Pet Care Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Pet Care Market Trends and Insights

Humanization of Pets Fueling Premiumization

Owners regard animals as family, so they willingly pay premiums for grain-free recipes, fresh meals, and wellness supplements. Freshpet’s refrigerated range grew 27.2% year-over-year to USD 975.2 million in 2024, proving strong price elasticity for minimally processed products. In Western markets, the trend extends to grooming, apparel, and pet-friendly travel, widening revenue pools for retailers and service providers. Cross-category willingness to spend depends on stable labor markets, recessions historically cause trading down to value tiers. Nonetheless, premium SKUs continue to outgrow mainstream alternatives, anchoring long-term value creation in the pet care market.

Rising Pet Adoption Among Millennials and Generation Z

Generation Z households reached 18.8 million in 2024, representing a 43.5% increase from the previous year, and 70% of these homes contained two or more pets in the United States^{[1]Source: Association of American Feed Control Officials, “Model Regulations for Pet Food,” aafco.org}. Digital natives favor transparent sourcing, carbon-neutral packaging, and auto-ship subscriptions, prompting brands to adopt omnichannel ecosystems. Chewy’s 20.3 million active customers and 75% auto-ship mix validate the model’s lock-in economics^{[2]Source: Chewy, “2024 Annual Report,” investor.chewy.com}. In Asia, delayed family formation is redirecting discretionary income toward companion animals, strengthening the demographic factors driving growth in the pet care market.

Increasing Spend on Preventive Veterinary Care and Insurance

Gross written premiums (GWP) reached USD 4.7 billion in 2024, representing an annual increase of 21.4%, yet penetration was only 3.9% of the eligible pets in the United States ^{[3]Source: Chewy, “2024 Annual Report,” investor.chewy.com}. Average veterinary outlays per dog reached USD 598 and per cat USD 529, driven by routine diagnostics and the management of chronic diseases ^{[4]Source: North American Pet Health Insurance Association, “2024 State of the Industry,” naphia.org}. Zoetis Services LLC and Elanco Animal Health Inc. are rolling out broader vaccine and parasiticide portfolios, while insurers highlight flexible deductible options to attract first-time buyers. With Sweden’s 40% penetration serving as a benchmark, insurers see a large upside in North America and Asia as awareness improves.

Rapid Urbanization of Secondary Asian Cities

China’s cat population climbed to 62.3 million in 2023, exceeding its dog count for the first time, driven by apartment constraints that favor smaller species. Japan exhibits a similar pattern, with 9.1 million cats compared to 6.8 million dogs in 2023. Manufacturers such as Unicharm are expanding their litter and feline-specific nutrition lines to capitalize on the trend. Smaller pets generate lower tickets per purchase but expand the consumer base, giving the pet care market fresh volume momentum.

Volatile Raw-Material Prices for Meat and Grains

Chicken, beef, corn, and wheat account for up to 70% of production cost. Price spikes in 2022–2024 squeezed margins as many brands lacked hedging capacity. Large players offset volatility through vertical integration, but mid-tier firms either reformulated or absorbed losses, risking consumer backlash or cash-flow strain. Geopolitical events, such as export bans and avian flu outbreaks, perpetuate uncertainty, hindering long-term capital expenditures in the pet care market.

Stringent Regulations on Labeling and Claims

Food and Drug Administration (FDA) rules require descending weight ingredient lists, guaranteed analyses, and substantiated nutritional adequacy, while the European Union (EU) Regulation 767/2009 adds traceability mandates. Enforcement actions surrounding grain-free diets demonstrate a rising level of scrutiny, extending product development cycles, and increasing compliance costs. Smaller brands without dedicated regulatory teams face disproportionate burdens.

Segment Analysis

By Product Type: Services Outpace Food Growth

Pet Food dominated the pet care market with a 43% market share in 2025, anchored by dry kibble’s affordability and shelf stability. However, Pet Services' grooming, boarding, daycare, and training are projected to post a robust 10% CAGR to 2031 as busy urban owners treat professional care as a non-negotiable line item. Higher labor inputs and lower price sensitivity grant services the richest margins in the pet care industry. Healthcare is another bright spot, buoyed by growing awareness of preventive care and insurance reimbursements. Dry kibble remains the volume engine, yet fresh and refrigerated SKUs, although constrained by cold-chain gaps, are growing multiples faster. Combined, these dynamics ensure that the pet care market size will tilt progressively toward higher-value offerings over the forecast horizon.

The expansion of services is reshaping competitive strategy. Incumbents utilize loyalty programs and bundled wellness packages to foster customer loyalty, while start-ups leverage technology to offer app-based booking and real-time pet monitoring. The profit pool is attracting non-traditional players such as hotels that retrofit unused space into daycare suites. In the food industry, functional claims for digestive health, joint support, and anxiety relief differentiate premium lines, while Association of American Feed Control Officials (AAFCO) guidance on ingredients such as probiotics sharpens the competitive field. Treats and supplements leverage parallels with human wellness trends, enabling price premiums that reduce the volume disparity with staple pet food. Product-type segmentation reveals a dual opportunity where brands need to maintain their scale in commodity categories while creating value in service-oriented and functional niches to enhance their share of the pet care market.

Note: Segment shares of all individual segments available upon report purchase

By Animal Type: Cats Gain on Dogs

Dogs accounted for 46% of the pet care market size in 2025, however, cats are forecast to grow at an 8.4% CAGR through 2031, driven by urban households seeking low-maintenance companions. Emerging Asian cities are at the epicenter, where apartment size, noise restrictions, and dual-income lifestyles favor felines. Cat owners are upgrading to odor-control litter, urinary-health diets, and subscription toy boxes, expanding the pet care market size for feline-specific products. Birds, fish, small mammals, and reptiles remain niche but benefit from space constraints and the desire for unique home aesthetics. Each species carries distinct accessory needs, including filters, heaters, habitats, and specialized margin streams for retailers.

Dogs still account for high-ticket spending because food, professional training, and boarding days eclipse feline outlays. Nevertheless, discerning cat owners pay premiums on a per-pound basis for vet-authorized diets. Fish enjoy popularity in offices for their calming effect, supporting a long tail of consumables such as water conditioners and decorative aquascapes. Small mammals appeal to first-time parents, teaching responsibility, while reptiles anchor enthusiast communities that spend heavily on habitat technology. This widening species spread diversifies revenue beyond traditional dog-centric categories, ensuring the pet care market maintains balanced growth even if any single animal category experiences a slowdown.

By Distribution Channel: Online Gains Share

Offline Retail retained a 71% share in 2025, driven by pet specialty stores, veterinary clinics, and mass merchants that offered tactile product sampling and expert advice. Yet, Online Retail is projected to record an 11.8% CAGR through 2031, increasing its share of the pet care market as subscription convenience and personalized algorithms lock in repeat orders. Chewy’s auto-ship penetration at 75% of 2024 revenue exemplifies sticky e-commerce economics. Physical stores are fighting back with buy-online-pick-up-in-store options, same-day local delivery, and in-store experiences such as self-service dog washes. Veterinary clinics enjoy quasi-regulated moats by dispensing prescription food and medicines that require professional authorization, thereby protecting a stable, if specialized, profit pool.

Counterfeits and delivery damages continue to be challenges for pure-play e-commerce. However, serialization and blockchain tools are showing progress in addressing these issues. Geographic differences play a significant role. North America and Western Europe benefit from well-established last-mile networks, facilitating faster online adoption. In contrast, emerging regions rely more on brick-and-mortar models due to underdeveloped logistics and digital payment systems. Supermarket chains leverage loyalty fuel points and cross-category promotions to retain pet care purchases within weekly grocery trips, particularly appealing to value-conscious consumers. Ultimately, an omnichannel approach is projected to shape distribution, with each channel serving distinct shopper needs, driving sustained growth in the pet care market regardless of channel preference.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

North America accounted for 39% of the pet care market size in 2025. The prevalence of premium fresh meals, comprehensive insurance plans, and on-demand services contributes to steady growth in consumer spending. The United States leads in the early adoption of veterinary telemedicine, while Canada’s bilingual labeling requirements introduce minor compliance costs without creating significant structural barriers. The region also boasts the highest online penetration, driven by advanced logistics systems and strong consumer confidence.

The Asia-Pacific region, projected to grow at a 9.6% CAGR through 2031, is the fastest-growing territory in the pet care market. China’s apartment culture, India’s rising middle class, and Southeast Asia’s urbanization collectively build a vast new consumer base. Cold-chain gaps hinder the distribution of refrigerated products, yet dry and wet formats continue to flourish, alongside the expansion of grooming and hospital chains into secondary cities. Japan, South Korea, and Australia showcase mature spending per pet, emphasizing wellness and functional diets. Momentum hinges on continued infrastructure investments to unlock premium-product tiers.

Europe is anticipated to grow steadily, driven by Germany, France, and the United Kingdom. In these countries, factors such as sustainability, traceability, and ingredient transparency are prompting consumers to opt for premium pet care products. Meanwhile, Southern Europe remains more value-focused but is gradually aligning with the broader market as income levels improve. However, strict labeling and regulatory requirements, while fostering consumer trust, tend to slow the introduction of new innovations. South America and Africa are projected to exhibit relatively faster growth. In South America, rising urban pet adoption in countries like Brazil and Argentina supports market expansion despite economic volatility. In Africa, emerging demand in markets such as South Africa and Egypt is bolstered by increasing awareness and the growth of e-commerce in major cities. These factors contribute to long-term pet care market growth, despite challenges related to infrastructure and affordability.

Note: Segment share of all individual segments available upon report purchase