Pet Insurance Market Size, Share, Growth Analysis, By Coverage Type(Only Accidents, Accidents & Illness, Others), By Animal Type(Dogs, cats and others), By Sales Channel(Public insurance provider, and private insurance provider), By Region(North America, Europe, Asia-Pacific, Latin America), By Region - Industry Forecast 2024-2031

Pet Insurance Market size was valued at USD 8.03 billion in 2019 and is poised to grow from USD 9.4 billion in 2023 to USD 33.1 billion by 2031, growing at a CAGR of 17.04% in the forecast period (2024-2031).

Some of the major factors driving this market are an increase in the number of pets, the adoption of pet insurance in underserved regions, rising veterinary care costs, initiatives by important companies, and the humanization of pets. According to Trupanion, approximately 800,000 pets were covered by the company's insurance in 2019 spanning important markets in the United States, Canada, and Australia. Pet owners, veterinarians, veterinary clinics, and animal health businesses have all faced challenges due to the COVID-19 pandemic. However, the region quickly began implementing protective measures to guarantee access to veterinary care and other services in response to the pandemic. The hardships caused by the pandemic made pet owners aware of the benefits of obtaining pet insurance coverage to reduce financial risk. Pet ownership rises in 2019, according to a survey by Petplan, in the U.K. In the market cats and dogs are the two most common pets. Around 26% of pet owners in the UK bought a pet during the recession and around 47% of respondents bought a pet for the first time.

The 3 main reasons for having a pet were identified as working from home conditions, the desire to have companionship, and spending more time at home due to the lockdown and movement restrictions. Companies like Animal Friend Insurance started offering remote consultation coverage to pet parents by partnering with Joii Pet Care. Furthermore, the growing need for the insurance to help limit out-of-pocket costs for serious medical problems, such as accidental injuries and cancer is predicted to drive the growth of the market in the near future. Additionally, there is a rise in the need for veterinary hospitals, which is considered to be a factor in the demand for pet insurance.

The high cost of the insurance plans, lack of consumer knowledge, stringent laws, and government regulations are all important issues that limit the growth of the market. Additionally, regions such as Asia-Pacific, the Middle East, and Africa have relatively less knowledge about pet insurance, which is estimated to restrain market growth.

US Pet Insurance Market is poised to grow at a sustainable CAGR for the next forecast year.