Azeem Qureshi, a dog breeder in Mumbai is beaming with pride. The enquiries have been non-stop, especially post the pandemic. Referrals from customers have been at an all time high. But in the midst of all this action is the ultimate truth.

Even as the number of homes opting for pets grows at an unprecedented pace, the pet care industry has continued to be dominated by the unorganised sector. No, we are not talking about Qureshi and his peers who sell pets (dogs continue to be the top selling pets). Rather, our conversation is about the host of allied services from foods and nutrients to services like grooming etc.. that form the entire pet ecosystem.

Industry players agree that it’s largely disorganised. But there is still a high potential for disruption and growth. And the fact that the sector has bucked a serious crisis like the pandemic, or rather emerged riding the wave, makes it a particularly attractive industry, they say.

“This industry amazes us every year. The category adoptions were peak at the time of the Covid-19. But in any society, residential hubs, or small towns, it’s very common to have a pet right now,” said Shashank Sinha, veterinarian and chief executive officer of Drools, a pet food brand.

“I’m very bullish on the way the industry is growing,” he added.

Pankaj Poddar, group chief executive officer of Cosmo First, which owns pet care brand Zigly, highlighted that the industry is poised for a very significant growth from 2027 and beyond. “It is already growing at 15 to 20 per cent and it is valued at INR 8000 crore,” he added.

Others are slightly more conservative in their estimate. The pet population in India is estimated to be around 32 million, growing at 11 per cent per annum, with dogs being the most popular, followed by cats and fish. The market size of pet care in India was USD 569.4 million (INR 4721 crore) in 2022 and is estimated to reach USD 1,932.6 million (INR 15,754 crore) by 2030, growing at a CAGR of 16.5 per cent, according to Decipher Market Research agency.

Mars Petcare India’s marketing director, Madhur Khanna calls the industry of furry companions an exciting space.

Feeding the right diet

At present, the industry of pets is spanning across predominantly dogs and cats. As we look into what’s happened over the last few years, the industry has been focusing on the categories which have evolved a lot more in terms of pet nutrition, firstly, in terms of feeding the right food.

“Pet food is around 65 to 70 per cent of the category size. But the way the industry will keep on getting mature, this will become 50 – 50. Half of it on food and the other half on supplements, treats and accessories,” Sinha said.

The TGM Global pet care survey mentioned that 86 per cent of surveyed Indians consider quality to be the most important factor when choosing pet food.

Khanna stated, “The other part of evolution is formats such as freeze dried products, high protein products, products, which are solving specific pain points for pets, we’re seeing an emergence of some of those products entering into the market now.”

According to a TGM Global pet care survey, 24 per cent of pet owners in India take equal, if not more care, to choose grooming services for their furry friends.

However, the industry is beset with unorganised sector practices. Pet owners may not be given basic information like price lists online and are not always informed of the cost of treatment at a vets before agreeing to it, a watchdog has warned.

Drools’ Sinha said, “I personally believe if my customer is aware and informed, he or she will make a wise decision. Less informed customers are always dangerous for the category and the company.”

The trend of humanisation

The influence of pets in Indian households goes beyond the ordinary. They are not merely animals; they are integral family members who play a crucial role in shaping the emotional and social dynamics of the home, say experts.

According to the Ikea Life at Home report, as pets continue to assert their influence in 32 per cent of Indian households, it is evident that their impact is not merely a passing trend but a transformative force.

Care and treatment as a category has significantly expanded for early ‘pawrents’. Mars Petcare India’s Khanna said, “Pet nutrition is definitely more awareness around feeding the right nutrition to their pets. More than 70 per cent of the pet parents that have entered into the category over the last two or three years are first time parents or prior to that.”

“Their ability to look for better nutrition for their pets, which is differentiated from their home cooked meals and their ability to invest in giving the right ecosystem for their pets are significantly better,” she added.

Earlier, there was a dearth of pet care awareness and education among pet parents. The industry has been driven by pet parents’ increased knowledge of the necessity of pet care and a growing demand for pet-specific products and services.

Poddar stated, “Pet parents have initially moved to pet food. Gradually over a period, they started using grooming services. This is going to move beyond where they will get into prescription for more healthier options for the beds and more clothing options.”

As grooming vans roll into neighbourhoods, dogs and cats can get their hair brushed, nails clipped and paws massaged for INR 1,150-3,500 — equivalent to what their owner-humans would spend on themselves in salons.

Mars Petcare India’s Khanna said, “Not only is the category of pet nutrition witnessing record growth, but it’s at an overall category level –both from the services that are being available for pets, to the type of accessories and toys that are being made available. This industry is going to get a lot more bigger because pets have become very meaningful in pet parents’ lives.”

Paws without pause

Paw parents do not hesitate to spend, Sinha emphasised. “The spending has increased. The share of the wallet for the pet care category has taken a significant jump,” he added.

From cafes to casual dining establishments, pet-friendly venues have provided distinctive experiences that turn eating out with one’s furry friend into a celebration, rather than just a meal specially made for them.

Pet acceptance in large hotel chains and cafes are changing. The accessibility of the furry companions into no-go areas has resulted in a positive trend for the industry going ahead, Sinha stated.

Fairy tail ending

The market for premium pet products such as organic food, luxury accessories, personalised nutrition and telemedicine has grown significantly following the surge in pet ownership during the Covid-19 pandemic.

The industry has also seen a lot of omnichannel play in recent years. Khanna said, “There are brick and mortar stores, which are moving online, online moving to offline, we know that the expansion is happening across the length and breadth of India, where pet parents have the propensity to pay.”

In recent years, brands like Zigly expanded its footprint in tier two cities in India.

From bark to bytes

A wave of technological advancement is sweeping through every business and the pet care industry is no exception.

Khanna stated that from a pet industry standpoint, we’re still working through the exact space and then finding that opportunity to drive AI and automation. “But it’s totally rooted not just in terms of advertising efficacy, but it could be more in terms of how one can bring solutions and drive education in the category.”

Mars Petcare India’s marketing director shared the opportunity of adopting AI in the industry. “The opportunity for us is to be able to make nutritional knowledge around the pet’s early stage of life, finding the dogs, in terms of up for adoption, to be able to help parents is one of key priorities for us.”

AI has just started in this industry, said Poddar. “We are adopting artificial intelligence in a very significant way, whether solving basic customer queries, data mining, building different kinds of tools for customer experience,” he added.

Sinha highlighted that along with the major brands, the AI adoption is largely happening towards the supply chain modules.

“Customer care is one of the areas where it will pick up very fast like chatbots,” Sinha added.

In his pet store in South Mumbai, Qureshi prefers human engagement with pet owners; a secret that’s kept him in business for decades. But as they say, what worked till yesterday is no guarantee for tomorrow. The ‘Catlogs’ or wearable devices to study animal emotions or pet robots entering Japanese homes is only one start of another pet story.