Credit By: Common Thread Collective
Since the start of the pandemic, pet ownership has increased by over 30% in the United Arab Emirates (UAE), which is experiencing an unprecedented boom in the pet business. The pet care industry is increasing rapidly, especially among seniors and young singles, and by 2025, it is expected to become a sizeable market of more than $2 billion.
Trends in Pet Ownership
Cats and dogs are the most popular pets and pet ownership is rising, especially among young singles and seniors. The UAE’s pet care sector has grown significantly since the pandemic, with a capitalization of over $360 million.
Role of Millennials in the Pet Boom
In this pet sector growth, the millennial generation, also known as “pet parents,” plays a critical role. These animal lovers welcome pets into their homes and make considerable investments in their welfare. Millennials are helping to drive up the average monthly expenditure on their furry pals, which ranges from Dh500 to Dh2,000. This spending includes everything from food and treatment to grooming and boarding.
Market Opportunity Still Unrealized
Amr Hazem, CEO of ThePetShop, underlines the outstanding profitability of this market niche and points out that the Middle East’s pet sector is expanding at a 25% rate, outpacing that of Europe, the US, Latin America, and Asia. Despite this increase, there is still untapped potential because just 8% of UAE households have cats, compared to up to 70% in the US, and 5% of households have dogs.
Investing is booming
Major investment firms have paid close attention to the pet care industry’s bright future. In a noteworthy step, Aliph Capital, the first female-led private equity firm in the Middle East, completed a 100% acquisition of ThePetShop from Kasamar Holdings with support from ADQ. With the injection of $125 million from the Abu Dhabi sovereign wealth fund ADQ, this investment represented a critical turning point for Aliph Fund I (LP).
According to a projection by Aliph Capital, the largest pet care industry in the Gulf is predicted to be in the UAE, with a market value of $361 million in 2020.
The growth of the pet sector in the UAE, driven by millennials and an increase in pet ownership following the epidemic, represents an expanding market with unrealized potential. This industry is anticipated to keep growing as money pours into it, providing various services and goods to meet the changing requirements and tastes of pet owners in the area. The UAE’s pet sector has a bright future as it becomes a prominent player on the international scene.
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