Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
The pet adoption phenomenon has gained significant traction in Asia over the past years, especially since the beginning of Covid-19. Thus, the pet care market is growing as well. According to Euromonitor, the industry witnessed positive growth in both volume and value in 2023, with premiumisation and pet humanisation further fuelling the pet economy. With a value of over $68.1 bn in 2020, the Asia Pacific Pet Care Market is expected to grow to $132 bn by 2027.
According to Graphical Research, rising demand from pet owners for healthier, more nutritious, and organic pet foods and increasing adoption of private-label brands across the region are driving the market growth.
Especially the shift from pet ownership to treating pets like family members or even children creates a high demand for premium products and services for pets, such as organic food and supplements. In South Korea, for instance, the sales of pet strollers surpassed that of baby strollers for the first time last year. According to Gmarket, an e-commerce platform operator, the ratio for pet stroller sales rose from 33% in 2021 to 57% in 2023 – compared to falling infant stroller sales from 67% to 43%, respectively.
South Korea has been registering a declining birth rate for years. The combination of an ageing population and an economic boom, combined with a falling birth rate, is likely to further boost the demand for premium pet products, such as pet wellness, insurance and even pet funerals, Christian Zilien, Product Specialist Equity at Allianz Global Investors, wrote in a recent market assessment.
“With premium brands adopting human-like dietary labels such as ‘organic’ or ‘locally sourced’ products like pet desserts or protein supplements are becoming more popular in various markets,” he wrote.
One of the most promising markets is Southeast Asia. The region with 650 million consumers and a fast-growing middle class is increasingly looking for pet products in the premium segments, petFair Asia, the largest exhibition for pet supplies globally, found. The market volume is expected to reach $6.07 bn in 2028.
In China, the pet market is one of the fastest-growing Fast-Moving Consumer Goods markets, as per a study by PwC. Despite Covid and the global economic slowdown, the market consistently grew by 18+% in the past couple of years.
In India, the pet economy was estimated to be worth $890m in 2021 and is expected to triple over the next decade.
“Our conviction is that the pet economy will continue to flourish, fueled by the deepening bond between pet owners and their animals. As the market expands into various areas, it presents enticing investment opportunities in premium pet products,” opines Zilien.
“As people consider their pets as family members, this industry is expected to be fairly resilient even during times of economic downturns, as owners will keep seeking the best quality products and will be hardly compromising on their animal’s wellbeing,” he concludes.
