by Pet insurance offers reimbursements against costs for veterinary care and medical expenses for pets. It covers annual vaccination, medical procedures, hospitalization, surgery and other treatments. Companion animals play an important role in majority of households as they provide emotional support and companionship. With rising disposable incomes and growing affections towards pets, owners are becoming more aware about pet wellness and health. They want the best medical care for their furry friends which is boosting adoption of pet insurance policies.
The global pet insurance market is estimated to be valued at US$ 9.59 Mn 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 Dynamics:
Growing awareness about benefits of pet insurance and responsibility towards pet care are major drivers bolstering the market growth. As pet pampering and spending is becoming a culture in developed nations, owners preferring to pre-pay for possible medical expenses through insurance. Moreover, rising pet adoption during Covid-19 pandemic due to loneliness and supportive role of pets during lockdowns has widened client base. Also, increasing incidences of diseases and medical conditions in pets with age advancement is prompting owners to opt for insurance. However, market still faces challenges of unawareness in developing countries and varying regulatory approach regarding insurability of pre-existing conditions. But awareness campaigns by insurance companies focusing on long term commitment in caring animals are expected to expand market reach and size considerably during forecast period.
Segment Analysis
The pet insurance market can be segmented based on animal type into dogs, cats, horses, and exotic pets. The dogs segment is expected to dominate the market during the forecast period. Dogs are considered as man’s best friend and an integral part of families in many countries. Hence, people are more willing to spend on dogs’ medical insurance.
PEST Analysis
Political: Government policies in some countries promote pet adoption and welfare, thereby supporting growth of pet insurance. However, stringent regulations related to exotic pet ownership may hamper the exotic pets segment.
Economic: Rising pet ownership driven by increasing disposable incomes and willingness to spend on pets support market growth. However, economic slowdowns can negatively impact consumer spending on non-essential items like pet insurance.
Social: Growing humanization of pets, nuclear family structure, and perception of pets as family members drive demand for pet insurance. Younger population especially millennials show higher inclination for pet insurance.
Technological: Technology aids faster claim processing and settlement through mobile apps and online portals. Digital tools also help insurance providers target potential customers and design customized policies.
Key Takeaways
The global pet insurance market is expected to witness high growth during the forecast period due to rising pet adoption and increasing humanization of pets. Global Pet Insurance Market Demand is estimated to be valued at US$ 9.59 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030.
North America currently dominates the market supported by high pet ownerships and awareness about such insurance products in countries like the US and Canada.
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, and Nutrivet. Regional analysis comprises Asia Pacific is expected to be the fastest growing region supported by improving pet care expenditures and lifestyles in countries like India and China. Key players related content comprises Key players operating in the pet insurance market are focused on developing customized policies suiting pet owner budgets and needs to consolidate their positions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
