9 Pet Industry Trends (Key Insights & Predictions)
The pet industry continues to evolve rapidly, with new trends emerging that cater to the ever-changing needs of pet owners and their furry companions. Here are 9 significant trends in the pet industry for 2023 and beyond, reflecting how our relationship with pets is becoming more sophisticated and integrated into our lifestyles.
1. Expansion of Pet Services
The landscape of pet services is evolving beyond traditional offerings. From specialized services like pet photography, pet party planning, to even pet dating platforms, the surge in niche markets underscores the rising sentiment of pets as integral family members.
Supporting this trend, Morgan Stanley anticipates pet services to dominate growth within the pet industry. Current projections forecast a 143% increase in spending by 2030, reaching $118 billion—surpassing earlier estimates of $127 billion for the same period.
2. Sustainable and Eco-Friendly Products
As environmental consciousness continues to rise globally, the pet market is experiencing a significant uptick in demand for sustainable products. Items like biodegradable waste bags, eco-friendly toys, and sustainably sourced pet foods are becoming increasingly popular. This shift gained momentum in 2016 when millennials, known for their heightened focus on sustainability, emerged as the largest pet-owning demographic.
However, according to Caitlyn Dudas, executive director of the Pet Sustainability Coalition (PSC), a nonprofit focused on promoting profitable environmental and social practices, steering the industry to meet this growing demand is an ongoing process.
3. Tech-Infused Pet Care and Veterinary Services
Pet care is being revolutionized by technology. Popular tools like pet wearables, GPS trackers, smart feeding devices, and health monitoring apps are increasingly becoming part of pet owners’ arsenals to ensure their furry friends’ well-being.
In a parallel development, tech-enabled veterinary clinics are reshaping veterinary technology. These advanced clinics integrate various technologies such as mobile practice apps, online appointment booking, AI support, and remote diagnostic tools. This growth in technological integration, driven by enhanced funding and collaboration, is setting new standards in veterinary care.
As this trend progresses, an increasing number of veterinary practices are expected to adopt these cutting-edge methods, paving the way for a more technologically sophisticated approach to pet health.
4. Personalized Pet Nutrition
The trend of personalized pet nutrition is gaining significant momentum. Pet owners are increasingly opting for tailored diets, including customized pet food subscriptions and diets specially formulated for their pets’ unique health requirements, breeds, or age groups.
This shift towards personalized pet foods is highlighted by insights from ADM analysts. A 2021 survey by Mintel revealed that a staggering 88% of pet owners consider preventive health measures for their pets crucial. Furthermore, a 2022 FMCG Gurus report indicated that 40% of pet owners globally rely on specialized pet products to enhance their pets’ wellness.
5. Focus on Pet Health and Wellness
The focus on pet health and wellness is intensifying, extending beyond physical care to encompass mental well-being. This shift has given rise to a plethora of products and services aimed at enhancing pets’ lives, from items that alleviate anxiety to various supplements and even specialized pet therapy services.
In particular, the global CBD pet market has seen a notable surge. As reported by Grand View Research, the market’s value stood at approximately USD 195.98 million in 2022 and is forecasted to expand at a compound annual growth rate (CAGR) of 31.8%. This growth is partly fueled by promising research, such as a pioneering study conducted at Cornell University.
This study revealed that CBD could play a significant role in managing pain, particularly for dogs suffering from osteoarthritis. Remarkably, over 80% of the canines involved in the study experienced reduced pain levels, leading to enhanced comfort and increased activity.
6. Growth of Pet Insurance
As veterinary costs continue to soar, pet insurance is increasingly seen as a vital investment for pet owners. The industry is moving towards offering more comprehensive coverage plans, reflecting the escalating expenses associated with pet healthcare.
In 2022, the pet insurance market was valued at USD 9.4 billion and is projected to grow at a compound annual growth rate (CAGR) of 17.04% from 2023 to 2030. This growth is driven by factors such as the increasing pet population, the adoption of pet insurance in markets where it was previously underutilized, rising veterinary care costs, initiatives by key companies, and the growing trend of treating pets as family members.
Accident and illness policies, which cover a wide range of conditions from acute and chronic diseases to medications and diagnostic tests, are the most commonly offered by pet insurance companies. Due to their comprehensive nature, these policies are expected to see the fastest growth in the years ahead.
7. Mobile Pet Services
Mobile pet services are revolutionizing convenience for bustling pet owners. The trend includes mobile grooming, veterinary services, and pet sitting, all brought directly to your home for ultimate ease.
In the realm of pet sitting, the dog segment leads the way, accounting for a substantial revenue share of 54.2%. The rising popularity of subscription-based dog toy services among owners is also fueling demand for animal toys in the market.
The presence of numerous dog sitters and the expansion of services by market players to cater to additional animal types, such as dogs and other pets, are further contributing to the growth of mobile pet services.
8. Alternative Pet Food
The pet food industry is currently experiencing a significant shift towards alternative diets. Notable trends include the rise of plant-based options, insect-derived proteins, and lab-grown meats, all propelled by increasing health considerations and sustainability concerns.
This surge is backed by data from the plant-based pet food market report, which underscores the growing demand for organic food. Key factors propelling this trend include the vegan movement’s momentum, the changing perception of pets as family members, and the increasing number of vegan pet owners seeking plant-based diets for their furry companions.
These diets are packed with essential nutrients, including proteins, fats, vitamins, minerals, and fiber, ensuring the wellbeing of pets. And, despite the logistical challenges introduced by the COVID-19 pandemic, the plant-based pet food sector has shown resilience and continued growth.
9. Pet-Friendly Travel and Accommodation
The trend of traveling with pets has seen a marked increase, driving a growing demand for pet-accommodating travel options and lodgings. This surge has led to the emergence of pet-friendly hotels, pet-centric airline policies, and vacation plans that cater specifically to our four-legged companions.
In the US alone, roughly 2 million domestic animals board commercial flights each year. Delving into popular destinations for these jet-setting pets, a TripAdvisor study, highlights that a significant 61% of dogs are most taken with US trips, trailed by Canada and the UK.
These trends showcase a dynamic shift in the pet industry, reflecting a deeper integration of pets into our daily lives and societal values. As pet ownership continues to rise, we can expect these trends to further shape and define the future of pet care and pet-related products and services.
FAQs About Pet Industry Trends
What is the most demanded pet?
The most demanded pet globally is typically the dog, closely followed by cats. These two have long been favorites due to their companionship and bond with humans.
Why are pet supplies in high demand?
Pet supplies are in high demand because of the rapidly growing number of pet owners and the widespread trend of treating pets as integral family members, necessitating quality care and products.
What is the largest pet business?
The pet food sector dominates as the largest segment in the pet business, generating billions in sales annually. This is attributed to the essential need for nutrition for pets.
What do pet owners buy most?
The primary purchase for pet owners is pet food; however, health, wellness, and grooming products are also major categories that see consistent sales.
What age group buys the most pet products?
Millennials, typically those in their mid-20s to late 30s, lead the pack as the age group that purchases the most pet products, reflecting their strong bond with their pets and spending habits.