Over the past decade, the pet industry has undergone a major transformation, evolving into a multifaceted market that goes far beyond basic pet care. Today, the industry includes not only traditional products such as food and toys, but also reflects the broader lifestyle and hobby culture of pet owners. Consumer concern for pets and the trend of humanization has become the core of the growth of the pet market, driving innovation and influencing the industry.The main trends of the pet industry in 2024 will be sorted out from the aspects of market potential and industry trends to help relevant pet companies and brands gain insight into business expansion opportunities in the coming year.
Market potential
With a 450% growth in the pet industry over the last 25 years,
the industry and its trends are undergoing a tremendous transformation process
and the market is expected to continue to grow.
Research data shows that in these 25 years, the pet industry only a few years did not grow.
This shows that the pet industry is one of the most stable industries for growth over time.
In a previous article, we shared a study published in March last year by Bloomberg Intelligence,
which predicted that the global pet market would grow from $320 billion today to $500 billion by 2030.
This is mainly due to the growing pet population and the increasing demand for high-end pet care.
Take the US market as an example
Regionally
The United States will remain the largest pet market with sales of $200 billion, accounting for 40% of the global pet market sales.
Driving this growth is an increase in spending on pet-related healthcare, including veterinary care, diagnostics and pharmaceuticals,
which is making pets live longer and require more expensive old age care.
By category
Pet food sales will remain the largest spending category, projected to grow 52 percent by 2030, driven by soaring prices,
reluctance to change pet diets, and the growing recognition of pets as family members.
Not only that, but with growing awareness of the impact of food on pet health, high-end fresh frozen food,
which accounts for just 1% of the market, is likely to trigger merger and acquisition activity, outpacing other categories.
From the channel
As it stands, in-store sales account for three-quarters of pet spending, and while e-commerce won't outpace physical stores,
pet spending in this category will grow significantly.
The study predicts that online sales could double to $60 billion by 2030, increasing market share from 22% to 30%.
Among them, Chewy and Amazon may become the leaders of pet e-commerce platforms,
accounting for more than 70% of sales. Large chains like Target (TGT) and Walmart (WMT) are also favored for the convenience of their all-around shopping.
According to the latest Research data from Research And Markets, the global pet care e-commerce market is expected to reach $25 billion in 2023,
and is expected to reach $41.24 billion by 2028, with a compound annual growth rate of 10.53%.
From the perspective of pet owners, a survey showed that about 22% of millennials
and a growing number of Gen Z would prefer to have a pet rather than start a family.
Among these younger generations, the trend towards closer bonding with pets is very clear.
About 76 percent of people aged 20-38 own at least one pet, and more than half of them own a dog.
As predicted, in 2023, millennials will surpass baby boomers to become the majority of pet owners.
The next year will be a "battle for the throne" between Gen Z pet owners and millennial pet owners,
who will influence the development trend of the pet industry.
