Pet Services Market Overview:

The Pet Services Market Size was valued at USD 3.64 Billion in 2023 and is expected to reach USD 6.95 billion by 2032, growing at a CAGR of 7.46% over the forecast period 2024-2032.

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This report covers precise insights and trends regarding the Pet Services Market, and also statistics related to the market dynamics. It examines the frequency and scope of pet health conditions, as well as trends in veterinary services utilization and pet pharmaceutical use. The study examines pet insurance penetration rates, analyzing coverage trends and regional adoption. It also looks at the increasing demand for grooming, boarding, and wellness services. It also includes a category-wise breakdown of spending on pet healthcare including veterinary care, pharmaceutical, insurance, and wellness. Grossly by offering data-based views into changing consumer behaviours, growth agents across their industries and regional payment behaviours should provide interesting intelligence to pet healthcare and offerings stakeholders.

Trends in humanization and pet ownership drive the demand in the pet services market Recent government statistics reveal ownership of pets has become more familiar with individuals treating pets as part of their family. This trend is backed up by statistics from the American Pet Products Association, showing that 70% of U.S. households have pets. The U.S. government also focuses on pet welfare and pet safety standards, which support market growth. Furthermore, technological innovations and digital platforms have improved service accessibility, which has also driven market growth. U.S. government statistics report that pet spending has soared as pets are family members now. In 2023, the US represented a 22% share of the Pet Services Market.

Pet Services Market Dynamics

Drivers

• The humanization of pets has led to increased spending on premium products and services, as owners seek high-quality food, grooming, and healthcare for their animal companions. ​

​The humanization of pets has emerged as a major factor driving growth in the pet services market, as owners increasingly consider their animals as an integral part of their family. This trend has resulted in increased demand for high-quality offerings that prioritize the health and happiness of animals. In 2024, global pet care sales rose by 5.9% to reach USD 197.6 billion, underscoring the growing investment in pet-related expenditures. Interestingly, the US also dominates mammal premium dog food and high-end pet supplies. ​

The trend is also true in the UK, where seasonal pet treats, toys, and food are seeing sales increases. The recent report reported a significant surge in online sales while recording a 98% increase in dog toy sales in the previous year. This also reflects a burgeoning trend among Britons to involve pets in holiday festivities, which underscores the humanization trend. ​In China, the aging pet population has led owners to increasingly spend on specialty services and products for older pets. Last year the pet sector saw RMB 300 billion (USD 42 billion) in spending, up 7.5%. Companies like PetKit, expanded from automatic feeding already into pet health diagnostics, continuing the trend toward pet-ownership convenience. The rising trend of pet humanization among the masses across the globe is resulting in the enhancement and establishment of even more pet-oriented businesses and services.

Restraint

• The pet care industry remains largely unorganized, with a dominance of unregulated practices in services like grooming and veterinary care, leading to inconsistent quality and pricing. ​

The Indian pet care industry is experiencing rapid growth. Nevertheless, such growth is limited by a largely unorganized industry, resulting in irregular experience and pricing. The acute shortage of licensed veterinarians is a major constraint one veterinarian is available for every 2 million animals in India, where there are an estimated 30 million pets. Lack of standardized regulations and oversight means services are delivered variably. The pet products and services market continues to be fragmented, with local offline retailers controlling a large share of the business despite the increasing demand. Standardization of regulations, the formation of bodies with trained professionals and organizing providers for consistency in quality and pricing are key to address these challenges.

Opportunity

• The integration of technology in pet care, such as smart collars, automated feeders, and health monitoring devices, is revolutionizing the market and creating new avenues for growth.

The integration of technology into pet care presents significant opportunities for enhancing pet health, safety, and owner convenience. Newer innovations like automated feeders, health monitoring wearables, and interactive toys have also emerged to help improve your pet's well-being and to help ease the burden on owners. ​Pet owners in recent years have become more invested in their pet’s health and wellness, creating a much broader demand for innovative products that measure activity, monitor vitals, offer consultations, and more. ​ Automated pet care solutions are also gaining traction. One example is the Pitpet Smart Automatic Cat and Dog Feeder, which stores six liters of food and has gained more than 2,600 five-star ratings, and is currently available at a 19% discount, reducing its price to $30. In addition, wearable health monitoring devices are becoming an essential part of the pet care ecosystem. These machines monitor the vital signs of pets, catch signs of health issues before they escalate, and provide early interventions without the stress of the clinic visit. These technologies help improve the quality of life for pets and can bring convenience and peace of mind to owners and create a more connected and informed experience in taking care of pets.

Challenge

• Supply chain disruptions have impacted the availability and cost of pet products, posing challenges for businesses to maintain consistent supply and manage costs effectively.

The pet services sector is currently facing substantial supply chain issues impacting product and service availability and pricing. One issue to note is the industry's heavy dependence on imported vitamins, especially from China, which accounts for more than 78% of all U.S. vitamin imports. Such dependence risks shortages and higher prices if supply chains are disrupted. ​Moreover, labor disputes and regulatory challenges at major ports, among them on the U.S. West Coast, have caused delays and higher costs for pet food manufacturers. For example, Toyota has faced some disruptions at the ports of Los Angeles and Long Beach, causing products to be delayed or pile up in warehouses, which adds to costs and could lead to lost sales. These supply chain issues are compounded by heightened consumer demand; e-commerce sales of pet food have seen significant growth and are expected to comprise nearly half of the market by 2025. Companies are investing in supply chain resilience, exploring alternative sourcing strategies, stabilizing product availability to ensure consistent customer satisfaction, and adopting tech-driven solutions to overcome these challenges.

Segmentation Insights

By Pet Type

The dogs segment accounted for 79% of the revenue in 2023 and led the market. This is largely because there are so many dog owners in the world and a large spectrum of services is offered to dogs, from grooming and training to boarding. Government statistics indicate that dogs are the most common pets in many countries, which aligns with their significant market share. For example, Data from the U.S. Department of Agriculture indicates that dogs are the most common pets and our love for them has pushed growth around the need for dog-oriented services. The upward trend of humanizing dogs has resulted in increased spending on high-end services customized for them, which has cemented their hold in the market.

Government efforts to enhance the living conditions of pets indirectly contribute to the growth of the dog services market as well. The growth of specialized services for dogs, including physical therapy and behavioral training for canines, is helping facilitate the segment's dominance. The dominance of the dogs segment in the pet services market is in line with wider social trends where pets are more and more seen as family members. And that change has resulted in an explosion of dog-centric businesses that cater to a variety of needs, from care to pampering. Consequently, the demand for exceptional puppy care services continues to grow, as there is a significant market opportunity for offering dog services that are in line with consumer requirements.

By Service Type

The pet boarding segment dominated with the highest revenue share of 26% in 2023. This is due to the increasing demand for temporary pet care services, particularly by busy pet owners. The government data highlighted growth in pet ownership among people who work, which creates a need for boarding services during travel. It's convenient and offers a wide range of facilities, from short- to long-term stays, that suit the needs of every pet owner. Moreover, the advent of pet-friendly accommodations, along with specialized boarding facilities has made this type of service more attractive, therefore, increasing the market share substantially.

The growth of this segment in boarding is also driven by more government regulations that focus on adequate quality and safety of pets at care facilities. This regulatory climate builds trust with pet owners and encourages them to use boarding services more frequently. Additionally, the advent of digital platforms has simplified the process of booking boarding services, allowing for greater accessibility and convenience for owners of pets. The prominence of the pet boarding segment reflects the changing needs of pet owners, who want trustworthy and high-quality care for their pets. It is expected that the demand for boarding services will experience an increase as demand increases and consumer preferences lean toward more reliable options that are easy. This trend highlights the importance of investing in modern, well-equipped boarding facilities that cater to the diverse needs of pets and their owners.

Pet Services Market By Delivery Channel

Commercial properties accounted for the highest revenue share 54% in 2023. This dominance is due to the widespread availability and accessibility of commercial pet service centers, which offer a comprehensive range of services under one roof. According to government data, commercial facilities are popular due to their convenience and wide range of offerings, such as grooming, training, and veterinarian services. Commercial facilities have a considerable market share due to the convenience of booking and managing services with digital integration, which has made the appeal of commercial facilities even greater.

Commercial facilities are also guided by government standards to maintain high service quality and ensure the welfare of the pet. Such regulations and oversight foster confidence in pet owners, leading them to prefer commercial facilities for meeting such needs. Furthermore, the new range of services and packages provided by most commercial facilities has heightened their attractiveness, offering appeal to many pet parents.

Pet Services Market Regional Analysis

In 2023, the North American region held the largest market share at 34% in terms of revenue. NA the United States, is the leading market for global pet services, owing to its developed pet care infrastructure and high pet ownership rates. With nearly 70% of households in the U.S. owning pets, the sector is backed by advanced veterinary care facilities and enabled by developing pet care solutions. The U.S. dominates the North American pet care market due to high expenditure on premium pet services, particularly among millennial consumers who treat pets as integral family members. Canada is also seeing impressive growth, with increasing rates of pet adoption and improving awareness around pet health and wellness.

Asia-Pacific is the fastest-growing market and is primarily driven by rapid urbanization, increasing disposable incomes, and rising pet ownership. The demand for professional pet care services is experiencing a crescendo in China, Japan, India, and other countries on the back of changing consumer preferences and increasing awareness around pet health and wellness. Japan is at the forefront in the region due to its developed pet care infrastructure and growing demand for premium services, while India and China present considerable opportunities arising from the growth of their respective middle-class populations.

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Key Players in the Pet Services Market

• Mars Petcare: [Pedigree Dog Food, Whiskas Cat Food]​

• Nestlé Purina PetCare: [Purina Pro Plan, Purina One]​

• Hill's Pet Nutrition: [Hill's Science Diet, Hill's Prescription Diet]​

• Zoetis: [Cerenia (anti-nausea medication), Apoquel (allergy relief)]​

• Tractive: [Tractive GPS Dog Tracker, Tractive GPS Cat Tracker]​

• Greencross Limited: [Petbarn Retail Stores, Greencross Veterinary Clinics]​

• Petco Health and Wellness Company: [Petco Grooming Services, WholeHearted Pet Food]​

• PetSmart: [PetSmart Training Services, Authority Pet Food]​

• Chewy, Inc.: [Chewy Pharmacy, Chewy Autoship Subscription Service]​

• BarkBox: [BarkBox Monthly Subscription Box, Super Chewer Box]​

• Fable Pets: [Fable Crate, Fable Harness]​

• Wild One: [Wild One Harness Walk Kit, Wild One Carrier]​

• PetCareRx: [PetCareRx Pharmacy Services, PetPlus Membership Program]​

• Tuft and Paw: [Tuft and Paw Grove Cat Tower, Tuft and Paw Frond Cat Tree]​

• PrettyLitter: [PrettyLitter Health Monitoring Cat Litter, PrettyPlease Cat Food]​

• Kitty Poo Club: [Kitty Poo Club Disposable Litter Box, Kitty Poo Club Silica Litter]​

• Pawport: [Pawport Smart Dog Door, Pawport Mobile App]​

• Petcube: [Petcube Bites 2 (treat-dispensing camera), Petcube Play 2 (interactive camera)]​

• Zesty Paws: [Zesty Paws Mobility Bites, Zesty Paws Aller-Immune Bites]​

• Buddy Supplements: [Buddy CBD Dog Treats, Buddy Hip & Joint Support]

Recent Developments in the Pet Services Market

• PetSmart Inc. had been using strategic acquisitions in 2023 to enhance both its service offerings and operational efficiency. The strategy is to solidify its position in the pet services market by providing a wider variety of services.

• In 2024, Rover has also expanded its service offerings to include more specialized pet care options, catering to the growing demand for premium and personalized services. This development reflects the market's shift towards high-quality, tailored experiences for pets.