India’s petcare industry is undergoing a transformation, helped by the growing recognition of pets as family members. The growing bond between people and their pets is no longer a simple relationship of ownership—it’s a transformation into full-fledged parenthood, leading to a shift in spending habits, preferences, and expectations.
This evolution, as covered in our previous article “From Kibble to Care: Understanding India’s Evolving Petcare Market,” highlighted the enormous potential for businesses. We connected with ~500 pet parents in metro cities to delve into the dynamics shaping pet parents’ choices, and the opportunities they offer to brands who are ready to tap into a fast-growing market driven by premiumization, emerging petcare categories, and innovation.
The Evolution of Pet Ownership: From Owners to “Pawrents”
Pet ownership in India has come a long way. The way people perceive pets in India has undergone a significant shift over the past few years. Pre-pandemic, most pet owners had a more functional approach—spending less time with their pets, opting for home-cooked food, and visiting the vet occasionally. However, the pandemic altered this behavior as work-from-home arrangements allowed pet parents to spend more time with their pets, leading to frequent grooming at home and a greater focus on their pets’ overall well-being. As a result, pet parents started exploring more convenient solutions like packaged food alongside home-cooked meals.
Now, in the post-pandemic era, we are witnessing the rise of “pawrents”—pet owners who prioritize their pets’ health and comfort as much as their own. These pawrents which largely consist of millennials and GenZ folks have become increasingly sophisticated in their approach to petcare, opting for grooming services at spas, preferring packaged food for convenience, and ensuring regular vet check-ups. This shift has opened new avenues for businesses, creating room for premium, innovative products and services
Segmentation of Pet Parents: Different Buyer Profiles
Pet parents are not a monolithic group, and understanding their varied needs is crucial for any business aiming to tap into the petcare market. Based on their buying behavior, pet parents can be segmented into four distinct groups:
- Value Buyers: Primarily from smaller cities, these pet parents seek affordable solutions without compromising basic quality. They rely on homemade food, at-home care, and basic localized grooming services. Their preferred channel for purchases remains offline, and they expect affordable products.
- Brand-Loyal Discount Seekers: Predominantly from metros and Tier 1 cities, this group sticks to trusted brands but actively seeks discounts. They often use local stores for supplies and vet clinics for healthcare, with occasional grooming services. Offline-first, they expect better brand availability and deals.
- Convenience-First Buyers: These young, busy individuals from metros prefer branded, diet-specific pet food and frequent grooming and training services. Online-first, they prioritise convenient and speedy delivery of petcare services. This segment thrives on platforms that offer a seamless petcare shopping experience with a focus on speed and community involvement.
- Experience-Oriented Shoppers: High-income small families and couples in metros fall into this category. They seek personalised, wellness-focused products, prefer customised supplies, and regularly use vet-on-call or teleconsultation services. They engage in periodic grooming and expect new experiences for their pets, blending online discovery with offline enjoyment.
Spending Trends: A Snapshot of Petcare Expenses
Now that we know who pet parents are, let’s examine how much they are spending. Pet parents in India spend roughly ₹50,000 annually on petcare products and services, accounting for 5-8% of their household income. But where is this money going?
- Food: Approximately 16% of the total spending goes towards food, with a growing preference for packaged products.
- Healthcare: Around ₹14,000 per year is spent on healthcare services like vaccinations and consultations, making up ~30% of the overall spending.
- Grooming: Grooming services account for 25% of service-related expenses, with increasing demand for professional grooming outside the home.
- Miscellaneous: About ₹15,000 is the share of other spends with close to ₹4500 spent on accessories and the rest on miscellaneous activities such as pet daycare and walking services.
This rise in petcare spending highlights the increasing emphasis on premium and specialized services, making it crucial for businesses to offer products that meet the evolving needs of pet parents.
Offline Dominates, But Digital is Gaining Ground
While digital platforms are making inroads, the bulk of petcare spending still happens offline. Local veterinary clinics, physical pet stores, and individual service providers account for 84-85% of offline petcare purchases. However, e-commerce platforms are slowly carving out a larger share of the market, driven by convenience-first buyers. Subscription models, in particular, have seen a spike, offering recurring deliveries of pet food and grooming supplies.
With this in mind, businesses need to optimize their presence across both online and offline channels to capture the growing demand for convenience.
Packaged Food: A Rising Trend
Packaged pet food is gaining significant traction, with 65% of pet parents now providing a mix of homemade and packaged food. A further 19% rely solely on packaged food. Veterinarian recommendations are a major factor driving this shift, as many pet parents report seeing improvements in their pets’ health after switching to packaged options.
In addition, the convenience factor cannot be overlooked. As one pet parent put it, “Packaged food has been a lifesaver for me on busy days when I don’t have time to prepare.”
Veterinary Care: Growing Demand but Persistent Challenges
Veterinary care has transitioned from a reactive service to a more preventive one. Pet parents now visit vets not just when their pets are unwell but for routine vaccinations and check-ups. Around 47% visit the vet for vaccinations, while 46% go for regular health assessments.
However, challenges remain. Pet parents frequently complain about long waiting times, unskilled staff, and high costs that do not always align with the quality of care provided. These pain points present a clear opportunity for businesses to enhance service quality and efficiency, ensuring that pet parents feel they are getting value for their money.
Grooming: Increasing Demand, Yet Quality Can be Improved
Grooming services, while growing in demand, are another area where pet parents face challenges. Most grooming services are availed outside the home, with 74% of pet parents opting for local pet groomers. However, many express dissatisfaction with the service quality, citing untrained staff, long waiting times, and poor grooming standards as major concerns. These challenges highlight a critical gap in the market, where businesses that can provide skilled, professional grooming services will have a clear competitive advantage.
Opportunities for Market Innovation
The evolving needs and preferences of pet parents in India present a wealth of opportunities for businesses. There is a growing demand for high-quality petcare products and services, particularly in the following areas:
- Veterinary Services: Addressing the gaps in skilled staff and improving service quality and efficiency will be key to capturing a larger share of the petcare market.
- Packaged Pet Food: Companies can innovate by offering specialised diets, organic products, and vet-approved food that caters to different life stages and health conditions.
- Grooming and Training: With rising demand for professional grooming and behaviour training services, there is a significant opportunity to enhance service quality, reduce waiting times, and deliver personalised care.
At Redseer Strategy Consultants, we understand that the key to success lies in truly grasping the evolving needs of consumers. Our deep expertise in the petcare market allows us to develop strategies that are not only aligned with current trends but also tailored to meet the specific demands of various buyer segments.
Whether you’re a new-age player or an established brand, we can help optimize your growth strategy. From enhancing channel effectiveness and operational efficiency to driving innovation through technology, Redseer offers end-to-end support that ensures businesses are equipped to meet the demands of today’s pet parents.
Let’s discuss how we can collaborate to shape your next move. Dive into our latest insights by downloading the full market report and discover strategies to unlock new opportunities.