Thriving Indian pet care market provides big opportunity for FMCG majors

Godrej Consumer forays into sector with an investment of Rs 500 crore

The Indian pet care market is hotting up with a new player set to enter the arena soon.

Earlier this month, Godrej Consumer Products (GCP) said it will foray into the sector in FY26 with an investment of Rs 500 crore over five years.

Currently valued at Rs 5,000 crore, the market has the potential of a strong double-digit growth for the next few decades, the company said in an exchange filing, while announcing its move.

“To give a perspective, only 10 per cent of Indians own a pet, of which only 10 per cent feed packaged food and that too only 40 per cent of the time. Calorie conversion in India is only 4 per cent. China, which was remarkably similar to India 15 years ago, has 20 per cent pet ownership with a calorie conversion of 25 per cent. While the opportunity is clear, we believe that our right to win as a group is high,” the filing stated.

According to Euromonitor International, in 2024, pet care in India is expected to maintain dynamic retail volume and current value growth. This is fuelled by the rising pet population, increasing pet humanisation, and easier access to pet food and products.

The pet population in India was estimated to be around 19 million in 2023, and is expected to have a compound annual growth rate (CAGR) of 9 per cent over the next five years.

The survey also revealed that around 65 per cent of pet owners in India are between the ages 20 and 40 years.

“Growing awareness of pet nutrition is also set to boost sales of prepared dog and cat food,” the market research company stated.

GCP is not the first big player in the burgeoning sector.

Fast-moving consumer goods (FMCG) major Nestle India, too, has identified pet care as one of its key areas of growth.

The company had acquired Purina pet care in India, a brand it owns globally, in 2022.

“We have just started the journey and there's huge ground to be covered there. With as many as 25-30 million pets, people are looking at good quality, safe, sustainable pet food. The nutrition coverage is very little, as a lot of people are still giving homemade food to pets,” Suresh Narayanan, chairman and managing director, Nestle India had said earlier.

Chocolate maker Mars Wrigley also has a significant play in the pet food market, with its brands Pedigree and Whiskas.

The pet care market has seen increased activity post the pandemic as more people started owning pets.

“It was also a way of having some companionship and warding off loneliness as people were locked inside their homes for a prolonged period of time,” said a Delhi-based psychologist.

Pet care startup Heads Up for Tails, which started as a pet lifestyle brand, also launched a new pet food brand Hearty last week.

“We wanted to do food for pets differently. Generally, it is extruded at very high heat and lacks nutrition. We want to change that,” said Rashi Narang, founder and chief executive officer (CEO), Heads Up for Tails.

Currently, pet food contributes about 43 per cent of the company’s overall business.

With a current market share of 3-5 per cent in pet food and nutrition, it aims to grow in a calibrated way and clock revenues of Rs 350 crore during the current financial year. It is eyeing to become a Rs 500-crore brand in FY26 and achieve a total market share of 10 per cent.