Why are Americans spending big on pet tech?
Pet tech industry booms with millennials accounting for most pet owners
11th June 2024
The global pet industry is set to grow to $500 billion by 2030, with the US the biggest pet market and millennials the largest percentage of pet owners.
Pets provide us with so much. As well as their companionship and affection, owning a pet can reduce stress and anxiety and bolster overall wellness.
So we want to take care of them in turn. And with the ever growing pet tech market we can, through wearables, apps and online marketplaces specially designed for their health and happiness.
As of 2024, research found that 66% of US homes have a pet. And in 2022, Americans spent over $130 billion on their pets.
With dogs being the most common pet, the average expenses in taking care of one is over $1,500 annually.
A significant 97% of pet owners in the US say their pet is part of the family. And a rising percentage of young people are choosing to become pet parents over actual parenthood.
All of this means that there’s a huge opportunity for tech companies focused on providing innovative pet care solutions.
Pet tech take off
Rover Group, a pet care marketplace, announced the completion of its acquisition by private equity funds affiliated with Blackstone in an all-cash transaction valued at approximately $2.3 billion.
Whistle the ‘fitbit for dogs’ was sold to Mars for over $100 million. And pet GPS tracker brand, Tractive, raised $35 million in funding.
And deals like these are just the tip of the iceberg.
There are now startups for all areas of pet care, from pet insurance to premium dog foods, self-cleaning litter trays and health-based wearables.
In fact, we care so much about our pet’s health that the pet pharmaceutical market could reach a valuation of $25 billion by 2030. Like human health, animal health is a vast area of research, with millions being poured into the advancement of drugs for disease.
Indeed, French company Vetoquinol, commented that development for a single new veterinary drug on average takes over five years and investment of up to €15 million euros.
And we’re seeing ever more ingenious applications of AI within the pet tech market. TT care is a healthcare app in which a pet owner can take a photo of their pet’s eyes or skin to analyse health concerns. Its AI technology claims it can detect any abnormalities at a 90% accuracy rate.
ORo is a friendly robot and a ‘companion’ for pet dogs who are home alone. Nominated for innovation at this year’s CES, its machine learning technology means the robot can feed, train and play with a pet whilst sending health and wellness stats to its owner’s mobile when they’re at work. Clever stuff.
The development of AI and technology generally speaking, shows no sign of slowing down as it continues to revolutionise entire industries.
And it’s evidently no less transformational in our pets lives as well, giving us more options in shops and online, as we continue to seek out the best care for them.
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