by Pet insurance provides financial protection for pet medical expenses. It is an affordable way for pet owners to cover unforeseen veterinary care costs for their dogs and cats. There are various pet insurance policies which cover annual exams/check ups, office visits, vaccinations, X-rays, medications, surgeries, hospitalization, and more. Many policies offer coverage for heredity or congenital conditions, cancer treatments, accidental injuries, and routine preventive care. Pet owners are recognizing the importance of protecting their pets financially in case of illness or injury. Rising healthcare costs for animals as well as increasing humanization of pets are key factors driving demand for 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
Increasing expenditure on pet healthcare as pet owners view their pets equivalent to family members is expected to drive the growth of pet insurance market over the forecast period. According to the American Pet Products Association National Pet Owners Survey in 2021, U.S. pet owners spent over $103.6 billion on pet products and veterinary care. Rising pet adoption during the pandemic has also contributed to higher spending on pet insurance to address potential veterinary needs.
Moreover, providing pet insurance is considered a risk management strategy for insurers to attract new customers in the profitable pet care market and build loyalty. Pet insurers are offering various policies with flexible coverage amounts and various add-ons like wellness plans, dental care coverage, and physical therapies to suit pet owners’ budgets and needs. Innovation in pet insurance offerings and increasing awareness regarding financial protection for pets is further expected to support market growth over the forecast period.
Segment Analysis
The global pet insurance market is segmented into accident only, accident and illness, and comprehensive cover. The comprehensive cover segment dominates the market with around 50% share owing to higher veterinary costs covered under the policy. Under comprehensive cover policies, pet owners are reimbursed for both accidents as well as illnesses like cancer, diabetes, dental problems, etc. which saves significant financial burden on owners.
PEST Analysis
Political: Lately, many countries have started recognizing pets as sentient beings rather than property. This has made owners legally liable for pets’ health insurance.
Economic: Rising pet adoption and expenditure on veterinary care is driving demand for pet insurance. It mitigates financial risks associated with unforeseen veterinary expenses.
Social: Pets are increasingly treated as family members rather than animals. This has increased willingness to spend on their health and wellbeing through insurance.
Technological: Technology is improving veterinary diagnostics and treatments. This has raised healthcare costs, necessitating insurance coverage.
Key Takeaways
Global Pet Insurance Market Size is expected to witness high growth during the forecast period. 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.
Regional analysis
North America’s pet insurance market holds around 40% share of the global market owing to high per capita pet adoption and expenditure in the US and Canada. Veterinary costs are also highest here with newer technologies readily available.
Key players
Key players operating in the pet insurance market are Cargill Aqua Nutrition, Skretting, Biomar, Alltech, Ridley Corporation Limited, CP Group, Charoen Pokphand Foods, Nutriad International, BioMar Group, Nutra Blend LLC, Guangdong Haid Group Co., Ltd., Tongwei Group, Avanti Feeds Limited, Nutrivet, BRF S.A.
