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Pet Insurance Market size is estimated to grow by USD 19,852.9 million between 2022 and 2027 accelerating at a CAGR of 31.41% during the forecast period. The global pet population is increasing as more households adopt pets, with approximately two-thirds of American households owning at least one pet, primarily dogs. The rise in pet ownership is driven by the belief that pets enhance human lives. Countries like China have seen a significant shift, where pet ownership was once illegal but is now on the rise. China's pet expenditure increased by about 11% from 2017 to 2019. Brazil and India are also experiencing a substantial growth in their pet populations, with India's pet dog population expected to reach over 30 million by 2023. This growing pet population has led to an expanding market for pet insurance, as three out of four pet owners opt for pet insurance to protect their pets. As a result, the global pet insurance market is expected to grow in the coming years, catering to the increasing number of pets worldwide.
This pet insurance industry report extensively covers market segmentation by Type (dogs, cats, and others) and Geography (North America, Europe, APAC, South America, and Middle East and Africa0. It also includes an in-depth analysis of drivers, trends, and challenges.
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Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Over the past decade, pet ownership and spending have surged. Around half of the US population owned a cat or dog in 2022, driven by pet humanization and the status associated with owning pets. People are investing in pet care services and insurance as they own multiple pets for reduced stress, increased activity, and improved social life. Rising incomes, even in developing countries like India and Mexico, contribute to increased pet ownership. These trends are expected to fuel the global pet insurance market. Pet ownership offers physical and mental health benefits, including lower blood pressure and increased exercise. The desire to protect and care for pets drives the demand for pet insurance.
The market trend in pet care services is increasingly focused on offering high-end, premium services. As more households have two incomes, consumers are willing to spend extra money on pet insurance, which they consider a luxury item because they treat their pets as family members. The trend of humanizing pets is also becoming more prevalent, especially among individuals who are childless or single parents. Consequently, many pet owners are seeking out niche services from pet insurance providers. Pet insurance typically covers the expenses associated with pet illnesses, accidents, and other forms of pet care. Thus, the growing preference for premium pet care services is expected to drive the growth of the global pet insurance market in the coming years.
Low adoption in developing countries is the major challenge impeding market growth. Regarding the security and health of pets, several nations have stringent laws. For instance, countries such as the US and the UK have strict regulations, which owners have to comply with, the failure of which can lead to serious punishments. But countries, especially in APAC, such as India, Srilanka, China, Indonesia, and the Philippines, do not have such strict regulations guiding the safety of pets. This is due to the lack of organizations and authorities to regulate these issues.
The safety of endangered species is a top priority for the governments of these nations. This disregard for pets' safety deters owners from keeping pets or implementing pet insurance. Thus, throughout the forecast period, low acceptance in emerging nations will restrain the growth of the worldwide pet insurance market.
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Based upon Type Dogs segment shows a significant growth during the forecast period. Over the last few years, it has been observed that there has been a substantial rise in the adoption of animals, particularly dogs, as they are among the most preferred companions of human beings. Hence, with the increasing adoption rate, there is a corresponding rise in the number of insurance for dogs.The dogs segment was valued at USD 1,063.04 million in 2017 and continued to grow until 2021. The occurrence of various diseases among dogs and the high prices of treatments are the key contributors to the adoption of pet insurance. Furthermore, based on a report published by the Association of British Insurers in 2020, 4.8 million pets in the UK are insured, of which 2.8 million were dogs. This fact signifies a great adoption of pet insurance due to the huge burden of diseases among dogs. Thus, all the above-mentioned factors are expected to propel the growth of the segment during the forecast period.
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Cat insurance covers up to 90% of veterinary bills for illnesses, injuries, emergencies, and genetic conditions. It also includes alternative care for conditions like disc problems, spine issues, ligament injuries, and hip dysplasia. Both kittens and older cats can face health issues, such as infections and congenital conditions. Insurance provides financial protection for costly treatments. The rising demand for cat insurance drives the growth of the global pet insurance market.
Accident and illness insurance includes coverage for accidents and any type of illnesses or diseases, such as cancer. This insurance plan holds the largest share of the global pet insurance market. The plan sometimes also offers wellness coverage as a complementary or may be included with the coverage. Chronic conditions Cancer treatment Breed-specific conditions Dental illness ER and specialist care Prescription drugs Diagnostic testing and imaging Surgery, hospitalization, nursing care Accident and illness pet insurance coverage is a cost-effective way of avoiding the high bills of treatment.
The accidents only type of pet insurance covers the treatment when the pet accidentally gets hit by a car, suffers another physical injury or swallows a foreign object. The share of the accident only coverage segment of the global pet insurance market is compared to the accident and illness segment. Accident only insurance coverage is a frequently used option by the pet parents of older pets that have aged out of accident and illness coverage.
North America is estimated to contribute 61% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The adoption of pets is the highest in North America, with the US, Canada, and Mexico being the largest contributors to the growth of the market. North America has the highest number of pets as well as pet insurance services globally. Factors such as the high affordability limit and the availability of experienced service providers who offer security and safety to pets drive the market in the region to a great extent.
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The growing awareness among pet owners about the availability of various types of pet insurance services, such as accidents only and accidents and illness, is one of the major factors driving the market in the region. Also, the rising adoption of such services by pet owners due to the convenience associated with pet insurance services contributes to the growth of the market in North America. The penetration of different pet insurance mainly depends on the spending capability and the average disposable income of the people in the region. As North America is a highly mature region, the pet insurance market has a huge prevalence in the region. Hence, the region is a global market leader for pet insurance.
The COVID-19 pandemic had a slightly negative impact on the pet insurance market in 2020. However, the regional pet insurance market is expected to stabilize during the forecast period, owing to various factors such as growth in the urbanization lifestyle to maintain pets, rising income, and technology upgrades. Furthermore, the initiation of large-scale vaccination drives in North America and a decline in the number of COVID-19 cases have led to the resumption of operations of veterinary clinics, which has resulted in a significant rise in diagnosis and treatment procedures for disease in pets. Such factors are expected to increase the demand for pet insurance in the region, which, in turn, will drive the growth of the regional market during the forecast period.
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Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Pet Insurance Market. One of the major vendor in the market include:
Anicom Holdings Inc. - This segment focuses on providing pet insurance for a wide range of animals such as Japanese flying squirrels, squirrels, hamsters, mice, guinea pigs, hedgehogs, turtles, and lizards. The company offers insurance for pets allowing policyholders to pay only uncovered amounts out of pocket simply by presenting their insurance card at the hospital (similar to the National Health Insurance system).
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The Pet Insurance market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Pet Insurance Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 31.41% |
Market growth 2023-2027 |
$ 19,852.9 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
29.94 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 61% |
Key countries |
US, China, UK, France, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agria Pet Insurance Ltd., Allianz SE, Anicom Holdings Inc., Dotsure Ltd., Embrace Pet Insurance Agency LLC, Healthy Paws Pet Insurance LLC, Hollard Insurance Group, Independence Pet Group, Intact Financial Corp., JAB Holding Co. Sarl, Metlife Inc., Nationwide Mutual Insurance Co., NSM Insurance Group, Oneplan, Petofy, Petplan Iberica S.L., Porto Seguro Companhia de Seguros Gerais, The Oriental Insurance Company Ltd., The Progressive Corp., and Trupanion Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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