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Pet Insurance in North America: The Market and Trends in the U.S. and Canada


Attention: There is an updated edition available for this report.

Although rising policy sales over the past few years suggest there is growing interest in pet insurance among American pet owners, the U.S. market still has a long way to go if it is to achieve the level of penetration seen in Great Britain (25% of dog owners) or Sweden (nearly 50% of all pet owners), since the rate of pet insurance ownership in the United States is still in the low single digits. At the core of the challenge are a much tougher regulatory environment for pet insurance in this country, concerns that existing plans do not offer enough value, competition from managed veterinary care providers and discounters, and a lukewarm feeling among veterinarians and retailers when it comes to promoting pet insurance to their clients and customers. Nevertheless, marketers and investors remain optimistic, bringing to bear in this market an increasingly sophisticated arsenal of strategic initiatives.

Pet Insurance in North America, a fully updated edition of Packaged Facts’ pioneering report on the U.S. pet insurance industry, charts historical sales for the past five years and makes market projections through 2010, expanding coverage to examine more fully the North American market including Canada. It profiles leading providers Veterinary Pet Insurance (VPI), Pethealth, Hartville, and Pet Protect, as well as competitive health plan providers and discounters from outside the pet insurance fold, such as Banfield, PrePaid Vet, AmeriPlan, CareCredit, and Pet Assure. Extending beyond the traditional veterinary marketing model, educating consumers about pet insurance is at the center of most companies’ market expansion plans for the future, as is building strong relationships with partners capable of delivering solid referrals—as seen in Pethealth’s renewed alliance with PETCO, Hartville’s tie-in with PetMed Express and the American Kennel Club, and VPI’s synergy with Iams. The report also covers employee benefit plans as a route to fast-track growth, as well as bellwether trends in the more developed and still-growing U.K. market.

Packaged Facts’ Pet Products and Services Collection
Packaged Facts is the leading source of market intelligence for pet products and services. No other market research publisher offers the breadth and depth of coverage in this lucrative, fast-growing industry. Other titles include The U.S. Market for Pet Food, The U.S. Pet Insurance Market, Market Trends: Pet Supplements and Nutraceuticals, Market Trends: Natural, Organic and Eco-Friendly Pet Products, and The U.S. Market for Pet Services.

Report Methodology
The information contained in this report was obtained from both primary and secondary research. Primary research entailed attendance at industry trade shows and extensive interviews with industry officials. Secondary research included extensive Internet canvassing and research- and data-gathering from relevant trade, business, and government sources; company reports including annual reports, 10Ks, and other financial releases from public companies; company profiles in trade and consumer publications; and other reports by Packaged Facts, which has been reporting on pet-related markets for nearly two decades.

Our market size estimates are based on extensive interviewing, company reports and figures appearing in the trade press. Our analysis of consumer demographics derives primarily from the Simmons Market Research Bureau (New York, New York) spring 2005 consumer survey, which is based on approximately 28,000 respondents

What You’ll Get in this Report
Pet Insurance in North America: The Market and Trends in the U.S. and Canada offers unique perspective on this burgeoning market. No other market research report provides the analysis and trends coverage that this report offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.


  • Market Trends
    • Introdution
      • Market Definition
    • Market Size and Composition
      • North American Pet Insurance Market Revenues, 2001-2005
        • Table North American Pet Insurance Market Revenues, 2001-2005 (in millions of dollars)
      • U.S. Pet Insurance Market Revenues, 2001-2005
        • Table U.S. Pet Insurance Market Revenues, 2001-2005 (in millions of dollars)
      • Canadian Pet Insurance Market Revenues, 2001-2005
        • Table Canadian Pet Insurance Market Revenues, 2001-2005 (in millions of dollars)
      • Share of Policies by Animal Type
      • Top 10 Pet Insurance Claims
    • Market Outlook
      • Overall Pet Market Going Strong
        • Table Average U.S. Household Expenditures on Pet Products and Services, 1994 vs. 2003 (in dollars)
        • Table Aggregate U.S. Household Expenditures on Pet Products and Services, 1994 vs. 2003 (in thousands of dollars)
      • Pet Insurance Market Peculiarities
      • Trends in Veterinary Care Spending and Services
        • Table Average and Aggregate Annual Consumer Expenditures on Veterinary Services, 1994-2003
        • Table Trends in Veterinary Care Spending and Service Types Among Pet Owners, 2003 vs. 2004 (percent)
      • Pet Oral Care an Important Growth Area
      • Rising Expenditures on Human Health Insurance
        • Table Average U.S. Household Expenditures on Insurance, 1994 vs. 2003 (in dollars)
      • Increased Advertising, Participation by Corporate Giants
      • Pet Humanization an Ongoing Factor
        • Table Consumer Activities and Opinions Reflecting Humanization of Pets, 2003-2004 (percent)
      • Pet Population Trends
      • The Boomer Factor
        • Table Dog and Cat Ownership Indices: By Adult Age Bracket, 2004 (U.S. households)
      • Other Key Demographics
      • Looking Ahead
    • Market Projections
      • Double-Digit Gains to Continue in Both U.S. and Canada
        • Table Projected North American Pet Insurance Market Revenues, 2005-2010 (in millions of dollars)
        • Table Projected U.S. Pet Insurance Market Revenues, 2005-2010 (in millions of dollars)
        • Table Projected Canadian Pet Insurance Market Revenues, 2005-2010 (in millions of dollars)
  • Competitive Trends
    • Overview
      • VPI Leads North American Market
        • Table Top North American Marketers of Pet Insurance
      • Strategic Directions
        • Table National Consumer Advertising Expenditures on Pet Insurance, 2000-2004 (in thousands)
      • Market Continues to Attract New Players
      • Outside Competition
    • Competitor Profile: Veterinary Pet Insurance Co. (VPI)
      • Company Overview
      • Corporate Upheaval
      • The Financial Picture
      • Marketing Avenues
        • Table National Consumer Advertising Expenditures by Veterinary Pet Insurance, 2000-2004 (in thousands)
    • Competitor Profile: Pethealth, Inc.
      • Company Overview
      • Steady Revenue Growth
      • Distribution Strategy
      • The U.S. Push
      • The Technology Push
      • Looking Ahead
    • Competitor Profile: SecuriCan General Insurance Company (Petplan)
      • Company Overview
      • Strategic Alliances
    • Competitor Profile: Hartville Group, Inc. (Petsmarketing Insurance.com Agency, Inc.)
      • Company Overview
      • Company Sales Trends
      • Reinsurance Ups and Downs
      • New Consumer Ad Campaign
      • AKC Partnership Discontinued; PetMed Deal Uncertain
      • Looking Ahead
    • Competitor Profile: Pet Protect, Inc.
      • Company Overview
      • Types of Plans
      • Standing Out in the Crowd
      • Marketing Approaches
  • Consumer Trends Introduction
    • Introduction
      • Methodology and Data Sources
    • Pet Owner Trends and Demographics
      • Over 50 Million U.S. Households Own Dogs or Cats
      • Trends in Multiple-Pet Households
      • Pet Ownership by Age Bracket: The Boomer Skew
      • Whites 20% More Likely to Own Both Dogs and Cats
      • Dog Owners Skew Upscale
      • Households of 5+ Persons Are 66% More Likely to Own Both Dogs and Cats
      • The Pet Specialty/Mass-Market Divide
      • Pet Specialty Store Shopper Demographics
      • Health Attitudes and Concerns of U.S. Pet Owners
      • Pet Health Product Demographics
      • Household Purchasing of Pet Supplies by Retail Outlet Type
      • Pet Owners Active on the Web
        • Table Household Penetration Rates for Selected Pet-Owning Classifications, 2000-2004 (U.S. households)
        • Table Dog and Cat Ownership Indices: By Adult Age Bracket, 2004 (U.S. households)
        • Table Total Households for Dog and Cat Ownership Classifications: By Adult Age Bracket, 2004 (in thousands of U.S. households)
        • Table Dog and Cat Ownership Indices: By Race/Ethnicity, 2004 (U.S. households)
        • Table Dog and Cat Ownership Indices: By Household Income, 2004
        • Table Dog and Cat Ownership Indices: By Household Income, 2004 (U.S. households)
        • Table Percentage of Pet-Owning Households Who Shop for Pet Supplies in Specialty vs. Mass-Market Outlets: By Number of Dogs or Cats Owned, 2004 (U.S. pet-owning households)
        • Table The Pet Store or Online Shopper for Pet Supplies: Dog or Cat Owners, 2004 (U.S. dog- or cat-owning households)
        • Table Health Attitudes and Concerns: Cat and Dog Owners vs. All U.S. Adults, 2004 (percent)
        • Table Pet Health Product Usage: By Number of Cats or Dogs Owned, 2004 (in millions of U.S. adult pet owners)
        • Table Top Pet Health Product Demographics by Percentage, 2004 (U.S. adult pet owners)
        • Table Pet Health Product Purchasing: By Pet Supply Outlets Used, 2004 (in millions of U.S. adult pet owners)
        • Table Household Purchasing of Non-Food Pet Supplies by Outlet Type: Purchasing vs. Sole Purchasing, 2004 (U.S. adult cat or dog owners)
        • Table Household Purchasing of Non-Food Pet Supplies by Outlet Type: Percent of Purchasers Who Are Sole Purchasers, 2004 (U.S. adult cat or dog owners)
        • Table Use/Influence of Internet: U.S. Adults Overall vs. Cat and Dog Owners, 2004 (percent)
    • Pet Owners and Insurance
      • The Quintessential Purchaser of Pet Insurance
      • Females Calling the Pet Care Shots
      • Top Veterinary Services and Products
      • Pet Owners Out Front for Most Types of Human Insurance
      • Pet Owners as Medical Insurance Holders
      • Pet Owners as Life Insurance Holders
        • Table Demographic Characteristics Favoring Purchasing of Pet Insurance, 2005 (U.S. adults)
        • Table Household Penetration Rates for Selected Types of Insurance: Overall Households vs. Dog- or Cat-Owning Households, 2005 (U.S. households)
        • Table Usage Indices for Selected Types of Insurance: Dog- or Cat-Owning Households, 2005 (U.S. households)
        • Table Method of Obtaining Medical Insurance by Percent: Overall Households vs. Dog- or Cat-Owning Households, 2005 (U.S. households)
        • Table Indices for Method of Obtaining Medical Insurance: Dog- or Cat-Owning Households, 2005 (U.S. households)
        • Table Company Providing Medical Insurance: Overall Households vs. Dog- or Cat-Owning Households, 2005 (U.S. households)
        • Table Value of Life Insurance by Percent: Overall Households vs. Dog- or Cat-Owning Households, 2005 (U.S. households)
        • Table Indices for Value of Life Insurance: Dog- or Cat-Owning Households, 2005 (U.S. households)
        • Table Company Providing Life Insurance: Overall Households vs. Dog- or Cat-Owning Households, 2005 (U.S. households)

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