In the past decade, the pet industry has undergone significant transformations, evolving into a multi-faceted market that goes beyond basic pet care. Today, the industry includes not only traditional products like food and toys but also reflects the broader lifestyles and hobby cultures of pet owners. Consumer focus on pets and the trend towards humanization have become the core drivers of the pet market's growth, spurring innovation and shaping industry development.
In this article, YZ Insights into the Global Pet Industry will combine relevant information to outline the main trends in the pet industry for 2024, in terms of market potential and industry dynamics, to help pet businesses and brands identify business expansion opportunities in the coming year.
01
Market Potential
Over the past 25 years, the pet industry has grown by 450%, and the industry and its trends are undergoing significant transformations, with continued growth expected in the market. Research data shows that over these 25 years, the pet industry has only experienced a few years of no growth. This indicates that the pet industry is one of the most stable industries in terms of growth over time.
In a previous article, we shared a research report released by Bloomberg Intelligence in March of last year, which predicted that the global pet market will grow from the current $320 billion to $500 billion by 2030, primarily due to the increasing number of pets and the growing demand for high-end pet care.
02
Industry Dynamics
Upscaling and Premiumization
With pet owners' increasing focus on pet health and welfare, their demands for the quality and safety of pet care and products are rising. As a result, pet consumption is upgrading, and many products and services are gradually moving towards an upscale and premium direction.
According to research data from Grand View Research, the value of the global luxury pet market is projected to reach $5.7 billion in 2020. The compound annual growth rate (CAGR) from 2021 to 2028 is expected to reach 8.6%. This trend highlights the growth in demand for high-end food, treats, as well as complex health and wellness products for pets.
Specialization
Certain specialized pet services are becoming mainstream in the market, such as pet insurance. The number of people choosing to purchase pet insurance to save on veterinary expenses is significantly increasing, and this upward trend is expected to continue. The North American Pet Health Insurance Association (NAPHIA) report shows that the pet insurance market in the United States and Canada exceeded $3.5 billion in 2022, with a year-on-year growth of 23.5%.
Digitization and Smart Solutions
Integrating technology into pet care is one of the most innovative trends in the industry. Digitized pet care and products bring new business opportunities and marketing models. Brands can better understand consumer needs and behavior by collecting and analyzing data generated by smart devices, thereby offering more precise products and services. At the same time, smart products can also serve as important platforms for brand-consumer interaction, enhancing brand awareness and reputation.
Mobility
With the widespread adoption of mobile internet and the extensive use of mobile devices, the trend towards mobileization in the pet industry is becoming increasingly apparent. The mobileization trend provides new business opportunities and marketing methods for the pet care and product market and improves the convenience for consumers to access services and products.
Post time: Jan-18-2024
