Rising Global Pet Population Open New Opportunities in the Pet Economy

In recent years, as the world faces the issues of an "aging population" and a "declining birth rate," many people are raising fur babies instead of children. So, the global pet population has increased dramatically, driving growth in the pet economy. Pet care is becoming "anthropomorphic" and "refined." Moreso, with the aging of pets, pet health care and medical care has brought various pet business opportunities, treating fur babies as important family members.

Snacks and feeds for dogs and cats should be natural and organic, and dogs should be taken out for walks with strollers. Pet toys should be non-toxic so that fur babies can play with peace of mind; clothes should be cute so that beautiful photos and videos can be taken; Snacks, feeds, toys, etc., are all thought of by cute pet lovers who are very willing to spend money on fur children. This brings about numerous opportunities in the pet economy and industry.

Pet Growth Trends

The number of pet owners worldwide is growing, but how big is the pet market? According to a survey by the American Pet Products Association (APPA), more than 68% of U.S. households (84.6 million) have at least one pet.^{^[1]} The combined number of dogs and cats in U.S. households is over 180 million.

Also, according to the data from the Council of Agriculture, Executive Yuan, there are more than 2.5 million fur babies in Taiwan, and it is estimated that there will be 12 million fur babies in Taiwan by 2040. ^{^[2]}In the past two years, due to the effect of the COVID-19 epidemic, people's demand for pet ownership has increased due to the extension of home time and the change in social structure, and the global pet population increases year by year, leading to a booming market for pet products.

Is raising a fur baby better than raising a child? Why do more and more people have pets?

The number of fur babies even exceeds the number of children.

●Demographic Changes

As the world faces an "aging population," a "declining birth rate," and "singling," The concept of "raising children for old age" has become outdated, and with the change in social structure, "raising pets instead of children" has led to a trend of pet ownership. According to the latest statistics from the Ministry of the Interior, in the first nine months of this year, the number of new pet registrations in Taiwan exceeded 170,000, but the number of newborns in Taiwan is less than 140,000, ^{^[3]}which shows that the current society's desire to raise fur children is much greater than raising children.

●High Economic Pressure

In this generation of rapid inflation, people are more willing to raise pets than children. According to a survey conducted by the Fertility Society, ROC, they list 10 reasons why young people don't want to have children, and the number one reason is "they can't afford to buy a house and can't give their children a home," followed by "they can't afford to raise children with a low salary^{^[4]}," and "everything goes up but salaries don't go up." Finally, the economic pressure caused by inflation makes people more resistant to having children. According to a survey conducted by yes123.com, the estimated cost of raising a child is up to $6 million. ^{^[5]}With such a large amount of money to spend, it is relatively easy to keep a pet, which is why more and more people have fur babies and are willing to spend money on them.

●Emotional Needs

People regard pets as companion animals, which fill the role of companionship and emotional support to relieve the stressful and lonely life of elders due to the absence of their children.
According to the American Journal of Gerontology's Journal of Aging, senior citizens with pets are 36% less likely to feel lonely than their peers without fur children; fur children satisfy their owners' need to give love and care and appreciate the importance of being needed.^{^[6]}

Towards refinement and anthropomorphization, the pet economy has huge potential for growth.

Owners are increasingly conscious of the humanization of their pets, demanding "refinement" and "anthropomorphization" of their products, and wanting to give their fur children the best in food, clothing, housing, and transportation, leading to the trend of the "fur child economy".
The American Pet Products Association (APPA) announced that annual sales of pet products in the United States reached a record high of $123.6 billion in 2021. It is expected to continue to grow through 2022, with pet food having the largest volume, followed by pet care.^{^[7]} Euromonitor International pointed out that while the global economy grew by 43% in this decade, the pet market grew by more than 66% in just ten years, ^{^[8]}which shows that the pet market economy is growing stronger and stronger.

Global Pet Health Food Market Development Trends

As an important member of the family, owners hope that their fur children can live a healthy life. With the rise of health consciousness among pets, the preference for natural and organic diets, and the increasing demand for high-quality and high-priced pet health supplements, the pet health business has seen a rise. According to a Fortune Business Insights research report, the global animal health market will reach $67.6 billion by 2026, growing steadily at a 6.3% compound annual growth rate (CAGR) from 2019 to 2026, making it the second largest industry after food.^{^[9]}

The world's most popular pet health supplement products are for dogs and cats, and Technavio reports that the largest number of products are for joint health. Other markets with higher growth rates include gastrointestinal care, fur care, and liver and kidney care.^{^[10]}

In conclusion, the business opportunity for pet health care continues to grow and is still a promising "furkid economy" in the future.

^{^[1]} https://www.mordorintelligence.com/industry-reports/global-dog-food-market-industry

^{^[2]} https://money.udn.com/money/story/11162/6472389

^{^[3]} https://tw.news.yahoo.com/%E5%AF%A7%E9%A1%98%E9%A4%8A%E6%AF%9B%E5%B0%8F%E5%AD%A9%E4%B9%
9F%E4%B8%8D%E9%A1%98%E7%94%9F%E5%B0%91%E5%AD%90%E5%8C%96%E6%B5%B7%E5%98%AF%E6%81%90%E6%88%90%E5%9C%8B%E5%AE%89%E5%95%8F%E9%A1%8C-102102983.html

^{^[4]} https://www.ettoday.net/news/20211213/2145458.htm

^{^[5]} https://www.moneyweekly.com.tw/ArticleData/Info/Article/53444

^{^[6]} https://tw.news.yahoo.com/news/%E9%A9%9A%E7%8A%AC%E8%B2%93%E6%95%B8%E9%87%8F%E6%AD%A3%E5%
BC%8F%E8%B6%85%E8%B6%8A%E6%96%B0%E7%94%9F%E5%85%92-%E9%A4%8A%E5%AF%B5%E7%89%A9%E9%99%AA%E4%BC%B4%E8%80%81%E5%B9%B4%E7%94%9F%E6%B4%BB-062434061.html

^{^[7]} https://www.americanpetproducts.org/press_releasedetail.asp?id=1254

^{^[8]} https://ndltd.ncl.edu.tw/cgi-bin/gs32/gsweb.cgi/login?o=dnclcdr&s=id=%22110NSYS5121007%22.&searchmode=basic

^{^[9]} https://www.fortunebusinessinsights.com/animal-health-market-102371

^{^[10]} https://www.technavio.com/report/pet-dietary-supplements-market-size-industry-analysis

<previous

SQF Level 3 Certified Pet Health Supplements