Pet ownership is rising globally. In 2022, pet owners spent $136.8 billion. 2023 projects $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. As of 2023, 66% of U.S. households (86.9 million homes) own a pet. This has increased significantly from 56% in 1988. Families in the U.S., Brazil, EU and China account for half a billion dogs and cats. 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. From 2019 to 2020, U.S. pet dogs and cats increased 7%, to 149 million. Millennials have the highest ownership at 32%. From 2010-2020, expenditure grew 114%. The steady rise comes as pet insurance gains popularity. It prevents full payment of unexpected vet bills, adding financial security.
The future of the pet industry is projected to be robust, with Morgan Stanley forecasting an increase in spending to $1,897 per pet by 2030. The pet supplement industry is set to hit $1 billion by 2027. Examples of trending pet supplements include dog vitamins and cat fish oil. The fastest-growing pet supplement category is CBD.
As pets are increasingly seen as integral family members, there is a corresponding rise in spending on health, wellness, and premium products. Innovations such as GPS collars and health monitoring wearables cater to the convenience and peace of mind of pet owners. Treat sales continue to grow at an enviable rate. According to Euromonitor International, dog treats and mix-ins grew 12% from 2018 to 2019 in the United States.
With advancements in e-commerce and technology integration, the pet retail industry promises an exciting and dynamic shopping experience for pet owners. Customized nutrition and diets are also growing in popularity.
Sustainability is another crucial trend. As with human food production, meat-based pet diets have a higher environmental impact than plant-based diets. Pet foods containing meat are responsible for 25-30 percent of the environmental impact of animal agriculture.
Major trends seen at industry trade shows indicate that purposeful ingredients, personalized nutrition and tracking technology will define the industry going forward.