A recent Mordor Intelligence report highlighted that the Asia-Pacific Pet Insurance market studied is anticipated to grow with a CAGR of nearly 6.5 percent during the forecast period.
Pet Insurance Market size is set to surpass USD 14.9 billion by 2030, according to a new research report by Global Market Insights Inc
The factors that are driving the market growth include an increasing number of pet adoption and rising awareness regarding pet insurance in the region.
The Mordor Intelligence report further elucidated that in recent years, there has been a significant increase in the adoption of animals as companion animals, particularly dogs and cats. Dogs and cats are not only the most popular pets, but they are also known to improve human physical and mental health. According to the data in China’s pet industry report 2019, by online pet forum goumin.com, in the year 2019, around 99.15 million dogs and cats were adopted as pets in China, with dog and cat owners spending a whopping CNY 202 billion (USD 29 billion), up 18.5 percent from the previous year.
Similarly, as per the National Dairy Development Board report published in October 2019, the livestock population in India accounted for 512.1 million in 2012, and it increased to 535.8 million in 2019. This huge increase in seven years suggested that the livestock population in India is continuously increasing over the forecast period.
Pet insurance refers to an insurance policy bought by a pet owner that helps to lessen the overall costs of expensive veterinary bills. Such coverage is more or less similar to health insurance policies for humans. Pet insurance usually covers the often-expensive veterinary procedures, either entirely or partly.
The Asia-Pacific Pet Insurance market is segmented by Policy (Accidents, Chronic Conditions, Others), Animal (Dog, Cat, Other), Provider (Private and Public), and Geography. The report offers the value (in USD million) for the above segments.
Over the past years, there has been a significant rise in the prevalence of chronic diseases in pets. Hence, the major factor driving the growth of the chronic condition segment is the increase in the prevalence of various chronic conditions in pet animals. According to an article published in the BMC Veterinary Research 2021 by Dan G. O Neill, Periodontal disease (12.52 percent), otitis externa (7.30 percent), and obesity (7.07 percent) are the most prevalent chronic diseases in dogs in India. Dental disorders (14.10 percent), skin disorders (12.58 percent), and enteropathy (10.43 percent) were the most common disease in dogs in India according to the Mordor Intelligence report.
Along with the increasing prevalence of chronic diseases in pets, the growing number of pet owners seeking pet insurance is also a major factor driving the market in Asia Pacific pet insurance market.
Moreover, the adoption of pet health insurance is exploding in popularity because of a strong economy, improved consumer awareness, high disposable income, and easier claims processing across the world. The pet health insurance coverage is expected to reimburse the diagnostic testing and imaging (e.g., X-rays, ultrasound, and MRI), and it covers every accident and illness under one policy. Some of the most common diagnostic tests covered by pet insurance are radiographs, ultrasounds, CT scans, and MRIs.
The report further revealed that the factors that are driving the market growth in China include an increasing number of pet adoption and rising awareness regarding pet insurance.
Dogs have always been the preferred pets globally and account for a large chunk of the Chinese pet food revenue. China ranks third in terms of dog ownership. According to the State Council of China 2020, around 73.55 million households own a pet, of which 46.1 percent own dogs and 30.7 percent have cats. Increasing pet adoption is also a major reason for the increasing pet dog population. In the total pet population, dogs accounted for 34.0 percent and cats accounted for 20.0 percent in 2019. The increasing adoption of dogs by millennials as an asset has boosted pet insurance over the recent period.
However, low adoption in emerging countries is a significant restraining factor in the region for the pet insurance market growth.
China, Japan and India are lead nations in the Asia-Pacific region that are going witness a stupendous growth in the pet insurance business.
