The Growth and Opportunity of Pet Wellness for Pet Care Brands
The pet wellness industry offers growth and challenges. To succeed in this dynamic space, brands must innovate, comply with regulations, and build consumer trust. Find out more in this article.
October 6, 2023
6 mins read
Isabel Murphy, Anastasia Hamurari
The global pet care industry is predicted to grow at a compound annual growth rate (CAGR) of 5.1% between 2022 and 2030. This forecast is predicated on pets increasingly being viewed as a part of the family and, therefore, a higher inclination to spend more on higher-quality pet care products.
No longer confined to basic pet necessities, it has now expanded into a dynamic arena where the well-being of our four-legged companions takes center stage.
As pet owners are placing a bigger focus on pet wellness, driven by the rising trend of pet humanization, a thriving market has emerged – one that offers both growth and opportunity for pet care brands.
In this article, we discuss the world of pet wellness and its current state, exploring the evolving landscape of opportunities for pet care brands along with challenges and considerations it presents for those in the pet care business.
Understanding pet wellness
Understanding pet wellness goes beyond the conventional idea of ensuring pets are well-fed and properly sheltered. It encompasses a holistic approach to a pet's physical, mental, and emotional health. This includes pet owners seeking products and services that promote longevity, vitality, and happiness in their pets.
Increased investment and advancement in technology resulted in a rise in the purchase of products such as wearable tracking technology, allowing both pet owners and brands insights into a pet’s unique needs. Companies specializing in pet health and wellness are now able to utilize this increased insight into pet behavior as more comprehensive data becomes available.
Additionally, effectively monitoring and, consequently, better understanding pets allows brands to easily identify new diseases and potential health problems with insights into sleep, nutrition, and exercise patterns. This allows companies to design and manufacture products in line with their go-to-market plan when bringing a new pet wellness product or service to market.
Finally, pet wellness companies can provide personalized care for individual pets, with 63% of pet owners now interested in customized products to suit their pets' individual needs. Veterinary professionals are also gaining the ability to adapt their care recommendations to apply to specific pets, enabling more effective treatment.
The current state of the pet care industry
There’s a significant shift in consumer attitudes towards pet care. Buying healthier foods for pets, including those containing natural ingredients, is currently a priority for pet owners.
In response to this consumer demand, pet brands are being transparent in using clean nutrients that include fiber, minerals and vitamins. Besides, the heightened awareness around artificial elements means that pet wellness businesses are now expected to reduce the amount of synthetic ingredients used as much as possible.
Pet owners now place greater emphasis on preventive healthcare measures, including regular vet check-ups, vaccinations, and dental care. In fact, as many as 88% of consumers believe that preventative care is an important element of maintaining pet health. Thus, preventing health issues before they arise is considered a vital aspect of pet wellness, leading to increased spending on veterinary services.
Pet wellness isn't solely about physical health – it also involves mental and emotional well-being. This holistic approach has given rise to specialized services, such as pet spas, doggy daycares, and behavior training centers. These services focus on addressing the emotional and mental needs of pets, which are viewed as essential components of their overall wellness.
Challenges and considerations
- Regulatory compliance
Regulatory compliance is a big challenge for many pet care companies, predominantly those within the pet food segment governed by various restrictions that differ by country, region or state. This is particularly challenging for products that also contain meat substances which may then be subject to additional regulations.
- Consumer education
Many pet owners are still learning about the intricacies of pet wellness. Brands must invest in educational efforts to help consumers understand the importance of holistic pet care and the value of their products and services.
The rising expectations of pet owners for unique and effective solutions demand continuous creativity and investment in research and development. The intricacies of regulatory compliance, market testing, and fierce competition add layers of complexity.
Moreover, sustaining a competitive edge amidst rapid technological advancements and the imperative to address sustainability concerns calls for strategic agility and resource allocation.
40% of US pet owners state that environmental issues impact their pet food choices, whilst almost three-quarters look positively at companies that offer more sustainable packaging options.
Subsequently, pet care brands should address these environmental considerations and approach manufacturing processes in a way that aligns with consumer values.
Seize the DTC opportunity for your pet care brand
The state of the industry and consumer demands are such that brands have the opportunity to take advantage of advancements in technology and increased focus on personalization options to provide products and recommendations tailored to specific pets by leveraging first-party data.
Moreover, DTC channels can empower pet care brands to forge long-lasting relationships with their customers, enabling real-time feedback and fostering brand loyalty through tailored experiences.
For instance, pet food brands can capitalize on owners' heightened nutritional awareness by highlighting the health benefits, including increased vitamins, minerals, and fiber intake, and addressing multiple wellness concerns simultaneously.
The need for innovation to meet evolving consumer expectations and stay competitive in the pet wellness industry cannot be overstated. Navigating regulatory complexities, market demands, and sustainability concerns requires strategic vision and adaptability.
Ingenuity exists to support brands to do just this and accelerate global brand growth at the same time.
For nearly two decades, we have been supporting FMCG brands in their DTC journeys. Leveraging expertise in technology, operations and digital services, you can connect with consumers in a data-driven and personalized manner that propels your pet care brand forward at scale.
Get in touch with us today to discover how we can empower your FMCG business in its next phase of growth.