The Pet Care Market in India – A Growing Industry with Crazy Margins, An Excellent Entrepreneurial Opportunity!

Pet Care Industry: There is no denying the fact that the trend of keeping pets has increased enormously over the years, not only globally but in India too, and several reasons are contributing to the vast surge.

Thus, it is no surprise that the pet market has become one of the fastest-growing business segments in recent years. With the rise in pet ownership and the increasing trend of treating pets as family members, the pet industry has much to offer in the coming years.

While there are many reasons why people worldwide are preferring to keep pets, thus leading to significant growth in the pet market, and whilst some of the reasons apply to the global as well as the Indian context, however, here we will talk about the business growth potential of the same in the context of the Indian market.

The Pet Market

With the increasing number of pets in households and the rising disposable income of pet parents, the market size of this industry has grown significantly. 

• It is estimated that India has around 30 million pet dogs, and about a fifth of that in pet cats. 

• India’s pet food market alone is over USD 300 million per annum or around Rs 2500 crores. 

• Moreover, the pet care and vet services market is expected to reach USD 1 billion in market size by 2025.

• The market is growing at a rate of approximately 14% per annum.

What Are The Business Margins?

Looking for a business opportunity, how about the Pet market?

The global pet market has seen an impressive growth rate in recent years. According to a report by Grand View Research, the global pet market size was valued at USD 131.7 billion in 2016 and is expected to grow at a CAGR of 5.4% from 2017 to 2025. This growth is mainly attributed to the increasing number of households with pets and the growing demand for premium pet products.

The pet care industry has various areas of play in the value chain. For instance, Royal Canin and Pedigree are owned by the Mars group (chocolate fame), which is the fourth-largest privately-owned company in the US, with USD 45 billion as annual revenues. 

Pet food is a massive category, and retailers have margins between 8-15%, depending on the scale of operations.

Apart from pet food, pet apparel, toys, shampoo, snacks, and other things are popular items that pet parents spend money on to pamper their pets. These items have gross margins of 40-60% across categories. 

In metros, the spend on pets is easily upwards of Rs 10,000 per month, which is monthly recurring revenue if offered through a subscription service.

Pet Market Earnings

Pet stores that offer pet food delivery, monthly pet apparel and toiletries, pet grooming, and hair/nail cutting can earn significant profits. A simple pet store in a society can easily do about Rs 8 lakhs of sale of goods and another Rs 4 lakhs of sale of services, with a monthly profit of Rs 2 lakhs from a small shop. 

The addition of services in the mix can take the margins up to 15-17% for a store on total revenues.

Location selection is critical for pet stores to have high-density colonies around nuclear families. The more affluent areas and areas with a higher density of pets can be potential targets for pet stores. 

And as far as the trend is concerned, the demand for pet care services in India is expected to grow further, making this industry a lucrative opportunity for entrepreneurs and investors.

The Pet Market: One of the Fastest Growing Business Segments

The pet market has become one of the fastest-growing business segments in recent years, and with the rise in pet ownership, the pet industry has excellent potential. 

Let’s take a closer look at why people worldwide are preferring to keep pets and how the pet market is growing.

There are various reasons why people worldwide are choosing to keep pets:

Pets offer companionship, which is particularly important for people living alone or those who suffer from depression or anxiety.

Pets offer unconditional love and loyalty, which can help reduce stress levels and improve mental health.

Pets provide a sense of security, particularly dogs, which can be trained to protect their owners.

The Growth Potential

The trend of treating pets as family members has led to an increase in demand for premium pet products. People are willing to spend more on high-quality pet food, grooming products, and accessories to ensure that their pets are healthy, comfortable, and happy. 

The pet market has responded to this demand by offering a range of premium products that cater to the needs and preferences of pet owners.

The pet market has much to offer in the coming years, particularly in emerging markets such as India, China, and Brazil. As these countries experience economic growth and rising disposable incomes, more people are likely to adopt pets and invest in their care. This presents an opportunity for pet-related businesses to expand and grow their market share.

Furthermore, advancements in technology are driving innovation in the pet industry. The development of smart pet products, such as automatic feeders, GPS trackers, and activity monitors, is changing the way pet owners interact with their pets. These products offer convenience, peace of mind, and new ways to engage with pets, which is likely to further drive demand in the pet market.

Why The Surge?

Pets have been a part of human society for thousands of years, but in recent years, the number of people who keep pets has grown significantly. According to a recent survey, over 70% of American households have at least one pet. So, why are people today preferring to keep pets?

Companionship and Emotional Support

One of the main reasons people keep pets is for companionship and emotional support. Many people feel lonely or isolated in their daily lives, and pets can provide comfort and unconditional love. Research has shown that owning a pet can help reduce stress, anxiety, and depression and improve overall mental health.

Pets also provide emotional support to people with specific needs. For example, service dogs can assist people with disabilities, while emotional support animals can help individuals with mental health conditions such as anxiety and PTSD.

Improved Health and Well-being

Pets can also have a positive impact on physical health. Studies have shown that pet owners have lower blood pressure, cholesterol, and triglyceride levels, which can reduce the risk of heart disease. Additionally, owning a pet can increase physical activity, which is essential for maintaining a healthy weight and reducing the risk of chronic diseases.

Pets also provide a sense of purpose and responsibility, which can improve mental health and overall well-being. Taking care of a pet requires daily care, exercise, and attention, which can help individuals develop a routine and structure in their lives.

Compassion and Empathy

Caring for a pet can teach individuals important life skills such as compassion and empathy. Children who grow up with pets learn how to be responsible and caring and develop strong emotional bonds with animals. This can translate into better relationships with other people and a more compassionate and empathetic outlook on life.

Pets as Family Members

Another reason people prefer to keep pets is that they are increasingly considered part of the family. People are willing to spend more money on high-quality food, grooming, and medical care for their pets, as well as on accessories and toys. As a result, the pet industry has grown significantly, and there are now more products and services available for pet owners than ever before.

In conclusion, the pet care industry in India is a growing market with crazy margins. With the increasing number of pets in households and the rising disposable income of pet parents, there is immense potential for growth in this industry. 

By offering services in the mix, pet stores can increase their margins significantly, making this industry a lucrative opportunity for entrepreneurs and investors.