NEW YORK — The global pet industry is expected to reach $500 billion in revenue by 2030, an increase of more than 45%, according to a new report by Bloomberg Intelligence (BI). This growth will be fueled by rising pet ownership levels, expanding sales in pet food, the growing health and welfare sector, and the continued trend of humanization. 

The pet food industry is set to be the top-dog in these sales as pet food continues to be the biggest expense in pet ownership. BI expects the global pet food industry to expand by nearly 7% over this year, and about 5% annually over the next six years to reach $146 billion in revenue by 2030. In its 2023 report, the company previously anticipated the global pet food industry to reach $137.5 billion by 2030. 

“The pet economy is experiencing unprecedented growth, fueled by the humanization of pets and rising disposable incomes,” shared Diana Rosero-Pena, lead consumer analyst at BI. “Companies like Mars and J.M. Smucker are leading the charge in the pet food sector, ensuring consistent growth despite broader economic challenges. The resilience of this sector underscores its potential as a major economic driver over the next decade.”

Source: Bloomberg Intelligence

Additionally, BI expects the pet pharmaceuticals segment to expand from its current $16 billion to over $24 billion in revenue by 2030. The company attributes this rise to the development of more novel therapeutics, as well as innovations in the areas of pain management, oncology and cardiology as companies bring findings from human health to pet health. 

“Innovations in pet healthcare are pivotal to the market’s expansion,” said Andrew Galler, lead analyst for Global Health Care at BI. “The development of new therapies and advanced diagnostic tools will not only enhance the quality of care but also drive significant economic value. As pets live longer, the demand for sophisticated healthcare solutions will continue to rise.”

Overall, the United States will remain the biggest market for the pet industry with Europe accounting for one-third of market share, according to BI. However, the company anticipates that China’s pet industry could witness larger expansion, growing more than 50% to $49 billion in revenue by 2030, due to significant increases in pet ownership in the country. According to BI, China’s cat and dog population is set to exceed 156 million by 2030. 

E-commerce will continue its rising prevalence in the industry, with BI anticipating growth in pet e-commerce of 87% to reach $58.4 billion in revenue by 2030, accounting for nearly 30% of the pet economy. Free shipping is playing a key role in this growth as BI highlighted this drives consumer loyalty, and, therefore, e-commerce’s growing share.

Stay up to date on the latest pet food processing industry headlines on our News page.