Pet insurance provides financial protection for pet owners against the cost of veterinary care and treatments for their pets. Pet owners can make insurance claims for each accident, illness, and injury-related vet visit as well as for costs related to surgeries, hospitalizations, prescription medications, and diagnostic tests. With increasing medical costs, pet insurance has become an important financial risk management tool. It allows the pet owners to afford veterinary care and focus on medical decisions without worries about costs. The pet insurance market protects pet parents by covering unexpected expenses that contribute to proper care of their furry companions.
The global Pet Insurance Market is estimated to be valued at US$ 9.59 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The key trends driving growth in the pet insurance market include rising companion animal adoption and expenditure on pet care. According to the American Pet Products Association, pet adoptions in the US have increased by 5.3% in 2020 from 2019 levels as people looked for companionship during the COVID-19 pandemic. With higher pet ownership, spending on insurance and other pet care needs is also on the rise. Pet owner willingness to spend more on preventive care is another major trend. Preventive plans covering wellness treatments, dental cleanings, vaccinations etc. are gaining popularity to ensure pets remain healthy. Increasing millennial pet ownership coupled with rising awareness about insurance products is further supporting the market growth. Millennials are more likely to purchase insurance and devote greater resources to pet healthcare. Moreover, option of telemedicine along with emergence of mobile applications for filing insurance claims has accelerated the insurance purchase process.
Porter’s Analysis
Threat of new entrants: The pet insurance market has moderate threat from new entrants due to high upfront capital requirements needed for R&D, production and distribution.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of number of companies providing pet insurance.
Bargaining power of suppliers: Suppliers have low bargaining power due to presence of a number of suppliers in the market providing inputs.
Threat of new substitutes: Threat of substitutes is low as there are limited alternatives for pet insurance.
Competitive rivalry: The market has high competitive rivalry among existing companies due to intense competition and presence of numerous companies.
Key Takeaways
The global pet insurance market is expected to witness high growth during the forecast period. Global Pet Insurance Market Demand is estimated to be valued at US$ 9.59 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030.
Regional analysis: North America accounts for the largest market share primarily due to high pet ownership, growing awareness about pet insurance, and presence of key players in the region. Asia Pacific is expected to grow at the fastest pace during the forecast period attributed to rising disposable income in emerging economies like India and China
Key players: Key players operating in the pet insurance market are Cargill Aqua Nutrition, Skretting (Nutreco), Biomar, Alltech, Ridley Corporation Limited, CP Group, Charoen Pokphand Foods (CPF), Nutriad International, BioMar Group, Nutra Blend LLC, Guangdong Haid Group Co., Ltd., Tongwei Group, Avanti Feeds Limited, Nutrivet, BRF S.A. Pet insurance being an emerging market, partnerships and new service launches are the dominant strategies adopted by these key players to strengthen their foothold in the growing pet insurance market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it