Pet Insurance Market Hits $5.2 Billion: 2025 Industry Report
Official NAPHIA data reveals record 7 million insured pets and 21% market growth. Complete breakdown of the 2025 pet insurance industry.
Michael Torres
Insurance Analyst
The pet insurance industry is experiencing unprecedented growth. New data from the North American Pet Health Insurance Association (NAPHIA) reveals the market has hit historic milestones.
Key Findings at a Glance
| Metric | 2024 Data | YoY Change |
|---|---|---|
| Total Premium (N. America) | $5.2 billion | +20.8% |
| US Premium | $4.7 billion | +21.4% |
| Insured Pets (N. America) | 7.03 million | +20.9% |
| Insured Pets (US) | 6.4 million | +12% |
| Dog Market Penetration | 5.46% | ↑ |
| Cat Market Penetration | 2.04% | ↑ |
Source: NAPHIA 2025 State of the Industry Report
Market Size Trajectory
The pet insurance market has grown consistently over the past five years:
| Year | Premium Volume | Insured Pets |
|---|---|---|
| 2020 | $2.1 billion | 3.1 million |
| 2021 | $2.6 billion | 3.9 million |
| 2022 | $3.4 billion | 4.8 million |
| 2023 | $4.2 billion | 5.8 million |
| 2024 | $5.2 billion | 7.0 million |
5-Year CAGR: 20.8%
Dogs vs Cats: Market Share
Dogs dominate the pet insurance landscape:
| Pet Type | Market Share | Insured Count |
|---|---|---|
| Dogs | 75.6% | 4.84 million |
| Cats | 23.5% | 1.50 million |
| Other | 0.9% | ~63,000 |
US market share by pet type, 2024
Why The Explosive Growth?
1. Rising Veterinary Costs
Vet care inflation hit 7.4% in 2024—2.5x higher than general medical inflation. Pet owners are seeking financial protection.
2. Pet Humanization
With 94 million US households owning pets, animals are increasingly viewed as family members deserving premium healthcare.
3. Awareness & Accessibility
- Online purchase options
- Employer-offered pet benefits (up 57% in 2025)
- Better education about coverage options
Global Market Projection
| Year | Global Market Size |
|---|---|
| 2025 | $21.84 billion |
| 2026 | $25.70 billion (projected) |
| 2030 | $50+ billion (estimated) |
Projected Global CAGR: 17.5% (2024-2030)
What This Means for Pet Owners
- More Options: Competition drives better products
- Potential Price Pressure: Rising claims may increase premiums
- Innovation: AI claims, telehealth, and new coverage types
Data Sources
- NAPHIA 2025 State of the Industry Report
- AVMA Market Research
- Grand View Research Pet Insurance Market Report
This article uses official industry data from the North American Pet Health Insurance Association (NAPHIA) and American Veterinary Medical Association (AVMA).
Frequently Asked Questions
How big is the pet insurance market in 2025?
According to NAPHIA, the North American pet insurance market reached $5.2 billion in written premiums at year-end 2024, with over 7 million insured pets.
How fast is pet insurance growing?
The industry maintains a 5-year average growth rate of 20.8%, with 2024 seeing 21% growth in both premiums and insured pets.
What percentage of pets are insured in the US?
As of 2024, market penetration reached 5.46% for dogs and 2.04% for cats, with nearly 4% overall for dogs and cats combined.