The not-so-secret pet economy

The Edge Singapore

The cat’s out of the bag: Venture capitalists and savvy investors have uncovered the next booming market — the business of pampering pets.

According to a Bloomberg Intelligence report, the global pet industry is expected to grow to US$500 billion ($670.43 billion) by 2030, from US$320 billion as of March 2023. The growth is attributed to a growing global pet population and the premiumisation of food and services from the humanisation of pets. The US will likely remain the largest pet market in the world, with sales approaching US$200 billion by the end of the decade.

Another report by Morgan Stanley, dated March 3, 2021, notes that the pet sector could become a long-term trend, with the industry expected to reach US$275 billion by 2030 from US$100 billion in 2021.

James Tan, managing partner at Quest Ventures, notes that the demand for pet-related products and services will rise as more people in Southeast Asia see their pets as family members. One of the companies backed by the Asian venture capital firm is ZumVet Singapore, which provides a one-stop service for pets — from veterinary (vet) teleconsultations to test kits and over-the-counter (OTC) medication and accessories.

“The pet industry as a whole has grown. It grew during the Covid-19 pandemic, and by all estimates, did not shrink back to pre-pandemic levels after we emerged from it,” says Tan on the industry’s growth potential.

In his view, all aspects of the pet sector are “interesting”.

“Compelling sub-sectors emerge from time to time, and, depending on factors such as the readiness of technology, prerequisites and adoptions, [there will be] a rapid or slow emergence of these sub-sectors,” he adds.


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