Pets are no longer just animals—they have become family members, emotional companions, and even symbols of lifestyle. As "having both cats and dogs" becomes an aspiration for many young people worldwide, a massive "pet economy" is flourishing globally. The pet supplies market has consequently surged, creating a blue ocean of opportunities in cross-border e-commerce. How can businesses position themselves to lead in this thriving sector?
Global Pet Market Expands Steadily with Online Sales as Key Growth Driver
Market research indicates the global pet care industry reached $245 billion in 2021, projected to grow to $261 billion in 2022. More remarkably, the sector is expected to maintain a 6.1% compound annual growth rate, potentially reaching $350 billion by 2027. This growth reflects increasing pet ownership—approximately 57% of households worldwide own pets, with Europe showing particularly high penetration at 75 million pet-owning households. Rising incomes and growing emotional needs jointly fuel this pet ownership boom.
Notably, the shift toward online pet supply purchases presents unprecedented opportunities for cross-border sellers. E-commerce platforms and independent websites now serve as primary channels to distribute quality pet products globally.
Key Markets to Watch: U.S., Southeast Asia, Europe, Brazil and Japan
Market selection proves crucial for success in pet product exports. Several regions stand out:
- United States: The world's largest pet market, where 69% of households own pets—a figure growing 3% annually. American pet owners spend generously, particularly on food, driving a $109.6 billion industry in 2021. Online channels account for 18% of pet product sales and continue growing.
- Southeast Asia: This emerging market shows remarkable potential, with pet product searches increasing 88% year-over-year in 2021—particularly in Thailand, Malaysia and Vietnam. Singapore leads with over 85% of pet owners regularly purchasing supplies online.
- Europe: The mature UK market exemplifies regional trends, hosting 13 million pet dogs with 3.2 million new pets acquired during the pandemic. British pet owners spend £3.2 billion annually on pet food alone.
- Brazil: Ranked as the world's sixth-largest pet market, Brazil saw 50% industry growth from 2019-2021 (reaching $51.7 billion). E-commerce sales surged 130% between January 2020 and March 2022.
- Japan: Cat ownership now surpasses dogs, generating ¥1.1 trillion in annual pet food spending and ¥2.3 trillion in total economic impact. The pet retail market is projected to reach ¥1.75 trillion by September 2022—a decade high.
Millennials: The Driving Force Behind Pet Ownership Trends
Millennials (born 1981-1996) now dominate pet ownership, comprising 32% of all pet owners. In Britain, 35% of millennials own pets and plan to acquire more. As digital natives and primary online shoppers, this generation demands personalized, high-quality pet products that emphasize safety, sustainability and aesthetic appeal. Their social media engagement also creates new branding opportunities through pet-centric content sharing.
Emotional Needs Fuel Premiumization in Pet Products
The evolving role of pets—from animals to family members—especially among singles, childless couples and empty nesters drives premiumization. Affluent consumers prioritize superior nutrition, grooming and lifestyle products for their companions, predominantly purchased online. Even prospective owners who delay pet adoption due to time constraints represent future market potential.
Product Strategy: Catering to Specialized Needs
Successful market entry requires tailored product selection across categories:
- Food: Premium, natural and organic options—particularly grain-free, hypoallergenic and functional formulas
- Toys: Interactive, durable and mentally stimulating designs tailored to species
- Apparel: Customized, fashion-forward pieces featuring seasonal themes
- Grooming: Gentle, plant-based hygiene products and professional tools
- Home goods: Ergonomic beds, designer feeding stations and high-performance leashes
Marketing Through Social Media and Influencer Partnerships
Platforms like Instagram and TikTok offer ideal venues for engaging pet content that builds brand awareness. Collaborations with pet influencers (KOLs) effectively showcase products, while exceptional customer service generates organic word-of-mouth promotion—often more impactful than traditional advertising.
As the pet economy continues its upward trajectory, businesses that strategically analyze target markets, develop differentiated products and implement savvy digital marketing stand to emerge as industry leaders in this dynamic global marketplace.