The Rapid Growth And Future Potential Of Pet-Related E-Commerce

The pet care e-commerce market is about to reach USD 130.39 by 2029. AI-powered recommendations, personalised assistance, and subscription-based services have been key factors in fueling market growth. 

North America leads the country-wise market share. Further, Australia remains one of the most promising names in the Asia Pacific zone. 

Nevertheless, with the pet-related e-commerce market growing at a 9.75% CAGR, we have noticed some key trends in the market and identified some future potential. Let’s discuss. 

Pet-Related E-Commerce | The Dogs Segment Is Leading The Market 

The dog segment is ruling the market if we assess the pet-related e-commerce market. The American Veterinary Medical Association (AVMA) has acknowledged a significant growth in the dog population. 

Further, the Gen Z generation has been a driver of the pet adoption trend. Dogs, because of their friendly nature, are a favourite as household pets. 

So, there is a growth in the demand for canine food, essentials, toys, grooming products, etc. Further, the cat segment is the second-largest shareholder in the pet-related e-commerce market, with pet owners choosing feline friends from rescue shelters than stores. 

Pet-Related E-Commerce | Important Trends You Must Take Note Of 

The digital habits of AI recommendations and personalisation are sticking in. However, at Real Wealth Business, we have noticed the following trends in pet-related E-commerce. 

These include high demand and sales for pet dietary supplements. The said market is about to reach 8,288.4 Million by 2033. The visibility or presence of these products is a crucial factor in the high sales figures. 

“The pet dietary supplement market is evolving rapidly as pet parents prioritize health, wellness, and longevity for their companions. Key trends such as the rising popularity of CBD and hemp-based supplements and a growing focus on sustainable practices are reshaping the industry landscape. Moving forward, innovative solutions addressing age-related and lifestyle-related pet health issues will continue to drive market growth. Brands that align with eco-friendly consumer preferences will gain a significant competitive edge in this dynamic market.“

 Nandini Roy Choudhury, Client Partner, Future Market Insights

Some other trends in pet-related e-commerce platforms and online channels include diversification of products, personalisation, and prioritisation of customer experience. Let’s discuss these trends in detail.

Technology Diversifying The Pet Care Products 

From state-of-the-art feeders to GPS trackers, tech-savvy pet owners are embracing gadgets that make caring for their animals a breeze.

Interactive toys and accessories like stylish collars and leads are also important market segments, with pet owners keen to spoil their animals with the latest and greatest. 

Moreover, litters occupy a large segment of the pet-related e-commerce market. 

So, whether you’re after a new collar for your pooch, a dog carrier for weekend trips, or a fancy scratching post for your cat, the internet has made it possible.

Innovative Business Models: Subscription Services And Personalisation

Subscription services have become popular as a business model, and it ensures that pet owners never run out of essentials like food or litter. 

Further, with personalisation becoming popular, you will find products like monogrammed beds and customised pet tags on many e-commerce platforms.

Understanding The Role of Customer Experience: Keeping Buyers Happy

Customer service is another critical factor, and these are the areas where AI and IoT can step in. 

Whether it’s answering questions about a product or resolving an issue with an order, businesses go above and beyond to help their customers with live chat features, detailed product descriptions, and hassle-free returns.

What’s Stopping The Growth Of The Pet-Related E-Commerce Industry | Understanding The Challenge

The rising cost of shipping and logistics remains one of the few hurdles businesses will need to overcome. Consumers expect fast delivery putting retailers under pressure.

Moreover, with so many businesses in the same market, connecting with potential customers and retaining the existing customer base remain a challenge. There needs to be constant innovation in connecting with people with stories, values, and emotions. 

In addition, businesses with their presence only on pet-related e-commerce platforms will face competition from traditional brick-and-mortar stores. A pet owner may need in-person suggestions or need to discuss important things, especially when the pet is sick or a newborn. 

However, Online platforms are also making it easier for pet owners to access expert advice and connect with other animal lovers through influencer marketing and the use of helpful free content. 

Pet-Related E-Commerce | Gauging The Future Potential 

Emerging technologies like AI and IoT (Internet of Things) will play an increasingly important role in the pet-related E-commerce industry.

These technologies will offer new ways to care for and connect with pets with more focus on personalisation.

How AI, IoT, And Personalisation Help A Pet-Related E-Commerce Business/Platform

Have you ever wondered why pet-related e-commerce platforms like Amazon and Chewy are ahead of others? AI-powered recommendations are one of the key factors in the success of these businesses. 

These AI-powered recommendations offer a tailored shopping experience to pet owners based on individual preferences. However, the role of AI begins with presenting a product and creating its visual appeal. 

Moreover, these AI-powered recommendations have churned the greatest results for the pet food e-commerce segment. 

No wonder companies like Mars Petcare are investing US$1 billion in AI and boosting their online presence. 

Further, sustainability will remain a key focus, with more businesses adopting eco-friendly practices and offering green products. L.E.K. Consulting, a management consultant family, surveyed 5000 consumers from Australia, Brazil, the USA, the UK, India, Japan, and other countries. 

The result of this 2024 survey showed that pet owners are more willing to buy sustainable products in pet food and overall pet care products. In fact, the survey showed that consumers are willing to pay more to buy sustainable alternatives to usual products. 

“With consumers increasingly using sustainability as part of their product selection repertoire, it’s never been more important to understand how and when sustainability can make a difference to your brand. Our work in understanding audiences gives us vital insights to help businesses take advantage of an increasingly complex sustainability landscape and identify how sustainability can become a core part of their proposition and value creation strategies.“

Mark Boyd-Boland, Partner at L.E.K. Consulting.

Moreover, social media continues to shape consumer behaviour, and brands that can harness the power of influencers and create engaging content will have a leg up on the competition.