U.S. Pet Insurance Market to Surpass USD 25.21 Billion by 2033 | DataM Intelligence

Rising Pet Humanization, Veterinary Costs, and Digital Access Drive Market Growth

The U.S. Pet Insurance Market was valued at USD 5.11 billion in 2024 and is projected to reach USD 25.21 billion by 2033, registering an impressive CAGR of 19.14% from 2025 to 2033, according to DataM Intelligence. The market's extraordinary growth is being spurred by the rising pet adoption rate, the trend of pet humanization, and increasing veterinary expenses. Millennials and Gen Z pet owners, driven by a focus on preventive care and financial planning, are accelerating adoption of comprehensive insurance plans for both dogs and cats.

The U.S. is one of the largest pet‐owning nations globally, with more than 86.9 million households (66%) owning a pet in 2025. Pet humanization has strengthened the demand for better nutrition, premium healthcare, and insurance coverage that reduces the financial burden of veterinary treatments. Advanced diagnostics, imaging, and specialized therapies-once exclusive to human medicine-are now common in veterinary care, fuelling the need for insurance investment.

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Key Highlights from the Report

➤ U.S. pet insurance market anticipated to reach USD 25.21 billion by 2033, expanding at a CAGR of 19.14%.
➤ California led in 2024, driven by high pet population and progressive insurance regulations.
➤ Accident & illness coverage dominated, capturing 86.32% of revenue in 2024.
➤ Dog segment represented the largest share with over 5.36 million insured pets in the U.S. in 2024.
➤ Direct sales channels led with 34.81% share due to convenient digital enrollment platforms.
➤ Creative marketing campaigns and corporate benefits are broadening insurance adoption.

Market Segmentation

Coverage Insights

The accident & illness segment dominated the U.S. market with an 86.32% share in 2024, reflecting a rising demand for comprehensive coverage that includes accidents, infections, chronic diseases, and genetic disorders. Growing awareness of advanced diagnostics, cancer therapies, and emergency care is propelling adoption. These policies offer both financial security and complete protection for pets, making them the most preferred option for U.S. pet owners.

In comparison, liability and wellness plans are anticipated to register steady growth due to rising concerns about third‐party injuries, pet‐related damages, and preventive health maintenanc.

Animal Insights

Dogs dominated the market in 2024 with the highest revenue share, owing to their larger ownership base and greater medical care expenses. Over 65 million American households own dogs, and the average annual veterinary spending has surpassed USD 1,400. Increasing dog adoptions and chronic health issues such as orthopedic or cancer‐related conditions are boosting insurance penetration.

The cat segment, however, is expected to grow at the fastest rate through 2033. According to NAPHIA 2024 data, gross written premiums (GWP) for cats rose by 26% between 2022 and 2023, outpacing dogs. Growing cat humanization and rising health awareness among urban owners are key drivers of this surge.

Sales Channel Insights

The direct sales segment accounted for 34.81% share in 2024, supported by digital tools offering instant quotes, customizable policies, and real‐time claims tracking. This model strengthens brand trust and simplifies adoption for tech‐savvy consumers. Meanwhile, the veterinary clinic and partnership channels are expected to expand the fastest, as insurers collaborate with veterinary networks to offer policies directly during consultations - a key driver of new enrollments.

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Regional Insights

California led the U.S. pet insurance market in 2024, accounting for the largest share thanks to its large pet population and transparent legislation. The state's newly enforced SB 1217 law requires insurers to clearly state policy exclusions, deductibles, and coverage limits, strengthening consumer trust and accelerating policy uptake.

Florida is projected to record the fastest CAGR through 2033, driven by surging gross written premiums (GWPs) and rapid increase in insured pets - over 100,000 additions registered between 2021 and 2023. Rising awareness, population growth, and urbanization within Florida are collectively propelling regional adoptio.

Market Dynamics

Market Drivers:

Rising pet ownership, humanization trends, and escalating veterinary treatment costs are key factors driving the U.S. pet insurance market. The integration of preventive care in policies and corporate benefit schemes is encouraging mainstream coverage adoption. Marketing partnerships with celebrities and digital campaigns have further boosted public awareness.

Market Restraints:

The availability of alternative savings plans and high premium costs for certain breeds and chronic conditions may limit penetration across price‐sensitive demographics. Inconsistent state‐level regulations can also hinder uniform policy adoption.

Market Opportunities:

Growing digitalization, AI‐driven claim processing, and tailored policy options offer massive growth potential. Employer‐sponsored pet insurance programs, wellness add‐ons, and telehealth‐enabled benefits are emerging as strategic differentiators boosting consumer retention and market value.

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Reasons to Buy the Report

✔ Provides insight into key drivers, restraints, and emerging growth opportunities in the U.S. pet insurance market.
✔ Covers detailed segmentation by animal, coverage type, and sales channel.
✔ Analyzes regional trends and state‐level policy impact on market performance.
✔ Highlights industry innovations, digital integration, and M&A activities.
✔ Outlines competitive landscape across leading insurers and new entrants.

Frequently Asked Questions (FAQs)

◆ How big is the U.S. pet insurance market projected to be by 2033?
◆ What is the current CAGR of the U.S. pet insurance industry?
◆ Which coverage segment dominates the U.S. pet insurance market?
◆ Which state accounts for the largest share of U.S. pet insurance policies?
◆ Who are the major players in the U.S. pet insurance market?

Company Insights

Trupanion Inc.

Jab Holding Company

Nationwide Mutual Insurance Company

Fetch Pet Insurance

Allianz

Spot Pet Insurance

MetLife Inc.

Odie Pet Insurance

Crum & Foster

ManyPets (EQT Group)

Lemonade Inc.

Recent Developments:
- In August 2025, Adoro Pet Insurance partnered with Crum & Foster to enter the U.S. market and launch full‐stack policies focused on affordability and comprehensive coverage.
- In April 2024, Chubb Ltd. acquired Healthy Paws from Aon, broadening its pet insurance portfolio and enhancing its position in the U.S. market.
- In January 2024, Nationwide and Petco introduced co‐branded plans covering accidents, illnesses, and wellness benefits across Petco's online and retail platforms.

Conclusion

The U.S. pet insurance market is undergoing dynamic transformation driven by pet humanization, rising healthcare costs, and technological innovation. As digital tools simplify claims management and customized plans become more accessible, insurance is moving from a luxury to a necessity for American pet owners. With growing corporate adoption, celebrity‐driven awareness campaigns, and state‐level regulatory support, the market is set to achieve unprecedented expansion through 2033 - redefining standards for affordable and comprehensive pet healthcare nationwide.

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