The Asia Pacific pet insurance market growth & size is predicted to be valued at USD 928.87 million during 2023 and will rise at a CAGR of 14.6% to touch USD 1801.05 million by 2028. The APAC pet insurance market is observing growth due to the rising animal population, developing demographic structure, and modifying socioeconomic conditions. There is an increase in pet adoption in the Asia Pacific region. This increase is specifically due to the COVID-19 pandemic, which compelled people to stay home due to lockdown restrictions and travel bans, leading to a desire for animal companionship. Specifically, dogs and cats have seen widespread adoption in Asia Pacific. The adoption trend is further fueled by individuals living alone and those with busy schedules looking for comfort and relaxation by engaging with pets after work. Over recent years, there has been an increase in the number of pets, an Asia Pacific pet insurance trend estimated to persist and intensify in the forecast period due to the different linked health benefits.
Pet owners are increasingly mindful of the health benefits leading to the growth of the Asia Pacific pet insurance market demand. Moreover, the Asia Pacific pet insurance market is predicted to receive support from the increasing demand for pet insurance focused on modifying out-of-pocket expenses connected to primary medical conditions such as accident injuries, and cancer. The growing veterinary costs in the Asia Pacific region further contribute to the favorability of the pet insurance market. The treatment of chronic diseases in pets often involves significant expenses, making it financially challenging for different pet owners. In such cases, pet insurance emerges as a viable solution, delivering coverage for treatment costs under insurance policies and thereby decreasing the financial burden.
Not only has this, Asia Pacific pet insurance driving factors are increased awareness among pet owners about the benefits of insuring their pets. Market participants are actively involved in raising awareness regarding the benefits linked with obtaining insurance for pets. This concentrated effort to increase awareness contributes to the positive momentum of the pet insurance market in the Asia Pacific region.
Different initiatives have been undertaken in the region to encourage the adoption of pet insurance, emphasizing its significance in safeguarding pets’ well-being. These programs not only promote insurance policies but also include provisions for delivering health-monitoring devices and covering the basic expenses of routine pet check-ups. Consequently, individuals in India and Japan are increasingly recognizing that securing pet insurance for medical treatments enhances the life expectancy of their pets. This increased awareness has uncovered opportunities in markets with relatively low penetration and untapped potential. The Asia Pacific pet insurance is predicted to capitalize on these opportunities. In addition, the increasing population of companion animals is predicted to propel an increased demand for veterinary healthcare services, introducing further opportunities for growth in the pet insurance sector around the APAC.
Asia Pacific Pet Insurance Segmentation
Within the Asia Pacific health insurance market, China is predicted to rise due to a considerable pet population and an increasing trend of pet adoption. The country’s pet landscape is marked by a high number of pets, and their adoption is on the rise, coupled with an increase in the burden of diseases affecting pets. According to Pethadoop 2022 report, a platform specializing in China’s pet sector, urban households in China were home to nearly 58 million pet cats and 54 million pet dogs as of the previous year. Among the 30,000 respondents surveyed, cats accounted for 59.5 percent of all pets owned. This data underscores China’s prominent position in the Asia Pacific pet insurance market.
According to the same source, the growing trend of pet ownership in China stands out as a key opportunity propelling the growth of the studied market in the country. A June 2022 report from the Australian Trade and Investment Commission sheds light on factors contributing to the rise in pet ownership in China. These factors include an increase in discretionary income, allowing households to allocate more funds towards pet-related expenses. Furthermore, the growing older population in China is looking for animal companionship, particularly as the older generation typically has only one child, leading to an elevated aim of treating pets as surrogate children. Additionally, Chinese millennials are marrying later, contributing to their pets gaining a higher status within the family structure. These dynamics collectively contribute to the thriving trend of pet ownership in China.
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