The pet insurance market provides coverage for accidents, injury, and illness of companion animals including dogs, cats, and other pets. Pet insurance offers protection against unforeseen costs of vet bills for various treatments and surgeries. Many policies also cover wellness treatments and preventive care like annual checkups and vaccinations. Pet ownership has increased substantially in recent years with more households choosing pets as companions instead of just animals. The growing humanization of pets and increasing disposable income allows owners to spend extensively on pet healthcare.
The global Pet Insurance Market is estimated to be valued at US$ 9.59 billion 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:
One of the key trends driving growth in the pet insurance market is the rising premiumization of pet care products and services. Customers are increasingly willing to pay for higher quality food, treats, toys, and other premium products as they view their pets as family members. This is enabling the market to shift from basic plans that cover only illness and injuries to more comprehensive wellness plans. Companies are innovating policies that cover preventive care, grooming, training, dental cleaning, and even pet parenting advice. Another major trend is the introduction of wellness discounts and incentives. Insurers provide ongoing discounts for customers who get their pets vaccinated on schedule or complete annual exams and lab tests. Such discounts help promote responsible pet ownership and prevent future health issues. The growing popularity of multi-pet policies is another notable trend as they allow owners to cover multiple companion animals under one cost-effective plan.
Porter’s Analysis
Threat of new entrants: The pet insurance market has moderate threat of new entrants as it requires significant investment and established distribution channels.
Bargaining power of buyers: Individual pet owners have moderate bargaining power due to availability of substitutes however for large pet organizations bargaining power is low.
Bargaining power of suppliers: Insurance companies and vet clinics have low bargaining power as they depend on pet owners for business.
Threat of new substitutes: Alternatives like pet trust funds offer low threat currently.
Competitive rivalry: The market has high competition between existing players to acquire more pet owners.
Key Takeaways
Global Pet Insurance Market Size is expected to witness high growth. The global Pet Insurance Market is estimated to be valued at US$ 9.59 billion in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030.
The industry is dominated by North America owing to high pet adoption and awareness. Europe is fastest growing region with countries like UK leading insurance adoption. Europe is expected to witness fastest growth during forecast period led by countries like UK, Germany, France. Asia Pacific is an emerging market with Japan, China showing high potential due to growing pet population.
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. The market is moving towards consolidation with large players acquiring smaller firms to expand their service offerings and geographical footprint.