Asia Pacific Pet Food Market Overview, 2022-2027

Over the years, there has been a shift in the culture of families in the Asia-Pacific region, and the number of nuclear families has risen. Urbanization and changing preferences have facilitated this change in family structure. This factor has contributed to the growth of the pet food industry. As the number of households reduces, there has been an increase in demand for pets as companions. Among the top revenue-generating regions in the pet food market, Asia-Pacific is viewed as one of the major markets globally. Countries in this region have observed an increase in purchasing power, rapid urbanization, and a change in lifestyle, which have shifted people’s attraction to becoming pet owners. The changes observed in pet owners are due to technology and the advent of online purchasing. According to the report, "Asia-Pacific Pet Food Market Overview, 2022-2027," published by Bonafide Research, the market was valued at around USD 19 billion. The market is projected to grow at a more than 7% CAGR for the 2022–2027 period. Asia-Pacific countries have emerged as one of the potential markets for pet food products. The industry is quickly developing in Asia-Pacific, with urbanization being one of the reasons. The region’s pet food market has been dominated mainly by the combined market of Japan and China. The region has observed a high demand for organic, healthy, and nutritious pet food for the pets as compared to the ordinary pet foods for the pets. The region has recorded higher adaption of cats as a pet, which has resulted in higher revenue generation of cat food products, which is followed by dog food. While considering the categories of food products, dry food holds the major portion, which is accompanied by snacks and treats. The distribution of these products has been highly benefited by the availability of products, especially through pet specialized stores and the expansion of supermarkets and hypermarkets.

Pet foods are easily digestible for pets and help in avoiding health issues like food allergies, obesity, and a sensitive stomach. An increase in the pet population in the region due to pet humanization has boosted the pet food market. Rising disposable income due to urbanization has increased the demand for pet food. The changing perceptions of consumers towards pet health and the rising trend of nuclear families have also enhanced the market. The mixture of different cultures, leading to different buying patterns in the market, is helping the market grow. According to the National Bureau of Statistics, the pet industry in China is reported as the fastest growing industry. Stringent rules and regulations are posing a restraint on the growth of the pet food market. The rise of e-commerce has contributed towards the sale of pet food through the online medium. There has been a high divorce rate and an increasing single population in Australia. According to the Australian Bureau of Statistics, the number of divorces was 49,409. High educational levels and modern infrastructure facilities in economically developed nations like Japan and Korea are accompanied by a strong sense of culture and locality. These factors have increased the humanization of pets, which is leading to the growth of the pet food market. According to Statistics Korea, there was a divorce rate in the age group of 20 to 30 years of age. These factors have eventually pushed the adoption of pets, thereby enhancing the pet food market in Asia-Pacific. The high internet connectivity in the nations of the Asia-Pacific region is boosting e-commerce sites as an effective distribution channel for pet food sales. The ideas of convenience, affluence, and exclusivity are crucial for the consumers of developing nations. There is a wider sense of safety and market awareness among consumers towards the procurement of pet wellness products and foods. The market forces, along with the connectivity in the majority of areas, are expected to boost the market. The popularity of branded products and unreliability of local products has boosted the reliance on e-commerce sites for access to quality products. Pet humanization has increased the demand for high-quality products for pets, especially through online retail channels. The pet food industry is consolidated with major players making new innovations from time to time. The market is driven by customer loyalty and the habitual eating patterns of pets. Since the pet food industry is influenced by the habits developed by pets, it is more difficult to gain market share. With the growing importance of natural foods for health reasons, major players are looking to expand in that direction. The major players in the segment include Mars Inc, Nestle SA (Purina), Colgate Palmolive (Hill’s Pet Nutrition), Uni-Charm Corp, and JM Sucker (Big Heart). Pet food manufacturers are using a wide range of agricultural ingredients that are carefully chosen based on the breed, nutrient profiles, and functional contributions. This is expected to drive the market growth for the APAC pet food market in the next few years. Ingredients for pet food include meat, meat byproducts, cereals, grains, poultry, seafood, and products created during the processing of food for human consumption. A rise in awareness about the health of pets has led to an increase in demand for pet foods with more nutrient-dense, scientific formulas, including lifecycle products for young and old pets as well as therapeutic foods for specific health conditions such as weight loss and urinary issues. Additionally, pet food manufacturers are inclined to use more protein-rich tissue and less fatty tissue and tallow. An increase in pet ownership along with a rise in demand for high-quality and premium food products for pets offers significant opportunities for the pet food market in APAC. A growing population of dogs and cats in China is partly responsible for the country’s rising interest in pet food. China, along with India, Vietnam, Indonesia, and Malaysia, ranks amongst the top seven for compound annual growth rates (CAGR) of cat and dog populations. Socio-cultural changes, increases in the standard of living in many of the emerging economies, and growing awareness about animal health and hygiene have proven to contribute to the growth of the market. An increasing shift towards smaller breeds of cats and dogs in the market has also shaped the nutraceutical industry in the region. Concerns regarding muscle development, digestive health, cognitive health, and skin type, especially in cats and dogs, provide specific targets for the nutraceutical industry to innovate.

COVID-19 Impacts: The COVID-19 outbreak is anticipated to cause a significant economic loss in APAC. The consequences and impact are likely to worsen with the spread of the virus. The governments in various APAC countries imposed lockdowns in early 2020 to restrict the spread of the virus, which, in turn, negatively impacted the production of pet food. The governments had asked pet food manufacturers to delay their production, adversely affecting the global pet food supply, including organic pet food. However, in 2021, the governments of different countries in APAC are now offering vaccination to people and taking precautionary measures to protect people against the spread of COVID-19. The governments of various countries in the region have realigned their operations, restructured their production facilities, and procured raw materials required for organic pet food in advance to avoid an imbalance between supply and demand. The e-commerce network is playing a significant role in food and pet food product distribution during the pandemic, and people mostly prefer to purchase products online. Major companies present in the market Nestle SA, Mars Incorporated , Colgate-Palmolive , United Pet Group, a Spectrum Brands Company, PLB International , Unicharm Corporation, Well Pet Considered in this report • Geography: Asia-Pacific • Historic year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027 Aspects covered in this report • Asia-Pacific pet food market with its value and forecast along with its segments • Country-wise pet care market analysis • Various divers and challenges • Ongoing trends and developments • Five force models • Top profiled companies • Strategic recommendation Countries covered in the report • Japan • Australia • China • India Segment covered in the report • Pet foods • Pet healthcare • Pet accessories • Pet grooming By Pet Type in the report •Dog Food •Cat Food •Fish Food •Bird Food •Others By Food Type in the report •Dry Food •Wet or Canned •Snacks and treats •others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering, the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started, verifying the details obtained from secondary sources. Intended audience This report can be useful to Industry consultants, manufacturers, suppliers, associations & organizations related to pet care products industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.