India pet industry introduction

#IndiaMarketStudy #PetIndustry #PetSupplies #PetToy

1.Brief Introduction

In India, pet ownership is positively correlated with urbanization, with more urbanized places having more pets. In the past 20 years, with the rapid urbanization of India, the pet industry has been actively and rapidly growing. As Indians increasingly value their pets, animals such as dogs, cats and birds are increasingly seen as part of the family. Growing awareness of the suffering of these animals has prompted many animal lovers to adopt stray cats or dogs as pets. At the same time, more and more Indian consumers are spending their money on pets, pet products and pet services.

There are three main aspects of the pet industry, namely pet food, pet supplies and pet healthcare.

Pet food is the broadest and most important of the three aspects, all pets need to be fed, and each type of pet has different and unique food requirements. Pets need different products at different stages of life. For example, there are dog foods that are primarily aimed at older dogs, as well as those made for puppies. There are also foods made entirely from natural products, without any additives, for owners who care about pet nutrition.

Pet supplies are another major segment of the pet industry, some of which are necessary while others may be considered luxury items. For example, cats have the habit of urinating and covering up their stools, so the litter box is a necessary product; there are also some products such as cat houses, which may not be necessary depending on the cat's habits. But in general, pet supplies are still popular whether they are a must or not. There are already a wide variety of pet products on the market, and new ones are constantly being introduced. Its purpose is mainly to meet the owner's emotion for the pet, rather than the actual needs of the pet.

The final aspect is pet health care, which includes animal medical services, pet disease medicines, and health products designed to prevent pets from developing health problems and treating them when they are sick.

2.Current India market

As the mindset of Indians has risen from keeping pets to responsible pet parents, people are more willing to invest money in improving the quality of life and care of their pets. This makes India one of the fastest expanding markets for the pet care industry in the world. The pet care industry output value will rise from $347.23 million in 2019 to $498.44 million in 2021. The industry is expected to grow at a compound annual growth rate of over 19% through 2025.

3.India pet industry new trend

Here are some of the latest pet industry trends.

Adoption is growing in popularity -

In India, the number of pet households has risen in recent years, especially during the COVID-19 pandemic. People in quarantine need to seek spiritual support as restrictions such as working from home and isolating from crowds have had an impact on mental health, and companionship, prompting a surge in demand for pet adoption. It is estimated that more than 60,000 dogs are adopted each year as new members of the family. Generations born around the millennial generation are more likely to see pets as children, who see pets as part of the family. So they do not exclude a large part of their wages for caring for their furry children. Due to the improved concept of pet health, they pay more attention to the health of pets, including annual vaccinations, grooming, interaction, healthy eating, and even throwing parties for pets.

Customized pet care center services-

An increasing number of pet grooming centers, day care centers and pet-friendly fine dining restaurants offer personalized treatments based on the pet's skin, hair, size and health, as well as pet-specific blankets, toys and leashes to improve pet comfort and safety. In addition, some startups in India have started to provide pet-related services, such as online pet ownership inquiry services, online veterinary consultations, pet vacation planning, boarding services, and pet training and pet health tracking apps to ensure the safety of pets and their owners. Various needs can be met.

Improvements in the food sector

With the increasing health awareness of pet owners, pet food has gradually moved to the natural diet level from food that meets basic physiological needs, but artificial colors and flavors. More and more pet foods are advertised as GMO-free, rich in omega 6 and 3, carbohydrates, fats, vitamins A, D, E and K, and a balanced diet including water, and to boost your pet's immune system and natural diet to attract consumers.

Pet health insurance awareness on the rise

Pet medical care is often very expensive. As the number of pet owners increases, insurance companies have begun to focus on the pet market and provide pet medical insurance to help pet owners pay for veterinary and funeral expenses. At present, there are "New India Insurance" , "United India Insurance" and "Oriental Insurance" in India to provide pet-related insurance. In the future, more insurance companies will join the market to provide pet medical insurance.

The rapid development of pet health care

As pets' diets become more refined and their lives extended, diseases such as diabetes, obesity, kidney and thyroid abnormalities have become more common, driving the rise of pet medical, pet medicine, and pet care products industries. Therefore, more and more doctors have begun to join the pet medical industry, and by participating in seminars and investing in the latest equipment to improve pet medical standards and provide pet owners with more diverse and in-depth medical services.

4. Top 5 pet food brands in India market

1) Pedigree - the largest selling dog food brand in India. Owned by Mars, pedigree launched in 2008. Website: https://www.pedigree.in/

2) Royal Canin – advertises 45 years of experience in pet nutrition products. Their product line is classified according to the breed, age, nutritional requirements and health of the cat and dog, with a variety of cat and dog food. Website: https://www.royalcanin.in/

3) Hills Pet Food - A professional group that has been creating pet food for decades, with products advertised as having a balanced, all-natural ingredient, such as chicken, vegetables, rice, brown rice, flax seeds, and more. Website: https://www.hillspet.com/

4) Taste of the Wild - advertises as "grain-free" pet food based on the ancestral diets of cats and dogs. Grain-free foods are easy to digest and contain high amounts of antioxidants and minerals, making them ideal for normal growth in cats and dogs. Website: https://www.tasteofthewildpetfood.com/

5) Drools - The oldest cat and dog food brand in India, its affordable price is one of the biggest factors in its success. Website: https://www.drools.in

5. Forecast and Opportunities of Indian Pet Food Market

The Indian pet food market is expected to grow at a strong rate and is expected to exhibit a CAGR of 16.64% until 2026. The growth rate of its market can be attributed to factors such as the growing pet population, innovation in the pet food industry and increasing disposable income leading to pet owners' willingness to purchase higher-priced food products.

In terms of pet types, the top three in the Indian pet market are dogs, cats and birds. In 2018, 16.94 million Indian households had dogs and 1.34 million cats.

In terms of food types, the market is segmented into dry, wet and others (snacks, flakes and granules, freeze-dried, etc.). Among them, dry food occupies the majority of the market share and is expected to dominate the market in 2026. This is because when choosing cat and dog food, dry food types are easier to preserve and eat, and come in a variety of flavors and shapes.

In terms of point of sale, the Indian pet food market sales pipeline can be divided into specialized pet stores, supermarkets, online retail and others (convenience stores, pharmacies, etc.). Among them, dedicated pet stores account for the majority of the Indian pet food market. However, pet food companies are stepping up to expand their product offerings in supermarkets and hypermarkets, convenience stores, pharmacies and online retail across the country.

6. Indian pet grooming and health care market

Dogs and cats are the most adopted pets in India, and other pets such as fish, birds, turtles, tortoises, etc. are also increasing in demand in the pet market. Pets such as cats and dogs require bathing, grooming and health checks. Therefore, beauty products such as shampoos, conditioners, etc., along with the increasing demand for pets, have led to a huge demand for these products in the market. The main beauty products currently popular in the Indian market are shampoos and conditioners, brushes, combs, hair and nail trimmers. Apart from this, other products such as dry baths, powders, deodorants, controlled hair removal are also gaining popularity in the Indian market. Leading brands in pet grooming are Choostix, Wahl, Himalaya, PetVeda, etc.

On the other hand, many pets have a history of serious illnesses including cancer. These diseases are caused by deficiencies of vitamins or nutrients in the body. Therefore, for the full development of pets, the necessity of pet medicines and supplements has arisen. Key health products include nutraceuticals, dental, eye and ear care. In addition, other products such as treatment creams, flea and ticks, skin spot and coat care, diapers, etc. are also in considerable demand in the market. Leading brands of pet health care products are Zydus Cadila, Becky's India, Hester AG, etc.

The current sales channels for pet grooming and health care products are specialty stores, branded retail stores and online retail stores.

As COVID-19 changes consumption habits, online sales will gradually become the main sales channel in the future.

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