Once viewed as companions, India’s paw friends are now increasingly seen as family. And as pet parenting becomes a lifestyle, not just a choice, the country’s pet care industry is at an inflection point. From packaged nutrition and premium grooming to diagnostics and supplements, the sector is evolving rapidly, and FMCG majors are taking note.

India’s $7 billion pet care market is entering a consolidation phase as FMCG giants stake their claim in the fast-growing space. The pet food segment, which forms the largest and fastest-growing portion of the market, is leading the charge. Recent moves reflect this trend, Wipro Consumer Care Ventures made its debut investment in Goofy Tails, Nestlé picked up a stake in Drools and acquired Purina and Emami first invested in Cannis Lupus in 2022 with a 30 per cent equity stake and continued to increase its commitment through additional funding rounds in 2024.

This growing corporate interest is being driven not just by changing consumer behaviour, but also by strong tailwinds such as increasing urbanisation, a rising number of double-income families and evolving family structures.

Prayag Mohanty, Principal at Fireside Ventures, which has invested in several consumer-facing start-ups, said, “It’s also reflective of rising affluence families with higher disposable income are spending more on pets.”

Between 2019 and 2024, India’s pet care start-ups raised $121.3 million, with funding peaking in 2021 at $56.7 million across 13 deals, according to Tracxn. In 2024, it stood at $17.4 million, even as the space sees sustained investor interest.

“The category is growing at about 15 per cent annually. But more than a quarter of current demand is still being met through imports,” said Ashish Kakwani, Partner, Consumer Products and Retail Sector, EY-Parthenon. “Players are now actively addressing this through local manufacturing and import substitution.”

Big brands move in

The opportunity to build Indian brands for Indian pet parents is precisely what has drawn companies like Wipro Consumer Care to this category.

“This is a high-growth, under-penetrated space with significant white spaces. Consumer habits are still evolving, and the emotional nature of the category lends itself to strong brand loyalty,” said Sumit Keshan, Managing Partner at Wipro Consumer Care Ventures. “What makes it compelling is that it goes beyond traditional FMCG, it’s recurring, purpose-led and very personal. Pets are increasingly seen as a family and consumers want to invest in their wellbeing.”

Kartik Gupta, co-founder of Goofy Tails, sees this as just the beginning. “There’s strong inbound interest from financial investors across segments, food, grooming and now even diagnostics. In the next three years, we expect rapid growth in categories like cat food, freeze-dried meals and supplements that align with a healthier, preventive approach to pet care,” he said.

Cautious but curious

Interestingly, FMCG majors are entering this space cautiously — mostly through minority stakes. According to Deloitte India’s Anand Ramanathan, this is part of a ‘test-and-learn’ strategy.

“They’re using these smaller investments to study consumer preferences, channel dynamics and category performance,” he said. “But as D2C brands establish scale and credibility, we expect full acquisitions to follow. Emami’s 30 per cent stake in Cannis Lupus is indicative of this phased approach.”

At the same time, the channel landscape is shifting. With the rise of quick-commerce platforms like Blinkit and Zepto, pet food and grooming products are now delivered within minutes, a move that’s widening reach but also intensifying competition. “Quick commerce is emerging as a promising channel for pet care,” said Keshan. “But it also means that D2C brands need to double down on brand-building to stand out and win consumer trust.”

With start-ups offering a full suite of services, including diagnostics, wellness, and even pet insurance, the sector is now positioned for deeper integration. And as scale and profitability improve, public listings could become a viable next step. “As the ecosystem matures, we believe the Indian pet care space could throw up not just strong brands, but also long-term value creators,” Keshan added.

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Published on June 26, 2025