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Barking up the Right Tree

dog-pet-insurance

Global Pet Industry

According to a 2023 Bloomberg report, the global pet industry is worth around $320 billion and will reach $500 billion by 2030, about the same as the GDP of Nigeria. South Africa’s middle-income base contributes more than its fair share of a local pet market that some estimates value at over R8 billion a year.  That’s a lot of money in a country where the total amount spent on corporate social investment programmes last year was around R11 billion. So… who are all these pet people and what are they actually paying for?

Diverse Sectors of the Pet Market

While pet foods make up the dominant chunk of the total market, it also includes fast-growing sectors such as pet insurance, veterinary care and meds, nutritional supplements and treats, grooming and boarding services, pet toys, beds and a wide range of accessories. There also appears to be a growing demand for pet-friendly travel options, accommodation, activities, venues and other recreational spaces as consumer perceptions change over time.

Demographics of Pet Ownership in South Africa

45% of adults in SA are pet owners and 36% of adults owning dogs. That’s at least one dog, most probably more, in around 2 million middle-class South African homes, which translates into an extraordinary amount of ‘extra’ things in our suburban consumer landscape, from doggie-doo refuse bins to designer leashes and gourmet kitty-nibbles. There are a few demographic skews in the pet ownership landscape, starting with a correlation between pets and age: the older you are the more likely you are to have a pet, until retirement age when pet ownership drops off again.

Pet Insurance and Animal Welfare

Currently, only around 6% of South African pet owners have pet cover in place, which given the amount of money spent in the pet space each year, is a very low statistic. It is well known and documented that having a pet who is ill or has been in an unfortunate accident can cost its owners tens of thousands of Rands, which can sometimes make treatment difficult or in some cases, impossible to consider. Looking into a suitable pet insurance option is not necessarily as expensive as you think, and is certainly worth exploring. And for those in the social responsibility game, it could be fascinating to discover that only 8% of non-pet owners think that animal welfare is a worthy enough cause to donate money to, but 32% of pet owners actively follow their hearts and do give to animal welfare initiatives (a trend we hope to see grow).

Limited Market for Exotic Pets

When it comes to ‘exotic’ pets, it appears to be rare in South Africa. This is a useful insight if you’re selling axolotl feed or tarantula cages.  In reality, though, the more niche pet categories, literally the rats and mice, make up less than 20% of the total pet pie that’s totally dominated by the usual suspects!.

Dogs Reign Supreme in South Africa

At the end of the day, “ a man’s best friend” comes out tops when it comes to pet ownership in SA. A loyal, worthy and excellent choice, as far as we are concerned! If you’re looking for pet insurance for your dog or cat, you can get a free no obligation quote within minutes, you can request a call back now.

(Source for stats/data: WhyFive Insights)

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