Pet Therapy Market Size (2025-2030)

The Global Pet Therapy Market was valued at USD 255.96 million in 2024 and is projected to reach a market size of USD 368.88 million by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 7.58%. 

The worldwide pet market is expanding rapidly, fueled by rising pet ownership, rising disposable incomes, and the growing humanization of pets. As more individuals regard pets to be family members, the demand for premium pet items, veterinarian services, and pet insurance is increasing. Technological breakthroughs, such as smart pet care gadgets and AI-powered pet health monitoring, are transforming the market. North America dominates the industry, but Asia-Pacific is rapidly expanding owing to urbanization and changing cultural views. The pet market's continuous growth reflects shifting customer tastes and a significant emphasis on pet well-being and healthcare.

Key Market Insights:

• North America dominates the market, accounting for 35.2% in 2024, owing to sophisticated veterinary services and a high prevalence of pet ownership.
• The Asia-Pacific area is witnessing tremendous growth, with increased pet adoption rates and disposable incomes helping to expand the pet therapy business. In China, urban pet ownership is anticipated to outnumber children under the age of four by 2030, showing a substantial cultural change toward pet companionship.
• Younger generations, particularly Gen Z are showing interest in a wider range of pets, including birds and fish, leading to growth in these segments.
• Overall, the pet therapy market is expected to develop significantly, driven by increased awareness of its advantages and expanded uses in a variety of industries.

Pet Therapy Market Drivers:

Growing recognition of mental health issues has led to increased adoption of pet therapy as a complementary treatment.

The growing awareness of mental health concerns has contributed considerably to the increased use of pet therapy as a supplemental treatment. With rising rates of stress, anxiety, and depression, more people are turning to animal-assisted therapy for emotional support and psychological well-being. According to research, encounters with therapy animals can reduce cortisol levels, and loneliness, and increase mood. Pet therapy programs are being used in hospitals, nursing homes, schools, and businesses to help patients recover faster and improve their mental health. As the stigma around mental health fades, pet therapy gains general recognition as a natural and effective therapeutic strategy.

An increase in the elderly population, who often can benefit from pet therapy for companionship and cognitive engagement.

Pet therapy is in high demand because of the expanding older population, which benefits elders by providing companionship and cognitive engagement. Many older persons endure loneliness, isolation, and age-related cognitive loss, making pet-assisted therapy an effective way to improve their emotional and mental health. Interacting with therapy animals has been demonstrated to alleviate stress, decrease blood pressure, and increase social interaction in seniors. Pet therapy programs at assisted living and nursing homes promote memory, physical activity, and a feeling of purpose. As the world's population ages, the value of pet therapy in senior care is becoming more generally acknowledged and accepted.

Pet Therapy Market Restraints and Challenges:

Potential adverse reactions to animals can limit the applicability of pet therapy and lack of standardized protocols can hinder widespread adoption.

While pet therapy has various advantages, possible unfavorable responses to animals may restrict its use. Individuals undergoing treatment may face obstacles due to allergies, a fear of animals, or immune system sensitivities, limiting its usage in particular clinical or institutional settings. Furthermore, the absence of defined procedures for pet therapy, such as training requirements, sanitary standards, and animal behavior assessments, might impede general adoption. Without clear rules, discrepancies in therapy quality and safety may emerge, decreasing faith in its efficacy. Addressing these issues with formal standards and individualized therapeutic techniques can help to broaden the scope and acceptability of pet-assisted interventions.

Pet Therapy Market Opportunities:

As the benefits of pet therapy become more widely known, the sector provides various prospects for development and expansion. Pet therapy is becoming more popular in hospitals, schools, rehabilitation clinics, and corporate wellness programs as the emphasis on mental health and emotional well-being grows. Advances in technology, such as AI-powered pet therapy apps and virtual animal-assisted treatments, open up new avenues for reaching people who are unable to connect with actual animals. Furthermore, the expanding geriatric population and increased frequency of stress-related problems necessitate a high need for systematic pet therapy programs. As research validates its therapeutic effects, pet therapy is set for global adoption and innovation.

PET THERAPY MARKET REPORT COVERAGE:

Pet Therapy Market Segmentation:

Pet Therapy Market Segmentation: By Animal Type

• Dogs
• Cats
• Horses
• Others

The pet therapy industry is divided into animal types, with dogs being the most popular therapy animals owing to their amiable demeanor, trainability, and deep emotional bond with people. Cats are also becoming more popular, particularly in environments where a peaceful and calming presence is required, such as nursing homes and mental health centers. Horses play an important part in equine-assisted therapy, helping people with physical impairments, PTSD, and developmental issues via structured therapeutic riding programs. Other animals, such as rabbits, birds, and guinea pigs, are utilized in pet therapy, especially for people who have allergies or are afraid of bigger animals. This broad segmentation enables pet therapy to address a wide range of patient demands and therapeutic situations.

Pet Therapy Market Segmentation: By Therapy Type

• Animal-Assisted Therapy
• Animal-Assisted Activites
• Animal-Assisted Education

The pet therapy market is divided into therapy types, which cater to various therapeutic requirements and situations. Animal-Assisted Therapy (AAT) is a systematic, goal-oriented intervention delivered by healthcare professionals to help with physical, emotional, and cognitive rehabilitation. It is commonly used in hospitals, mental clinics, and rehabilitation centers to help individuals with PTSD, autism, and chronic pain. Animal-Assisted Activities (AAA) are informal encounters with therapeutic animals that give comfort, relieve stress, and increase social engagement. They are commonly found in nursing homes, businesses, and community organizations. Animal-Assisted Education (AAE) involves incorporating therapy animals into educational settings to assist children with learning difficulties, increase focus, and promote emotional development. Each of these therapeutic kinds plays an important role in improving human well-being in a variety of settings.

Pet Therapy Market Segmentation: By End-User

• Hospitals and Clinics
• Rehabilitation Centers
• Educational Institutions
• Home care settings

The pet therapy market is divided into end-user segments, which cover a wide range of healthcare, educational, and home-based requirements. Pet therapy is used in hospitals and clinics to help patients recuperate, decrease stress, and increase emotional well-being, especially in pediatric and mental health wards. Animal-assisted therapy is used in rehabilitation centers to help people heal physically and emotionally from trauma, injuries, or neurological problems. Educational institutions use pet therapy programs to improve student attention, reduce anxiety, and assist youngsters with special needs. Home Care Settings offer tailored pet therapy for the elderly or those with mobility issues, providing companionship and emotional support in a safe, familiar setting. This segmentation emphasizes the broad applicability and rising demand for pet-assisted solutions across many industries.

Pet Therapy Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East and Africa

The worldwide pet therapy market is growing steadily across regions, owing to increased awareness of its advantages and expanded healthcare applications. North America dominates the market with a 35.2% share, thanks to strong adoption rates, widespread knowledge of pet therapy's psychological and physiological advantages, and large investments in pet healthcare. Europe follows with 28.5%, thanks to an increase in pet ownership, government programs that promote pet welfare, and the incorporation of therapy animals into hospital and educational institutions. Asia-Pacific accounts for 22.3%, with growing pet adoption rates, greater awareness, and technological developments in veterinary care driving market growth. South America (8.1%) the Middle East and Africa (6.9%) are also experiencing steady growth, owing to improved veterinary infrastructure and growing interest in pet-assisted treatment for mental health.

COVID-19 Impact Analysis on the Global Pet Therapy Market:

The COVID-19 pandemic had a major influence on the worldwide pet therapy sector, both favorably and badly. During lockdowns, the demand for pet therapy surged as more individuals sought emotional assistance to deal with loneliness, stress, and worry. Hospitals and mental health institutions have also acknowledged animals' therapeutic effects in lowering patient misery. However, limits on in-person encounters and social distancing techniques hampered access to pet therapy programs in hospitals, schools, and rehabilitation facilities. Veterinary care and training programs for therapy animals were disrupted, which slowed the certification and deployment of new therapy animals. Despite these obstacles, the epidemic eventually reaffirmed the relevance of pet-assisted therapy, leading to more awareness, higher acceptance of virtual therapy sessions, and long-term incorporation into mental health and wellness programs worldwide.

Latest Trends/ Developments:

In 2024, the pet therapy market has made significant innovations that have driven its expansion and acceptance across several industries. One of the most significant developments is the combination of AI with virtual pet therapy, in which robotic companion pets and AI-powered interactions are utilized to give emotional support, particularly to those with allergies or mobility challenges. Pet therapy is increasingly being used in mental health and workplace wellness programs to decrease stress and improve employee well-being. Educational institutions are also using therapy animals to assist pupils manage anxiety and enhance attention, particularly those with specific needs. Ongoing scientific research validates the therapeutic effects of pet-assisted therapy for diseases such as PTSD, autism, and depression, resulting in more clinical acceptability.

Key Players:

1. Zoetis Inc.
2. Boehringer Ingelhiem International GmbH
3. Elanco Animal Health Incorporated
4. VetDC, Inc.
5. Aratana Therapeutics, Inc.
6. Regeneus Ltd
7. Kindred Biosciences, Inc.
8. Ceva Animal Health
9. Virbac
10. Merck Animal Health