The global pet care market is expected to cross U.S. $400 billion in value by 2028 from U.S. $295 billion in 2022, growing at a compounded annual growth rate of 5.22%, according to an outlook and forecast report for 2023-28 released on ResearchAndMarkets.com.
A press release from Research And Markets said that while the global pet care market is highly fragmented with multiple players across various segments, it continues to be dominated by international players such as Mars Inc., Nestle Purina, and J.M. Smucker Company. But multiple local players create healthy competition, forcing companies to diversify their product portfolios, the release said. With increasing demand for chemical-free and safe products, companies have started manufacturing more nutritious products with fewer chemicals and preservatives.
North America holds the biggest share of the global pet care market, accounting for over 49% in 2022, with the USA accounting for a significant stake in the North American market. The pet care market in the USA 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 potential for new products and variety in pet foods.
However, unlike in other food industries, pet owners appear to be far more loyal to brands, the report says. Thus, branding is a critical factor in the pet food industry. Frequent product recalls might hurt private labels; therefore, they must gain the confidence of pet owners through branding and promotions.
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With technology becoming an essential part of everyday life, the pet care industry is also finding ways to integrate it. In today’s mobile-centric world, pet owners use technology to monitor their pets’ health, book grooming appointments, or watch over them through webcams.
Another trend noted by the report is the growing ‘humanization’ of pets, which is creating new opportunities and supporting the growth of the pet care market. It focuses on pet health and wellness, sustainable products, and eco-friendly, natural, locally sourced ingredients. Pet owners’ expectations have shifted from high-quality pet food to humanized food. Several owners have started buying pet food products that contain natural or organic, human-grade ingredients. The desire to treat pets like a child or family member drives the sales of pet products and services, with owners willing to pay premium prices to maintain the health and hygiene of their pets. Many owners are switching from pet grooming products that contain artificial additives to alternatives comprising natural or organic ingredients, the release said.
SEGMENTATION INSIGHTS
- The dry pet food segment dominates the global pet care market, accounting for over 42% in 2022. When served dry food, pets do not create a mess; hence, pet owners prefer it.
- The veterinary care segment also dominates the global pet care market. Veterinary care enjoys a major industry share as pet owners must take them for vaccinations, treatment, and follow-ups.
- The global pet care market by beauty and cosmetics is segmented into hair & skin, dental care, and others. The hair & skin segment held the largest segmental market share in 2022.
- The global pet care market by pet services is segmented into grooming and training services. Grooming services hold the most prominent segmental share and are projected to witness the highest compound annual growth in the pet services segment.
- The global end-user pet care market is segmented into dogs, cats, and birds. Dogs are the most domesticated pets across the globe. They are known to be friendly and protective.
- The offline distribution channel had the highest pet care market share in 2022; factors such as 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.
