Global Pet Services Market Outlook to 2030

Global Pet Services Market Overview

• The global pet services market is valued at USD 28.5 billion, driven by a combination of rising pet ownership and the increasing demand for pet care services. Factors such as pet humanization, where pets are considered part of the family, have boosted spending on grooming, boarding, veterinary care, and other services. Additionally, consumers are opting for premium services, ranging from pet insurance to specialized grooming, contributing to the market's growth. The consistent increase in disposable income and the emotional bond people have with their pets are key drivers for the market.
• In terms of geographical dominance, North America and Europe lead the market. In North America, particularly in the United States and Canada, high disposable income and the strong cultural inclination toward pet ownership contribute to the market's strength. Europe follows closely, with the UK, Germany, and France playing pivotal roles due to their advanced veterinary infrastructure, rising adoption rates, and emphasis on pet wellness. These regions maintain their lead due to robust economic support and societal trends that favour increased pet care.
• Animal welfare laws play a critical role in shaping the global pet services market. In the U.S., the Animal Welfare Act (AWA) mandates specific standards for pet grooming, boarding, and veterinary services, impacting over 10,000 pet service providers by 2023. Compliance with these laws is mandatory for businesses, ensuring ethical treatment of pets in care facilities. The European Union also enforces strict regulations under the European Convention for the Protection of Pet Animals, affecting over 8,000 pet businesses across member states. These laws not only protect animals but also elevate industry standards.

Global Pet Services Market Segmentation

• By Service Type: The global pet services market is segmented by service type into pet grooming, pet boarding & daycare, veterinary services, and pet insurance. Pet grooming services have taken a dominant market share in 2023, driven by the growing trend of pet humanization and the desire for premium services. Increasing disposable incomes have encouraged pet owners to invest in the wellness and appearance of their pets, leading to frequent grooming sessions. Brands and local service providers offer an array of grooming services, which are considered essential for maintaining pets' health and well-being.

• By Animal Type: The market is also segmented by animal type into dogs, cats, small pets (rabbits, hamsters, etc.), and exotic pets (birds, reptiles). Dogs dominate the global pet services market, holding the largest share in 2023. This is largely due to the higher ownership rates of dogs compared to other pets, as well as their larger need for care services such as grooming, veterinary visits, and boarding. Dogs require consistent care, driving up demand for all types of services, from premium grooming to specialized healthcare.
• By Region: Geographically, the global pet services market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. North America holds the dominant position in the market, capturing the largest share in 2023. This dominance is attributed to the region's cultural inclination towards pets, the high expenditure on premium services, and a well-established pet care infrastructure. Pet ownership rates in the U.S. and Canada remain among the highest globally, contributing to the market's growth.

Global Pet Services Market Competitive Landscape

The global pet services market is dominated by a few key players who have built extensive networks and a strong market presence. Major companies focus on providing a wide range of services, including grooming, veterinary care, boarding, and insurance. The presence of global players such as Mars Petcare and regional specialists like Petco contributes to the markets competitive nature. Consolidation is evident in the industry, with many companies offering integrated services that cover all aspects of pet care.

Global Pet Services Market Analysis

Global Pet Services Market Growth Drivers

Rising Pet Ownership: The global increase in urbanization has led to changing lifestyle patterns, contributing to the rise in pet ownership. According to the United Nations, over 56.2% of the worlds population lives in urban areas in 2024, leading to higher demand for companionship, especially in smaller households. As cities grow, people tend to adopt pets as a source of emotional support. In the U.S., for example, the pet population has seen a steady increase, with 90 million dogs and 94 million cats reported in urban settings in 2023. This shift drives the demand for pet services, including grooming, boarding, and veterinary care.

Increased Spending on Pet Wellness: Pet humanization, where pets are treated as family members, has led to a rise in spending on pet wellness services. A study by the World Bank shows that as global incomes rise, discretionary spending on pets has increased, especially in developed economies like the U.S. and Western Europe. In 2022, pet owners in the U.S. alone spent an average of $1,200 per pet annually on wellness services such as spa treatments, organic diets, and veterinary care. This trend is rapidly growing in middle-income economies, like China and Brazil, further driving demand for premium pet services.

Evolving Consumer Preferences: The pet services market has seen evolving consumer preferences with a shift toward subscription-based models and customized services. With over 4.1 billion global internet users in 2024, online services offering home delivery, subscription boxes, and customizable pet care options have surged. According to the IMF, this shift reflects a growing demand for convenience, especially among younger pet owners. In Europe, the market for pet subscription boxes, such as personalized grooming kits, grew by 8 million users between 2022 and 2023, making customization and convenience key drivers of market expansion. Source: IMF

Global Pet Services Market Challenges

• Fragmented Industry: The pet services industry remains highly fragmented, with competition intensifying between small businesses and large corporations. In North America, more than 70,000 small pet service businesses operate alongside major players like Petco and Chewy. This fragmentation leads to pricing pressures, operational challenges, and customer loyalty concerns. Small players face difficulties in scaling due to limited resources, while larger corporations benefit from economies of scale. The presence of an estimated 5 million independent pet groomers globally by 2023 further complicates market dynamics.
• High Operational Costs: High operational costs are a major challenge for the pet services industry. Logistics costs, particularly for mobile pet grooming and at-home pet care services, have risen by 15% between 2022 and 2024, according to IMF data. Additionally, rising real estate prices in urban centers globally are pushing up rents for pet service facilities, particularly in Asia-Pacific and Europe. Skilled labor shortages further compound these issues, as training and certification for pet care professionals require substantial investment. In Japan, for example, hiring a certified pet groomer costs up to $50,000 annually.

Global Pet Services Market Future Outlook

Over the next five years, the global pet services market is expected to experience steady growth, driven by factors such as rising pet ownership, increasing consumer spending on premium pet care services, and advancements in veterinary technology. The demand for personalized pet care solutions is expected to rise, with a particular focus on wellness services and innovative technologies such as AI-powered pet monitoring and telemedicine. The expansion into emerging markets such as Asia-Pacific is also anticipated to boost growth, as pet ownership becomes more widespread in these regions.

Global Pet Services Market Opportunities

• Expansion into Emerging Markets: The Asia-Pacific and Latin American markets represent growth opportunities for the global pet services industry. With a combined population of over 4 billion people, these regions are experiencing a rise in disposable incomes and changing lifestyles, leading to increased pet ownership. In China, the pet population grew to over 100 million in 2023, with a corresponding rise in demand for grooming, boarding, and veterinary services. Similarly, Brazil saw a 20% increase in pet-related expenditures in 2023, highlighting untapped potential in these regions.
• Technological Advancements: Technological advancements, particularly in AI-powered pet monitoring and telemedicine, are opening new revenue streams in the pet services market. In 2023, over 300 million wearable devices for pets were sold globally, allowing pet owners to track their pets' health, location, and activity levels. This trend is especially pronounced in developed markets like the U.S. and the U.K., where over 40% of pet owners use some form of pet monitoring technology. Telemedicine services, which allow remote consultations with veterinarians, are also growing, with over 20 million pet consultations conducted online in 2023.