The pet insurance market is undergoing significant expansion, with its value anticipated to soar to $38.3 billion by 2033 from a base of $10.1 billion in 2023, according to a report released by Allied Market Research. This growth trajectory reflects a robust compound annual growth rate (CAGR) of 14.5% from 2024 to 2033.
The surge in pet ownership coupled with a heightened willingness among owners to invest in pet healthcare is fueling the demand for pet insurance. A key driving force behind this trend is the phenomenon of pet humanization, wherein pets are increasingly regarded as integral family members, fostering strong emotional bonds between owners and their furry companions.
Moreover, the escalating costs associated with veterinary care, encompassing treatments for both chronic and acute ailments, are amplifying the appeal of pet insurance. Specifically, accident and illness policies that offer broad coverage for various conditions are gaining traction. Additionally, advancements in pet healthcare technologies, such as telemedicine and wearable devices, are anticipated to unlock fresh opportunities for pet insurance providers.
The accident-only segment emerged as the frontrunner in 2023, capturing nearly four-fifths of the global pet insurance market revenue, and is poised to sustain its dominance throughout the forecast period. This segment is perceived as a cost-effective strategy for mitigating substantial, unforeseen veterinary expenses.
A notable projection indicates that the “others” segment is primed to experience the highest CAGR of 18.4% from 2024 to 2033, propelled by the diversification of pet types and enhancements in pet insurance policies, notably encompassing coverage for unconventional animals such as turtles.
Dog Dominance:
In 2023, the dogs segment asserted its dominance, commanding nearly four-fifths of the global pet insurance market revenue. This supremacy can be attributed to the widespread adoption of dogs, their roles in providing companionship and security, and the significant maintenance costs associated with their care.
Conversely, the “others” segment is forecasted to achieve the highest CAGR of 19.3% from 2024 to 2033, as burgeoning veterinary expenses render pet insurance increasingly appealing to a broader spectrum of pet owners.
Market Segmentation Insights:
The agency segment emerged as the market leader in 2023, accounting for over two-thirds of the global pet insurance market revenue. This notable performance stems from the escalating number of pet owners across North America and Europe, coupled with a heightened awareness regarding pet health and well-being.
Meanwhile, the “others” segment is anticipated to register the highest CAGR of 17.5% from 2024 to 2033, propelled by advancements in pet healthcare technologies such as telemedicine and wearable devices, offering comprehensive and convenient coverage alternatives.
Regional Dynamics:
Europe emerged as the frontrunner in 2023, capturing approximately two-fifths of the pet insurance market revenue. This dominance is attributed to the robust adoption rates of pets in key European nations including the UK, Italy, France, Russia, and Germany, coupled with the diverse array of policy coverage options available.
On the other hand, the Asia-Pacific region is poised to witness the swiftest CAGR of 18.6% from 2024 to 2033, fueled by the escalating awareness surrounding pet care and pet insurance, particularly amidst the backdrop of the COVID-19 lockdown. Notably, in India, the pet population is witnessing a robust annual growth rate of 12%, with dogs comprising a substantial 85% of the total pet population.
