The market accounted for USD 10,793.5 million, in 2016, and is estimated to register an impressive CAGR of 5.1% to USD XX million market, by 2022. The pet humanization influences the purchasing decisions to a great extent. In addition, the changing perception of consumers for pet health and increasing trend of the nuclear family are few of the major factors boosting the market growth.
More number of nuclear families = Higher pet food requirement
The Australian market is driven by the increasing single population and high divorce rate. Further, the Japanese market is driven by the large elderly population, who prefer the company of a pet. This commonality of ‘companionship’, though, on a different social metric, makes a good high quality & premium foods market. The high education levels and modern infrastructure facilities, in the economically developed nations such as Japan and Korea, are accompanied by a strong sense of culture and locality. Moreover, the number of nuclear families have exceeded in these nations. The affluent status and companionship offered, while, owning a pet is an important driver for the industry in these countries. The marriage dissolutions that took place in Singapore in 2016 increased by 3.1%. Further, China reported that above 4.08 million couples split up in 2016, i.e. an increase of 5.55%. In South Korea divorces stand high, mostly among older people with more than 20 years of marriage. Furthermore, owing to the increasing number of mutual separation, the urge to have a pet as companion is soaring in the Asian countries, providing necessary impetus to the Asia-Pacific pet food market
Increasing online sales and home delivery creating great market
The high internet connectivity, in the countries mentioned above, is boosting the e-commerce sites use, as an effective distribution channel for pet food sales. The notions of convenience, affluence & exclusivity, safety and market awareness play a crucial and emphatic role in the developing nations, towards the procurements of pet wellness products & foods. These market forces, along with aggravated connectivity programs, envisaged by the economy’s growth, are expected to boost the market. Owning a pet and focusing on its care, is seen as a mark of social status and sensitivity, making it an important market driver. In addition, the unreliability of locally manufactured products, as indicated by the recent alleged scandals and events, is forcing the customers to rely on exported products. A wide-range of export products is available through e-commerce, accelerating the pet food sales, in the region. The market campaigns are often centered on the shift towards commercials foods from left-overs. The late embrace of the market connectivity, in the minor markets of small economies such as Vietnam, Thailand etc., is due to the infrastructure lag and negligible product awareness. However, these factors offer the nascent market advantages of low regulations and competition.
Asia-Pacific has high potential for market players looking to expand their reach
The Asia-Pacific region is an important and high potential market. Further, the sharp contrast between the near saturation markets of European region (Europe pet food market) and American region (North America pet food market), with the new markets of Asia, is a visible indicator of the future predictions acuteness. The market witnessed slow yet steady growth, over the past several years.
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, further, the point of difference is in the buying pattern and social culture. The Indian, Chinese and Indonesian markets are emerging rapidly in the region. The high economic conditions of Taiwan, Malaysia and South Korea make them an ideal target for pet foods. The markets of Vietnam, Thailand and other represent the most recent markets, to enter the pet food marketplace.
India: Luxury pet products brand-Heads Up For Tails raises USD 2 million in a pre-series-A round from a group of High Net worth Individuals (HNIS)
Heads Up For Tails, an Asian retailer of pet products has raised an amount of USD 2 million in a pre-series- A round from a group of High Net worth Individuals (HNIs), which is owned and operated by Precious Pet Services Pvt. Ltd., founded in 2008. Moreover, the brand sells grooming products for dogs and cats along with pet food, toys, apparel and accessories. This funding is a great milestone and is supposed to be invested in technology, to enhance the end-user experience. In addition, the company plans to use the funding in the business expansion in domestic as well as overseas markets. Further, the company has planned to open more retail stores. Earlier, the Heads Up For Tails raised USD 1 million in seed funding from a group of unnamed investors.
Notable market developments
Our report on Asia-Pacific pet food market covers the following: