India’s Petcare Industry: From Niche to Billion-Dollar Market

India’s petcare industry is experiencing rapid growth, marked by Drools achieving unicorn status with a $1 billion valuation following a 10% investment by Nestlé SA. Shifting cultural attitudes have elevated pets to family members, driving demand for pet food, insurance, and luxury services. The sector, valued at $3.5 billion in 2023, is projected to double by FY28. Investments in startups, pet-friendly travel, and niche markets like premium pet fashion highlight the industry’s potential, signaling a long-term transformation in pet ownership trends.

In a significant milestone for India's burgeoning petcare market, Bengaluru-based pet food brand Drools recently achieved unicorn status, crossing a valuation of $1 billion. This was made possible through a 10% investment by Nestlé SA, marking the Swiss food giant’s first foray into the Indian market and one of the largest investments in the country’s petcare sector.For industry insiders, this development was hardly unexpected.

“India’s pet economy is undergoing a remarkable transformation,” says Salil Murthy, managing director at Mars Petcare India, the company behind well-known brands like Pedigree and Whiskas. According to Murthy, the transition from an unstructured sector to a thriving industry is largely driven by the pet food market. “Culturally, pets are now seen as family members rather than mere companions,” he adds, noting the societal and behavioral shifts underpinning this growth.

The Cost of Love: Pet Parenting in India

Take the example of 30-year-old Sakshi Ahlawat, a proud ‘pet parent’ who meticulously plans her life around her three dogs—Tiger, Shadow, and Luca. From pet-friendly hotels to premium boarding facilities, Ahlawat spends as much as ₹12,000 per pet on care.

“Expenses depend on their health and vaccination needs,” she explains. For her older dog, who frequently falls ill, costs are even higher. Boarding alone costs close to ₹1,000 per night, while specialized training for her pets has set her back ₹40,000 for a three-month program.

Similarly, Surya Sen, who owns three cats, spends close to ₹13,000 monthly on their upkeep. “Wet food, litter, and dry food make up the bulk of the expenses,” he says, emphasizing how the rising costs reflect his commitment to providing the best for his pets.

It is pet parents like Ahlawat and Sen who are propelling the Indian petcare industry forward. A report by Redseer in October 2023 estimated the sector’s value at $3.5 billion, with projections to double to $7–7.5 billion by FY28.

A Growing Industry

Murthy attributes this rapid growth to factors such as rising adoption rates, the convenience of e-commerce, and increased awareness about pet health. “This isn’t a passing trend,” he says. “It’s a long-term shift in behavior and culture that will continue to shape and expand the industry.”

This momentum has attracted a flurry of investments. Alongside Nestlé’s stake in Drools, startups like Supertails and Heads Up For Tails are raising millions in funding, while veterinary-focused firms like Vetic have secured substantial backing.

Other industries are also tapping into the petcare boom. Insurance companies, for instance, are rolling out policies tailored to pet owners. Bajaj Allianz, HDFC Ergo, and Future Generali now offer pet insurance covering medical expenses, surgeries, and even accidental deaths.

“Pet insurance is a response to intersecting trends,” says Amarnath Saxena, chief technical officer at Bajaj Allianz General Insurance. “An increase in pet ownership, rising costs of veterinary care, and the lack of financial products for these expenses have created a clear demand.”

Indeed, the numbers speak for themselves. Pet ownership in India has grown from 26 million in FY19 to 32 million in FY24, with petcare spending more than doubling in the same period—from $1.6 billion to $3.6 billion, according to Redseer.

Niche Markets and Premium Offerings

The petcare boom has also paved the way for niche markets like luxury pet fashion. BoofbyBella, founded by sisters Chetna and Chaitalee Abrol, specializes in premium clothing for pets, including wedding attire.

“We identified a gap in the market for high-quality pet fashion,” says Chetna. Their products, priced between ₹2,000 and ₹10,000, have attracted buyers from both India and abroad.

Similarly, the travel industry is adapting to the rising trend of pet-friendly experiences. Airlines like Akasa Air and Air India now allow pets to travel in cabins, reflecting the growing demand for pet-inclusive services.

“We’ve witnessed an overwhelming response to our ‘Pets on Akasa’ initiative,” says an Akasa Air spokesperson. Since its launch in November 2022, the airline has transported over 6,800 pets.

The Road Ahead

Despite its impressive growth, India’s petcare industry remains relatively young. However, with landmark investments like Nestlé’s stake in Drools and increasing interest from diverse sectors, the industry is poised for its next big leap.

As Murthy aptly puts it, “Over the last decade, pet ownership in India has evolved into pet parenting. This shift reflects a deep cultural change—one that will continue to drive the petcare market to new heights.”