Worldwide Pet Spending to Reach $500 Billion by 2030
According to a new report from Bloomberg Intelligence the current $320 billion plus that is today spent on pets will increase worldwide to about $500 billion by 2030.
The report finds that this growth is boosted by the sheer increasing volume of pets combined with the rising emotional connection that particularly millennials and GenZers have with companion animals.
The analysis finds that the U.S. is positioned to continue to remain the largest pet market, with sales approaching $200 billion by the end of the decade. This growth is driven by an increase in spending on pet-related healthcare — including veterinary care, diagnostics and pharmaceuticals.
And while our pets are living longer, they also require more care as they age, both medical care and support for their care (programs such as pet hospice).
New drugs are here or on the horizon, even mentioned in the report are complex drugs like monoclonal antibodies, specifically designed and approved for target species. This could support the pet pharmaceutical market topping $25 billion by 2030. Solensia is a monoclonal antibody now approved for cats with osteoarthritis, and a similar drug for dogs, called Librela, likely to come to the U.S. market early next year as just two examples of incredible cutting-edge medicine.
The analysis predicts that increased animal longevity and healthcare improvements might accelerate the use of preventive-care diagnostics as well, with the potential to become a $30 billion global market. Europe represents that largest growth opportunity with a total addressable market around $12 billion with just eight percent penetration.
The report also finds the global pet food market will likely top $135 billion by the end of the decade, an increase of 52 percent from current levels. This increased spending is expected to remain the largest expense for pet owners in the US, as food spending remains consistent even throughout economic downturns. The report also predicts that premium fresh frozen food, which only accounts for one percent of the world market will continue to increase as it has done in the U.S.