Market Size of Asia Pacific Pet Insurance Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 6.50 % |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Asia-Pacific Pet Insurance Market Analysis
The Asia-Pacific pet insurance market is anticipated to grow at a CAGR of nearly 6.5% during the forecast period (2022-2027).
The COVID-19 pandemic is expected to have an impact on the pet insurance market in the Asia-Pacific region as the CVOID-19 pandemic was very prevalent in the region, and the emergence of the pandemic was China. The pandemic affected the pets in different ways, for example, the pet clinics were closed so the ongoing or new diagnostic and treatment procedures for pets were impacted, many pets were left alone due to the lockdown restrictions, and the chance of contracting COVID-19 from their owner or on close contact with some other person. For instance, according to a research study published in May 2020 titled 'Dogs caught coronavirus from their owners, genetic analysis suggests', it was observed that dogs can get COVID-19 from their owners and detected viral RNA and antibodies in dogs, and live virus in one of the dogs. Further, COVID-19 had a significant impact on the adoption of pets (especially abandoned animals), which is further expected to significantly impact the studied market. For instance, according to an article published in December 2020, titled 'More People are Adopting Furry Companions Amid the Pandemic', the president of People for Animals (PFA) Gautam Buddha Nagar, India initially during pandemic, the pet abandonment rate was high but after that, the adoption rate also increased after July-August 2020. Hence, COVID-19 is expected to have a significant impact on the Asia-Pacific pet insurance market.
The increasing adoption of pets in the region is expected to be a major growth driving factor for the pet insurance market in the region to the growing adoption of pets, the number of pet insurance is also expected to increase as out-of-pocket costs for pets in the region is very high and insurance can cover that. For instance, according to the Household, Income and Labor Dynamics in Australia (HILDA) Survey report of 2021, two-thirds of Australians have pets, with 48% having dogs, and 37% having a cat, followed by fish, birds, and other animals. Also, as per the same source, about 59% of pet owners have only one species of animal, compared to 24% who have two, and 17% who have three or more. Similarly, according to a survey report released by the Ministry of Agriculture, Food and Rural Affairs of South Korea, in 2020, 6.38 million homes were reported to be owning a pet, an increase of 8% from the 5.91 million households in 2019 and the average spending on dogs was reported to be KRW 176,000 and KRW 149,900 on cats. Thus, the high adoption of pets in the region is expected to fuel growth in the pet insurance market in the Asia-Pacific region over the forecast period.
The high cost associated with pet care and increasing awareness about pet insurance is another factor that is expected to play a crucial role in the growth of the pet insurance market as high pet care costs can compel the pet owners to own insurance for their pets which can reduce their out-of-pocket cost. For instance, according to an article published in December 2020 titled 'Chinese pet owners call for tighter regulations amid high veterinarian costs', a physical inspection at the hospital costs CNY 479 while a dental wash costs roughly CNY 528, which is quite high. Also, as per the same source, one of the owners of the cat reported paying CNY 1,500 for her treatment. Further, the promotion of pet insurance and the launch of new products in the region is expected to increase the adoption of pet insurance which is expected to have a positive impact on the studied market. For instance, the Korean Government has planned to launch a program to promote the adoption of local pet insurance adoption as per their 110 national task agenda items. Thus, owing to the factors mentioned above, the Asia-Pacific pet insurance market is expected to grow over the forecast period of the study. However, the lack of awareness and low adoption of pet insurance in emerging economies in the region is expected to restrain the growth of the studied market during the forecast period.
Asia-Pacific Pet Insurance Industry Segmentation
As per the scope, pet insurance refers to an insurance policy bought by a pet owner that helps to lessen the overall costs of expensive veterinary bills. Such coverage is more or less similar to health insurance policies for humans. Pet insurance usually covers the often expensive veterinary procedures, either entirely or partly. Asia-Pacific pet insurance market is segmented by policy (accidents, chronic conditions, and others), animal (dog, cat, and others), provider (private and public), and geography (China, Japan, India, Australia, South Korea, and Rest of Asia-Pacific). The report offers the value (in USD million) for the above segments.
By Policy | |
Accidents | |
Chronic Conditions | |
Others |
By Animal | |
Dog | |
Cat | |
Others |
By Provider | |
Public | |
Private |
Geography | |
China | |
Japan | |
India | |
Australia | |
South Korea | |
Rest of Asia-Pacific |
Asia Pacific Pet Insurance Market Size Summary
The Asia-Pacific pet insurance market is poised for significant growth, driven by the increasing adoption of pets and the rising awareness of the benefits of pet insurance. The region has witnessed a surge in pet ownership, with countries like Australia and South Korea reporting high percentages of households owning pets. This trend is expected to continue, fueled by the high out-of-pocket costs associated with pet care, which make insurance an attractive option for pet owners. The COVID-19 pandemic has also played a role in shaping the market, as it led to changes in pet ownership dynamics and highlighted the importance of pet health coverage. The pandemic's impact on pet clinics and the subsequent increase in pet adoptions have further underscored the need for insurance solutions to manage the costs of pet care.
The market is characterized by a moderate level of competition, with key players such as Anicom Holdings Inc, The New India Assurance Company Limited, and Pet Insurance Australia holding substantial market shares. The introduction of new products and promotional initiatives by these companies is expected to enhance the adoption of pet insurance across the region. Chronic pet conditions, which require long-term care and can be costly for owners, are also driving the demand for insurance. Technological advancements in veterinary diagnostics and treatment are contributing to the increasing incidence of chronic diseases, further boosting the market. China, in particular, is expected to be a major market due to its high pet population and the rising costs of veterinary care. The combination of these factors is anticipated to propel the growth of the pet insurance market in the Asia-Pacific region over the forecast period.
Asia Pacific Pet Insurance Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Pet Adoption
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1.2.2 Rising Awareness Regarding Pet Insurance
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1.3 Market Restraints
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1.3.1 Low Adoption in Emerging Countries
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1.4 Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size by Value - USD million)
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2.1 By Policy
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2.1.1 Accidents
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2.1.2 Chronic Conditions
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2.1.3 Others
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2.2 By Animal
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2.2.1 Dog
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2.2.2 Cat
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2.2.3 Others
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2.3 By Provider
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2.3.1 Public
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2.3.2 Private
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2.4 Geography
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2.4.1 China
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2.4.2 Japan
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2.4.3 India
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2.4.4 Australia
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2.4.5 South Korea
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2.4.6 Rest of Asia-Pacific
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Asia Pacific Pet Insurance Market Size FAQs
What is the current Asia Pacific Pet Insurance Market size?
The Asia Pacific Pet Insurance Market is projected to register a CAGR of 6.5% during the forecast period (2024-2029)
Who are the key players in Asia Pacific Pet Insurance Market?
Anicom Holdings Inc, Pet Insurance Australia, Medibank Private Limited, rakuten inc and ipet Insurance are the major companies operating in the Asia Pacific Pet Insurance Market.