Asia-Pacific is an important and high-potential market; the sharp contrast between the near saturation markets of Europe (Europe pet food market) and America (North America pet food market), with the just opened markets of Asia, is a visible indicator of the acuteness of future predictions. In 2016, the market was valued at USD 10,793.5 million and is predicted to grow at an impressive CAGR of 5.1%, to a USD 14547.24 million market by 2022.
The region is endowed with a diverse set of markets, defined by various characterizations. The Australian and Japanese markets are characterized with a well-aware and quality conscious consumer base; their point of difference seen in their buying pattern and social culture. The Indian, Chinese, and Indonesian markets are rapidly emerging markets in the region. The high-flung economies of Taiwan, Malaysia, and South Korea make them an ideal target for pet foods. The markets of Vietnam, Thailand and other minor markets represent the most recent markets to enter the global arena.
Pet food revenue in Asia Pacific (2015-2016):
The Australian market is mainly driven by the high divorce rate and increasing single population. The Japanese market is driven by its large elderly population that prefers the company of a pet. This commonality of ‘companionship’, albeit on a different social metric, makes them very good markets for high-quality and premium foods. The high education levels and modern infrastructure facilities enjoyed by the economically developed nations like Japan and Korea are accompanied by a strong sense of culture and locality. The affluent status and companionship offered by owning a pet is an important driver for the industry in these countries. The high internet connectivity enjoyed by these nations is boosting the use on e-commerce sites as an effective distribution channel. Due to the strong cultural ties, taboos and age-old practices associated with domestic animals, the market witnesses both, challenges and opportunities. The Islamic taboo regarding dogs and the dog meat festivals of South Korea are a few examples of this fact.
The notions of convenience, affluence or exclusivity, safety, and market awareness play a crucial role in the developing nations. The rapid urbanization and connectivity programs envisaged by these economies are going to further boost the market. Owning a pet, focusing and spending on its care is seen as a mark of social status and sensitivity in these regions, making it an important market driver. The unreliability of local goods, as indicated by the recent scandals, is also forcing them to rely on foreign goods. The market campaign is often centered on the shift from left-overs to commercials foods. The late embrace of the market connectivity in minor markets of small economies like Vietnam, Thailand, etc., is due to the infrastructure lag and almost negligible product awareness in some nations. They offer nascent market advantages, such as low regulations and competition. The other problems associated with these markets are the political uncertainty, as indicated by a certain military junta takeover of Thailand.
Asia-Pacific Pet Population (2016)
The pet food market is segmented by the product, pricing, animal type, ingredient type, sales channel and geography.
By Animal Type:
By Ingredient Type:
By Sales Channel:
The region is characterized by a monetarily strong middle-class, making the economic pricing segment an important revenue generator. Super markets and groceries are the leading outlets for pet food; however, the trend is expected to shift to specialist stores in the future.
The major players of the regions are:
The high penetration enjoyed by e-commerce sites in the urban regions is also facilitating the rise of online medium as an effective distribution channel.