Tails of a Thriving Industry: India’s Pet Care Boom
Every day, 90-year-old Kanak Saxena from Ghaziabad, despite battling osteoporosis and undergoing multiple major surgeries, cooks and feeds 120 dogs. She credits the joy and love she receives from them as the secret to her health.
Then there’s Rajani Shetty from Mangaluru, who prepares 200 kilograms of food daily to care for over 800 animals.
Simply put, people love animals - and they go to incredible lengths to care for their furry friends.
And the underlying numbers behind the pet industry tell an equally impressive story.
The global pet care market is huge, estimated at over $246 billion in 2023. It is projected to reach $400 billion+ by 2032.
India is fast catching up.
The Indian pet-care market is booming, valued at a whopping ₹5,000 crore. Why? The country has seen a surge in pet ownership, climbing from 20 million in 2015 to 30 million in 2023. With this love for pets growing, the pet industry is booming too.
In Bangalore alone, pet parents shell out upwards of Rs 3,000 a month. And that’s just one city!
Ever noticed how pets are pampered? Pet food makes up 70% of the market, showing how much more attention people are giving to their pet's health and nutrition. It’s no wonder big companies like Mars Incorporated and Nestlé are taking notice and making investments.
Recently, Mars Inc. committed ₹800 crore to expand its Telangana plant in August 2023 where pet food is manufactured under well-known brands such as Pedigree and Whiskers.
But it's not just about kibble and treats. Accessory sales - toys, collars, and cosy beds make up another 20% of the market.
New services like grooming salons, pet cafes, and even pet insurance are popping up everywhere. Millennials and Gen Z are leading the charge, creating demand for premium pet experiences.
So, what's driving this shift? Changing demographics, for one. Disposable income is rising and young Indians are delaying marriage and choosing pets as companions, especially in urban areas.
Plus, the convenience of online shopping through Amazon and BlinkIt has made pet products accessible like never before.
However, a few challenges remain. India’s pet-care market lacks strong regulatory standards, which sometimes means products don’t match up to international quality. But as awareness grows, so will the supply of better products.
Looking ahead, India's pet care industry is poised for continued growth.
By 2028, India’s pet-care market is expected to surpass ₹10,000 crore. The industry is predicted to grow at a solid 9% CAGR over the next five years.
With 31 million dogs and 2.4 million cats, India is already the fifth-largest pet-owning nation and is rapidly developing into a global pet-care powerhouse.
So, is this the purr-fect opportunity?
Absolutely! Whether you're a pet owner or a serious investor, India's pet industry is the one to keep an eye on as this industry might just be barking up the right tree!
Disclaimer: Information mentioned in this post is taken from publicly available sources. This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
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