First-time Pet Parents Drive the Growth Of India's Petcare Industry Market Decipher's latest report forecasts the petcare market size to reach INR 210,000 Crores by 2032

The tide is changing for many industries. Petcare is one such sector that has been witnessing an upward trend for the past few years. The pandemic pushed the industry further to the fore. As more and more people started working from home and isolation became the new normal, furry friends came to the rescue of many.

Today, pet friends are looking for the best products for their fur babies, thereby expanding the opportunities for the players in the space. According to Market Decipher's latest report, 'India Pet and Pet Care Market', the Pet Care Market size was at INR 74,000 Crores in 2022 and forecasts to reach INR 210,000 Crores by 2032, growing at a CAGR of 19.2 per cent during 2022 to 2032.

The report also said that the fastest growing sectors include pet food which captures two-thirds of the market revenue followed by pet accessories, grooming, and healthcare.

Vetic, Just Doges, Pawfectly Made, Wiggles, Heads Up For Tails, Supertails, CoZo are some of the leading petcare startups in our country. Now, we also see companies like Emami and Nestle enter the sector. In July last year, Emami acquired a 30 per cent stake in pet care startup Cannis Lupus in an all-cash deal. "This is to inform you that the Company (Emami) has entered into an agreement for subscription of 4,522 equity Shares of Cannis Lupus Services India Private Limited, equivalent to 30 per cent of shareholding in the company," the company said in its regulatory filing. Unicorn Licious also showed interest in this growing category by investing $1 million in pet food startup Pawfectly Made in April last year. Licious also became a strategic partner to the pet food startup.

"India's pet care sector is growing due to the increased awareness about the right products and services among pet parents. There is also an increase in the number of millennials and GenZ transitioning from pet owners to pet parents. The ecosystem is witnessing new product and service launches that are filling the grey areas while creating new categories. It is great for startups to grow and make a difference in the lives of pets and pet parents by providing top-quality products and services," said Anushka Iyer, founder and CEO, Wiggles.

Majority of the people in India are first-time pet parents as compared to the western markets where people are 2nd/3rd time pet parents, hence the needs of the Indian market are very different as compared to the rest of the world. "Pet adoption among Gen Z and increase in pet food consumption are now driving the expansion of the pet care market in India. A few years ago, companies in the pet care industry were not even talking about building an ecosystem for pet parents, but we are now noticing a shift, as the market has now started catering to deeper issues," Varun Sadana, co-founder, Supertails. The startup is backed by actor Deepika Padukone. In November last year, it raised $10 million in Series A funding round in a mix of equity and debt, with equity funding led by Fireside Ventures and debt by Alteria Capital.

The COVID-19 pandemic has had a huge impact on the petcare segment in India. It was also observed that even during tough times, pet parents were willing to ensure that their furry babies received the best care possible. This, Sadana feels, has led to an increase in investments in the pet care industry, as different brands have started raising money at different levels to tap into this growing market.

"The pet care sector saw COVID as a global accelerator, and this momentum persisted through 2022. Today, 6 out of 10 Indians own a pet, and 70 per cent of Gen Z and millennials are responsible for both the industry's expansion and a cultural shift in which more people are bringing pets into their homes," said Iyer.

With this cultural shift of pet owners transitioning to pet parents, there is a demand for various products and services. "While pet parents are away they are looking for boarding facilities that provide a safe environment for their pets. Due to the ease and variety that internet shopping offers, many now choose to purchase goods online rather than physically visiting a store," said Iyer.

Online shopping of petcare products is expected to increase tremendously this year. "Pet foods is the largest segment of the pet care market at 84 per cent contribution but other segments like pet grooming, pet healthcare, and other products & services are also emerging fast which provides the opportunity to build out a full stack of pet care products & services platform which can handhold the pet parents through their entire pet parenting journey," said Prayag Mohanty, Principal at Fireside Ventures.

Experts feel that there are still a lot of unfilled gaps that can be filled by upcoming brands in the sector and with GenZ preferring the online space, digitization of pet care offerings is another major trend influencing startups to enter this space.