Similar to many other new technology segments, this area is called Pet Tech (from technology for pets). Pet Tech is a term that refers to the use of technology in the production and sale of products and services to improve the health, welfare, and safety of pets. Such innovations can be based on the latest advances in the use of robots, the development of big data systems and artificial intelligence.

The pet tech market is growing rapidly in countries with relatively high incomes. In 2020, pets in the United States cost their owners $103 billion. And every year the cost of caring for pets only increases. This is driven by both the growing number of pet owners and the growing supply of pet products. In the US, two out of three households own at least one pet—that's 85 million. Russia contains 63.5 million domestic cats and dogs. In Kazakhstan, pets are registered in the electronic database 86 thousand dogs and cats. I didn’t find such statistics for Georgia, but I came across a lot of materials about stray pets. In this country, according to my observations, dogs are especially loved. In Armenia, only in 2021 legislation on mandatory registration of pets was adopted. The problem of stray animals is also acute in this country. And in Turkey 16 million households share their home with a cat.

It is interesting to note that the market has a certain age structure. Millennials make up a significant group among pet owners. They often choose to adopt "fur babies" rather than have their own, and treat cats and dogs with the same affection as their own children. They are willing to invest a relatively large portion of their budget into high-quality pet food and innovative products and services.

Thus, it is obvious that the features of the pet tech market are specific to each individual country or group of countries and depend on the attitude of individual population groups towards pets. This should be taken into account when planning to develop a business in this area.

The range of products and services in demand in the pet tech industry is determined by the problems that their owners face today. Let's list the main ones.

Supply and demand in the field of feed: The demand for high-quality food for dogs and cats is growing rapidly. Feed production and logistics do not always keep up with demand. This leads to higher prices for these products.

Pet Lifestyle: Attitudes towards pets have become significantly humanized over the past few decades. There has been a cultural understanding that pets should live happy and healthy lives and therefore need special attention and care. As a result, their owners must devote more time to them and adapt their lifestyle to the needs of the animals.

Health problems: this is one of the most significant problems faced by pet owners. Because pets cannot tell themselves how they are feeling, pet owners must spend a lot of time and effort making sure their pets are healthy.

Pet hygiene: All pet owners know that not solving this problem can make their lives significantly more difficult. Despite the many proposed solutions, pet waste remains a problem with no ideal solution.

High costs: Keeping pets requires a certain budget. Their owners sometimes have to spend significant amounts of money on the care and well-being of their pets. Such expenses can be either regular or emergency. These include the cost of pet food, veterinary care, grooming, training and more.

Surveillance and Security: Pet owners should always ensure the safety of their pets. This also includes monitoring and caring for them when they are not under direct supervision, as well as searching for escaped and stray animals.

Pet training: This is one of the most pressing problems, the solution of which requires professional skills that are not available to everyone. Pets need to be taught the skills needed to be part of the family.

Pet insurance: Rising costs of grooming and veterinary care have created a need for pet insurance. So far, this service is quite rare and exotic. Although it could solve many problems related to promoting the health and well-being of pets.

Veterinary care system: Medical emergencies are just as common in animals as they are in humans. Their quick and professional solution turns out to be a matter of life and death. Emergency medical care generally remains the responsibility of the owners. They are the ones who need to spend the time and effort to take their pets to the veterinarian if there is a medical emergency. Availability of ambulances and other medical services remains available on an ad hoc basis.

Based on these needs, a number of pet tech use cases can be identified. To some extent, the production of goods and services for pets reflect current human needs. Telemedicine and virtual veterinary services, personalized meal kits and pet supply delivery are products and services similar to those created for their owners.

Pet Tech use cases

The use of innovative technologies in the field of animal care can be divided into several groups:

Connected Devices and IoT

A variety of devices used in pet care can be connected via the Internet. Such devices allow owners to care for animals while away from home.

Automatic feeding systems: In the absence of the owner, automated feeding systems can provide a healthy diet for the pet. Sensors and remote monitoring systems facilitate feedback and take into account the individual characteristics of the animal.

Pet Health Monitoring: Pets cannot complain to their owner about feeling unwell. Therefore, the problem often manifests itself when it has already reached an acute form and can become a matter of life and death. The behavioral data collected by these devices makes it possible to diagnose pet health problems at an earlier stage and prevent their further development.

Pet Games: high-tech games for pets. These games help keep pets occupied, improve their health, and reduce stress levels.

Smart Pet Doors: These doors only open to pets and not to unwanted guests. They can be controlled remotely via mobile applications. These doors are equipped with cameras and sensors that help identify pets and allow them to enter or exit only when they are allowed to do so.

Self-cleaning trays: One of the most annoying pet care tasks is cleaning the litter box. Fortunately, smart solutions can already handle this unpleasant job.

Let me give you a few examples from this category.

Company PupPod was one of the pioneers who combined pet products and advanced technology. They wanted to solve their customers' problem of not being able to play catch with their dog 24/7 and came up with a technology solution. The solution was an interactive toy that offers the perfect combination of training elements while keeping your pet motivated and active. The system consists of several interconnected elements: 1) The PupPod device, that is, a puzzle toy that entertains the pet, providing physical activity and mental stimulation. 2) A feeder that throws a treat as soon as the dog performs the required action and earns its reward. 3) Also has a built-in HD camera with live broadcast function. 4) Mobile application for managing your gaming session from anywhere.

There are several manufacturers of self-cleaning cat litter boxes on the market. Let's take the device as an example Litter Robot. The device contains a container for cat litter, which is equipped with sensors that detect when the cat has used the litter box and left. Once the cat leaves the litter box, the cleaning cycle begins. The device rotates to sift out the lumps and dump them into a separate container, which closes tightly and prevents the spread of odor. A mobile application for a smartphone allows the owner to monitor the cat's habits and the level of waste in the litter box.

Smart pet door Sureflap. Traditional pet doors often cause problems: unwanted guests can enter the house; pets may be afraid of quickly closing doors; Doors may not close properly after letting a pet in, causing drafts and other problems. Smart doors eliminate all these risks. Their operation is based on an RFID chip. This could be a pet's microchip or a tag in a smart collar. The smart door receives a signal from RFID and recognizes the presence of a pet. When an animal approaches, the system opens the door and then automatically locks it. Additional features vary by model. Sureflap models come with the Connect Hub smartphone app. It allows you to create individual settings for different animals. For example, if not all animals living in the house are allowed to leave it. The app also controls a timer to automatically lock/unlock the door at the desired time. The smart door can also be paired with Google Home and Alexa, gaining voice control and other options.

II. Wearable devices for pets

Wearable devices for pets are small, portable devices that are built into collars or integrated into an implantable chip. These devices help monitor the health of animals, train and train them, and regulate their activity levels. Wearable devices typically connect to mobile apps and provide rich control and feedback capabilities. The most common devices currently available are wearable pet training and training devices and devices with built-in GPS functionality.

Training devices help improve their behavior at home. For example, e-collars are considered an excellent tool for this purpose. Without them, it is very difficult to reduce the level of aggression and discipline aggressive animals (especially dogs). These devices work on the principle of sending physical feedback for good and bad behavior.

Devices with built-in GPS functionality are used to track the location of pets. They make it easier to find missing animals and, in combination with other devices, can limit the safe zone. These devices can be integrated into implanted chips or built into collars.

Tractive   is a startup that develops smart GPS collars for cats and dogs to help pet owners track their pets' location, their trails, their sleep, and build a virtual fence. The company's smart GPS collars feature real-time GPS tracking technology and a smartphone app to help pet owners gather all the information they need.

PetSafe  – a system that prevents an animal from leaving a certain safe area. Cats and dogs are curious creatures, and owners must take precautions to prevent them from getting carried away and running away. At the same time, owners do not want to turn their house and yard into a prison with wires installed along the fence. Instead, it is built from handheld transmitters that detect the area available to pets. The pet's collar has a built-in receiver that receives signals from the transmitter in the form of sound or vibration. When a pet tries to leave the safety zone, the collar emits a signal that stops the animal. Wireless fences are effective and safe. PetSafe's solution elegantly solves the problem of escaped dogs and cats without turning the home into a cage for either pets or their owners.

Wagz  Communication technology allows manufacturers to add many new features to a traditional pet accessory such as a collar. The high-tech collars use built-in sensors to monitor a pet's health around the clock, serve as a fitness tracker for pets, and help find them if they run away or otherwise get lost. Smart collars are an extremely popular product in the market. The Wagz smart collar is a great example of such a device. Along with traditional features such as a built-in GPS module and step counter, the solution includes a built-in microphone for remote voice commands, a built-in camera for live video streaming, and a geofencing setting that allows you to detect a virtual fence and receive alerts as soon as an animal crosses the fence. its limits, as well as the function of diagnosing the dog’s barking and emotions.

But that is not all. Pet owners lack feedback that would facilitate communication and understanding with their pets and serve as a kind of translator from canine to human language. The device serves this purpose Inupathy, created by the Japanese company Yamaguchi. The product is equipped with a heart rate sensor installed in the harness. It picks up signals and translates them into meanings of the dog's emotional state. Each emotion has its own color, displayed on the device and in the mobile application. In this way, the dog owner can understand how the pet is feeling at any given moment. Depending on the information provided by the device, the owner can understand what his pet wants. And this is another step in the development of technology for pets.

III. Pet Grooming Platforms

The platforms allow for a variety of animal care functions, either through the provision of professional services or by organizing a variety of marketplaces. They focus on every aspect of pet ownership. These could be mobile applications through which you can find people in your neighborhood who are willing to provide dog walking, pet sitting or boarding services, platforms for remote veterinary services, or specialized social networks.

Pet food: Pet food companies help pet owners properly manage their pets' nutrition. These companies, among other things, are developing apps to monitor feed intake and make recommendations to ensure animals are eating the right amount of food and getting the right diet.

Company The Farmer's Dog offers an alternative approach to creating dog food. She stopped producing highly processed food, which can cause digestive problems. Instead, the company produces fresh food for the right diet. The results of research in the field of pet nutrition and the recommendations of leading nutritionists are used to create food recipes. The company has developed a proprietary recipe of high-quality ingredients that provide dogs with high-quality, fresh food. The company uses quality and safety standards never seen before in the industry, resulting in nutritious and balanced products that are not only good for dogs, but also safe for people.

Pet sitting: Several startups are working to develop platforms that connect pet owners with caregivers. This is especially useful for pet owners who are on vacation or busy with work and are unable to care for their pets.

Meowtel  is a platform that connects cat owners with professional pet sitters in the USA. The company is based on the fact that cats do not adapt well to changes in their place of residence, including pet hotels and similar shelters. She has developed a system for cat owners that allows them to find and hire a sitter for their furry cat while away on business trips or vacations. The platform contains information about the nurse, reviews of her work, a calendar in which you can book visit times and a payment system for the relevant services.

PupBox  is a service that offers a subscription service that delivers a monthly dog kit that includes toys, treats, accessories, and information about raising a dog. The set includes: educational guides for caring for a dog specially designed for its age; treats to motivate dogs during training, teething toys, plush toys, rope toys, interactive toys and hard toys tailored to the puppy's stage of development; chews and accessories needed for grooming at every stage of a dog's development

Platform VetNOW   is a pioneer in the field of organizing remote veterinary services and one of the most popular solutions in the pet care services market. The platform is based on a social network of veterinary professionals, including renowned clinics and universities. The platform is designed to serve both veterinary professionals and pet owners. The platform provides access to numerous applications designed to automate various aspects of animal care. Features included in the system include high-definition technology for virtual pet exams and teleconsulting, integration with other veterinary and professional applications, and storage, management and secure exchange of medical data. The platform also offers veterinary clinic workflow management tools: virtual booking, appointment notifications, survey tools, and more.

Video platform Petcube. Streaming video is an integral part of multi-purpose pet platforms. At the same time, cameras must have a wider range of functions than high-quality video or two-way audio. The cameras offered by PetCube have night vision and motion sensors, as well as 360° viewing capabilities. The camera is able to withstand attacks from pets in case they decide to play with it or chew it. The camera easily connects to a mobile application, allowing for remote control. In addition to standard tracking features, PetCube cameras can be equipped with a built-in pet treat dispenser, a laser pointer for playing with a bored pet, and a problem alert sent to the mobile app when the camera detects loud barking.

Thus, the inventors of PetCube provide the pet owner with the opportunity to interact with his furry friend at any time. The pet owner can walk, talk and observe the pet, regardless of the distance between them.

In addition to selling its cameras, PetCube offers video storage subscriptions and camera rentals, as well as veterinary teleservices.

Pawsr Network  brings together a community of pet owners and those who create products for them and their four-legged friends. The key goal of this specialized social network is to provide a safe and supportive communication environment for cat and dog lovers. The network is equipped with functions for sharing photos and videos. Its monetization model is based on advertising of products and services, as well as sponsorship fees.

The Future of Pet Tech

While pet care has always been an important part of life, recent years have seen a quantum leap thanks to new innovations in technology and consumer demand. The proliferation of the Internet, social media and IoT are the most important sources of new ideas in this area. The view of pets as family members and equal partners in people's lives is creating a strong demand for technology products that make it easier to care for, train and interact with pets.

Let's list the areas that look most promising for innovative business ideas.

1. Development of various applicationsrelated to pets. The industry offers opportunities for products and services of all types: tele-veterinary care, daily life management, pet care and entertainment.

2. Production of food additives for pets. The pet supplement industry will reach $1 billion by 2027, according to an analysis by Grand View Research https://www.grandviewresearch.com/press-release/global-animal-health-market.

Examples of pet supplements that are in high demand are vitamins and probiotics for dogs and fish oil supplements for cats.

3. Emergence of new product categories. The pet products industry, as noted above, traditionally consists of several product categories: food, toys, beds, leashes, hygiene, care. At the same time, research and development is actively underway in this segment and a significant number of innovations in the field of pet products are emerging. In particular, entrepreneurs do not simply bring technological variations of existing products to market. They are also creating entirely new categories of pet care products.

An example would be pet wipes. These are, in fact, wet wipes for all occasions - for cleaning fur, for wiping paws after a walk, for hygiene of eyes, ears and noses, etc. Despite being a relatively recent trend, Amazon's marketplace already offers nearly 300 brands of pet wipes.

Another relatively new pet product category is pet toothpaste. Oral hygiene products for dogs are nothing new. But here, too, new products appear. For example, toothpaste for cats.

4. Search continues to evolve ideal automated cat litter box with WiFi and app control. The developments also use diagnostic elements that can be integrated into the device. Based on the animal's behavior, frequency of visits to the tray and analysis of excrement, early diagnosis of many diseases is possible.

5. Production of new high-quality animal feed. These products are quite expensive, but there are many pet owners who are willing to spend money for the health of their pets. This category includes the production of fresh, frozen and freeze-dried food.

6. Rapid development of the direct sales channel (Direct to Consumer - DTC). Recent years have seen an explosion of direct-to-consumer brands across all industries, from cosmetics and nutritional supplements to soda and food. Pet care is no exception. This is not only a huge but also a rapidly growing market. Terri Rockovich, CEO of Jinx, a newly launched pet care company, explained it this way: “For millennials and Gen Z audiences, direct-to-consumer marketing is much more attractive than traditional marketing models because it aligns with their priorities: simplicity, convenience, transparency, controlled costs, authenticity and shopping experience.”

7. Development of the insurance industry pets is one of the most interesting trends in the pet industry in 2022. The pet insurance market size was valued at US$8.3 billion in 2021 and is estimated to grow at a compound annual growth rate (CAGR) of 16.7% between 2022 and 2030. Growing pet population, introduction of such insurance in new markets, expansion of veterinary care services, increasing cost of ownership, initiatives by key companies and humanization of pets are the key drivers of this market. In 2020, the insurance company Trupanion reportedthat more than 800,000 pets were insured under the company's policies in key markets in the United States, Canada and Australia.

So, we have looked at the main trends in the pet tech market. All of them are united in one way or another by the need to ensure the well-being and well-being of pets. “Pet parents” are willing to spend money to provide the best possible living conditions for their pets. As the number of pets continues to increase, the industry will continue to grow, bringing with it new innovative business opportunities.

Finally, here is a list of finalists for the Petcare Innovation Summit “Best in Show Spotlight”, which will be held in Boston on December 6-7, 2022. The Spotlight provides an opportunity to learn about the most exciting companies in the pet care industry that are currently seeking investment or partners in the areas of pet health, nutrition, products and services.

These 20 startups will present their innovations in December. Winners will be selected and announced live at the event.

Animal Biome: provider of personalized health products and services based on microbiome science.

Breed Science: A DTC fresh food and supplement brand that uses medical prescriptions, veterinarian advice and diagnostic tests to create personalized nutrition plans.

Bundle x Joy: brings nutritional superfoods, treats and supplements directly to consumers' doorsteps.

Calviri: a platform that produces off-the-shelf therapeutic and prophylactic vaccines for the treatment and prevention of cancer.

Chews Happiness®: A social enterprise (accredited by the Pet Sustainability Coalition) that is in the process of commercializing a product under the DigestaBone® brand, an all-natural, easily digestible and durable chewable treat for dogs.

Expercy: Provider of painless, non-surgical orthopedic treatment for minor bone fractures in pets.

Gentle Beast: subscription-based dog training, education and wellness platform.

Go Dogo: a developmental puzzle to help dogs stay fit and happy.

Hilltop Bio: manufacturer of anti-inflammatory therapeutics based on new cell technology.

HiPets: SaaS-enabled pet care marketplace.

Innovative Pet Labs: production of tests for screening the health of pets at home.

Jiminy's: manufacturer of insect-based dog food.

Joyful Pets: a social platform that connects people who need to give up their pets with those who want to adopt pets through a peer-to-peer marketplace.

MeowTalk: A cat translator app and platform with over 17 million downloads that can interpret an individual cat's meow and translate it into human-readable language.

MI:RNA: Veterinary diagnostic company with new technology for early detection of diseases.

PetPair: a pet adoption marketplace that matches and transports animals from overcrowded shelters across the country to adoptive families.

Rescue Spot: a platform that simplifies and streamlines the pet adoption process for adopters and rescuers.

Tharos: a feed additive that helps break down complex carbohydrates in the intestines of animals and improve the balance of intestinal bacteria.

Vidium Animal Health: Advanced genomic diagnostics for veterinary medicine. The company provides a genome sequencing-based test to characterize all tumors in dogs.

WulfTech – Advanced K9 healthcare systems, toys and monitors for K9 work groups from the federal government to state police and local rescue groups.