KEY INSIGHTS FROM THE TGM GLOBAL PET CARE REPORT 2024

Premium Pet Care Market: How Brands Cater to High-Spending Pet Owners

Discover how shifting consumer behaviors are driving premiumisation in the global pet care industry. Learn how brands can cater to high-spending pet owners with innovative products and specialized services.

Written by

Fion

Fion Lau was the voice behind TGM’s data stories, where raw numbers turn into vivid insights. With an approachable style, she brought consumer behavior to life, making trends are understandable and memorable.

The global pet care industry, valued at USD 184 billion, is witnessing a significant shift towards premiumisation, with 27% or USD 50 billion of retail sales coming from the premium segment—specifically premium cat and dog food, according to Euromonitor International (2023). This growth is largely driven by the increasing humanisation of pets, leading to innovations in the pet care space that cater to the evolving needs of pets and their owners.

TGM Global Pet Care Report 2024 reveals that 56% of pet owners worldwide now view their pets as family members. Pets are no longer just companions or guard animals; they have become integral parts of households. As a result, owners are increasingly willing to invest in premium products and services, driving demand for high-end offerings. This growing trend of pet humanization presents a valuable opportunity for brands aiming to enter this lucrative market.

In this article, we delve into how shifting consumer behaviors influence premiumisation and innovation in pet products and services, supported by insights from the TGM Global Pet Care Report 2024. We will explore how brands can strategically position themselves to attract high-spending pet owners and capture their share of the premium pet care market.

Prevention Over Treatment: How Pet Humanisation Drives Demand for Nutritional and High-Quality Products

With pets being regarded as family members, consumers are increasingly focused on providing a comfortable living environment and scientifically formulated diets. This trend has driven market growth as pet owners seek high-quality products that prioritize their pets' nutritional health. The TGM Global Pet Care Report 2024 found that quality is the most important factor for pet owners when purchasing pet food, particularly in Southeast Asian markets like Thailand and Singapore, where quality is prioritized even over price. Pet owners are not only willing to spend on premium products but are also highly conscious of ingredient composition, ensuring their pets receive the best care.

In Poland, ingredient composition ranks as the second most important factor, closely following quality. The growing focus on pet health has led to a surge in "healthy" pet care products, including those that feature ingredients like probiotics and fish oils. These familiar ingredients, known for their health benefits in humans, are now gaining traction in the pet care market as well, capturing the interest of pet owners seeking to improve their pets' overall well-being.

An Upswing in Specialized Pet Services

Professional Grooming

The demand for premium pet care is not limited to food and nutrition; it extends to services as well. Consumers are increasingly seeking specialized services that cater to their pets' unique needs, from professional grooming to spa treatments and pet hotels. One of the most notable trends in the premium pet market is the rise of professional grooming services. The TGM Global Pet Care Report 2024 shows that professional grooming was the second most used service globally in the past 12 months, with Indonesia and Thailand leading in engagement.

Today’s pet owners have specific requirements when visiting groomers, far beyond basic bathing and trimming. Many grooming services now offer additional treatments such as conditioning, ear cleaning, nail clipping, dental care, and even hair dyeing and styling. Pet owners are increasingly willing to invest in these services to maintain their pets' health and appearance, with some even scheduling regular appointments every few weeks to ensure their pets stay in top condition.

Brazil ranks first among 34 surveyed for pet hotel usage

Pet Hotels and Pet Daycare

For pet owners who travel frequently or go on extended trips, boarding services—also known as pet hotels—are becoming a popular choice. Many of these facilities now market themselves as "hotels like home," offering pets a familiar environment with daily routines that mimic their lives at home. In addition to standard accommodation and meals, some pet hotels provide luxury services, including beauty treatments, medical care, and even surgeries or vaccinations.

In Brazil, interest in pet hotels is particularly high, with the country ranking first among 34 surveyed for pet hotel usage. Similarly, pet daycare services are on the rise, ranking in the top five most-used services globally in the past 12 months, according to our study. Pet owners under the age of 45, especially those in full-time work, often rely on these services to care for their pets during the day. Younger pet owners, meanwhile, are more inclined to explore niche services like pet wellness treatments and spa experiences, with India pet care report reporting a 16% usage rate for pet massage/spa services among young pet owners.

Positioning Strategies for the Premium Pet Care Segment

TGM Global Pet Care Report 2024 reveals that 18% of individuals aged 18-34 have invested in pet health insurance, a clear indication that younger generations are taking a proactive approach to their pets’ well-being. The rise in preventive care reflects a more proactive approach to pet health, driven by a desire to avoid high costs associated with emergency treatments.

Brands targeting young pet owners should consider collaborating with pet health insurance providers to offer exclusive promotions or discounts. This approach incentivizes younger consumers to prioritize preventive care for their pets. Additionally, marketing strategies should be tailored to resonate with this demographic, highlighting the long-term benefits and financial advantages of both preventive care and insurance. By emphasizing these aspects, brands can effectively engage and encourage young pet owners to make informed decisions about their pets’ health.

Learn more about the growing pet humanization trends in Vietnam, pet humanization trends in Thailand, and pet humanization trends in India to see how pet owners are changing the way they care for their furry companions.