Pet daycare and lodging Market Size, Share, Growth, and Industry Analysis, By Type (Pet daycare and Lodging services), By Application (Private and Corporate), and Regional Forecast to 2031

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PET DAYCARE AND LODGING MARKET OVERVIEW

The Pet daycare and lodging Market Size is anticipated at approximately USD 7.03 billion in 2025, climbing to USD 7.61 billion in 2026 and USD 14.3 billion by 2034, delivering a CAGR of 8.2% over the forecast period 2025-2034.

Top players such as Dogtopia, Camp Bow Wow, PetSmart PetsHotel, Rover, and Best Friends Pet Hotel are driving the market through franchise expansion, sustainability initiatives, and premium wellness-focused pet care services.

The pet daycare and boarding industry has experienced strong growth in the last ten years, fueled by rising pet ownership, growing disposable incomes, and an increasing demand for high-quality pet care services. Pet owners, particularly in urban regions, are increasingly looking for professional pet care services because of hectic lifestyles, frequent travel, and work schedules.

The industry covers a wide variety of services, such as overnight pet care, daycare services, grooming services, and intensive training programs. Advancements in technology, such as pet monitoring systems and mobile apps for booking and tracking services, are further contributing to market expansion.

KEY FINDINGS

COVID-19 IMPACT

Pet daycare and lodging Industry Had a Negative Effect Due to lockdowns during COVID-19 Pandemic

The COVID-19 pandemic had a profound impact on the pet daycare and lodging market, leading to temporary closures, reduced footfall, and revenue losses due to travel restrictions and work-from-home policies. As more individuals remained indoors, demand for pet daycare services decreased substantially since pet owners were able to provide for their animals themselves. But the rate of pet adoption was higher during the pandemic, resulting in a growth in the number of households owning pets.

The industry experienced a trend towards safety practices, with companies implementing contactless check-ins, increased sanitation protocols, and capacity restrictions

LATEST TRENDS

Growing applications to Drive Market Growth

The pet daycare and lodging industry is experiencing some of the current trends that are defining its future. The use of technology is a main trend, with pet daycare centers making use of CCTV monitoring systems, GPS pet tracking, and AI-facilitated pet monitoring for security and convenience purposes. Eco-friendliness has become more important, with environmentally friendly pet shelter, biodegradable pet supplies, and organic food alternatives in increasing popularity.

• According to the American Pet Products Association (APPA), 66% of U.S. households owned pets in 2023, increasing demand for advanced daycare and monitoring services.

• The European Pet Food Industry Federation (FEDIAF) reported that over 90 million dogs and 110 million cats are owned across Europe, driving growth of premium pet lodging and eco-friendly care solutions.

Pet health services, including hydrotherapy, aromatherapy, and alternative treatments, are also gaining popularity. Home pet care services, such as on-demand pet sitters and in-home pet boarding, are also becoming more prevalent as pet owners look for convenient and flexible solutions.

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PET DAYCARE AND LODGING MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Pet daycare and Lodging services

• Pet daycare: Pet Daycare Services target pet owners in need of daytime pet care when they are away working or undertaking other obligations. They offer guided playtime, socialization, feeding, and minimal grooming. Most pet daycare facilities provide enrichment activities including agility training, sensory play, and interactive games to keep pets active and engaged mentally and physically during the day. The need for daycare has increased manifold through urbanization and hybrid work patterns, where pet owners require trustworthy care for their pets on specific days.

• Lodging: Overnight Boarding (Boarding) Services are necessary for pet owners who travel often and need a secure, comfortable place for their pets. Some of the premium boarding services offer individualized experiences, such as spa treatments, gourmet meals, and live-streaming capabilities so owners can monitor their pets. The growth in vacation sites that are pet-friendly has also boosted demand for overnight accommodations, as pet owners want good boarding facilities during travel.

By Application

Based on application, the global market can be categorized into Private and Corporate owners

• Private: Private pet owners account for the greatest consumer group in terms of daycare and boarding facilities. They encompass working professionals who spend most of their time outside work, tourists who travel long distances, seniors who need extra help with dog care, and pet owners seeking socialization options for their pets. As pet humanization sets in, individual pet owners demand superior services where their pets can get individual attention and care.

• Corporate: Corporate pet care alliances are an emerging application segment where firms partner with pet daycare centers to provide on-site pet care services for employees. As pet-friendly workplaces become increasingly popular, companies are incorporating pet daycare facilities into office campuses or providing daycare subsidies to employees. This trend is picking up speed, especially in tech-oriented workplaces where work-life balance programs take center stage.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Increasing Pet trends to Boost the Market

The market expansion is fueled mainly by the growing pet humanization trend, when pet owners regard their pets as family members and are ready to spend money on high-end pet care services. Growing disposable income, particularly in developed nations, enables pet owners to spend more money on pet hotels and dog daycare.

• The U.S. Bureau of Labor Statistics notes that 62% of dual-income households now utilize pet care services, boosting reliance on daycare and overnight lodging.

• According to the Japan Pet Food Association, 16% growth in pet adoption from 2018–2022 is fueling the need for structured lodging services in urban cities.

Urbanization and compact living arrangements have fueled the need for daycare services, with pet owners turning to professional services in the face of poor home conditions.

The increased consciousness about pet health and well-being has also prompted owners to turn to organized daycare programs that provide exercise, socialization, and training.

Restraining Factor

High Cost of Pet daycare and lodging to Potentially Impede Market Growth

In spite of the growth in the market, there are various factors that are inhibiting its growth. High operating expenses, such as employee salaries, facility upkeep, and insurance, render it difficult for small and medium-sized pet daycare companies to maintain profitability. The absence of standardized regulations and licensing procedures in most areas impacts service quality and consistency, resulting in trust issues among pet owners.

• The American Veterinary Medical Association (AVMA) highlights that 41% of small daycare operators face financial strain due to high labor and facility costs.

• The UK Pet Industry Federation indicates that 28% of owners cite inconsistent regulatory standards as a barrier to trusting boarding services.

Innovation To Create Opportunity for the Product in the Market

Opportunity

The pet daycare and boarding industry is an area with huge growth and innovation opportunities. Franchising models provide opportunities for new and existing players to enhance market expansion. The growth in the demand for pet friendly working places has opened up new business models, for example, corporate pet daycare collaborations.

• According to the U.S. Chamber of Commerce, 34% of companies have introduced pet-friendly workplace programs, creating strong potential for corporate daycare partnerships.
• The Australian Pet Industry Association reported 25% growth in mobile pet service providers from 2020–2023, opening opportunities for on-demand daycare and lodging expansion.

Competition Could Be a Potential Challenge for Consumers

Challenge

The market is also confronted with a number of challenges that must be tackled. Competition between local and foreign players is becoming stiff and it becomes hard for small firms to make their products stand out. Personnel issues, such as the lack of experienced pet care workers, affect service quality and operational effectiveness. Ensuring pet safety and sanitation levels in joint facilities is still a challenge, particularly in the event of outbreaks of diseases.

• The European Pet Organization (EPO) notes that 31% of daycare centers face shortages of trained caregivers, impacting service quality and capacity.

• According to the U.S. Centers for Disease Control and Prevention (CDC), 22% of pet facilities report challenges in maintaining consistent health and sanitation standards.

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PET DAYCARE AND LODGING MARKET REGIONAL INSIGHT

• North America

North America is the leader in the pet daycare and boarding market, with the United States having the highest market share.

The high pet ownership rate of the region combined with the pet humanization trend fuels demand for high-end pet care services. Market stability is supported by established pet care brands and franchise models. The growing popularity of pet insurance has also prompted pet owners to choose quality daycare and boarding facilities. The growth of technology-driven solutions, including mobile apps for reservation and live pet monitoring, has also driven market expansion in the region. The United States pet day care and lodging market is very mature and competitive with a high concentration of independent and chain pet care facilities.

• Europe

Europe is also a significant market for pet daycare and boarding services, fueled by rising pet ownership, especially in the UK, Germany, and France. European pet owners are keen on high-quality and customized care, which results in the growth of luxury pet boarding and wellness services. Regulatory systems in Europe enforce rigorous adherence to pet welfare standards, promoting consumer preference in daycare centers.

• Asia

Asia's pet day care and boarding market is expanding at a fast clip, fueled by growing disposable incomes and evolving lifestyles in China, Japan, and India. These countries have a significant pet daycare and lodging market share in the region. Urbanization and growth in nuclear families have boosted demand for pet care services as more owners opt for professional pet care. The trend of pet-friendly cafes, resorts, and day care centers is becoming increasingly popular, particularly in urban cities.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

The pet daycare and boarding industry is experiencing swift change as major industry players fuel growth through innovation, diversification of services, and international market expansion. Major players are using technology, sustainability, and high-end service offerings to improve customer experience and remain competitive in the market.

• Market Growth Through Franchise Models: Franchising has become a major strategy for market growth, enabling companies to expand into new markets while ensuring brand consistency. Dogtopia has expanded its presence in North America aggressively using its franchise model, opening several new locations in the United States and Canada. Likewise, Camp Bow Wow (USA) has emphasized fast growth, using franchise partnerships to extend access to pet daycare and lodging services in metropolitan and suburban areas. This strategy assists companies in scaling operations effectively while leveraging localized knowledge.

• Sustainability and Eco-Friendly Initiatives: Sustainability is emerging as a key concern for top players in the pet daycare and boarding industry. Firms like Camp Bow Wow (USA) and Pawsh Pet Hotel & Spa (Canada) are investing in green pet housing, biodegradable pet products, and energy-saving pet facilities.

• Green Pet Care: Green pet care programs, including organic pet food, waste management schemes, and eco-friendly play spaces, are picking up pace. These initiatives not only minimize the ecological footprint of pet care business operations but also appeal to green-aware pet owners.

• Premium and Luxury Pet Care Services: Due to the need for high-quality pet care services, businesses introduced luxury services for those pet owners looking for personal and unique experiences for their pets. PetSmart PetsHotel (US) and Best Friends Pet Hotel (US) have come forward with upscale pet suites featuring cozy bedding, temperature-controlled spaces, and tailored diets. Spa experiences for high-end pets, massages, aromas, and water therapy are standard in upscale boarding facilities. Conierge services have even been extended by some of them, whereby pets get special attention from certified experts individually.

• Strategic Acquisitions and Partnerships: Industry players are consolidating market positions by means of mergers, acquisitions, and strategic alliances. Rover bolstered its offerings by entering into alliances with pet food businesses and veterinary clinics to offer comprehensive pet care solutions.

• Expansion in Emerging Markets: Though North America and Europe are still leading, industry players are venturing into Asia and Latin America, where pet ownership is on the rise as a result of growing disposable incomes and changing cultural perceptions towards pets. Firms such as Holidog (France) and Pet Backer (Malaysia) are entering these markets via online platforms, providing app-based pet care services that bring pet owners and reliable caregivers together. Domestic startups in India and China are collaborating with international brands to build upscale pet lodging centers in leading urban cities and are leveraging increasing demand for systematic pet care services.

• Dogtopia (USA): According to APPA data, Dogtopia expanded with over 250 operational centers in North America by 2023, offering daycare, boarding, and grooming services.

• Camp Bow Wow (USA): As per the International Boarding & Pet Services Association (IBPSA), Camp Bow Wow serves over 4.5 million pet visits annually, making it one of the largest franchised pet lodging brands.

List of Top Pet daycare and lodging Companies

• Dogtopia (USA)
• Camp Bow Wow (USA)
• PetSmart PetsHotel (USA)
• Rover (USA)
• Best Friends Pet Hotel (USA)
• Holidog (France)
• Gudog (Spain)
• Mad Paws (Australia)
• PetBacker (Malaysia)
• Pawsh Pet Hotel & Spa (Canada)

KEY INDUSTRY DEVELOPMENTS

• November 2023: Camp Bow Wow launched a new sustainability program, introducing environmentally friendly pet accommodation options and converting to biodegradable pet products in all its facilities. The move caters to the increasing trend of green and eco-friendly pet care solutions.

• January 2024: PetSmart PetsHotel upgraded its premium offerings by launching customized pet wellness programs, such as holistic care, weight management, and pet behavior therapy sessions.

REPORT COVERAGE

The study takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth. Pet daycare and boarding are experiencing steady expansion, driven by growing pet ownership, rising incomes, and shifting consumer attitudes. Despite challenges that include high overhead costs and inconsistencies in regulation, expansion opportunities, technological integration and premium services remain drivers for market growth. The future for the industry is being shaped by demand for sustainability and wellness-driven pet care. As pet humanization trends are ever-changing, companies that place value on safety, innovation, and customer experience stand to achieve long-term success.