It’s time: The cat economy takes centre stage

Welcome to the first issue of Feline Business Brief!

We (a team of adoring and slightly over-caffeinated cat servants) launched this newsletter because for too long, cats have not received the attention they deserve from the pet industry.

It looks like things are finally changing.

Cat ownership is on the rise, and the pet industry is paying attention. Last year, 49 million U.S. households owned at least one cat, an increase of 23% over the previous year. Meanwhile, dog ownership declined between 2018 and 2024.

Cats’ growing popularity can also be observed overseas. In China, the cat population posted a CAGR of 5% over 2018-2023, overtaking the dog population in 2021. In fact, cat ownership has already overtaken dog ownership in Germany and Indonesia (see our infographic below).

And yet, cats remain significantly underserved:

• Around 70% of U.S. household-owned cats did not see a vet in 2024;

• Over 80% did not receive wellness care, compared to corresponding 30% to 35% of dogs missing an annual visit.

• Mature adult cats (ages 7-10) were the least likely to visit a veterinarian in 2024, with only 16% receiving care;

According to the CATalyst Council, barriers to care has resulted in a cat care gap of US$20 billion.

There’s a lot of catching up to do.

The good news: startups and established brands are racing to fill the gap.

Every week, whether you’re a founder, retailer, vet, marketer or investor, we’ll bring you insights, ideas and interviews from the fast-growing feline space.

(By the way, we always want to hear from you - just reply to our emails to reach us.)

We’re so excited you’ve joined us! Let’s get started.

#catsdeservebetter #felinecaregap #catsoutfront

😾 The Nutriment Company + Purrform The Nutriment Company has moved into the cat food space by acquiring Purrform.

😺 Catitude: Mars has launched an internal campaign called Operation Cattitude to help staff better understand cats’ needs, according to the Wall Street Journal. The company has held presentations with feline behaviourists, sent marketers to visit real cat homes, and even had senior execs put on cat ears around the office.

🐈‍⬛ #catsdeservebetter A cat-sitting company in Warrington, UK has launched a new campaign calling for better recognition of cats’ needs and spending power. Wendy Thomson Melling, owner of My Three Cats, created the Cats Deserve More campaign to address outdated stereotypes as well as limited retail shelf space and products for cats in UK pet shops.

🐈️ Drools India-based pet food unicorn Drools, said sales of its PurePet Cat brand now make up 35-40% of overall company revenue. Drools sold a minority stake to Nestlé SA in May and is now the country’s biggest pet food brand.

Hear them roar: Why the pet industry can’t ignore cats any longer

CATS ARE HAVING THEIR MOMENT

There’s been a clear vibe shift within the pet industry. Finally, pet brands are realising that cats are underserved by the market.

The surge in Gen Z pet ownership (particularly among “Cat Dads”), a greater preference for urban/solo living and a desire for lower-maintenance pets are all playing into cats’ favour.

The “cat economy” is beginning to rival its canine counterpart, with momentum rapidly gathering.

Consumer spending habits reflect this trend. Last year, the U.S. pet food industry saw a 10.1% rise in cat food sales, compared to a 8.4% rise in dog food.

However, cat owners spend nearly 40% less on veterinary care compared to canine owners. This contributes to a market where US$12 billion in annual cat veterinary revenue is being realised - yet there remains a further US$20 billion in untapped potential, according to CATalyst Council.

WHY THE GAP?

The short answer: Cats have unique characteristics, which still go largely unaddressed by the pet industry.

The shorter answer: Cats are not dogs.

The pet industry is still mostly based on canine behaviour. Feline preferences can therefore become barriers to care:

• Masking discomfort: Cats have evolved to hide physical discomfort, making it challenging for humans (and vets) to detect health issues early.

• General aversion to change: Cats generally dislike travel (this includes being put into crates/carriers, riding in the car and changes in daily routine). Cats are also masters at evading capture, meaning even well-meaning pet parents can fail to get their cats proper care.

• Lack of ‘obedience’: Cats will generally refuse to do anything they do not wish to do. They often don’t come when called, refuse to travel, object to having their teeth brushed. They will absolutely fight to the death to avoid taking pills.

HOW THE INDUSTRY IS CHANGING

As affection for cats surges, technology is playing catch-up. A new wave of feline-forward ventures is seizing the opportunity to meet these challenges.

Detecting health issues early: 

• Catlog (RABO) uses AI and sensors to monitor feline behaviour and can detect illness in up to 80% of cases before obvious signs appear.

• Data-driven startup Sylvester.ai detects feline discomforrt by scanning cats’ faces; Moggie tracks stress, rest and mobility in real time.

• Smart litter (e.g. PrettyLitter, Genius Litter, Litter-Robot, Pura X) offers health insights via waste analysis.

Avoiding unnecessary changes in routine:

• Mobile / at-home veterinary visits / televet services, e.g. felmo;

• Cat-only veterinary clinics;

• At home diagnostics, e.g. Vetevo.

Adapting dog-centric healthcare to cats:

• A toy-shaped Dental Wand (rather than a toothbrush) by Inventor Cat;

• Insurance tailored to feline needs;

• Cat health supplements.

Interestingly, cat care space remains disproportionately underfunded, even as its market share grows. According to Crunchbase, feline-specific startups have raised under US$140 million to date.

This is a stark contrast with dog-focused companies such as Rover, which have drawn several hundred million dollars in venture capital.

TURNING POINT?

We've reached a clear turning point in the pet industry.

And it’s not just startups disrupting the market.

Major brands are beginning to take notice too (see Mars' Catitude project, News in Brief). All signs point to a future where cats are no longer an afterthought, but a driving force in pet innovation.

The cat’s meow

Before we sign off, we just wanted to tell you to send us your cat photos! To ensure fairness and democracy, we thought it only fair to devote part of our weekly missive to the lovely cats we adore and champion.

Here is a photo of our lovely Ethel, our editorial catsisstant:

See you next week! 🐾