The pet care market is experiencing tremendous growth as there is an increase in the adoption of pets among people as companion animals. The marketplace offers pet food, veterinary care, pet grooming/boarding, supplies & OTC medications, and even pet care insurance. Owing to the recent developments in the pet care market, people are inclining towards safeguarding their companion animals from injuries and sickness, this has added impetus to the pet care clinic industry. Recent developments in this industry such as bird groomers help in trimming beaks and nails, keeping the feathers clean and dry, and helps with uncomfortable molting. Such products are durable and attract high investment from potential buyers. Furthermore, technological advancements also help in keeping the pets entertained. Such innovations in pet accessories are boosting the demand for pet care products globally.
In 2018, the global pet care market was evaluated as $125 billion, and the market is projected to grow at a CAGR of 6%, during the forecast period 2019-2025.
Plant-Based Pet Food Gaining Traction
A cat needs 40 nutrition in the daily diet and a dog need around 37 nutrition to maintain a healthy body. The pet owners who are vegetarian prefer feeding vegan or plant-based food to their pets that provides sufficient amount of nutrition to them. The nutritional needs of pet can be fulfilled by feeding plant-based food that is known as clean meat products. For instance, in 2019, Wild Earth, a technology start-up producing clean protein dog food, launched world’s first meat-free high-protein dog food. This innovation is similar to cultured/lab-grown meat for human consumption. The product is clean, fungi, and plant-based protein for dogs. Owing to the similar innovations in dog food, it has become the fastest-growing segment in the pet care market which incrementing at a CAGR of 6% through to 2025.
North America Dominating the Global Revenue Share
As of 2018, the pet care market is dominated by North America that captured the regional share of 32%. In the U.S. alone customers spent $72.56 billion in 2018 and expected to spend $75.38 billion by the end of 2019 on pet accessories, grooming/boarding, medications, and other services. Owing to strong economic stability in the U.S., pet care is experiencing strong growth in terms of retail and current value in 2019. Trends driving the growth of the pet care market in the U.S. are:
·Pet Humanization: Growing empathy towards a pet is driving demand for the purchase of premium pet care products. This attributed to rising pet humanization, as the pets are seen as family members. The health and convenience benefits are encouraging pet owners to spend more on pet care. Owners of the pets, groom and feed them with the food that is nutrition-rich.
·Online Giants Boosting Private Label: In 2018, Amazon launched its private label pet food Wag, adding to its e-commerce section. This product is only available for Amazon Prime subscribers. The company plans to expand its portfolio for selling other pet supplies after launching dry food product Wag. This product is gaining the maximum market among U.S. customers for purchasing pet food. Such innovations have increased competitiveness in the retail business, and the retailers have recognized private label as an ongoing pet care market trend.
Other Trends Impacting the Market Growth:
· Pet Grooming and Pampering: Traditional pet grooming included a bath, haircut, brushing, and pedicure. Increasing fashion trend for pets changed the grooming therapies to massage, acupuncture, chiropractic, physical therapy, poufs, hair color, dreadlocks, feathers, jewels, and nail polish. Along with this, mobile veterinary practices are latest trend and in demand by pet owners. This business model is a revolutionary trend in pet care that provides easy and convenient services for pampering pets.
· Pet Health Insurance: Growing awareness amongst people has rapidly boomed the pet insurance industry that offers benefits to the pets. Reportedly, 23% of pets in the United Kingdom and 30% of pets in Sweden are covered with pet health insurance. This rise in the number of insurance has sustained industry growth. Thus, the pet care market is expected to grow in the coming years with an increase in the demand for pets.
· Smart Pet Feeders and Bowls: Innovations in pet feeders and bowls are trending parts of the pet care market. With the smart pet feeder, owners can feed their pets remotely, using smartphones. Obe, a startup providing IoT Pet Health and Wellness product, recently launched ProBowl in the pet care market. ProBowl is a smart dishwasher-safe dog bowl connected to phones and cloud via Wi-Fi. It reveals a trend in drinking and eating habits and likes and dislikes of pets, and helps to gain insights that can be shared with the vets.
The Major Players of the Market
Some of the companies dominating the pet care market are Spectrum Brands Holding, Inc., Ancol Pet Products Limited, Diamond Pet Foods, Colgate-Palmolive Company, The J.M. Smucker Company, Mars, Aller Petfood, Nestle S.A., and Inaba Petfood Cooperation.
· In 2018, Nestle S.A. entered the Indian pet food market by setting up a wholly-owned subsidiary Purina Petcare India Pvt. Ltd. The company launched its first premium Purina Supercoat. Nestle is expanding its product portfolio in the Indian market and raising the standards for pet nutrition.
· In 2018, Wild Earth, a vegan food startup, entered into a partnership agreement with MARS Petcare, a European based company. This partnership will enhance the demand for no-meat dog food made from renewable and eco-friendly sourced fungi. Fungi contain protein and all essential amino acids. This will influence other companies to invest in the pet care market, which will further drive the market growth.