pet owners are willing to spend more on premium pet services. For instance,

• According to the 2023 survey by the American Pet Products Association (APPA), around 66% of US households own a pet, which equates to 86.9 million households.

The market in Asia Pacific is anticipated to expand at a rapid pace in the coming years, due to the increasing per capita disposable income. The regional market growth is further attributed to the increasing inclination of consumers towards dogs for security and companionship and the increasing adoption of fish and birds.

• According to the Global Animal Health Association, in 2022 the population of pets in China was approximately 74 million dogs and 67 million cats.

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