Pet ownership is rising globally. As of 2023, 66% of U.S. households (86.9 million homes) own a pet. This has increased significantly from 56% in 1988. The steady rise comes as pet insurance gains popularity, preventing full payment of unexpected vet bills, adding financial security.
Market Statistics
The market for pet products continues growing amid COVID-19. Increased ownership and spending make the animal health market poised to grow. Investment companies predict millennials and Generation Z will sustain 14% growth by 2030.
In 2022, pet owners spent $136.8 billion. Projections for 2023 estimate $143.6 billion in sales. The global pet insurance market was worth over $2.83 billion in 2021, projected to reach $32.7 billion by 2030. Families in the U.S., Brazil, EU, and China account for half a billion dogs and cats.
U.S. pet dogs and cats increased 7% from 2019 to 2020, to 149 million. While 2021 expected a 2%-4% slower growth, the trend remained positive, looking forward to 2025. Millennials have the highest rate of ownership at 32%, with expenditure growing 114% from 2010-2020.
The future of pet care promises remarkable growth, with personalised services, innovative pet technology, and sustainable practices transforming pet nurturing and care. The pet care market’s exponential growth, valued at US$ 280 billion in 2022, is expected to witness a CAGR of more than 7% from 2023 to 2032.
- Local sourcing
- Renewable energy use
- Waste reduction
These practices are contributing to a sustainable future for the pet care industry. The rising popularity of pet insurance has also contributed to specialised care solutions’ growth.
According to Pet Biz Marketer, pet food makes up about three-quarters of all pet industry sales. Noticing a trend in niche pet foods, startups aim to gain market share with new types of pet food. One of the fastest-growing niche categories is freeze-dried dog food.
Artificial Intelligence (AI) has revolutionized pet care in 2023 with AI-powered devices and applications becoming increasingly prevalent, tracking a pet’s activity levels and location and providing instant pet health advice.
The pet care market has grown substantially, with a projected $350 billion by 2027 and the pet supplement industry set to hit $1 billion by that time. Examples of trending supplements include dog vitamins, cat fish oil, dog probiotics, and CBD.
The wet pet food category and treat sales continue to grow substantially, with advancements in e-commerce, personalization, technology integration, sustainability, and holistic pet care shaping the future of pet retail.
COVID-19 led to a surge in pet adoptions. As people worked from home, demand for pets increased, with more demand than available dogs noted earlier this year.
Preventive care compliance may be low, but there is an increasing demand for wellness products and services, as pet owners now adopt both reactive and proactive approaches to pet care.
The integration of technology into pet care, including IoT devices, is projected to grow significantly, with the global smart pet technology market expected to reach $20.5 billion by 2027.
Upcoming Trends in Pet Care
What trends will define the pet care industry in 2024? Trends to track include CBD supplements, personalized nutrition, pet tracking technology, sustainable toys, and pet probiotics, as witnessed at the 2023 Global Pet Expo.
Is the future of veterinary medicine being redefined with technology? A startup in Queens, New York, IAC Urgent Vets, is merging tech and veterinary medicine to elevate the standard of pet care.