Pet industry factors driving growth

The Indian pet industry has come a long way in the past decade in terms of market value, customer service, and organisation. What was once only a motley crew of shopkeepers selling shampoos and biscuits has now evolved into an $800-million-plus industry and comprises large multi­nationals, as well as domestic players. Industry veterans believe this is just the beginning, and that the spurt in pet ownership and growing interest in pets, especially dogs, mean the progress witnessed up to now is only the tip of an unexploited iceberg. “I peg the market potential of the Indian pet industry at $1.5 bn,” says Rana Atheya, founder of DogSpot.in, a portal for dog lovers. Continuing its growth trend, the Indian pet industry is expected to continue to register strong double-digit retail value growth in 2013. This growth will be driven by several factors: the increase in pet ownership, rising disposable income, higher awareness of the dietary needs of pets and the benefits of pet food, and most importantly, a change in perception towards pets. Increased pet ownership As India continues to evolve in all spheres, more people are considering and opting for pet ownership. According to the international strategy research firm Euromonitor International, the pet population in India (including all species) in 2006 was approximately 7 mio. This figure grew to 10 mio by 2011. Although a meagre number when viewed in relation to the aggregate human population of India (1.2 bn), these figures demonstrate the vast untapped market that lies herein. Although there are no studies providing definitive numbers regarding the number of pet adoptions per year, going by Euromonitor’s figures, 600 000 pets are adopted every year on average. Pet ownership is expected to increase at a faster rate in years to come due to a host of reasons — increased instances of delayed parenthood, changed perception towards pets and increased buying power, amongst others. “Currently, the human to pet ratios are terribly skewed in India. As awareness about pets spreads and more people see their friends, relatives and neighbours getting pets, they too will consider pet ownership. The next six years will see the rate of ownership rise exponentially due to the host of awareness initiatives being taken by the industry. I expect there to be at least one pet per five homes in 15 years’ time,” says Sanjay Jaiswal, general manager of pet care at Provimi Animal Nutrition India Pvt Ltd. Rising disposable income Rising…