Pet Care Startups Build Subscription Moats to Compete with FMCG Giants
Direct-to-consumer (D2C) pet care brands in India are increasingly turning to subscription models as a strategic tool to secure customer loyalty and counter the formidable scale and distribution advantages of established fast-moving consumer goods (FMCG) giants. This move comes as the pet care segment transforms into a highly competitive battleground, with projections indicating it could reach approximately ₹35,000 crore in 2026.
The Subscription Strategy in Action
At the consumer level, subscription models offer a blend of convenience and predictability by automating regular purchases of pet food and essentials. This approach reduces the friction associated with repeat ordering, allowing pet owners to set flexible delivery schedules while maintaining full control—options to pause, skip, or cancel shipments are typically available without long-term commitments.
Kartikeya Gupta, co-founder of natural cat food brand Smylo, highlighted the effectiveness of this model, noting that nearly 40% of their repeat customers now come through subscriptions. "Subscriptions work best for products that form part of a pet’s staple diet," Gupta explained. "Cats, for instance, need consistent feeding, often consuming up to one-and-a-half packets daily. Automated replenishment makes practical sense for consumers, ensuring they never run out."
Market Dynamics and Growth Projections
The Indian pet care market is experiencing significant growth, driven largely by first-time pet parents—a demographic that makes up 70-80% of the market and consists predominantly of young, urban consumers. This shift is attracting both global and domestic FMCG players, intensifying competition across various price segments.
- New entrants like Reliance Retail’s Waggies and Wipro Consumer Care’s HappyFur are expanding their presence.
- Investments from major companies such as Godrej Consumer Products and Nestlé are further heating up the market.
- Globally, the sector has grown from $690.5 million in 2023 to $786.6 million in 2024, with projections reaching $884.4 million in 2025, according to Euromonitor International.
Subscription Models as a Strategic Moat
For many emerging pet care brands, subscriptions are viewed not as an immediate growth engine but as a long-term strategic lever. Hari Shankar, founder of Chennai-based dog food brand Pets of Paradise, described subscriptions as "strategically important but not yet mission-critical." He emphasized that building brand trust, ensuring product quality, and educating consumers currently take precedence.
"In the long run, subscriptions will become a defensive moat by locking in habitual consumption and reducing switching driven by price-led FMCG competition," Shankar added. Despite subscriptions currently making up less than 10% of their customer base and contributing only low single-digit revenue, these customers exhibit stronger retention, higher average order values, and significantly greater lifetime value.
Challenges and Skepticism
However, subscription models have faced hurdles in other D2C categories. For instance, cold-pressed juice brand Raw Pressery struggled with high perishability and cold-chain costs, while dairy brand Epigamia found that consumers preferred on-demand purchases via local stores and quick-commerce platforms. Men's grooming brand Bombay Shaving Company encountered issues with inconsistent usage patterns and easy customer switching.
Arvind Singhal, chairman of consulting firm The Knowledge Company, expressed skepticism about the viability of subscription models in pet food. "I don’t think it works at all, especially in pet food. It’s like any other FMCG product," he stated. Singhal argued that the market favors large national players due to their scale, distribution networks, and established trust. "Large FMCG companies reach hundreds of thousands of villages and millions of sales points. Why would someone in a smaller city look for a startup brand that nobody knows about?"
Innovative Approaches and Future Outlook
Despite challenges, some brands are adopting innovative strategies to make subscriptions more appealing. Bengaluru-based Muttley Crew, a D2C brand focused on preservative-free pet treats and meals, plans to roll out subscriptions with a value-led approach rather than aggressive discounting. Founder Smriti Thomas shared their strategy: "Each box won’t just have the selected treats; it will also include a small gift and useful collectables related to pet health." Flexibility remains a key design principle, with no lock-ins, large upfront payments, and the option to cancel anytime.
Thomas believes that subscriptions can help smaller brands compete with FMCG players on engagement and outcomes rather than price. "Subscriptions help only after trust is built. Once pet parents are confident about the product and start seeing benefits, subscriptions reinforce routine and consistency," she noted.
Conclusion
As the pet care market in India continues to expand, subscription models are emerging as a critical tool for D2C brands aiming to carve out a sustainable niche against FMCG giants. While not without challenges, these models offer a pathway to enhanced customer retention, predictable demand, and long-term competitive advantage. The success of this strategy will likely depend on brands' ability to build trust, deliver consistent value, and adapt to the unique preferences of Indian pet owners.
