- Asia Pacific ranks third largest market among major regions globally
- Potential for growth in Southeast Asia fuelled by growing pet population, evolving consumer base and improving living standards
- Shifting consumer behaviours influence premiumisation and innovation in pet products
- 144 new pet food products appeared 2023 in Singapore alone, finds Euromonitor’s Passport Innovation platform
SINGAPORE, Singapore – Asia Pacific’s pet care market is projected to reach USD$29 billion in 2024, maintaining its position as the third largest market among major regions globally by 2029, according to Euromonitor International.
With a constant 4% compound annual growth rate (CAGR) in the forecast period of 2024-2029, Asia Pacific surpasses the global market CAGR of 3%, North America’s 2.5% and Western Europe’s 2.1% signaling its strong growth potential.
The region’s long-term competitiveness and growth prospects in the industry have been driven particularly by the increasing humanisation of pets and in turn, product innovation in the pet care space to cater to pets’ evolving needs.
India and Thailand see an upswing in pet care market
India and Thailand are the most dynamic markets in the region, with a projected CAGR of 9.4% and 8.7% in the forecast period respectively. This is due to the rapid increase in cat and dog populations foundational to market growth, along with the consequent rise in the purchase of packaged pet food, bringing strong growth momentum into the APAC market. In Thailand, rising health consciousness for pet care is expected to boost growth. This is especially as the approach of “prevention over treatment” in pet care continues to grow.
With a market size of USD$13.2 billion in 2024, China contributes to the highest sales in the pet care market due to its size. The country maintains a leading position in absolute value change for Asia Pacific in the forecast period, with a CAGR of 3.3%.
In well-developed APAC countries, the average annual spending per pet - cats and dogs - is projected to exceed at least USD$100 in 2024. Singapore and Japan are forecast to see spending of USD$195 and USD$101 per pet in 2024 respectively. Notably, South Korea’s USD$360 and Hong Kong’s USD$1,100 expected annual spending per pet in 2024, exceeds North America and Western European countries’ forecast expenditure.
In comparison, developing APAC countries see a substantial gap in average spending with pet owners in countries such as Indonesia, Philippines and Vietnam seeing no more than double digit dollar spending per pet annually.
However, there remains potential for growth as economies expand and living standards improve, and pet expenditures in developing countries are expected to rise gradually.
“Prevention over treatment” pet humanisation drives demand for nutritional and high-quality products
With the increasing perception that pets are family members, demand from consumers to provide a more comfortable living environment and scientific diet for their pets is on the rise. This has driven market development as consumers now seek high quality products and prioritise nutritional health for their pets.
Demand for pet dietary supplements has been a growing segment of pet care across Asia Pacific, with China maintaining its position as the biggest contributor due to size and spending. However, Japan’s contribution in the region is declining as the country is seeing an overall decline in pet population.
Asia Pacific as a whole saw retail value CAGR of 15% for pet dietary supplements in the period of 2019 to 2024.
In Southeast Asia, countries including Indonesia, Thailand and Vietnam recorded a significant CAGR of 20%, 14% and 23% respectively for pet dietary supplements in the same period. This growth is due to evolving consumer sentiment around pet health, where it has become increasingly popular for consumers to invest in preventative pet health products such as functional supplements. Additionally, the use of ingredients such as probiotics and fish oil add to the appeal, with consumers already being familiar with their benefits for humans.
Shifting consumer behaviour influences pet food innovation
The pet humanisation trend has also trickled into the way consumers feed their pets. This is seen in the shift from feeding pets leftover foods, to nutrition-rich food designed specifically for pets.
According to Euromonitor International’s Voice of the Consumer: Health and Nutrition Survey, 22% of global consumers indicated that they feed their pets with table scraps daily or almost every day in 2021, while this number dropped to 19% in 2024. When it comes to wet food formats such as canned or tinned food, 35% of global consumers indicated that they feed their pets with wet food, compared to 33% in 2021. This underscores the growing humanisation trend which has led consumers to opt for food tailored for pets.
To leverage this trend, a rising number of pet food players have progressively begun to innovate, enhancing dry formats and introducing wet formats made specifically for pets, inspired by human food.
Euromonitor International’s Passport Innovation platform shows that 144 new pet food products appeared in Singapore in 2023 alone, highlighting how the pet care market is poised for rapid development, presenting significant opportunities for industry players.
Value-added pet products are central to innovation in pet care
Ensuring that products are value-added has been central to pet product innovation, to cater to evolving customer sophistication and overcome the perception of dry food as less healthy for pets.
Dry food has typically dominated pet food as opposed to wet food, due to its widespread availability, affordability, and convenience. However, players in the pet food market have increasingly begun to incorporate functional and novel ingredients even in dry food, to enhance premium appeal and attract consumers who seek a nutritious diet for their pets. In wet food formats, innovation is focused on packaging and presentation through the lens of humanisation as well as functionality.
Sahiba Puri, Senior Consultant at Euromonitor International, said: “The Asia Pacific Pet Care market is a highly dynamic one, home to some of the fastest growing pet care economies in the world. From pet owners with an appetite for premium pet offerings to those making the transition from table scrap feeding to packaged food, varied levels of consumer sophistication and price sensitivities provides opportunities across different price points in the market.
A rapidly evolving retail landscape with a growing presence from digital and pet specialty stores, is also enhancing distribution. Brands focusing on Asia Pacific must be willing to understand consumer habits in the region and adapt offerings to local nuances.”
For more information read Euromonitor International’s World Market for Pet Care 2024 report.
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