India’s petcare industry, although still in its early stages, is steadily gaining momentum, driven by changing customer behavior and an increased focus on pet wellness. With more households adopting pets, particularly in the wake of the pandemic, spending on pet-related products and services is gradually picking up.

Currently valued at $3.5 billion, the market is expected to offer significant opportunities for businesses as pet parents are increasingly prioritizing the well-being of their companions.  They are no longer just looking for basic care but are seeking premium, specialized offerings—ranging from health supplements to grooming services. Projections estimate that the market could reach $7-7.5 billion by FY28, reflecting the growing demand for these premium services.

For businesses, this represents an opportunity to establish a foothold in an emerging yet dynamic sector. With ample room for expansion, investors and organizations can capitalize on evolving customer demands and their increasing focus on pet care, positioning themselves to meet the rising expectations of pet parents through innovative and specialized offerings. At Redseer Strategy Consultants, we are attuned to the market’s pulse, empowering businesses to harness emerging trends and patterns for growth while strategically guiding them on their path to profitability.

Surge in Pet Ownership: From Strays to Beloved Companions

With 32 million pets in Indian households as of FY24, pet ownership has grown significantly. The pet population in India saw a noticeable uptick during the COVID-19 pandemic, with many households adopting stray animals or rescuing pets. This shift led to a surge in the petcare market as new pet parents began spending more on pet upkeep, health, and overall well-being.

 

However, India still has room for growth compared to countries like the US and China. For instance, India’s pet population per household stands at 0.10, much lower than the US (1.06) and Germany (0.82)​. This indicates a vast potential for further growth as pet ownership evolves from a casual responsibility to a relationship of companionship and adoption trends continue to rise.

A Twofold Rise in Petcare Spending

Since FY20, spending on petcare has doubled, reaching $3.6 billion, covering both products and services. Pet food, grooming, and healthcare dominate this market, accounting for approximately 80% of total expenditure. Pet food includes essentials like dry food, wet food, and specialized dietary products, while healthcare encompasses veterinary services, vaccinations, and preventive care. Grooming covers everything from basic hygiene to specialized treatments. Other expenditures include pet accessories and value-added services such as training tools, pet insurance, and telemedicine, highlighting the broad scope of the market and the critical roles both products and services play in meeting the diverse needs of pet parents.

Our projections of $7-7.5 billion by FY28 signal a strong annual growth rate, presenting a wealth of opportunities for companies 

Key Drivers of Growth in the Petcare Market

• Growing Number of Pets:
  The culture of pet adoption and rescue is growing. As pet ownership increases, so does the demand for quality petcare products and services. Pet parents, particularly millennials and working professionals, are now spending more on ensuring their pets’ health, comfort, and grooming needs are met.

• Emerging Categories Fueling Spends:
  New categories like pet boarding services, pet insurance, and smart pet gadgets are rapidly gaining traction. Modern pet parents are seeking high-quality, specialized products, from organic pet food to personalized pet grooming.

• Macroeconomic Factors and Premiumization:
  While inflation affects discretionary spending, premium pet products are increasingly becoming popular among affluent consumers. From dietary supplements to tech-driven pet health monitors, India’s pet care market is experiencing an undeniable shift towards premiumization.

The Online Petcare Market: A Goldmine of Opportunities Await

Though online pet care spending still makes up less than 10% of the market, its potential is significant. E-commerce platforms and Online-to-Offline (O2O) channels are steadily gaining popularity as pet parents enjoy the convenience of accessing a wide variety of products and services. This growth effectively caters to time-starved consumers seeking efficient solutions for their pets’ needs.

Social media and online advertisements have also played a key role in familiarising pet owners with emerging brands. This digital presence helps newer players cater to pet parents with curated offerings, from premium food brands to innovative accessories. As online penetration remains low, the combination of online and online-to-offline (O2O) channels is expected to drive the next wave of growth, enabling new entrants to expand into various categories of products and services, such as booking appointments for grooming and veterinary care.

New-age pet care companies have adopted a generalist approach, offering both products and services to meet the growing demands of modern pet parents. Product-first companies specialize in creating or selling pet food, toys, and accessories, while service-first companies focus on grooming​ and veterinary services. Both segments are capitalizing on the growing need for specialized care and convenience, differentiating themselves through innovation and personalized offerings.

Growing Investor Confidence

The wave of innovation has also attracted significant investments. Companies in the pet care industry have been able to raise reasonable capital, propelling their growth journeys post-COVID, with revenues showing significant increases. Companies have seen a 2x to 10x rise in revenue between FY 22 and FY 23 enabling them to expand their operations and tap into the growing demand for high-quality pet products and services. 

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.

Niche Offerings for Pet Parents

New-age companies are increasingly betting on niche products. New offerings like pet insurance, smart devices, and pet care tutorials are gaining traction. For instance, pet insurance provides mobile claims submission and medical record management, while smart products like GPS trackers and remote feeding systems help pet parents monitor their pets’ health and nutrition from anywhere. Pet care tutorials equip new pet owners with essential skills and best practices tailored to their pet’s breed.

These offerings cater to pet parents willing to pay a premium for convenience and enhanced care, creating opportunities for businesses to meet the needs of a discerning customer base.

What Lies Ahead?

With the Indian petcare market projected to reach $7-7.5 billion by FY28, the emphasis on pet wellness is set to intensify. As pet parents seek high-quality, personalized care for their pets, new opportunities will arise for businesses to innovate. Whether through online platforms, premium offerings, or smart technologies, the sector promises exponential growth for those willing to adapt to shifting customer demands.

In our upcoming story, we will explore the evolving dynamics of pet parents, get detailed insights into their pet care behaviors, and examine their spending habits on their pets, the type of food they prefer, and the challenges they face in accessing pet-care products and services leading to a profound change in how people perceive and care for their pets—not merely as animals but as members of the family. 

At Redseer Strategy Consultants, we specialize in analyzing market trends and consumer behavior. Our expertise in developing tailored strategies will equip you with the right tools to capture and engage with the growing pet care segment. Our detailed market research will help you understand consumer groups and their unique preferences and behaviors.

So, whether you’re a new entrant or an established brand looking to innovate, our advisory services can help you unlock the full potential of India’s vibrant pet care sector.

Ready to seize the opportunity? Let’s talk about your business strategy. Reach out to us today for a personalized consultation or explore our latest reports for deeper insights. Download our report now.