Trends & influences of the Indian Pet Market – by Rakesh Shukla, VOSD™ Corporation
Overview
The Indian pet market has experienced significant growth over the past five years, driven by increasing pet ownership, urbanization, rising disposable incomes, and changing social attitudes towards pets. This report provides a comprehensive analysis of the companion animal market in India, with particular focus on dogs, detailing the primary segments, market size, trends, key drivers, and influencing phenomena.
Market Segments
The Indian pet market can be divided into several primary segments:
- Pet Food
- Veterinary Care
- Grooming and Accessories
- Pet Pharmaceuticals
- Pet Services
Pet Food
The pet food segment is the largest in the Indian pet market. According to the “Euromonitor International Report,” the pet food market in India was valued at approximately INR 2,500 crore in 2020, with an annual growth rate of around 13%. The segment includes dry food, wet food, and treats, with premium and specialized diets becoming increasingly popular.
Veterinary Care
The veterinary care segment includes routine check-ups, vaccinations, surgeries, and preventive care. The “IMARC Group Report” estimates this segment to be valued at INR 1,000 crore in 2021, with a growth rate of 10% per annum. The rise of pet insurance and digital veterinary services has also contributed to this growth.
Grooming and Accessories
This segment covers grooming products, toys, clothing, and accessories. It was valued at INR 800 crore in 2021, growing at an 11% annual rate according to the “TechSci Research Report”. Increased humanization of pets has driven demand for premium grooming products and accessories.
Pet Pharmaceuticals
Pet pharmaceuticals include medicines, supplements, and vaccines. The “Mordor Intelligence Report” indicates this market segment was valued at INR 700 crore in 2020 and is growing at a rate of 9% annually. Increasing awareness about pet health and wellness has spurred growth in this segment.
Pet Services
This segment includes boarding, training, pet sitting, and pet transportation. According to “Research and Markets,” the pet services market was valued at INR 500 crore in 2021, growing at a 12% annual rate. The increasing number of dual-income households has fueled demand for these services.
Market Size and Trends
The overall companion animal market in India, focusing on dogs, has shown robust growth. The total market size in 2021 was estimated to be INR 5,500 crore, with a compound annual growth rate (CAGR) of around 12% over the past five years.
- Rising Premiumization: There is a noticeable trend towards premium products, especially in pet food and grooming segments. Owners are willing to spend more on high-quality, nutritious food and premium grooming products.
- Increasing Pet Adoption: Adoption rates have surged, driven by greater awareness and changing societal norms. This has led to increased demand for veterinary services and pet pharmaceuticals.
- Growth of E-commerce: Online platforms like Amazon, Flipkart, and specialized pet stores like Heads Up For Tails have seen significant growth, offering convenience and a wide range of products.
- Digital Veterinary Services: Telehealth services for pets have become popular, especially during the COVID-19 pandemic, allowing for remote consultations and care.
- Humanization of Pets: Pets are increasingly seen as family members, driving demand for higher quality food, better healthcare, and luxury accessories.
Key Drivers
Several key drivers have influenced the growth of the Indian pet market:
- Rising Disposable Income: Higher disposable incomes have enabled more households to afford pets and spend on premium products and services.
- Urbanization: Urban living conditions and smaller family units have contributed to increased pet adoption.
- Awareness and Education: Greater awareness about pet health, nutrition, and wellness has led to higher spending on veterinary care and pharmaceuticals.
- Social Media Influence: Pet owners are increasingly influenced by social media, leading to trends in pet fashion, grooming, and unique pet services.
- COVID-19 Impact: The pandemic saw a rise in pet adoption as people sought companionship during lockdowns. It also accelerated the adoption of digital services and e-commerce for pet products.
Influencing Phenomena
Several phenomena have influenced the Indian pet market:
- Regulatory Changes: Policies regarding pet importation, breeding standards, and veterinary practices have shaped the market dynamics.
- Technological Advancements: Innovations in pet care products, telehealth, and e-commerce platforms have transformed how pet services are delivered and consumed.
- Environmental Concerns: There is a growing trend towards sustainable and eco-friendly pet products as consumers become more environmentally conscious.
- Cultural Shifts: Changing cultural attitudes towards pets as part of the family unit have driven market growth across all segments.
Conclusion
The Indian pet market, particularly for dogs, is poised for continued growth, driven by rising incomes, urbanization, and the increasing humanization of pets. With robust growth across all segments, from pet food to veterinary care and services, the market offers substantial opportunities for businesses and investors. The impact of digital transformation and changing consumer behavior will further shape the future of this dynamic market.
About the Author: Rakesh Shukla, a BTech & MBA, has spent 30 years creating many multimillion-dollar world-class software products & businesses. Rakesh manages a portfolio of successful startups – in IT, PetTech, and RetailTech including VOSD™ Vet & Pet Corporation, TWBcx™, The Better Company™ & inStore™ Retail. VOSD™ Corporation includes Vet2Trade™, VOSD AI™, VOSD Advance Vet Care™, and VOSD-on-Wheels™ which together fund VOSD Foundation™ — the world’s largest dog rescue.