Pet Care Market – On the Way to Steady Growth
Excerpt – The pet care industry, which includes pet food, nutrition, toys, personal hygiene, and healthcare, has seen steady growth in the past few years. It is among the industries that have shown resilience during the global pandemic—the number of pets has rather increased. While the spurt may be a temporary trend, what are the main factors driving growth in the segment? What does the future look like for the industry?
Demand for pet care services has risen over the last few years. Amid the increase in pets globally, sales of pet food, toys, essentials as well as healthcare services have grown. Spending per pet has also increased with the availability of newer accessories and treats. A few facts in this regard are:
-The global pet food ingredients market is estimated to reach approximately $53.2 billion by 2025, recording a CAGR of 6.6 percent from 2020.
-In the US, total pet industry expenditure increased from around $48.35 billion in 2010 to almost $72.56 billion in 2018.
-Emerging economies such as India, Brazil and South Korea have also seen an increase in pet population and a subsequent rise in demand for pet food.
While some segments in the pet care industry suffered a disruption in supply chain due to the pandemic, the overall industry has not been impacted negatively.
Reasons for Growing Demand
Having pets has become highly popular. There are various reasons for this:
-Many families have pets for companionship. Pets, then, become integral to the lives of owners.
-Pets like cats and dogs are known to reduce anxiety, depression and loneliness, serving as stress busters.
-Dogs are known for their protective instincts and, at times, kept for safety, especially by older people.
-There are dogs especially trained to assist blind people in their daily life, or even autistic patients.
-Empathy towards strays and abandoned puppies or kittens has increased in the last few years, reflected in the rising adoption of these animals.
-Pet owners are becoming conscious of the benefits of natural and organic pet food products, which is driving the demand for organic pet food.
The pet care industry has various segments, each catering to a specific requirement:
1.Pet food – As per estimates, the global pet food market is poised to grow by approximately $36.11 billion over 2020–24, recording a CAGR of about seven percent during this period. The trends driving growth are rising demand for food with savory ingredients, in smaller portions, and with organic ingredients that are hypoallergenic and, therefore, favorable to health.
2.Pet accessories – The global pet accessories industry, which includes toys, clothes, collars, leashes, beds and food dishes, is expected to exceed $19 billion in 2020. Of this, the pet toy category has a major share.
3.Pet healthcare – The pet healthcare market is a component of overall animal healthcare, which covers livestock too. The global animal healthcare market, at $33 billion in 2019, is expected to reach around $47.31 billion by 2026. The key drivers of the market are advancement in veterinary technologies facilitating better treatment for animals, including vaccination against zoonotic diseases.
4.Pet grooming market – Proper care and grooming of pets prevents growth of ticks, fleas, and dry patches on their coats. There are specific soaps and shampoos for this. The global market for pet shampoo was estimated at $489.6 million in 2018.
Impact of COVID-19
The global pandemic has given a boost to the pet industry. Growing despair amid the humanitarian as well as economic crisis has led families and individuals to look for ways to deal with anxiety. The keeping of pets has increased across the globe, especially in the US. With the rising need to address depression and anxiety, more and more animals are being taken in as pets. As per data, dogs top the chart among pets, followed by cats, fishes and birds. Exotic animals are low on this list.
Amid the increase in pets globally, sales of pet food, toys, essentials as well as healthcare services have grown
This has obviously contributed to sales in the pet care industry. Amid the pandemic, to prevent any danger to the health of their pets, owners have been particularly careful about taking them for timely checkups and vaccination. Growing consciousness of pet healthcare has led to increased demand for wellness products in this segment.
The spike in pet care products may be specific to the current pandemic, but overall prospects for the sector appear positive. It has benefited from the rise in pet population, although the growth rate may become more steady after the pandemic subsides. With the concept of ‘humanization of pets’ catching up, organic food, hemp oil-based medication and pet insurance are some of the trends likely to drive growth in the pet care industry. Other services gaining traction are pet grooming, pet transportation and pet hotels, services that make it convenient for working owners to keep pets.