Pet Puja: How indulgent parents are turning pet care into a multi-crore business

India has become a massive opportunity for the pet care industry. According to market research and consultancy firm Market Decipher, the India pet care market size, which was estimated at Rs 7,400 crore in 2021, is expected to reach Rs 21,000 crore by 2032, growing at a CAGR of 19.2% during the forecast period of 2022 to 2032.

A recent report released by the Indian Pet Industry Joint Advisory Council (IPICA), pegs the pet industry in India to grow at a CAGR of 20% over the next five years. Currently valued at approximately Rs 8,000 crore, it is anticipated to soar to Rs 20,000 crore by 2025. This growth trajectory is substantial, especially considering that the industry’s worth stood at a modest Rs 1,200 crore a mere decade ago.

Moreover, findings from a survey conducted by Euromonitor International shed light on the pet population in India, estimated to be around 19 million, with an anticipated CAGR of 9% over the next five years. Notably, the survey unveiled that approximately 65% of pet owners in India fall within the age bracket of 20 to 40 years, underscoring the significance of this demographic in driving the industry’s growth.

Comparatively, the global pet care industry stands as a vast and expanding market, boasting a valuation of $246.66 billion in 2023. Projections indicate its trajectory to soar to $368.88 billion by 2030, showcasing a remarkable CAGR of 5.92%.

The pet push

There are several factors contributing to the growth of the pet care industry in India, with the primary factors being:

Pet Humanization: Pets are increasingly considered family members, driving demand for premium products and services tailored to their needs, such as gourmet food and luxury grooming.

Health and wellness focus: There’s a growing emphasis on pet well-being, leading to a shift towards organic, natural products, and increased investment in preventive healthcare and fitness tracking for pets.

Technology Integration: Advanced pet care devices like automated feeders and GPS trackers are enhancing convenience and remote monitoring, while telemedicine services offer accessible veterinary care.

E-Commerce dominance: Online pet retailers are thriving, offering convenience and subscription-based services for essentials like food and medications, delivered directly to consumers' doorsteps.

Sustainability and ethical practices: Pet owners are increasingly prioritizing sustainable and ethically sourced products, leading to innovations in eco-friendly accessories and a rise in pet adoption and rescue initiatives.

Another factor, as highlighted by Madhur Khanna, Marketing Director, Mars Petcare, was the Covid-19 pandemic, which fueled the growth of the pet care industry, evidenced by evolving consumer preferences, increased pet ownership, and a growing emphasis on pet health and well-being. “Increased pet adoption after the pandemic is driving the Indian pet care industry to touch Rs 10,000 crore by 2025. This will lead to an increased demand for premium products and care starting from complete and balanced nutrition, vet care, accessories, etc., and bring further growth in the sector,” she added.

In a similar vein, Rakhi Rana, Sales Director, Drools Pet Food, said, “The pet care sector witnessed remarkable resilience in the 2020s, experiencing a boom even amidst the unprecedented challenges of COVID-19. This surge was fuelled by a significant rise in pet adoptions, with numbers leaping 30-35% compared to pre-pandemic levels. This growth wasn’t limited to adoption rates; marketing spending jumped by 35-40%, new entrants, more assortment & better availability, emergence of organised players in Vet clinics/ hospitals & Grooming services, etc., resulted in the heightened focus on capturing this expanding market.” She added, “Interestingly, consumer behavior also saw a significant shift, with pet owners in Metros increasingly opting for premium services and products, however in Tier 2+ cities pet parents are increasingly exploring the packaged pet food. This trend highlights a deepening emotional connection between humans and their furry companions, further driving innovation and growth across the entire pet care industry.”

Sushen Roy, Business Head, Zigly, also attributed the booming of the pet care sector to the COVID period. He said, “Pet adoptions during the pandemic set stage for the rise in demand for pet products and services which has now translated pet care as a margin accretive and sunrise sector. As per industry reports, the industry was valued around Rs 3,000 crore in FY’20 and is projected to grow at a CAGR of 25% reaching a market value close to Rs 12,500 crore by FY27. This is being fuelled by urbanisation, increasing disposable incomes, and a growing trend of nuclear families. Further, demand for pet products has now expanded beyond just pet food. There is a demand for pet toys, services like vet, grooming, pharmacy, healthcare, apparels and accessories. The pet care market in India was fragmented and mostly dominated by the unorganised sector. With increased focus on pet health and wellness during Covid, pet parents started enquiring about quality yet affordable services.”

According to J.S.Rama Krishna, Business Head for Pet Food at Growel Group: “The Indian pet food market is projected to cross $ 1 Billion dollars by 2027 with treats segment continuing to drive the industry growth, reaching about ₹1900 crore by 2027 from the current ₹650 crores.”

Indulgence overload

As the pet care industry experiences exponential growth, it has birthed a plethora of new trends.

Rakhi Rana, Sales Director (International Business, E-Commerce & Modern Trade, Drools Pet Food, noted, “In the wake of the pandemic, the Indian pet care market has witnessed a remarkable surge in cat adoption, particularly in metropolitan and Tier 1 cities. This surge is propelled by various factors, including the emergence of single pet parents, the relatively lower maintenance associated with cats compared to dogs, increasing disposable incomes, evolving lifestyles favoring compact living spaces, and a growing awareness of the benefits of pet ownership, coupled with the trend of pet humanization.”

Rana anticipates a significant shift in market composition. While pet food presently dominates, constituting 65-70% of the market, other categories such as supplements, treats, toys, accessories, and bowls are steadily gaining traction. This mirrors trends observed in mature pet care markets like the US and Europe, where such categories have seen exponential growth.

“In the Indian pet food industry, the share of e-commerce is steadily on the rise, with rapid growth in quick commerce driving its acceleration. This trend mirrors that of China, where e-commerce accounts for over 60% of retail sales. In India, we anticipate this figure to reach 35% within the next 2-3 years, up from its current level of 23%-24%. These shifts underscore evolving consumer behavior, with pet owners increasingly investing in innovative products that enhance their pets’ lives and facilitate interaction. They are also open to trying multiple pet food brands in a year and exploring pet toys and facilitators such as cat carriers and backpacks for traveling. These trends are poised to accelerate, fostering a broader range of innovative pet care products within the Indian market,” Rana added.

Madhur Khanna, Marketing Director, Mars Petcare, said, “The pet care industry is currently in an exciting phase, particularly in the dog and cat segments, with further acceleration anticipated in the future. A notable trend is the rise of cat parenting, with an increasing number of families opting for cats due to their low-maintenance characteristics, spanning across various cities in India, both metropolitan and non-metropolitan. Concurrently, the dog category continues to witness consistent growth.”

Furthermore, driven by pet humanization, the industry is witnessing the emergence of new experiences for pets, with pet parents providing care and nutrition akin to family members. There’s a heightened focus on aspects such as immunization and exercise, alongside a growing awareness of lesser-recognized health conditions like oral care. This has led to informed pet parents being willing to pay a premium for superior nutrition and care.

Additionally, there’s a growing emphasis on the importance of quality ingredients and complete, balanced diets for pets, with pet parents seeking out products offering scientifically-backed nutrition. This trend towards high-quality nutrition is expected to persist, as pet parents prioritize the health and well-being of their beloved companions.

Khanna further said, “We also anticipate a continued emphasis on innovative forms of pet nutrition, including the development of treats that offer additional health benefits. Dentastix, an effective daily oral care chew treat, exemplifies this trend. Overall, the future of the pet care sector appears promising, driven by increasing consumer awareness of pet nutrition and overall care, leading to a greater demand for premium, scientifically-supported products.”

According to Sushen Roy, Business Head, Zigly, “The trends within the pet care sector are dynamic, with new products and services continually entering the market. As pet owners become increasingly conscientious about their pets’ well-being, there’s a rising demand for services such as pet daycare, at-home grooming, online vet consultations, and pet-friendly tourism options and facilities.”

The sector is transitioning from traditional brick-and-mortar stores to digital platforms, encompassing e-commerce websites, online stores, and app-based services. “At Zigly, we’ve embraced an omnichannel approach to meet the diverse needs of our customers,” Roy said, adding, “Recently, we’ve witnessed traditional FMCG giants venturing into the pet care sector, both through organic growth and strategic acquisitions. Looking ahead, we anticipate a focus on creating immersive and unique experiences for pets through technological advancements. Wearable devices and smart pet products are expected to gain momentum, enabling pet owners to monitor their pets' health and activity levels more effectively.”

Moreover, a significant increase in average spending on pets is foreseen, with a growing demand for premium, high-quality pet care products. These factors collectively signal a considerable expansion of the sector in the years to come.

Devoted Pet Parents

There has been a profound shift in how people perceive and care for their pets, akin to nurturing their own children. No longer relegated to mere animals, pets are now cherished as integral members of the family, marking a transition from conventional pet ownership to the role of devoted ‘pet parents’.

As pointed out by Madhur Khanna of Mars Petcare, “The transition from mere pet ownership to embracing the role of pet parenting in India is truly heartening, welcoming, and, quite frankly, long overdue.” She emphasized that this shift reflects a fundamental change in how individuals perceive and engage with their furry companions. Rather than merely “owning” them, many now see themselves as caregivers and indispensable components of their pet’s family structure, thus embracing the titles of “pet parents” or “guardians”.

Khanna further elucidated, “This trend of considering pets as family members can be attributed to various factors, particularly among the Gen Z demographic. Growing up in an era dominated by social media and heightened awareness of animal welfare concerns, this generation has developed a profound emotional connection with their pets. Consequently, they shoulder greater responsibility for their well-being, treating them as beloved members of the family.”

Echoing these sentiments, Rakhi Rana of Drools remarked, “Traditionally, pets were often viewed primarily as guards or working animals, kept for protection or practical purposes. However, a growing trend emphasizes the emotional bond between humans and their companion animals. This shift reflects a changing perception of pets—they are increasingly seen as beloved family members rather than mere possessions. This evolution in mindset has given rise to the endearing term ‘pet parents’ and ‘pet siblings’, signifying a deeper level of care, affection, and responsibility towards companions.”

Sushen Roy of Zigly added here, “The journey from pet owners to pet parents is a story of transformation that underscores the importance of pets in our lives and the profound bond we share with them. This transformation became particularly pronounced during the COVID-19 pandemic, when people sought in-house companionship and emotional support. Eventually, pets became integral family members, with pet owners assuming the role of pet parents. Consequently, the pet care business has transcended mere product offerings to focus on providing enriching experiences and cherished memories. Pet parents are deeply invested in their pets' well-being and are actively exploring premium services available for them. This journey represents a significant stride for the pet care industry, as it fosters the growth of the premium segment and products, thereby invigorating the sector and its stakeholders.”

J.S.Rama Krishna, Business Head for Pet Food at Growel Group: “Pet parenthood is reshaping the pet care landscape, with pets increasingly being seen as cherished family members. Dogs, particularly, offer therapeutic benefits, reducing stress and increasing physical mobility. For children, having a pet at home lowers allergy risks and fosters social skills. Even in Senior adults, pet parenting is linked to better mental health. This shift in pet parent behaviour is driving demand for premium products and services along with an increased awareness of ingredients. Pet parenting enhances our lives, fostering strong bonds between humans and pets while ensuring their well-being.”

Spoilt for choices

Diversifying the array of products not only enriches the lives of pets by offering a broader spectrum of choices but also fortifies a brand's position by appealing to a wider audience and fostering enduring customer allegiance. According to Rakhi Rana of Drools, “We meticulously observe market trends and tailor our offerings accordingly, unveiling seasonal products and curated combos. For instance, during rainy seasons, we introduce airtight containers with pet food purchases to shield them from moisture. Additionally, we offer pet gift packs during festive periods and curated kits for new pet parents, which have garnered significant traction among our clientele. Our product range spans dry and wet food, treats, calcium bones, supplements, and veterinary diets, with our Drools Chicken & Egg dry food emerging as a top-seller. Renowned for our prescription diets, our products consistently experience high demand.”

Addressing the brand strategy, Rana stated, “Our strategy revolves around close collaboration with our channel partners and pet parents, resulting in consistently remarkable sales figures that often surpass quarterly records. Our unwavering commitment to quality has cemented our status as a preferred choice among consumers and importers.”

Mars Pet Care boasts an extensive portfolio comprising iconic brands such as Pedigree, Whiskas, Sheba, Cesar, Iams, and Chappi, serving both pet parents and their beloved dogs and cats. Madhur Khanna of Mars Pet Care highlights, “Our portfolio delivers expert nutrition, blending premium ingredients endorsed by our veterinarians and nutritionists at WALTHAM, the world’s foremost authority on pet care and nutrition. As industry leaders, we cater to diverse needs across various price points, ensuring quality remains uncompromised. We offer both wet and dry food options to accommodate pets’ preferences, allowing parents to customize diets based on seasonal and dietary requirements.”

“We continually innovate our products, exemplified by Pedigree Pro, tailored to suit dogs of different breeds and life stages. Our range includes delightful treats like chicken spirals, bacon sticks, and chewy bites, along with Pedigree Dentastix, designed to clean dogs' teeth effectively, available in sizes catering to small, medium, and large breeds. Recently, we revamped our Pedigree Dry range, introducing an enhanced recipe for the puppy variant enriched with DHA for brain development and richer nutrients for both adult and puppy dogs.”

Zigly’s portfolio encompasses a comprehensive assortment of products and services designed to ensure pets' overall well-being and happiness. Sushen Roy of Zigly elaborates, “We recently launched FurPro, our in-house grooming label featuring natural grooming ranges like shampoos and conditioners. Additionally, we recognize the burgeoning trend in pet fashion and have introduced Zigly Lifestyle, offering a range of apparel such as sweatshirts, jackets, sweaters, and more.”

“Under our lifestyle brand, we provide an extensive selection of accessories including beds, blankets, collars, leashes, harnesses, and more. We also offer vet services and e-pharmacy facilities. Post-Covid, we've witnessed a surge in demand for in-house services, prompting the introduction of van services in select cities. Our future plans entail expanding our portfolio in tandem with emerging trends and demand.”

Roy emphasized the significance of customization in pet products, particularly in the Indian market, stating, “Customization plays a pivotal role in broadening our customer base and ensuring pet owners access the best solutions for their pets. Therefore, across our product range, we've endeavored to offer tailored pack sizes and pricing options. Similarly, our grooming services are meticulously tailored to cater to the unique needs of our customers.”

Pampering the pooch

The pet care segment occupies a unique position in modern society, where it can be perceived both as an indulgence and a necessity, depending on individual perspectives and circumstances. For many people, pets are cherished members of the family, and caring for them is considered a fundamental responsibility akin to caring for any other family member.

Madhur Khanna of Mars Pet care offers insight into this dual perception, stating, “Traditionally, the pet care industry was seen as an indulgence. However, the truth is that optimal nutrition has always been essential for the well-rounded growth and development of our beloved cats and dogs throughout their lives. The emergence of COVID-19 has played a pivotal role in heightening consumer awareness, sparking discussions around the importance of providing pets with complete and balanced nutrition. As a result, we are witnessing a gradual shift towards a more compassionate approach to animal welfare and pet care. This shift not only benefits our furry friends but also creates a more nurturing environment for both pets and their human companions.”

Rakhi Rana of Drools further elaborated on this perspective, stating, “The pet care retail sector caters to the evolving needs of pet ownership, encompassing both essential and discretionary spending. While fundamental necessities like nutritious food and essential healthcare remain paramount for responsible pet parents, a growing trend towards pet pampering is evident. This includes luxurious grooming services and recreational activities, reflecting a deeper emotional connection between owners and their companions. This investment in both basic and premium offerings demonstrates a commitment to ensuring pets' well-being and happiness, mirroring the cultural shift that elevates pets to cherished family members deserving of comprehensive care and attention.”

Sushen Roy shared a nuanced view, stating, “The pet care sector has been mostly looked at as a necessity till date, but today, it is a mix of necessity and indulgence catering to the diverse needs and desires of pet owners. On one hand, the industry is catering to the basic necessities of pets like foods, treats, health and wellness products, and grooming accessories to ensure the well-being of the pets. On the other hand, the industry is also witnessing an increase in premium products and experientials. This is being driven by the growing trend of pet humanization. Pet care companies are now offering organic, natural products, luxury pet services, and accessories catering to the growing demand. This shows that the sector is also shifting towards indulgence.”

He illustrates this shift with an example, stating, “Pet parents are now looking for designer clothing lines for their pets with the purpose of giving their pets a unique look and feel good. This comes at a premium price and falls under indulgence. Similarly, alongside regular shampoo and grooming products, customers have also started purchasing products made of natural ingredients, which are not a necessity.”

A touch of starry glamour

Harnessing celebrity collaborations for brand endorsements can prove to be a potent strategy in enlightening consumers and shaping their purchasing behaviors. By teaming up with renowned personalities such as Hrithik Roshan, Kareena Kapoor Khan, Kartik Aaryan, Janhvi Kapoor, and Disha Patani, Drools effectively leveraged the sway these celebrities wield over their fan base.

In India, where celebrity culture runs deep, consumers often place trust in the recommendations of their beloved stars. Consequently, when these celebrities endorse products or brands, it can significantly sway consumer perceptions and choices. This influence extends beyond mere product promotion; it serves as a conduit for education, guiding consumers towards informed decisions.

In a recent collaboration, Pedigree unveiled a cricket-themed digital advertisement on Disney+ Hotstar, showcasing playful banter between the Pedigree dog and Varun Dhawan during a cricket match. Commenting on the partnership, Salil Murthy, Managing Director of MARS Petcare India, expressed delight, stating, “We are thrilled to collaborate with Varun and warmly welcome him as the newest ambassador of Pedigree India. As an acclaimed actor and an avid dog lover, he perfectly embodies Pedigree's ethos. We are confident that his influence will extend our reach to even more pet parents, furthering our mission of creating a better world for pets.”

Varun Dhawan himself remarked, “It is exhilarating to collaborate with Pedigree India, a brand cherished by all. Partnering with this esteemed brand feels like returning home to a community of like-minded individuals who share my passion for our furry companions. Just as it is crucial for humans to eat right, ensuring proper nutrition for our pets is equally vital, given their profound impact on our lives. It is an honor to champion their well-being alongside a brand dedicated to providing 100% complete and balanced meals.”

Enhancing India as a Haven for Pets

Mars Petcare’s Madhur Khanna articulated a compelling vision, “At Mars Petcare, our mission is to foster a world where pets thrive. In India, where the pet population burgeons, our focus lies in ameliorating the plight of homeless animals. Recent research from Mars’ State of Pet Homelessness Project 2024 reveals a stark reality: 69% of cats and dogs in India lack a loving home. Among them, 60.5 million endure life on the streets, while 8.8 million await adoption in shelters. Witnessing the shift towards ‘pet parenthood’ fills us with hope. Through initiatives like our IndieProud campaign, we’ve facilitated 1,466 pets finding their forever homes. Collaborating with NGOs and shelters, engaging in community service, and organizing adoption drives are central to instilling empathy and responsibility in our society.”

Rakhi Rana echoed these sentiments, emphasizing the evolving perception of pets in India, “While some still regard pets as mere possessions, there’s a burgeoning trend towards embracing ‘pet parenthood’. To expedite this shift, we must launch awareness campaigns underscoring the profound human-animal bond and spotlighting success stories within our cultural framework. Ensuring accessibility and affordability of veterinary care, quality supplies, and training resources is crucial for nurturing responsible pet ownership. Tackling issues such as stray animal management, hygiene, and cultural sensitivities with sensitivity and pragmatism will pave the path towards a more inclusive and enriching future for both pets and their families in India.”

Sushen Roy concurred, highlighting persistent challenges and the imperative to reshape perceptions: “Despite strides, challenges persist in towns and cities, where pets are often seen as possessions rather than companions. Historically, pet parents have been detached from their pets’ daily needs due to a lack of guidance. To foster change, we tirelessly collaborate with NGOs, animal welfare organizations, influencers, and communities to disseminate knowledge on pet care and health. Moreover, through the Zigly Foundation, we extend support to strays while advocating for pet adoptions, nurturing a culture of compassion and responsibility.”