Pet Care Market - Global Outlook & Forecast 2023-2028

MARKET OVERVIEW

The global pet care market was valued at USD 295 billion in 2022 and is expected to reach USD 400.40 billion by 2028, growing at a CAGR of 5.22%. The pet care market includes various attributes such as pet food, veterinary and medication, insurance, pet services, and others. Food is one of the majority shareholders in the market as the requirement for food is more consistent than other attributes. The variety of food for pets also has a vast portfolio as the food available is based on the age and requirements of the pet. Most vendors are also in the pet food segment, followed by grooming and training services. Further, the veterinary services also play a critical role in ensuring the pets have a good and healthy life. The pets require examination and treatment for various illnesses and infections such as ringworm, heartworm, cancer, etc. The veterinary and medication services have the second highest market share in the pet care market. Vaccinations and medication also help ensure that pets are safe and free from infection and disease.

MARKET TRENDS & DRIVERS

Increasing Technological Integration
Technology has become an essential part of everyday life, and the pet care market is finding ways to integrate it to interact with their pets. In this mobile-centric world, pet owners have found ways to connect with their pets using technology to monitor their health, book grooming appointments, or watch over them through webcams. Technology has allowed pet owners to interact with their pets while still going about their everyday activities. One of the prominent pet grooming software is MoeGo. The cloud-based solution is designed to help pet grooming salons handle client appointments, communication, and service agreements through a centralized dashboard.

Rising Pet Humanisation
The humanization of pets has created new opportunities and supported the future growth of the pet care market. It focuses on pet health and wellness, sustainable products, and eco-friendly, natural, and locally sourced ingredients. The pet owners’ expectations have shifted from high-quality pet food to humanized food. Several pet owners have started buying pet food products that contain natural or organic, human-grade ingredients. The desire to treat pets like a child or a family member drives the sales of pet products and services. Several players like Pet Place, Camp Bow Wow, The Pooch Mobile, and PetSmart offer pet daycare, retail, boarding, and grooming services.

Growing Demand for Chemical-Free Products
Pet owners are willing to pay premium prices to maintain the health and hygiene of their pets. Many pet owners are switching from pet grooming products that contain artificial additives to alternatives comprising natural or organic ingredients, which can ensure the health and well-being of pets. Recently, pet owners have become increasingly aware of the dangers of using chemical and toxic grooming products. The owners desire safe, sustainable, and eco-friendly alternatives for pet grooming, which can potentially reduce the carbon footprint of their pets. Moreover, natural and non-toxic pet products such as grooming, dental care, and food products, among many others, prevent dangerous diseases and allergies and positively influence pets' overall health.

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCT TYPE
The global pet care market by product type is segmented into food type, veterinary & medication, pet services, beauty & cosmetics, insurance, and others. The food type segment holds the most prominent share of the global market. The current market for pet food is extensively crowded due to the presence of multiple brands and new emerging competitors. The pet food market has seen intense rivalry among themselves. The vendors are developing various foods, including flavors and added nutritional benefits. Food for pets also comes in varieties for young and adult variants, which have varied nutritional benefits to ensure that the pet gets all the required nutrients based on age. The vendor Pedigree has a variety of food products such as puppy milk and chicken, meat and rice, chicken and vegetables, gravy chicken, large breed, and small breed, among many others.

INSIGHTS BY FOOD TYPE
The dry pet food segment dominated the global pet care market, accounting for a share of over 42% in 2022. By serving dry pet food, pets do not create a mess; hence, pet owners prefer it. The dry food market is witnessing growth for multiple reasons, such as the ease of availability and various economical options. Due to less water in the food product, it lasts longer than the wet food products. However, the wet pet food segment contributed a significant market share because many animals do not consume enough water, and wet pet food provides essential hydration.

INSIGHTS BY VETERINARY & MEDICATION
The veterinary care segment dominated the global pet care market. Veterinary care enjoys a major industry share as pet owners must take them for vaccinations, treatment, and follow-ups. Moreover, when the pets become ill, there is a high chance that these infections can be spread across the household. As many of these illnesses can be transmitted through saliva and contact with other pets and humans, this might cause further infections to the people and other pets in the household. Dogs and cats are more susceptible to illness as they roam around the neighborhood and sniff and lick themselves, other animals, and humans. Some common illnesses are parvovirus, rabies, kennel cough, and ringworm, among many others. Such factors further propel the importance and growth of the veterinary care segment.

INSIGHTS BY BEAUTY AND COSMETICS
The global pet care market by beauty & cosmetics is segmented into hair & skin, dental care, and others. The hair & skin segment held the largest segmental market share in 2022. Dogs and cats are major pets that spend considerable time outdoors. Dogs and cats love their time outdoors, from parks to beaches to trails to hikes, and can collect dust and other organisms on their fur during their time outside. Due to this time spent outdoors, pets accumulate bacteria, dirt, mud, germs, and ticks, among many other things. This makes the pets uncomfortable and can lead to diseases if not cared for. Shampoos and conditioners ensure that the pet is free from such infections, which can cause harm not only to pets but also to the people who encounter these pets. Hence, such reasons propel the growth of the pet shampoos and conditioner market during the forecasted period.

INSIGHTS BY PET SERVICES
The global pet care market by pet services is segmented into grooming and training services. The grooming services hold the most prominent segmental share and are projected to witness the highest compound annual growth in the pet services segment. Daily grooming reduces the chances of several health issues, such as infections, allergies, bacterial diseases, and other skin problems. Professional dog groomers use different tools and techniques to groom various sizes and breeds of dogs. The groomers are in specialized dog salons, veterinary practices, kennels, daycare centers, pet supply stores, and mobile grooming vans. Moreover, many pet owners treat dogs as family members and willingly offer premium care such as healthcare, organic food, training, and regular grooming. Dog grooming refers to cleaning a dog to ensure basic hygiene and enhance its physical appearance. Regular grooming is done to maintain the health and hygiene of a dog.

INSIGHTS BY END-USERS
The global end-user pet care market is segmented into dogs, cats, birds, and others. Dogs are the most domesticated pets across the globe. Dogs are known to be friendly and protective. This bond between the pet and the human has been known for a long time and has helped the dog segment hold the most dominant share in the end-users segment. Furthermore, potential police dogs and dogs adopted to serve in other security forces are offered advanced-level training for agility, personal protection, rescue and retrieval, and scent detection. The training programs for such dogs differ from the standard training programs regarding objectives, difficulty level, duration, and distractions. Moreover, cats are the second most preferred animal as a pet after dogs across the globe—approximately 35% of the total pet-owning population in the U.S. own cats. Cat training institutes are relatively fewer in numbers as compared to dog training institutes. Vendors offering cat training services have a good scope for growth since many individuals own cats.

INSIGHTS BY DISTRIBUTION CHANNEL
The offline distribution channel had the highest pet care market share in 2022; factors such as the broader reach in areas that lack better connectivity and high consumer trust associated with touching and experiencing the quality of products are driving the growth of this segment. One of the prime modes of equipment sales globally is through dealers and distributors. These dealers and distributors sell pet care products from original equipment manufacturers. The offline pet care product distribution systems differ from online distribution regarding technical support and customer service needs.

GEOGRAPHICAL ANALYSIS

North America holds the most prominent share of the global pet care market, accounting for over 49% in 2022. Furthermore, the U.S. has a major stake in the North American pet care market. The U.S. market is driven by specialty stores, mass merchandisers, and modern grocery retailers such as supermarkets and hypermarkets. Also, many private labels have entered the market, seeing the massive potential for new products and variety in the pet food market in the United States. However, compared to other food industries, pet owners are much more brand loyal; thus, branding is one of the very important factors in the pet food industry. Frequent product recalls might affect the private labels; therefore, they must gain the confidence of the pet owners through branding and promotions.

Europe holds a significant position in the global pet care market. The pet services sector is one of the major contributors to the overall market. The pet services market in the region provides services such as pet grooming, training, walking, and pet sitting, among many others. Some of the major grooming service providers in the region are Beaphar Ltd, Bob Martin Pvt, and Chelsea Dogs, among many others. Grooming is important in maintaining the pet's health, propelling regional market growth.

COMPETITIVE LANDSCAPE

The global pet care market is highly fragmented as multiple players exist across various market attributes. The pet food segment has witnessed the presence of multiple entities in the market; however, the global pet care market share has been dominated by international players such as Mars Inc., Nestlé Purina, and J.M Smucker Company. Further, multiple local companies create healthy competition, leading competitors to diversify their product portfolio. With an increasing demand for chemical-free and safe products, companies have started manufacturing more nutritious products with fewer chemicals or preservatives.

The global pet care market confronts the threat of infiltration with low-quality products from Chinese vendors. Major vendors continually compete for the leading position in the market, with occasional competition coming from other local vendors. Moreover, vendors manufacture pet care equipment with innovative product specifications to capture consumer interest and improve the user’s convenience. Users expect pet care products to be more lightweight, compact, and powerful, with a wide range of temperature settings. Global brands in the pet care market are introducing features in their products like longer operation duration and sensor technologies. Also, the market competition is expected to intensify further with increased product extensions, technological innovation growth, and merger and acquisition activities.