Tail Wag, Big Bag: A ₹10,000 Cr Story Hiding in Plain Sight
It’s 8AM on a Saturday.
Outside a pastel-painted café, a small line is forming.
There’s a beagle in a bow tie. A golden retriever wagging at the menu board.
And a sleepy human wondering whether to order a peanut-butter pupcake or the grilled chicken pupwich.
This isn’t a one-off. This is the new normal.
Across metros and Tier-II towns, pet cafés are popping up.
Brands are selling yak chews, probiotic powders, and mood-calming diffusers. Grooming vans are parking at doorsteps.
And WhatsApp groups are filled with questions about kibble quality and GPS collar battery life.
Pet ownership in India has doubled since 2018.
And with it, the economy built around it.
What used to be a fringe indulgence is now a ₹6,000 crore industry—growing at a 19–20%) clip, with 32 million pets in Indian homes and another 19 million expected by 2028.
By then, this market is expected to cross ₹10,000 crore, with food alone already chewing through ₹5,000 crore of the pie.
It’s a curious thing—this booming pet economy.
On one hand, it’s soft and fuzzy: the rise of the “pawrent,” biscuit tax negotiations, and wet-nosed affection.
On the other, it’s a razor-sharp business opportunity: high-growth verticals like grooming, insurance, and accessories are fighting for a share.
And while consumer behavior has shifted decisively, institutional coverage hasn’t—which is where the opportunity starts barking.
The Homegrown Brand Winning Pet Bowls Across India
Heard about Drools?
A homegrown brand that has caught Nestlé’s global eye.
You’d think a legacy Fast Moving Consumer Goods (FMCG) player would tread cautiously into new verticals.
But in May 2025, Nestlé SA picked up a minority stake in Drools Pet Food, pegging its valuation at $1 billion.
That’s India’s third unicorn of the year—driven not by tech, but by tail wags.
Drools, by the way, sells in 40,000 stores, exports to 22 countries, and runs six manufacturing units.
Not a small sniff.
Nestlé’s pet pivot lines up with its global strategy—after all, its Purina division made up 20.7% of its global revenue in 2024.
So, if you’re holding Nestlé India, this is more than a branding play.
It’s a new lever. A diversification node.
A tactical exposure to a segment still under the radar.
Allana’s Bold Bet on India’s Pet Food Market
Meanwhile, Allana Consumer Products —not always in the limelight—just crossed ₹200 crore in annual pet food sales.
Bowlers and Purrfeto are popping up in over 20,000 stores, with Tier-II cities showing real stickiness.
Their wet food Stock Keeping Units (SKUs)?
Building repeat business in the still-underpenetrated cat category.
Again, the story isn’t just about the revenue.
It’s the brand traction, the SKU expansion, and the channel maturity.
If you’re a trader scanning for second-order signals, these are worth more than the headline numbers.
Supertails: Telehealth, Tail Wags, and ₹500 Cr Ambitions
Speaking of second-order signals—let’s talk Supertails.
A Bengaluru-based startup, part e-commerce, part telehealth, part offline vet innovation.
In 2025, they launched India’s first Fear Free™ certified vet clinic. Three more are lined up.
In the last 12 months, they’ve clocked 250,000 tele-vet consults, 100,000 pharmacy orders, and served half a million pet parents.
Backed by ₹125 crore in funding, they’re targeting a ₹500 crore ARR by 2026.
Now here’s where it gets interesting for investors: companies like Emami already have a stake in this.
Their 30% investment in Cannis Lupus, the parent behind Fur Ball Story, aligns with the Ayurvedic end of the pet care boom.
But this isn’t just about food and pharma.
It’s about how pet care is quietly touching FMCG, healthcare, quick commerce, insurance, wearables, and even alternative protein.
Startups like Loopworm and Arthro Biotech are building insect-based nutrition products (no, seriously).
India’s consumption of eco-conscious pet products, including biodegradable packaging and plant-based diets, is nearly double the global average.
Meanwhile, smart feeders, fitness trackers, and GPS-enabled collars are gaining traction, with India’s adoption rate twice the global baseline.
That’s not anecdotal. That’s a signal.
And then there’s the retail angle.
Despite 80% of pet food still being purchased offline, online channels are projected to account for 49% of the market by 2026.
Think Blinkit, Swiggy Instamart, Amazon, Flipkart—all trying to capture a consumer base that now expects same-day delivery for both toothpaste and tuna treats.
Retailers with omnichannel muscle—a store, an app, an Insta handle, and a D2C portal—are pulling ahead.
Beyond Food: The Rise of Pet Insurance in India
As Indian pet owners get more emotionally and financially invested in their furry companions, a quiet revolution is taking place in another corner of the pet care market: insurance.
Companies like Pawtect and Future Generali have launched pet insurance policies covering everything from surgeries to third-party liabilities.
According to Allied Market Research, India’s pet insurance market is projected to grow at a staggering CAGR of over 12.73% between 2024 and 2033.
While still nascent, the rising veterinary costs and growing awareness among urban pet parents are driving this category out of the shadows and into the mainstream.
For investors, that’s your cue to look at inter-market trades.
From packaging stocks and retail tech to last-mile delivery and cold chain logistics.
The real surprise, though? Brokerage houses aren’t yet tracking this.
Despite Godrej’s ₹500 crore play in pet care, or Nestlé and Emami’s active positioning, coverage remains limited.
Which means this is still a retail-first narrative.
And that, by definition, is where alpha hides.
For equity watchers, the next 12 months may throw up direct listings, D2C integrations, and global JV announcements.
Early indicators? Watch for new SKUs, brand extensions, and localised manufacturing capacity.
If there’s one sector where sentiment, habit formation, and discretionary spending collide—it’s this one.
And if you’ve ever known a “pawrent,” you already know: this isn’t a phase. It’s a lifestyle shift.
So yes, the Indian pet care market is on a leash—but the leash is stretching.
₹6,000 crore today, ₹10,000 crore by 2028.
And under all that fur?
A multi-sector investment story.
You just have to follow the tail.
Curious to see how this ₹10,000 crore pet care boom is playing out in real life? Watch this quick video by Kotak Securities to see India’s pawsome shift in action!
How Much Does a Pet Really Cost in India? 🐶💸 | Pet Care Industry Boom Explained! | Kotak Securities
Kotak Securities
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Sources and References:
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. The above images were generated using AI. Read the full disclaimer here.
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