Global Pet Daycare Industry Set to Expand Amid Rising Demand for Professional Pet Services

Pet Daycare Market

The global pet daycare market is poised for substantial growth, with new projections estimating the industry’s value to rise from USD 4,744.4 million in 2025 to USD 10,054.6 million by 2035, expanding at a Compound Annual Growth Rate (CAGR) of 7.8% over the forecast period. This significant growth underscores the increasing demand for premium pet services, driven by evolving pet parenting trends and increased disposable incomes globally.

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Rising Demand for Pet Daycare Services Driven by Lifestyle Changes

As urban lifestyles continue to shift and pet ownership becomes increasingly common among millennials and Gen Z, pet daycare services have evolved from luxury to necessity. Many pet parents today seek dependable, enriching environments where their furry companions can receive proper care, socialization, and stimulation while they’re at work or traveling.

The rising emphasis on pet well-being and mental stimulation has led to a surge in dog daycare centers, cat boarding services, and premium pet care facilities that provide services like playgroups, grooming, and training under one roof.

Pet Industry Growth Highlights a Booming Economy of Care

The pet industry, often referred to as the “pet economy,” is rapidly expanding as pets are increasingly viewed as family members. According to industry analysts, the pet daycare market size in 2025 is expected to reach USD 4.74 billion, supported by ongoing urbanization, increasing single-person households, and growing consumer awareness of professional pet care services. By 2035, this figure is forecast to more than double, demonstrating strong long-term potential.

The trend is also reinforced by the increasing number of dual-income households and pet adoption rates, pushing demand for reliable daytime pet care solutions across metropolitan areas. These trends are not only shaping the market but also encouraging investments in tech-enabled pet care startups and AI-powered pet monitoring solutions.

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Technological Innovation and Customization Are Key Market Drivers

As the pet daycare landscape becomes more competitive, companies are embracing digital transformation in pet care. From GPS tracking of pet activities to mobile app-based booking systems, technology is revolutionizing how pet daycare businesses operate and connect with clients.

Moreover, the demand for customized pet care services is rising, with pet owners looking for specialized daycare plans based on breed, behavior, dietary needs, and medical conditions. These preferences are shaping the development of luxury pet daycares, boutique pet hotels, and niche offerings like organic pet meals, puppy playdates, and elderly pet support services.

Regional Insights

  • North America leads the global pet daycare market, driven by high pet ownership, advanced pet care infrastructure, and growing demand for premium services. The U.S. is a key hub for dog daycare franchises and tech-integrated pet care solutions.
  • Europe is seeing steady growth due to increased pet adoption, strict welfare regulations, and a rising focus on sustainable and ethical pet care options in countries like the UK, Germany, and France.
  • Asia-Pacific is the fastest-growing region, fueled by urbanization, rising disposable incomes, and a shift in cultural attitudes toward pets in countries like China, India, Japan, and Australia.
  • Latin America is an emerging market, with Brazil and Mexico showing potential as pet ownership rises and urban consumers seek more accessible daycare options.
  • Middle East & Africa are witnessing gradual growth, especially in urban centers like Dubai and Cape Town, where demand for luxury and expatriate-focused pet services is increasing.

Challenges Faced by the Pet Daycare Market

While the pet daycare industry continues to grow, it also faces several key challenges:

  • High Operational Costs: Staffing, facility maintenance, and specialized care equipment contribute to rising expenses for pet daycare providers.
  • Skilled Labor Shortage: A lack of trained pet care professionals impacts service quality and limits the ability to scale operations.
  • Regulatory Hurdles: Varying local and national regulations on pet welfare and safety can create compliance challenges for operators.
  • Pet Health & Safety Risks: Managing animal behavior, preventing injuries, and controlling the spread of illness require strict protocols and constant supervision.
  • Fluctuating Demand: Seasonal peaks and off-peak periods can lead to inconsistent occupancy rates, impacting revenue stability.

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Pet Daycare Market Segmentation

By Service Type:

  • Group Play Sessions
  • Exercise
  • Poolside
  • Grooming
  • Veterinary
  • Others

By Animal Type:

  • Dogs
  • Cats
  • Others

By Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia Pacific
  • Middle East and Africa

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Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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About the Author

Nikhil Kaitwade

Associate Vice President at Future Market Insights, Inc. has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.

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