Increased pet adoption after the pandemic is driving the Indian pet care industry to touch Rs 10,000 crore by 2025, prompting FMCG majors like Nestle India and Emami to enter the sector.
The pet food market is currently around Rs 4,000 crore and expected to grow significantly over the next five years. Mars Petcare and Himalaya Wellness Company, among others, are the two major companies operating in the segment.
Mars Petcare is a division of global confectionary major Mars Inc.
Last week, Nestle India entered into the segment by acquiring the pet foods business from its fellow subsidiary Purina Petcare India for Rs 123.5 crore, providing the FMCG major direct access to this fast-growing business in the country.
Earlier this month, another FMCG company Emami announced to invest in a pet-care startup Cannis Lupus Services India, offering Ayurvedic remedies for pets under the brand "Fur Ball Story".
According to Mars Petcare India Managing Director Salil Murthy, India is "one of the fastest growing pet care markets" in the world. The growth is led by factors, such as rising incomes, nuclear families, and changing attitudes toward pets and pet owners.
"A number of people during the lockdown filled their emptiness by adopting a pet. This trend during the pandemic saw a rise in demand not only from metros but also from tier II and III cities," Murthy told PTI.
Now, pet parents are aware of the difference between the nutritional needs of pets and that human food does not suffice the requirements of pets, and therefore the requirement for nutritionally balanced manufactured food for their pets, he said.
"The domestic manufactured pet food market is about Rs 4,000 crore as of 2021 and is expected to grow significantly over the next five years," he said.
According to a Euromonitor report, the overall dog food market in India is projected to rise at a 15 per cent current value CAGR in the next 5 years.
"The market in India for pet food has been on the rising end of the ladder for some time now. Indian pet care industry is estimated at USD 434 million (Retail Sales Value) in 2021 and expected to reach USD 1,356 million (Rs 10,770 crore) by 2025. The industry has had an over 15 per cent year-on-year growth in the past decade," said Murthy.