Lexi Webster
Australia is a nation of pet lovers, with more than half of all households owning at least one pet. This widespread pet ownership has given rise to a booming pet care industry that continues to grow. The Australian pet industry is worth billions of dollars, with pet food being the largest sector, followed by veterinary services and medical bills. The market size of Australia's pet industry has grown on average 4.3% every year between 2012 and 2021, with pet owners spending substantial amounts on pet food, veterinary care, grooming, boarding, and other pet care services.
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What You'll Learn
- The pet industry in Australia was worth between $12.2 billion and $22 billion in 2022
- Pet food is the biggest expense for owners
- Dogs are the most popular pets, with 6.4 million in Australia
- Veterinary services are the most unexpected and unplanned costs
- The pet industry is booming, with no signs of slowing down
The pet industry in Australia was worth between $12.2 billion and $22 billion in 2022
Australia is a nation of pet lovers, with more than half of all households owning at least one pet. This widespread pet ownership has driven significant demand for pet-related products and services, including pet food, veterinary care, grooming, boarding, and other pet care services. The pet industry in Australia was worth between $12.2 billion and $22 billion in 2022.
Pet food is the biggest expense for most pet owners and the largest sector of the industry, accounting for about 40-51% of the total market. Dogs account for the largest portion of the food industry, which is not surprising given that they are the most favoured pets, with an estimated population of 5.1 million to 6.4 million. Cats are the second most popular pets, with a population of 3.7 million to 5.3 million.
Veterinary services are typically the most unexpected and unplanned costs for pet owners. While owners know they need to pay for annual checkups, vaccinations, and procedures like spaying and neutering, an unexpected illness or accident can cost hundreds or even thousands of dollars. This has led to a growing emphasis on pet health among owners, spurring growth in veterinary care, insurance, and preventive health products.
The pet industry in Australia has been resilient, even in tough times. Despite challenges such as droughts, wildfires, and the COVID-19 pandemic, Australians have continued to spend on their pets and support the industry. The market size of Australia's pet industry has grown on average 4.3% every year between 2012 and 2021, with an annual growth rate of 9.6% predicted over the next four years.
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Pet food is the biggest expense for owners
Pet food is the biggest expense for Australian pet owners, with pet owners spending approximately $3.9 billion AUD annually on pet food alone. This figure is expected to rise to $4.57 billion AUD by 2029, with dogs accounting for the largest portion of the food industry, followed by cats. The pet food market is expected to grow by 2.66% annually between 2022 and 2027. This growth can be attributed to the increasing demand for high-quality and specialised pet food, such as grain-free options, organic treats, and supplements that promote health and longevity.
The humanization of pets, or treating them as members of the family, has influenced purchasing decisions and willingness to invest in pet care. This trend has contributed to the rise in popularity of premium pet food options, with owners seeking out high-quality food that suits their pet's needs and budget. Additionally, the convenience of purchasing pet food from supermarkets and the rise of online shopping have made it easier for owners to access a variety of pet food brands and products.
While food is the biggest expense, veterinary services are typically the most unexpected and unplanned costs. In addition to routine expenses such as annual check-ups, vaccinations, and procedures like spaying and neutering, unexpected illnesses or accidents can result in costly veterinary bills. Pet insurance can help mitigate these unexpected costs, providing peace of mind for pet owners.
The cost of pet food and veterinary services are not the only expenses associated with owning a pet in Australia. Other significant costs include healthcare products, accessories, and pet insurance. Environmental maintenance, such as litter for cats, is also a necessary monthly expense, with costs varying depending on brand and type. Overall, the pet industry in Australia is robust, with a market size of $3.7 billion in 2023 and an annual expenditure of $22 billion, reflecting the nation's love for their furry friends.
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Dogs are the most popular pets, with 6.4 million in Australia
Dogs are the most popular pets in Australia, with 6.4 million dogs in the country. This is followed by cats, with a population of 5.3 million. Australia has a high pet ownership rate, with more than half of all households owning at least one pet. This widespread pet ownership has driven significant demand for pet-related products and services, including food, veterinary care, grooming, boarding, and other pet care services.
The pet industry in Australia is robust and growing. In 2021, the industry was valued at around $13 billion AUD, and this number is expected to increase. The pet industry's market size, measured by revenue, was $3.7 billion (€3.4 billion) in 2023. The market grew by an average of 4.8% per year between 2018 and 2023. Pet owners' expenditure rose to an estimated $33.2 billion AUD ($22.8 billion USD/€21.3 billion) in 2022. The pet food market in Australia is worth $3.79 billion AUD in 2024 and is expected to rise to $4.57 billion AUD by 2029. Dogs account for the largest portion of the food industry, as they are the most popular pets and tend to eat more than other animals. Dog food makes up 44% of the total market, with cat food accounting for the second-biggest share.
The pet industry in Australia is dominated by global brands such as Mars Incorporated, which holds 8% of the market. Mars brands include Pedigree, Royal Canin, and Whiskas. Pet Circle, Woolworths, PETstock, and PetO are other major players in the Australian pet industry, with a strong focus on both e-commerce and physical stores. The monthly online revenue of the Australian pet supplies market was $73 million AUD in November 2024, and it is expected to grow to $1,100.28 million AUD by 2028.
The growth of the pet industry in Australia can be attributed to the strong bond Australians share with their pets, treating them as cherished family members. This has led to a surge in spending on premium pet food, healthcare, and luxury products. A survey by Animal Medicines Australia found that 70% of pet owners consider their pets part of the family, influencing their purchasing decisions and willingness to invest in pet care. As a result, there is a growing demand for specialized, high-quality products such as grain-free food, organic treats, and supplements.
The pet industry in Australia provides employment to more than 15,000 people, and this number is expected to increase with the industry's growth. The industry's resilience and adaptability were evident during challenging times, such as droughts, wildfires, and the COVID-19 pandemic. Despite these hurdles, the pet industry in Australia continued to thrive, with many animals finding loving homes and Australians increasing their spending on pets and pet products.
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Veterinary services are the most unexpected and unplanned costs
Australia's pet industry is worth $22 billion annually, with pet food being the largest sector, followed by vet services and medical bills. While pet owners are aware of and prepared for the costs of pet food, annual checkups, and vaccinations, veterinary services are typically the most unexpected and unplanned costs.
An unexpected illness or accident can cost pet owners hundreds or even thousands of dollars. The cost of vet services has risen at a rate that exceeds high inflation across the economy, with the cost of common pet ailments such as elbow conditions and arthritis more than doubling year-on-year. This is due to a variety of factors, including advances in technology, diagnostic testing, and medication, as well as the lack of standard fees for standard services, with individual vets setting prices based on their overhead costs.
Vet practices also need to keep up with equipment and technology advances, as well as rents and other overheads, which can be very high. For example, a standard veterinary hospital needs to have an x-ray machine and processor, dental equipment, surgical instruments, anaesthetic monitoring equipment, and more. The cost of developing, manufacturing, and supplying drugs is also similar to that of human drugs, as they are often supplied by the same pharmaceutical companies.
Additionally, the extent of care given to a pet is determined by its owner, and pet owners today are more informed and engaged in their pets' well-being, leading to a surge in spending on premium pet healthcare and luxury products. This has resulted in an increasing demand for specialized, high-quality products such as grain-free pet food, organic treats, and supplements that promote health and longevity.
The surprise of unexpected vet bills can be mitigated with pet insurance, and there are also different payment plans available for veterinary care if needed.
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The pet industry is booming, with no signs of slowing down
The pet industry is booming in Australia, with no signs of slowing down. Australians' love for their pets has resulted in a thriving pet care industry. In 2022, Australian pet owners spent a massive AU$33 billion, including expenditure on pet food, veterinary services, and other pet services. This was despite owners facing financial hardships and many returning to work after the pandemic. The pet industry in Australia is valued at around $13 billion AUD in 2021, according to Animal Medicines Australia, and this number is expected to continue growing.
Pet food is the single biggest expense for most pet owners, and the pet food market is expected to grow. Dogs account for the largest portion of the food industry, which is not surprising given that dogs are the most popular pets in Australia, with an estimated population of 6.4 million. Cats are the second most popular pets, with a population of 5.3 million, and they also contribute significantly to the pet food market. The pet food market is worth AU$3.79 billion in 2024, and this figure is projected to rise to $4.57 billion by 2029, with a CAGR of 3.81%.
Veterinary services are another significant expense for pet owners, and the demand for high-quality veterinary care is increasing. The average annual expense on vet services was A$826, with Gen Z owners being the biggest spenders at A$1,184. The rise of services like Dial A Vet, which offers 24/7 access to affordable veterinarians, is revolutionizing the way pet care is delivered in Australia.
The pet industry in Australia is also expanding online, with the monthly online revenue of the Australian pet supplies market rising by 16% from October to November 2024. The convenience of online shopping and the ability to find expert advice and a wide range of products in one place are driving the growth of the e-commerce market in the pet industry.
As pet ownership continues to increase in Australia, the pet industry is expected to keep booming. With more than half of Australian households owning at least one pet, the demand for pet-related products and services will remain high. The humanization of pets, treating them as cherished family members, has led to a willingness to spend more on premium pet food, healthcare, and luxury products. The pet industry in Australia is resilient and robust, and businesses have the opportunity to thrive in this ever-expanding market.
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Frequently asked questions
The size of the pet industry in Australia was estimated at $13 billion AUD in 2021, $12.2 billion AUD in 2019, and between $6 and $7 billion AUD in 2005. In 2022, Australian pet owners spent a total of $33 billion AUD.
The size of the pet industry in Australia is relatively small compared to other countries. For example, the US pet industry is worth approximately $140 billion, while the global pet industry is worth around $320 billion.
The size of the pet industry in Australia is influenced by the high rate of pet ownership in the country, with more than half of all households owning at least one pet. Australia's love for their pets drives their willingness to spend substantial amounts on their health and well-being.
The largest segment of the Australian pet industry is pet food, accounting for about 40-51% of the total market. This is followed by veterinary services (14%), pet products and accessories (9%), and pet healthcare products (9%).
The Australian pet industry is expected to continue growing. The online pet supplies market in Australia is projected to reach $761.66 million by the end of 2024 and $1,100.28 million by 2028, fueled by the rising popularity of online shopping.
