Pet Insurance Market Size (2024 - 2029)

Pet Insurance Market Analysis

The Pet Insurance Market size is estimated at USD 10.76 billion in 2024, and is expected to reach USD 19.33 billion by 2029, growing at a CAGR of 12.43% during the forecast period (2024-2029).

Pet adoption increased as a result of the pandemic.For instance, according to the People's Dispensary for Sick Animals (PDSA) PAW report published in June 2021, 2 million people in the United Kingdom acquired pets between March 2020 and May 2021. Also, according to an article published by Bennett, Coleman & Co. In July 2022, awareness of stray adoption and pet maintenance increased, as did the need for pet insurance, which is expected to rise by 14% annually. As per pet insurers, there are over 19 million insured pets in India. Furthermore, COVID-19 has a slightly positive impact on the pet insurance market as the diagnosis and treatment procedures are seeing increased rates. For instance, in November 2021, the Louisiana Animal Disease Diagnostic Laboratory (LADDL) partnered with the Louisiana Office of Public Health and the Centers for Disease Control (CDC) on a project to provide free COVID-19 testing for dogs and cats in Louisiana through December 31, 2021. This trend has positively impacted market growth during the COVID-19 pandemic.

A significantly increased number of animals up for adoption and a rise in the adoption of animals are the major factors driving the market's growth. According to a survey published by the American Veterinary Medical Association (AVMA) in November 2021, both dog and cat populations have increased in recent years, as have the percentages of households owning dogs or cats. There were approximately 83.7 million dogs, or 1.46 dogs per household, in 2021, up from 76.8 million in 2016. According to the Pet Food Manufacturers Association, as of 2021, 3.2 million households in the UK had acquired a pet since the start of the pandemic. There are now 34 million pets in the UK, including 12 million cats, 12 million dogs, 3.2 million small mammals like guinea pigs and hamsters, 3 million birds, and 1.5 million reptiles. Moreover, an estimated 85 million European households own at least one pet animal. The trend is further expected to enhance during the forecast period due to factors like pet humanization and the rapid adoption of pets in emerging economies. Thus, increasing pet adoption is one of the major factors driving the growth of the market.

Therefore, the factors mentioned above are attributed collectively to the studied market's growth over the forecast period. However, a lack of standardized pet health codes for reimbursement is expected to hinder market growth over the forecast period.

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 expensive veterinary procedures in full or in part. The Pet Insurance Market is Segmented By Policy (Illnesses and Accidents, Chronic Conditions, and Other Policies), Animal (Dog, Cat, and Other Animals), Provider (Public and Private), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The market report also covers the estimated market sizes and trends for 17 different countries across major regions globally. The report offers the value (in USD million) for the above segments.