Would you believe that the U.S. pet industry reached over $86 billion in 2017? It is true according to a report by packaged facts called U.S. Pet Market Outlook, 2018-2019.
In India, there also has been a steady rise in the sale of pet products and services over the past 2-3 years. However, the market still remains competitive and open, with new tech disruptions causing rapid shifts in the Indian pet market landscape. As per a techsciresearch report, the Indian pet food market is projected to cross $270 million by 2019. The growing per capital income plus the increasing pet ownerships in the urban areas has given way to many new businesses in the pet industry.
Pet e-commerce in the U.S.
While brick-and-mortar stores still manages to capture the local audience in the US, ecommerce stores have seen a rapid rise in the last two years. Shoppers have been seen migrating to online pet stores for convenience.
As per an U.S. survey, 37% of online pet shoppers say – “I am buying pet products online more than I used to. The online process is easy with a huge range of products to choose from, quality guarantee and low-shipping costs.”
Amazon has been making traditional pet ecommerce retailers nervous. With over 65 million Prime members (still growing) – Amazon with its easy to use shopping app and Amazon Echo (with unique voice-shopping capabilities) continues to outperform its competitors in the pet industry. According to research, Amazon gets more than half of the customers than all the other big pet online retailers combined – Chewy.com, PetSmart.com, Petco.com, and Walmart.com.
India still an open market
“Experts at Morgan Stanley believe that Indian internet market is going to reach an astounding $137 billion by 2020. The market capitalization of internet businesses could touch $160-200 billion by 2020.”
A study conducted by Euromonitor International in 2015 showed the Indian pet-care market at Rs 1,394 crore – doubled from Rs 538 crore in 2011.
“The Indian pet market is still less than half of the size of that of Portugal,” said Damian Shore, analyst at the Euromonitor. The international market was worth about `6.7 lakh crore in 2015, but it grew only about 3.5% between 2011 and 2015. “With a strong economy and attitudes to pets changing fast, this explosive growth is set to continue.”
While Amazon is still the most preferred online shopping portal in India, the pet ecommerce sector isn’t dominated by it. India based ecommerce stores such as Dogspot, Petcart, Dogkart, Petsworld and Headsupfortails with segregated market share are still being preferred more by Indian customers.
Dogs as niche market
In India, dogs are the most popular pets than other animals such as cats, birds and fishes etc. This opens up some tremendous opportunities for startups focusing on dog foods, ecommerce or tech. The dog food/product/service segment is expected to continue to dominate against other pet products/services in the country.
The Future Forecast
Indian pet care market is expected to grow with a CAGR of more than 20% between 2018 and 2022.
According to industry experts, the market is open and there is growth in e-commerce in the pets and pet-accessories business. With India getting more and more urbanized, the market is set to grow and sustain. So, small businesses looking for opportunities in pet ecommerce industry in India will have an open market to establish themselves and get their piece of market share in the upcoming 3 to 4 years.