Pet Care E-commerce Market Size, Share & Trends Analysis Report By Product (Food & Treats, Litter Products, Grooming Products, Medicines), By Animal Type (Dogs, Cats, Other Animals), By Region, And Segment Forecasts, 2024 - 2030

Pet Care E-commerce Market Size & Trends

The global pet care e-commerce market size was estimated at USD 90.23 billion in 2023 and is projected to grow at a CAGR of 7.64% from 2024 to 2030. The market growth is primarily driven by the increasing pet adoption, rapid technological advancements, and rising access to e-commerce platforms. An increase in consumer spending on e-commerce platforms and the rise in the number of internet users are expected to propel market growth. For instance, in 2023, U.S. e-commerce accounted for 22.0% of total retail sales in the country. This marked the largest U.S. e-commerce sales in history. Several e-commerce websites are incorporating novel strategies to gain a majority share in the industry. Moreover, in October 2023, Amazon considered offering veterinary telehealth to compete with Walmart as it began to offer free access to pet telehealth to its subscribers.

The COVID-19 pandemic has had a significant impact on various sectors, including the pet care e-commerce market. With lockdowns and restrictions on movement, many pet owners turned to online platforms to purchase essential pet supplies such as food, medications, and grooming products. This surge in demand led to a significant boost in the pet care e-commerce industry. Like many other industries, the market faced challenges in supply chain and logistics due to disruptions caused by the pandemic. Delays in shipping and shortages of certain products were common, impacting the overall customer experience and potentially leading to shifts in consumer loyalty.

There has been an increase in the adoption of pets across the globe due to medical and personal reasons. For instance, according to the Global Animal Health Association, in September 2022, families in the U.S., Brazil, EU, and China accounted for over half a billion pets (dogs and cats), while more than half the world was estimated to have a pet at their home. According to the same source, the ownership of these pets (cats and dogs) has been steadily increasing across the globe, including the emerging economies. Pet ownership helps improve human health outcomes, especially for people with heart problems, anxiety issues, and depression.

Rising awareness about pet health and wellness among pet-owning households is a major factor expected to propel the growth of pet care e-commerce industry. The demand for pet foods such as wet foods, treats, snacks, and other items is expected to increase, owing to the rising health concerns for pets. Moreover, various organizations and campaigns have been working to promote pet adoption from shelters and rescue centers, raising awareness about the benefits of adopting a pet and the challenges faced by homeless animals. For instance, in January 2023, Zigly, an omnichannel pet care brand, launched a new brand campaign, NoCompromise. The campaign aimed to spread the message of not compromising in delivering quality pet care services to pet parents.

Market Concentration & Characteristics

The pet care e-commerce market exhibits a moderate to high market concentration. The market growth stage is medium, and the pace of the market growth is accelerating. One major factor propelling the growth is the rapid technological advancements. With the increasing development of more intuitive and visually appealing websites & user interfaces, online shopping platforms have become easier to navigate. This allows pet owners to easily look for a variety of options for their pets and make purchases.

The increase in internet penetration is expected to contribute to the market growth. Changes in the levels of mobile usage and adaptability, the introduction of single-touch purchase options, and user-friendly web pages have increased the popularity of e-commerce websites, which is driving the market growth for pet care e-commerce.

A surge in the number of collaborations and strategic partnerships, including mergers, acquisitions, and investments, which is creating growth opportunities for the market. For instance, in September 2023, Butternut Box announced a USD 280 million investment. This investment was aimed to expand its business across Europe and enhance its delivery of fresh, tasty, and healthy meals to pets around the world. Several market participants are geographically expanding their existing businesses to gain a greater share of the market.

The market demonstrates a high degree of innovation, characterized by ongoing partnership and collaboration between market players, and supportive initiatives. For instance, in February 2024, PetSmart and Nate + Jeremiah collaborated to offer a chic collection of pet essentials, including beds, bowls, and furniture, blending style with functionality for cat and dog parents. The partnership combines PetSmart's expertise in pet care with Nate Berkus and Jeremiah Brent's design sensibilities, providing affordable, stylish options for integrating pets into home decor.

Within the market, there exists a moderate level of mergers and acquisitions activity, indicative of ongoing consolidation and strategic partnerships among industry players. For instance, in February 2024, Targeted PetCare (TPC) acquired Pet Brands, a prominent pet treats company, strengthening TPC's pet treat portfolio with enhanced sourcing, design, and packaging capabilities. The strategic move aligned with TPC's goal of expanding its pet consumables offerings through mergers and acquisitions, marking the fifth strategic move under Wind Point ownership.

The market experiences a high impact of regulations. Many countries have regulations in place to ensure the safety of pet products, including food, toys, and accessories. E-commerce platforms selling pet products must comply with these regulations to ensure the quality and safety of the products they offer. E-commerce businesses selling pet products may be required to obtain certain licenses or permits to operate legally, especially if they are involved in activities such as pet grooming, boarding, or breeding.

The risk of substitutes is expected to be low. Subscription-based pet care services offer convenience and cost savings for pet owners who prefer regular deliveries of pet food, treats, toys, and other supplies. These services often offer a curated selection of products based on the pet's specific needs.

Animal Type Insights

The dogs segment held the highest market share in 2023. Dogs are among the most popular pets due to their reputation for intelligence, loyalty, and protection. The canine segment is expected to witness significant growth due to the increasing demand for pet foods, grooming supplies, and accessories as a result of more people adopting dogs as pets. In July 2022, West Blomfield Internal Medicine reported that dogs are now used to treat mental health issues, such as Post-Traumatic Stress Disorder (PTSD), and physiological diseases, such as diabetes and epilepsy. As a result, the demand for dog-related pet care products is likely to remain high in the pet care e-commerce industry.

The adoption of dogs as pets is expected to increase across the globe over the forecast period. According to the Pet Food Industry report, the number of dogs in Europe was estimated to be 105.4 million in 2022. The demand for pet food, toys, grooming supplies, and other accessories is expected to rise in the upcoming decade due to the increasing adoption of pets, contributing to segment growth.

The growth of the cats segment is anticipated to be positively impacted by the increasing number of cat owners worldwide. According to Forbes’ Pet Adoption Statistics 2024, around 43% of cat owners reported they obtained their pets from a store, while 40% mentioned they got them from a rescue or animal shelter. In addition, during the past several years, the number of single-person households and the desire to keep a pet has increased, fueling market expansion. According to the same source, around 2.1 million cats are adopted from pet shelters in the U.S. annually.

Product Type Insights

The food & treats segment held the largest revenue share of 38.76% in 2023. This can be attributed to the growing focus of pet owners on pet health. Online shopping for pets has become more convenient due to the availability of several pet products, user-friendly websites, and high-quality food. E-commerce websites provide several benefits, including doorstep delivery and advice on the finest available pet food options. Most pet parents of this digital generation prefer to shop online.

The availability of different items on internet platforms and specific advertisements on social media websites are contributing to the rising demand for pet snacks & treats. In addition, the extensive product selection and enhanced browsing experience offered by online channels is another key factor expected to drive the segment’s growth. Advantages such as multiple payment options, hassle-free delivery, product subscriptions, and product saving encourage pet owners to opt for an e-commerce platform, facilitating market growth. Some of the popular e-commerce sites include Amazon, Chewy, Petco, PetFlow, and Zooplus.

The supplement segment is anticipated to grow at the fastest CAGR of more than 12.00% from 2024 to 2030. The increasing demand for supplements can be linked to the growing pet humanization, resulting in significant spending on pet food, supplements, and other related items to keep them active and healthy. Pets with supplements have higher energy, attention, and concentration levels, a more robust immune system, and better heart health. The demand for supplements that reduce tension & anxiety or promote calmness is increasing, and these supplements are predicted to become more popular among pet owners over the coming decade. The availability of a large variety of pet food and needs and the growing appeal of “Subscribe and Save” programs are expected to drive market expansion.

Regional Insights

North America dominated the pet care e-commerce market in 2023. The number of pet owners in North America has been steadily increasing, leading to a larger customer base for pet care products and services. Due to an increase in pet-owning households, there has been a consistent surge in demand for pet care products and services. The rise of mobile devices and internet has made it easier for consumers to access online pet care services & products. Consumers can now order pet food, toys, and other accessories from their smartphones and have them delivered at home. According to the U.S. Department of Homeland Security, there are approximately 200 million smartphones in the U.S. Hence, the rising penetration of smartphones and internet is expected to positively impact market growth.

U.S. Pet Care E-commerce Market Trends

The pet care e-commerce market in the U.S. is fueled by various factors, primarily the growing popularity of pet ownership and trend of humanizing pets. More individuals are choosing small pets, such as cats and dogs, for companionship. The growing trend of pet humanization has led to pet owners’ willingness to invest in quality pet products, which has created a substantial market for pet products & services, leading to increased demand for online shopping platforms that offer convenience and a wide range of products.

Europe Pet Care E-commerce Market Trends

In recent years, pet ownership has been increasing in Europe, leading to a rise in the overall number of pets in households across the continent as more people are choosing to have pets as companions. This trend is influenced by factors such as changing lifestyles, increased awareness of animal welfare, and the benefits of having pets for mental & physical health. As per a report by the European Pet Food Industry Federation (FEDIAF), 91 million European households own a pet in 2022.

The Germany pet care e-commerce market is expected to grow during the forecast period. Changing consumer preferences is crucial in driving the growth. Pet owners are increasingly seeking premium and organic products for their pets, reflecting a broader shift toward wellness-oriented consumption habits. The willingness to invest in higher-priced items that offer superior quality and nutritional benefits has increased due to the desire to provide the best care for pets. Online platforms provide better transparency regarding the sourcing & production of their products and offer a wider range of cruelty-free & eco-friendly products, further appealing to consumers who prioritize animal welfare & sustainability.

Asia Pacific Pet Care E-commerce Market Trends

The popularity of cross-border e-commerce allows consumers in Asia Pacific to access international brands and products that may not be readily available in their local markets. This trend contributes to the market growth by offering a diverse selection of products to consumers. For instance, international pet care brands such as Blue Buffalo Co., Ltd, Nestle Purina PetCare, and The Hartz Mountain Corporation are available for purchase through e-commerce platforms such as Amazon, Chewy, and Zooplus.

The Japan pet care e-commerce market is expected to grow during the forecast period. Japan has one of the world's most rapidly aging populations, leading to an increase in the number of single-person households. These demographic changes have contributed to an increase in the popularity of companion animals, as pets can provide emotional support and companionship to their owners. As a result, there is a growing demand for pet care products, including food, supplements, and accessories, which is driving the market growth. According to an article by the World Economic Forum, over one-third of Japan's population, that is, around 36.23 million people, are aged 65 or above. In addition, more than one out of ten people in Japan is aged 80 or older.

Latin America Pet Care E-commerce Market Trends

The growing use of smartphones and internet connectivity in Latin America has facilitated the adoption of e-commerce platforms for purchasing pet care products. Mobile apps and online payment methods have made it easier for consumers to shop online securely. The increasing digitalization and technological advancements in Latin America have played a significant role in driving the market growth. Improved internet connectivity, smartphone penetration, and secure online payment systems have made it easier for consumers to shop online.

The Brazil pet care e-commerce market is anticipated to grow from 2023 to 2030. A shift in consumer behavior toward online shopping has also contributed to the market expansion. With more consumers embracing digital channels for their shopping needs, including pet products, e-commerce platforms have capitalized on this trend by offering a seamless shopping experience with a wide variety, personalized recommendations, customer reviews, and easy return policies. For instance, Zee.Dog, a prominent player in the Brazilian pet care e-commerce market, focuses on offering high-quality pet products with trendy and stylish designs. Zee.Dog’s product range includes collars, leashes, harnesses, toys, and other accessories for dogs & cats.

Middle East & Africa Pet Care E-commerce Market Trends

The expanding middle class in many countries across the Middle East and Africa, coupled with rapid urbanization, has played a significant role in driving the growth of e-commerce. As disposable incomes rise and urban populations grow, the demand for convenient shopping options that offer a wide selection of products at competitive prices is also increasing. Online shopping provides consumers with access to a diverse range of goods without the need to visit physical stores, making it an attractive option for busy individuals.

The South Africa pet care e-commerce market is expected to grow during the forecast period. E-commerce platforms in South Africa have improved their payment options in recent years, making it easier for people to make purchases online. Many platforms now offer a range of payment options, including credit & debit cards, mobile payments, and instant Electronic Funds Transfers (EFT). Payment services such as SnapScan, Zapper, and Masterpass allow users to make payments using their mobile devices.

Key Pet Care E-commerce Company Insights

Established market players are offering a variety of pet care products to serve various requirements of different pets. This also increases the pet care portfolio and product offerings of these players. Multiple key companies undertake strategic partnerships and mergers & acquisitions as a part of their global strategy. For instance, in June 2021, BARK successfully completed its merger with Northern Star, resulting in the formation of "The Original BARK Company" trading under the ticker symbols "BARK" and "BARK WS" on the NYSE. The merger provided BARK with approximately $427 million in cash proceeds, enabling the expansion of its product lines and subscription services.

Recent Developments

• In November 2023, Pet Smart offers a wide range of holiday-themed products and services for pets, including advent calendars, apparel, treats, toys, and grooming options, with prices starting at affordable rates. Additionally, customers can purchase items from the Chance & Friends collection, with $1 from each purchase going to support PetSmart Charities.

• In August 2023, Petco Health and Wellness Company, Inc. expanded its partnership with Door Dash to offer Petco's products nationally via the DoorDash Market place, providing on-demand delivery. Petco also introduced updates to its app, including a streamlined pet profile and Klarna's "Pay in 4" payment option, enhancing the shopping experience for pet parents.

• In August 2023, Uckele expanded its product line, transitioning sales to SmartPak.com while maintaining formulas under Uckele by SmartPak.

Pet Care E-commerce Market Report Scope

Global Pet Care E-commerce Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global pet care e-commerce market report based on animal type, product type, and region:

• Animal Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Dogs

  • Cats

  • Other Animals

• Product Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Food & Treats

  • Litter Products

  • Grooming Products

  • Fashion, Toys, & Accessories

  • Medicines

  • Supplements

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • India

    • China

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait