Pet insurance market set for 13% annual growth through 2033

APAC is recognised as an emerging market due to rising disposable incomes.

The world’s pet insurance sector is projected to reach a compound annual growth rate (CAGR) OF 12.92% by 2033, growing from $5.21b this year to $13.77b in 13 years.

The market was valued at $4.61b for 2024, according to Market Data Forecast.

The Asia-Pacific region is emerging as a key market due to rising disposable incomes and growing awareness of pet healthcare. 

China and India are witnessing increased pet adoption, contributing to market growth.

Accident & Illness plans account for over 80% of the market, offering coverage for chronic and hereditary conditions. The demand for comprehensive policies continues to grow as veterinary costs rise. 

Digital sales channels, particularly company websites and mobile apps, represent over 30% of policy purchases. 

Challenges remain, particularly in emerging markets where adoption rates are low due to high veterinary costs and limited insurance options. The lack of standardised reimbursement processes and the complexity of policy terms also hinder market expansion. 

High premiums remain a barrier for some pet owners, particularly those with older pets or breeds prone to health issues.

Dogs accounted for 51.8% of the global pet insurance market share in 2024, driven by their popularity and higher healthcare costs. 

Cat insurance is expected to grow at a CAGR of 7.78%, fueled by rising urban pet ownership and increasing awareness of feline health coverage.

Accident & Illness policies dominated the market in 2024, holding an 82.12% share due to their comprehensive coverage. 

Accident-only policies remain a niche segment, appealing to owners of younger, healthier pets seeking cost-effective coverage.

Direct sales captured 42.3% of the market in 2024, driven by digital adoption. The agency segment continues to cater to pet owners preferring personalised service, whilst veterinary clinics and pet stores are emerging as alternative sales channels.