Pet Insurance Market Forecast To Show Huge Growth

Pet Insurance Industry

The global pet insurance market size is expected to reach USD 48.98 billion by 2030, registering a CAGR of 17.97% from 2025 to 2030, according to a new report by Grand View Research, Inc. The key factor driving the industry growth includes increasing veterinary care costs as a result of advancements in medical technology and treatments. Thus, pet owners are seeking insurance to help cover these expenses. According to the American Pet Products Association (APPA), the total pet spending in the U.S. alone was estimated to reach a record high of over $100 billion in 2023. This includes expenses, such as pet food, supplies, over-the-counter medications, veterinary care, and other services. The increasing trend in pet spending reflects the growing importance of pets in people's lives and the willingness of pet owners to invest in the well-being of their animals.

Furthermore, pet insurance providers are offering a wider range of coverage options, including customizable plans that cater to different needs and budgets, making insurance more accessible and attractive to pet owners. For instance, in August 2023, Nationwide launched its most cutting-edge pet protection product, empowering pet owners to tailor coverage in each category to suit their pet's requirements and financial constraints. The introduction of highly customizable pet insurance plans signifies a significant trend in the market. This innovative approach recognizes the diverse needs of pet owners and their animals, providing a flexible and personalized solution. As pet insurance becomes more tailored and adaptable, it is likely to attract a broader audience, fostering increased adoption rates. This trend emphasizes the industry's commitment to meeting individualized customer needs and contributes to the overall growth and evolution of the market.

In addition, increased regulatory support and legislation advocating for pet welfare are expected to drive the demand for pet insurance, as owners seek to comply with legal requirements and provide the best possible care for their pets. For example, in some European countries, pet insurance is not mandatory, while in others, it may be required by law. The National Association of Insurance Commissioners (NAIC) has developed a Pet Insurance Model Act to create regulatory guidance for states regarding pet health insurance. Moreover, some regulations, such as mandatory microchipping or pet travel requirements, have made certain forms of insurance a necessity. For example, the EU Pet Travel Scheme necessitates compliance with specific health and identification measures when traveling with pets. This has directly increased the demand for pet insurance to meet these regulatory obligations.

Gather more insights about the market drivers, restrains and growth of the Global Pet Insurance market

Pet Insurance Market Segments Highlights:

The accident & illness coverage type segment dominated the market with a share of about 85.18% in 2024. Since pet accidents and illnesses are more common, posing a significant financial strain on pet owners, which results in a higher need for pet insurance
The dogs segment attributed to the largest market share in 2024 in terms of animal type. The other animal type segment includes small mammals, horses, reptiles, & birds, and is projected to grow at the fastest CAGR from 2024 to 2030
By sales channel, the direct sales segment held the highest share in 2023 and is estimated to grow at the fastest CAGR from 2024 to 2030
Europe held the largest share of about 41.58% of the overall market in 2024
The rising number of pet adoptions globally is a major factor driving market growth. In addition, there is a growing awareness and concern among pet owners about their pets' health, leading to an increased demand for pet insurance

Pet Insurance Market Report Segmentation

Grand View Research has segmented the global pet insurance market based on coverage, animal, sales channel, and region:

Pet Insurance Coverage Outlook (Revenue, USD Million, 2018 - 2030)

Accident & Illness
Accident only
Others

Pet Insurance Animal Outlook (Revenue, USD Million, 2018 - 2030)

Dogs
Cats
Others

Pet Insurance Sales Channel Outlook (Revenue, USD Million, 2018 - 2030)

Agency
Broker
Direct
Bancassurance
Others

Pet Insurance Regional Outlook (Revenue, USD Million, 2018 - 2030)

North America
- US
- Canada
- Mexico
Europe
- Germany
- UK
- France
- Italy
- Spain
- Denmark
- Sweden
- Norway
- Austria
- Hungary
- Poland
- Romania
- Czech Republic
- Switzerland
- Luxembourg
- Portugal
- Belgium
- Rest of Europe
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- Thailand
Latin America
- Brazil
- Argentina
MEA
- South Africa
- Saudi Arabia
- Israel