In 2023, the worldwide pet industry sales have achieved $355 billion with a year-on-year growth of 6.9% and is predicted to swell to $500 billion by 2030. Such cheerful statistics show the powerful potential of the future pet industry. Next, we will take you to make clear the industry trend and shift and have a brief analysis of the current industry products and services.
Trend and Shift
The market must accommodate the customer’s needs. Diversified demands and preferences of modern pet owners facilitate the development of the pet industry. Next are some major trends of the developing pet industry.
1. Pet Population
As the demographic changes, multiple single elders, childless families, and unmarried young people adopt pets to flavor their lives. Especially, the younger generation started to become the main force of pet ownership. According to the statistics of the 2023~2024 China Pet Industry White Paper, over 56.7% of Chinese pet owners born after 1990 hold their pets.
This trend accelerated during the pandemic, people paid much attention to lovely pets to enrich their sealed and sterile life. In 2022, the number of global pets (dogs and cats) was about 93 million, increased by about 10 million from 2019. In 2023, the global pet population has increased by over a billion.
2. Pet Humanization
Moreover, pet humanization has a bearing on the pet market. A growing number of pet owners value their pets as a part of their family just like a human member. In those pet owners, the younger generation(18 to 35 years old), who holds many different pet nurturing concepts and ways, occupies a large portion, maintaining higher demand and expense than other age groups.
Focusing more on their pet’s life quality and health, pet owners are willing to spend more for their pets. For example, the pet supplement market, increasingly relevant in the pet care market, was valued at $0.6 billion in 2023 and is projected to reach $1 billion in 2035, increasing by a CAGR of 4.3%.
3. E-commerce
Due to the proliferation of online platforms, pet products and services are easier to access a wide variety of choices for their pets. In 2023, the global pet care e-commerce market size was rated at USD 90.23 billion in 2023, growing at a CAGR of 7.64% from 2024 to 2030. And the pet industry will continue to be a significant motor to the E-commerce industry.
Under such a trend, the pet industry has gradually shifted to diversified, high-tech, pet-friendly, and scientific with unprecedented development speed. This also means that there are great challenges and chances for the pet market and pet product brands.
Main Pet Categories
According to the research of the 2023 pet owners from TGM, 58% of respondents surveyed are pet owners. Among them, 59% hold dogs and 53% have cats. Dogs and cats enjoy great preference and dominate the current pet market. However, other smaller interests like fish (9%) and rabbits(4%) obtain more and more public attention.
The dog is the most beloved pet for global pet owners and there are approximately 470 million pet dogs worldwide. This also directly makes dog products best-selling in many segments. Next, we will introduce pet products and services mainly based on dogs and cats, the two largest pet markets.
Main Products and Services
The pet industry, according to the pet’s consumption structure, can be classified as pet food, pet supplies, pet care, pet services, and pet breeding. Here we mainly introduce the former four categories.
1. Pet Food
As an essential expense for pet owners, the worldwide pet food market in 2023 has achieved $133.9 billion dollars, anticipated to develop annually by 5.26% CAGR from 2024 to 2029. In particular, the natural and premium pet food categories may witness strong growth for catering to pet owners’ high-quality demand.
Among them, by the purpose, pet food can be divided into staple food, snacks, and health products. Of course, pet staple food is the largest market, accounting for about 52%.
Commercial dog and cat foods mainly have two forms: dry and wet food. There are various types of pet food according to their water content and ingredients, for instance, canned food, freeze-dried food, and semi-moist food.
Regarding pet snacks, their interactivity and functionality are always considered, some for rewards, and the other for teeth grinding. Now pet owners have more choices in a diversity of pet treats.
As for pet health supplies, it is used for daily maintenance and nutrition. The same as human beings, nutritional vitamins, probiotics, and fish oils also benefit pets. With them, pets can effectively enhance their immune system and prevent sickness.
As the essential needs for pets, the staple food market will steadily grow along with the increasing pet population. Meanwhile, pet snacks and health supplies will have a stronger presence for higher requirements for pet wellness and health.
2. Pet Supplies
Pet supplies hold a wide segment for they are almost equivalent to our humans, and it mainly includes two large categoriesm, namely daily products and care products. The next figure is the expenditure distribution of pet supplies segments of Alibaba.
The pet daily supplies cover almost every life respect, displaying the diversification and richness of the pet supplies market. The first echelon takes over almost 42% of sales, and they are pet cleaning and grooming, pet toys, and pet collars and belts. The second and the third accounts for about 38% and 19% respectively.
It is noteworthy that the smart pet supplies have gradually been a hot spot in the pet market as the shift of the scientific pet nurturing concept. According to the report from Global Market Insights, the smart pet market was valued at $5.75 billion in 2023. By 2032, it is estimated to achieve $35 billion by 2032 growing at a CAGR of 15%.
We can see that the smart pet economy will experience a long period of spring, and next is a prediction about the consumption distribution of smart pet products in 2028.
Beardpet is engaged in the innovation and production of smart pet products, including smart pet feeders, fountains and more. We are committed to making breakthroughs in our existing products and exploring more smart products by leveraging the accomplished manufacturing capability and mature expertise of our parent company which is an electronics manufacturing enterprise.
3. Pet Care Services
The global pet care market was valued at $246 billion in 2023 and is projected to grow from 259.37 billion in 2024 to USD 427 billion to $368 billion by 2032, estimating a CAGR of 6.45% in the forecast period. As pets become more important for pet owners, pet care services start to contribute more to the pet market.
The pet care industry with various segments mainly consists of pet care products and pet care services. Pet care products are included in pet food and pet supplies. As for pet care services, it contains a wide range of segments, including pet insurance, veterinary services, pet boarding, pet aftercare, pet healthcare, and digital health. Here we mainly introduce the former four profound types.
Pet Insurance
The global pet insurance with a calculated USD 11.87 billion market size in 2023 is reckoned to grow at a CAGR of 14.15% from 2024 to 2030. Pet insurance now is inevitable for responsible pet parents to enhance their financial security and guarantee their furry kids’ health.
By the type of insurance, accident and illness insurance dominated the pet insurance market with a share of 84.92% in 2023. Regarding the pet type, dog insurance occupied an important place with a share of 59.47% in 2023.
Veterinary Care
Veterinary care also boomed under the tide. The growing number of chronic diseases and livestock animals ask for better veterinary care. The market size of the veterinary care market is estimated at $8.22 billion in 2024 and projected to be $119.97 billion by 2029 at a growing CAGR of 5.59%.
Pet Boarding
Valued at USD 6.72 billion in 2022, the global pet boarding services market is expected to grow at a lucrative CAGR of 8.30% from 2023 to 2030. There are various types of pet boarding, such as pet daycare, dog kennels, and luxurious pet hotels. Pet owners can choose in line with their leaving duration and expected services.
Pet Aftercare
Notably, the worldwide pet funeral services market size was rated at $1.76 billion in 2023 and is expected to increase at a CAGR of 11.36% in the next six years by 2030. Besides, the dog aftercare owns 50% market share in 2023 due to their significant population around the world.
The pet aftercare industry started to possess its place in the service market. Aftercare services provide pet parents with a wonderful way to memorize their pets and find the last sense of comfort.
With the preference for companion animals and enhancing awareness of pet care, the pet care industry will keep on boosting. We can forecast ubiquitous demands for pet services and a flourishing pet care market in the coming years.
Conclusion
On the whole, the pet industry will continue to flourish in various segments in the next many years, resulting from the trends of booming pet population, pet humanization, and e-commerce. Swimming with the tide, we can build more connections with global pet owners, this is just what Beardpet is doing.
