The emergence of pets as family members is driving consumer spending on pet care. Increasing pet ownership has pushed global spending on pet care products like treats, healthcare, toys and other accessories. Stay-at-home restrictions due to COVID-19 outbreak have presented the perfect opportunity for pet ownership and spend time with pets. These benefits are creating strong demand for pets and driving pet adoption rates.
Factors such as higher disposable incomes and nuclear families are driving the adoption of pets, driving the pet care market. In addition, the growing popularity of online channels along with the option to connect with professionals such as veterinarians remotely through telehealth or other online options is driving the pet care market. Pet owners are opting for premium products for their pets including products such as organic pet foods, and pet grooming services among others.
The market growth is facilitated by increasing shift from traditional foods toward gourmet options, prompting brands to offer innovative products. In addition, the involvement of millennial customers who are willing to purchase organic products and spend on high-end pet hotels is expected to present new growth opportunities. Technology is enabling advanced products for pet care, including pet cams, automated feeders, pet tracking wearables, and pet tracking apps to keep track of pet maintenance.
Global Pet Care Market to Reach $241.1 Billion by 2026
Amid the COVID-19 crisis, the global market for Pet Care estimated at US$179.4 Billion in the year 2020, is projected to reach a revised size of US$241.1 Billion by 2026, growing at a CAGR of 5.2% over the analysis period. Pet Food, one of the segments analyzed in the report, is projected to record a 4.8% CAGR and reach US$113.9 Billion by the end of the analysis period.
After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Veterinary Care segment is readjusted to a revised 5.1% CAGR for the next 7-year period. Rise in the number of pets around the world, and rising disposable incomes of people over the years are driving growth in the pet foods market. Demand for pet foods is also being favored by the trend towards online purchases of pet foods and the growing influence of clean labeling regulations. Veterinary care is becoming an increasingly important aspect of pet care. The segment covers routine veterinary care, and sales of pharmaceuticals products.
The U.S. Market is Estimated at $79.3 Billion in 2021, While China is Forecast to Reach $7.9 Billion by 2026
The Pet Care market in the U.S. is estimated at US$79.3 Billion in the year 2021. China, the world's second largest economy, is forecast to reach a projected market size of US$7.9 Billion by the year 2026 trailing a CAGR of 7% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.2% and 5.6% respectively over the analysis period.
Within Europe, Germany is forecast to grow at approximately 4.1% CAGR. Developed economies in North America and Europe are the largest spenders on pet care. Higher disposable incomes and nuclear families have resulted in large adoption of pets in these markets. In addition, established pet care services in these markets are aiding growth of the market. The humanization trend is further aiding demand for a range of pet care products and services. China represents a promising regional market for pet care, due to rising adoption of pets and companion animals in the country.
OTC/Supplies Segment to Reach $51.3 Billion by 2026
The rising awareness about pet health and diseases are leading to an increase in demand for OTC pet medications. The availability of OTC drugs at competitive prices and through various distribution outlets is contributing to a rise in sales. Among the various medications, the demand is high for flea & tick and pain relief and arthritis products. This is due to the fact that flea allergy, dermatitis and lyme disease are most commonly occurring diseases in pets, which are transmitted by fleas and ticks.
In the global OTC/Supplies segment, USA, Canada, Japan, China and Europe will drive the 5.4% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$32.2 Billion in the year 2020 will reach a projected size of US$46.4 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$4.2 Billion by the year 2026, while Latin America will expand at a 6.8% CAGR through the analysis period.