What Is The Market for Pet Toys?

According to incomplete statistics, the global pet toy market was valued at $8.3 billion in 2022 and is expected to reach $18.4 billion by 2032, with a compound annual growth rate of 8% from 2023 to 2032. The growing trend of pet humanization is a major factor in the growth of the pet toy market. This trend emphasizes treating pets as part of the family. As more and more pet owners humanize their pets, their spending on improving their pets' living conditions is also increasing. This has further led to a surge in demand for a variety of products and services, and has brought huge opportunities for companies in the fields of high-quality pet food, veterinary services, and toys.

Market Dynamics

Pet toys are items that allow pets or companion animals (such as dogs, cats, or birds) to engage in playful activities. These toys are made using different materials to meet the specific needs of specific animals. Materials such as rubber, plastic, silicone, and jute are used with impressive and practical designs. In addition to entertaining pets, toys play a key role in improving the physical and mental health of pets, and the pet toy market has grown by increasing pets' participation in exercise and problem-solving tasks.

In the United States, dogs are the most popular pets, with 44.6% of households owning a total of 62 million dogs. Cats followed closely behind, with 26% of households owning 37 million cats. Birds were owned by 2.5% of households, with 3.5 million households owning 7.5 million birds. Horses were owned by 0.2% of households, with 893,152 households owning horses, with a total of 1.9 million horses. On average, each household owned 1.46 dogs, 1.78 cats, 2.1 birds, and 2.1 horses. Annual veterinary expenses per household varied, ranging from $367 for dogs, $253 for cats, $40 for birds, and $614 for horses.

The growth in the number of pets around the world is gradually contributing to the economic value of the pet toys market. This growth is attributed to the multiple advantages provided by pets, such as companionship, relaxation, and physical and mental health benefits, such as improved mood and relief from depression and anxiety. In addition, pets such as dogs and cats are often used as safety and support animals for children and the elderly, factors that have driven the surge in the pet toys market share. According to NAPHIA's 2023 State of the Industry report, total premiums for pet insurance in the U.S. reached nearly $3.2 billion. By the end of 2022, 4.8 million pets were insured, up 22% from 2021. On average, dog owners pay $640 per year or $53 per month in accident and illness insurance premiums, while cat owners pay $387 per year or $32 per month. Most insured pets are located in California, New York, and Florida. Dogs account for 80% of insured pets, surpassing cats, who account for 20%.

Developed countries in Europe, North America, and Asia-Pacific, such as Germany, the United States, and Australia, lead in pet spending. Due to high disposable income, trends such as humanization and premiumization are rapidly gaining popularity in these countries, driving demand for premium products and services for pets. In addition, pet supplies such as pet food and veterinary services are a top priority for owners, who are making great efforts to enhance their pets' physical and mental health by understanding their pets' natural behaviors and care needs. Rising awareness among people about treating their pets better has also boosted the demand for toys, which are in high demand as they play an important role in meeting the growing needs of pets, which has driven the demand for pet toys market.

However, the increase in the cost of owning a pet has hampered the growth of the pet toys market. The increase in costs has led to difficult-to-manage financial issues. Unlike pet food, toys are not usually the first choice for most pet owners, and therefore, the increase in financial pressure has forced people to cut back or reduce spending and prioritize necessities. Household income has a significant impact on people's decision to adopt a pet. According to a report released by the Australian Animal Medicine Association (AMA) in 2022, price is the main deciding factor in purchasing a pet, followed by responsibility and progressive costs. These factors together reduce the frequency of buying toys for pets, with a greater impact on certain families who are caring for disabled people and have an overall lower household income.