Industry Trends

North America Pet Care Market was valued at over USD 103 billion in 2020 and is expected to witness 3.5% CAGR from 2021 to 2027.

Pet care refers to taking care of food & safety, exercise, nourishment and medical attention of a pet. An increasing number of consumers are embracing pet owners and pet-loving lifestyles that is accelerating the trend of pet humanization. Pet humanization is influencing the market growth with rising number of companies engaged in launching interesting and premium pet care products. Increase in animal expenditure across the globe is contributing to the market growth. Growing pet adoption across the globe and rising prevalence of food borne and zoonotic diseases are some of the factors further uplifting the market growth. In addition, pet care market growth is majorly driven by the increasing demand for protein and other supplements in animal food and growing preference for pet insurance. 
 

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Increase in animal healthcare expenditure will drive the pet care market growth across the region. Rising disposable income and shift to nuclear families will drive more people to get pets, thereby encouraging higher spending on pet care that will assist in commercialising pet products and services. For instance, according to a published article by the American Pet Products Manufacturers Association, in 2017, Americans spent around USD 70 billion on their pets including around USD 6.0 billion on services such as pet grooming and boarding. In addition, as per the American Pet Products Association (APPA), the sales of pet products and services was around USD 95 billion in 2019. Therefore, the rising willingness to spend on pet welfare has fuelled the demand for pet care products and professional services. Hence, the above-mentioned factors will significantly boost the North America market growth in the coming years.

Growing pet adoption across the globe will stimulate the demand for pet care services and products, thereby driving the market growth. The adoption rate of pet is accelerating owing to the need for companionship and the need for an active and a healthy lifestyle. In addition, the growing prevalence of COVID-19 pandemic is urging the American population in the U.S. to foster and adopt animals. According to a published article, there are approximately more than 300 million pets in America. In addition, as per the survey of the National Pet Owners of 2019-20 conducted by the American Pet Products Association (APPA), around 67% of households in the U.S. own a pet. Furthermore, the American Society for Prevention and Cruelty to Animals (ASPCA) has witnessed approximately 70 percent increase in animals fostering care in New York City and Los Angeles in 2020. Hence, the above-mentioned factors will significantly foster the North America pet care market growth in the coming years.

North America Market, By Type

Based on type, the market is segmented as pet food, pet care products and service. Pet food segment is anticipated to expand at a 5.1% CAGR and foresee a lucrative growth over the estimation timeframe. The higher growth of the segment is owing to the various benefits of preimmunized and natural pet food as it is integrated with proactive, high quality, natural ingredients and free from preservative ingredients. In addition, concept of personalized food products for pets is being widely adopted by several pet owners. Therefore, the demand for pet food is augmenting at a rapid pace. Moreover, as per the Association for Pet Obesity Prevention, around 58% of the cats and 53% of the dogs in the U.S. are obese. Thus, several industry players are engaged in manufacturing of several kinds of pet foods that aid in weight loss. Furthermore, growing preference of pet owners for protein-rich food products for their pets is uplifting the demand for novel pet food products. Hence, the above-mentioned factors will significantly spur the market growth in the coming years.

North America Market, By Animal

Based on animal, the market is bifurcated as dogs, cats, birds, fishes, horses and others. Dogs segment held majority market share in 2020 and was valued at more than USD 34 billion. The majority market share is owing to the rising adoption of dogs for therapeutic and psychological benefits. Dogs are highly popular as pets as they are loyal, friendly and can be trained easily. Therefore, dogs are increasingly preferred for adoption by a large population. According to the National Center for Biotechnology Information (NCBI), approximately 1 million dogs are adopted each year. Furthermore, according to the American Pet Products Association (APPA), the U.S. invests a considerable amount on dogs in dog care centers. Consequently, there is an increase in demand for dog food and dog healthcare services. Hence, the above-mentioned factors will stimulate the North America pet care market growth in the coming years.

North America Market, By Distribution Channel

Based on distribution channel, the market is bifurcated as stores, E-commerce and others. E-commerce segment is anticipated to expand at a CAGR of 9.3% and foresee a lucrative growth over the estimation timeframe. The higher growth of the segment is owing to increase in number of internet users. For instance, as per the U.S. Department of Commerce, in 2019, consumers spent USD 601.75 billion online. In addition, according to recently published report, approximately 44% of the North American population uses internet. Online deals and timely updates pertaining to pet care products are some of the additional factors uplifting the segmental growth. Furthermore, E-commerce market is witnessing growth owing to the prevalence of COVID-19 pandemic as more and more people prefer staying indoors. Hence, the above-mentioned factors will stimulate the North America pet care market growth in the coming years.

North America Market, By Country

U.S. pet care market was valued at more than USD 97 billion in 2020 and will witness lucrative growth in the coming years. The large market size is attributed to the increasing rate of adoption of pets. According to the American Pet Products Association, the pet ownership in the U.S. alone has augmented to 68% from 56% in the last three decades. In addition, strong economic growth in the U.S. has led pet care industry to witness strong growth in both value and current terms. This growth can be attributed to rising animal healthcare and increasing awareness of animal health in the country. Moreover, the transforming pet ownership across the U.S. and the rising preference of branded and nutritionally rich pet food will propel the market growth in the country. Furthermore, presence of strong market players is contributing to the market growth. Hence, the above-mentioned factors are fostering the North America pet care market growth in the U.S.

Competitive Market Share

Some of the major industry players involved in North America pet care industry include Ancol Pet Products limited, Champion Petfoods, Blue Buffalo Pet Products, Inc., Heristo akteingesellschaft, Colgate-Palmolive Company, Petco Animal Supplies, Inc., Zoetis Inc., Idexx Laboratories Inc., Chewy Inc., and Zooplus AG among others. These major market players are adopting various organic and inorganic strategies such as product launches and partnerships for garnering maximum market share and strengthening their industrial presence. For instance, in October 2020, Petco Animal Supplies, Inc. and Jinx Dog Nutrition entered a strategic digital partnership to provide Jinx’s dog good to peto.com. The strategic move will assist the company in expanding their customer base and strengthening their industrial position.

Industry Background

Pet care commenced in the North American region in the 20th century owing to the need for to protect a home or property or companionship. Gradually, food nutrient profiles for cats and dogs were established by the Canine Nutrition Expert Subcommittee (1990–1991) and the Feline Nutrition Expert Subcommittee (1991–1992), respectively. Therefore, more and more people began adopting pets in North America.  According to a survey conducted in 1988, around 56% of the families owned a pet. In addition, according to the National Pet Owners Survey by the American Pet Products Association (APPA), about 85 million families were pet owners in 2017-18. Presently, there are approximately 78.2 million pet dogs in the U.S and approximately 86.4 million pet cats. Thus, rising pet adoption rate and prevalence of zoonotic diseases has led to an increase in demand for pet products and services including pet food and medicines in the region.