In the vibrant tapestry of India’s economic landscape, an unexpected sector is wagging its tail and catching the eye of investors, entrepreneurs, and animal lovers: the pet care market. Once a niche industry relegated to the margins of consumer spending, pet care in India has transformed from a modest luxury to a robust and rapidly expanding economic powerhouse.
This metamorphosis is not just a fleeting trend but a profound reflection of changing social dynamics, rising disposable incomes, and a fundamental shift in how urban Indians perceive and prioritize their furry companions. This shift in consumer behavior presents significant opportunities for investors and industry players and has led to the rise of diverse business models within the sector.
India’s Conducive Demographics Presents a Large Market Opportunity in the Pet Care Sector
In Frame: Brainbees Solutions Limited — DRHP
India’s demographic landscape presents a unique and compelling opportunity for the pet care sector. With a rapidly growing middle class, increasing urbanization, and a young population that is more globally connected and open to Western lifestyle trends, the market for pet ownership and related services is poised for significant expansion.
The country’s rising gross national income and expanding middle-class segment are creating a fertile ground for pet care businesses. Young professionals in metropolitan areas are increasingly viewing pets as family members, driving demand for premium pet food, healthcare services, grooming, and accessories.
This shift is particularly notable among millennials and Gen Z, who are more likely to delay traditional family formation and instead invest emotional and financial resources in pet companionship. Furthermore, changing social dynamics, such as nuclear family structures, increased disposable income, and a growing awareness of pet wellness, are transforming the pet care ecosystem in India.
Domesticated Pets are on the Rise in India With Significant Headroom for Growth
Source: World Bank, FRED, Destatis, IPSS, RedCore
Urban centers are witnessing a surge in pet adoption, particularly among younger demographics who view pets as companions and family members. This trend is bolstered by increased disposable incomes, nuclear family structures, and a growing awareness of pet welfare. Millennials and Gen Z are leading this shift, embracing pet ownership as a lifestyle choice that reflects their global outlook and emotional connectivity.
Source: World Bank, FRED, Destatis, IPSS, RedCore
Despite the current low penetration rate compared to other major economies, the Indian pet care market presents enormous untapped potential. Factors such as increasing pet-friendly infrastructure, growing veterinary services, and an expanding range of pet products are creating an ecosystem that supports and encourages pet ownership.
This Has Been Leading to an Uptrend in Spending Patterns in India’s Pet Care Sector
Source: RedCore
The rise in pet care spending in India is driven by a convergence of macroeconomic and socio-cultural factors. Macroeconomic pressures like inflation, combined with a trend towards premiumization, are pushing consumers to invest more in high-quality pet products and services. The growing pet adoption rates, particularly in urban areas with nuclear families, are further fueling this spending trend.
Increased pet humanization is a key driver, with an increasing number of pet owners viewing their animals as family members. This shift is manifesting in willingness to spend on specialized services like pet boarding, insurance, and personalized healthcare. Emerging product categories, rising disposable incomes, and evolving urban lifestyles are creating a robust ecosystem that supports and encourages higher expenditure in the pet care market.
The Pet Care Sector in India is Multifaceted and Comprises Multiple Segments
The pet care sector in India is rapidly evolving, reflecting a significant shift in consumer attitudes towards pet ownership. As more individuals embrace the concept of being “pet parents,” the demand for diverse and high-quality pet care products and services has surged.
This multifaceted market is segmented into four primary categories, with each segment playing a crucial role in shaping the overall landscape of the pet care industry, which is projected to grow substantially in the coming years.
Pet Food: The Pet Food segment encompasses a wide range of products, including dry food, wet food, treats, and customized nutrition tailored to specific dietary needs. The growing trend towards premiumization has led to an increase in demand for high-quality pet food.Pet Accessories and Products: The Pet Accessories and Products segment includes a variety of items such as collars, leashes, beds, toys, and grooming tools. As pet owners increasingly seek personalized and high-quality products that reflect their pets’ unique personalities, this segment has witnessed notable growth.Pet Grooming and Other Services: The Pet Grooming and Other Services segment includes services such as grooming, boarding, training, and pet-sitting. The segment’s growth reflects a shift towards convenience for busy pet owners who prioritize their pets’ well-being.Veterinary Pharma and Healthcare: The Veterinary Pharma and Healthcare segment is crucial for ensuring the health and longevity of pets. This sector encompasses a range of products such as vaccines, medications, surgeries, and preventive care services. As awareness about pet health increases among owners, there is a growing demand for veterinary services across India. The rise in veterinary clinics and hospitals indicates a robust growth trajectory for this segment as more pet owners invest in their pets’ health.Source: RedCore
Multiple New Age Players Have Emerged in India’s Pet Care Sector Solving a Diverse Range of Problems
The pet care sector in India is experiencing a significant transformation, driven by a surge of innovative startups addressing the diverse needs of pet owners. As the number of pets continues to rise, the demand for specialized products and services has never been greater. Multiple new-age players have emerged that offer a comprehensive range of services from grooming to veterinary consultations.
Petmojo: Leading pet care platform in India, offering a range of services including dog walking, pet boarding, grooming, and training, focusing on providing individualized care and wellness for pets.Flying Fur: Specializes in premium pet grooming services, offering at-home grooming solutions to ensure convenience and comfort for both pets and their owners.Vetic: Telemedicine platform that connects pet owners with veterinarians for online consultations, making veterinary care more accessible and efficient.Just Dogs: Operating as an omnichannel retailer, provides a wide selection of pet products and services, including grooming and training, catering to the diverse needs of pet parents.Pawsindia: Focuses on pet nutrition and health products, offering a curated selection of high-quality food and wellness items tailored for various breeds and life stages.Wagkart: Specializes in delivering pet supplies directly to consumers’ homes, providing a convenient shopping experience for pet owners.Wiggles: Offers a comprehensive range of services including veterinary consultations, grooming, and training, along with an online store for pet products, emphasizing holistic pet care.Dogkart: Online marketplace for pet supplies, Dogkart provides a variety of products ranging from food to accessories, aiming to simplify the shopping experience for pet owners.Supertails: Combines e-commerce with telehealth services for pets, offering consultations with veterinarians and delivering essential products directly to customers.Drools: Focuses on producing high-quality nutrition products tailored to meet the dietary needs of dogs and cats.Heads Up For Tails: Offers premium pet products including accessories, apparel, and grooming services, catering to the stylish needs of pets and their owners.Vetco: Provides veterinary services along with a range of pet health products, focusing on preventive care and wellness solutions for pets.
The Sector is Witnessing Transformative Trends Shaping up the Entire Landscape of Pet Care Offerings
The pet care industry is witnessing significant changes driven by factors such as increased humanization of pets, digitalization, premiumization, and the emergence of innovative service categories. These trends not only reflect changing consumer preferences but also present substantial opportunities for businesses looking to capitalize on this burgeoning market.
Rapid Growth of Pet Services: There is a rising demand for personalized veterinary services, including telehealth consultations, home visits, and tailored wellness plans. High-quality grooming and spa services are also gaining popularity, particularly in urban areas. New entrants can capitalize on this trend by establishing premium grooming salons or mobile units, while partnerships with established brands can enhance market presence and service offerings.Organic and Customized Pet Nutrition: Consumers are increasingly favoring organic and natural pet food options free from artificial additives. This trend presents opportunities for new players to introduce organic product lines. Additionally, offering customized nutrition plans based on specific pet needs can differentiate products in a competitive market.Focus on Underserved Pet Categories and Geographies: While dogs and cats dominate the market, there is growing interest in other pets like birds, fish, and reptiles. New companies can target these under-served segments with specialized products and services. Furthermore, expanding into rural and semi-urban areas presents significant opportunities for growth through strong distribution networks.Emergence of Niche Petcare Offerings: Driven by strong investor appetite for the petcare ecosystem, new-age players are launching niche offerings for pet parents, such as petcare tutorials, smart products for pets such as remote monitoring collars and smart feeding devices, and pet insurance.Sustainability and Community Engagement: Brands emphasizing eco-friendly practices can attract environmentally conscious consumers. Leveraging technology for product innovation, such as smart pet devices, alongside community-building efforts through educational initiatives, can foster customer loyalty and brand differentiation in the evolving pet care landscape.
The Sector Has Seen Multiple Marquee Deals and Robust Interest from Investment Funds
Source: Tracxn
The Indian pet care market has been experiencing a remarkable transformation, characterized by a surge of high-profile transactions. Several marquee deals have recently captured the attention of industry observers, signaling the market’s immense potential. Venture capital and private equity firms are showing robust interest, recognizing the substantial growth opportunities in this sector.
The proliferation of specialized pet care services, ranging from premium pet food and nutrition products to advanced veterinary care and technology-enabled pet services, has been a key catalyst for investor enthusiasm. Funds are particularly attracted to scalable business models that address the emerging needs of a more pet-friendly and pet-conscious Indian market.
Pet Care in India is a Latent Opportunity Driven by a Confluence of Growth Drivers
The latent opportunity in the Indian pet care market is emerging from a complex interplay of socioeconomic, technological, and lifestyle shifts that are fundamentally reshaping pet ownership and care dynamics in the country.
Increasing Pet Ownership: Driven by urbanization and changing social structures, young professionals and nuclear families are increasingly viewing pets as emotional support systems. Metropolitan areas are witnessing a surge in pet adoption, particularly among millennials and Gen Z.Rising Disposable Incomes: Higher spending power allows pet owners to invest in premium products and healthcare services. The expanding middle class and dual-income households contribute to this trend. This financial empowerment enables families to invest in premium pet food, healthcare, grooming, and accessories that were previously considered luxury items. The rising purchasing power is directly translating into more sophisticated and comprehensive pet care choices, driving market growth and diversification.Rising Awareness About Pet Health: Consumers are becoming more informed about nutrition, veterinary care, and holistic health approaches for their pets. This awareness is fueled by digital platforms, veterinary communications, and increased exposure to global pet care trends.E-Commerce Penetration: Online marketplaces are bridging geographical gaps, offering a wide range of pet care solutions to consumers across different regions. From specialized nutrition to veterinary consultations, e-commerce is making pet care more convenient, transparent, and accessible.Changing Lifestyle Trends: The post-pandemic era has intensified emotional connections with pets, with more individuals viewing animal companions as sources of comfort and mental well-being. This shift is driving demand for pet-friendly spaces, specialized services, and products that cater to both animal and owner lifestyles.
The pet care market in India stands at the fascinating crossroads of economic opportunity, social evolution, and emotional connectivity. As urban Indians continue to redefine their lifestyle choices, pets are no longer accessories but integral components of personal and social identity.
The future of India’s pet care market looks incredibly promising. Technological innovations, specialized veterinary services, premium pet nutrition, smart pet accessories, and comprehensive pet insurance are just the beginning.
For stakeholders across the spectrum — from small-scale local businesses to large corporate entities — the message is clear: the Indian pet care market is not just growing; it is evolving, innovating, and setting new benchmarks of transformation. As India continues its journey of economic and social metamorphosis, its pets are no longer just along for the ride — they are driving the change, one wagging tail and purring moment at a time.
LoEstro Advisors is an investment banking firm specializing in sell-side fundraising and M&A advisory, along with a strong consulting arm. Recognized as the #1 financial advisor in education in India, we are the advisor of choice to India’s blue-chip education businesses.
Over the last four years, we have grown to be one of India’s largest (in terms of M&A transactions) homegrown boutique investment banks, with $1.2bn+ worth of combined deals closed across education, healthcare, consumer, and technology sectors.
