The report forecasts that the sector, currently valued at $320 billion, could surge to nearly $500 billion by 2030.
Table of Contents
The India pet market, encompassing pet products and services, has seen significant growth in recent years, achieving a valuation of USD 10.5 billion in FY2024. It is projected to experience a compound annual growth rate (CAGR) of 5.65% throughout the forecast period, with an estimated value of USD 16.2 billion by FY2032. This growth is attributed to various factors, including an increase in nuclear family structures, the trend of pet humanization, evolving attitudes towards pet ownership, the prevalence of dual-income households, urbanization, and heightened awareness regarding pet nutrition and care. The market’s expansion is further supported by a rise in the number of pets and the disposable incomes of pet owners. Pet care encompasses a range of services and products, including health, apparel and accessories, grooming, training, nutritious food, and entertainment, each interpreted uniquely by pet parents.
Additionally, the Indian pet market is influenced by the health and emotional advantages associated with pet ownership. Companionship from pets has been shown to alleviate anxiety, stress, and depression, while also contributing positively to cardiovascular health. Engaging in physical activities with pets not only enhances levels of dopamine and serotonin but also helps in reducing triglyceride and cholesterol levels. Moreover, pet owners often find opportunities to socialize with others in various settings such as pet stores, training classes, and veterinary clinics, positioning pets as facilitators of social interaction for their owners.
India Pet Market – Companion Animal Adoption
Adopting a companion animal can be among the most fulfilling choices one can make in life. This Faunalytics blog offers a comprehensive guide to facilitate successful adoptions.
Choosing to adopt a companion animal is a significant decision that should not be made lightly. Whether you are bringing home a dog, cat, or another type of pet, adoption signifies a lifelong commitment to that animal, encompassing both joyful moments and inevitable challenges.
It is crucial for prospective pet owners to grasp the full extent of their commitment. This includes understanding financial obligations, navigating the adoption process, and ensuring a successful transition post-adoption. Our data-driven overview serves as a valuable resource for contemplating the key factors involved.
Considerations Prior to Adoption
While the desire to adopt often stems from noble intentions, it is vital for potential adopters to recognize the practical implications of becoming a companion animal guardian, both in terms of finances and behavioral expectations.
The Financial Aspects of Companion Animal Care
A frequently underestimated element of companion animal adoption is the long-term financial obligation. Many individuals tend to concentrate on immediate expenses, such as adoption fees and the purchase of food, bedding, and toys. However, the reality is considerably more intricate. The lifetime cost of caring for a dog can vary between $27,000 and $42,000, influenced by factors such as breed, size, and health conditions. This total encompasses ongoing expenses like food, grooming, training, and medical care, which can often be specific to certain breeds.
Larger dog breeds, such as German Shepherds and Golden Retrievers, often incur higher healthcare expenses due to specific breed-related health issues, including hip dysplasia. In contrast, smaller breeds may require less food but can have increased grooming costs, as exemplified by breeds like Poodles and Shih Tzus. These breed-related financial obligations can catch many first-time adopters off guard, particularly those who have not specifically sought out a certain breed and therefore lack knowledge about the unique requirements of each. It is crucial for anyone contemplating adoption to consider ongoing expenses, rather than solely focusing on the initial cost of acquiring a pet.
Similar considerations apply to prospective guardians of cats and other animals. Although lifetime expenses are not typically paid all at once, it is important to evaluate both monthly and annual costs, ensuring that these expenses, along with a reserve for emergencies, are manageable within one’s budget.
It is important to note that limited financial resources do not necessarily prevent an individual from adopting a pet, nor does it imply that they cannot be a responsible guardian. Research has shown that the bond between animals and individuals experiencing homelessness can be mutually advantageous, and there is a growing movement advocating for “co-sheltering” arrangements that enable unhoused individuals to preserve these important companionships.
The Online Petcare Market: A Goldmine of Opportunities Await
Although online spending in pet care currently accounts for less than 10% of the overall market, its potential for growth is considerable. E-commerce platforms and Online-to-Offline (O2O) channels are increasingly favored by pet owners who appreciate the ease of accessing a diverse range of products and services. This trend effectively addresses the needs of busy consumers looking for efficient solutions for their pets.
Furthermore, social media and online advertising have been instrumental in introducing pet owners to new brands. This digital visibility allows emerging companies to offer tailored products, ranging from high-quality food options to unique accessories. Given the relatively low online penetration, the synergy between online and O2O channels is anticipated to propel the next phase of growth, allowing new market entrants to diversify into various product and service categories, including appointment scheduling for grooming and veterinary services.
Contemporary pet care businesses have embraced a comprehensive strategy, providing both products and services to satisfy the evolving demands of modern pet owners. Companies that prioritize products focus on developing or retailing pet food, toys, and accessories, while those that emphasize services concentrate on grooming and veterinary care. Both sectors are leveraging the increasing demand for specialized care and convenience, setting themselves apart through innovation and customized offerings.
Investor interest in India’s pet care sector continues to grow, with close to $180 million invested over the last five years. These investments reflect confidence in the sector’s growth and signal opportunities for new entrants to tap into India’s expanding pet care market.
Indian pet care market has experienced substantial growth Forecast
Market Overview
The Indian pet care market has experienced substantial growth, doubling its size since FY20 to reach $3.6 billion in FY24. Projections indicate this upward trajectory will continue, with the market expected to reach $7-7.5 billion by FY28.
Key Growth Drivers
- Increased Pet Ownership: A growing number of households are adopting pets, leading to a surge in demand for pet-related products and services.
- Humanization of Pets: Pets are increasingly viewed as family members, prompting owners to invest more in their health, nutrition, and overall well-being.
- Urbanization and Nuclear Families: Urban dwellers and smaller family units often seek companionship through pets, further boosting pet adoption rates.
Market Segmentation
The pet care market in India can be broadly divided into the following segments:
| Segment | Description | Market Share |
|---|---|---|
| Pet Food | Includes dry and wet food, treats, and specialized diets. This segment holds the largest market share. | Largest |
| Pet Accessories | Encompasses toys, bedding, leashes, and apparel. | Growing |
| Grooming Services | Offers bathing, haircuts, nail trimming, and other hygiene-related services. | Expanding |
| Healthcare | Includes veterinary services, vaccinations, and health supplements. | Significant |
Future Trends – India Pet Market
- Premiumization: There’s a growing demand for premium pet products, including high-quality food and personalized care items, as pet owners become more conscious of their pets’ well-being.
- E-commerce Expansion: Online platforms are becoming a popular avenue for purchasing pet products, offering convenience and a wider range of options to consumers.
- Health and Wellness Focus: Pet owners are increasingly investing in health supplements and wellness services to ensure their pets lead healthy lives.
- Innovative Products and Services: The market is witnessing the introduction of new products and services, such as organic pet food, pet tech gadgets, and specialized grooming services, catering to the evolving needs of pet owners.
In conclusion, the Indian pet care market is on a robust growth path, driven by increased pet adoption and a shift towards treating pets as integral family members. Businesses that adapt to these trends and offer quality, innovative products and services are poised to thrive in this dynamic market.
