Why Is the Pet Segment One of the Fastest Growing in the World in 2025?
The global pet market remains one of the most resilient and dynamic sectors of the economy. It is projected to surpass USD 380 billion in 2025 and reach USD 500 billion by 2030, with a CAGR of 5–6% — above the average of many consumer markets. This growth is driven by trends such as pet humanisation (viewing pets as family), increased adoption, technological innovation, and higher disposable incomes, even in challenging economic contexts. Reports from institutions like Bloomberg Intelligence, Future Market Insights and Grand View Research highlight these as key growth drivers.
1. Pet Humanisation: Emotional Companions and Family Members
Pet owners treat their animals as children, increasing spending on premium products such as functional foods (with probiotics and omega-3) and sustainable accessories. This drives “premiumisation”, with the premium segment growing 20–25% per year in the US.
2025 Impact: 77% of US pet owners maintain or increase spending despite the economy, prioritising pet wellbeing. Globally, premium pet food is expected to account for 60% of the US market by 2030.
2. Rising Adoption and Demographic Shifts
Post-pandemic, pet adoptions rose by 10–15%, with 94 million US households owning pets. In Asia-Pacific (CAGR of 8–9%), urbanisation and an ageing population drive demand, especially in China and India, where cats are favoured in smaller living spaces.
Additional Factors: Lower birth rates and urban loneliness lead to pets “replacing” children, boosting demand for healthcare and entertainment. Global pet population: over 160 million in Brazil alone in 2023, with continued growth.
3. Technological Innovations and E-Commerce
Health monitoring apps, pet insurance (CAGR of 17%), and AI-driven personalised food are expanding rapidly. Pet e-commerce grew by 25% post-pandemic and will represent 29% of all pet sales by 2025.
Growth Areas: Veterinary care (USD 71 billion by 2030) and pet tech (CAGR of 22% until 2027) are leading, including telemedicine and pet wearables.
4. Economic Resilience and Sustainability
The sector is “defensive”: it grows during recessions, as pet owners cut back on personal luxuries, not pet spending. Rising middle-class incomes globally (especially in Asia and Latin America) enable higher pet spending, with pet food alone valued at USD 132 billion in 2025.
2025 Trends: Focus on eco-friendly products (50% of pet owners are willing to pay more) and alternative proteins (e.g., lab-grown meat).
Brazil as a Global Pet Market Leader
Brazil holds 3rd place globally in pet market revenue (4.95% share), behind the US (43.7%) and China (8.7%), though it faces economic challenges in 2025. After reaching BRL 75.4 billion in 2024 (+9.6%), the projection for 2025 is BRL 77.2 billion – an adjusted growth of 2.42% (down from 3.5%) due to inflation, exchange rates and high taxes (BRL 0.50 in tax per BRL 1 spent on pet food).
Data from Abinpet and Instituto Pet Brasil (IPB) show stagnation in pet food (3.9% drop in production to under 4 million tonnes), though services remain resilient.
Brazil Highlights in 2025:
Despite lower production volumes, demand for efficiency and sustainability (e.g., lines for premium/organic feed) is rising. Partnerships with Abinpet can boost sales — the sector exports to the US and Mexico and needs capacity for over 9 million tonnes.
Key Sources: Abinpet/IPB (2025), Bloomberg Intelligence (2025 Pet Economy Report), Future Market Insights (2025–2035), Grand View Research (2025).
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