South Korean pet industry (I): $500 million target for exports and more pets insured

South Korea’s government recently announced it is targeting pet food exports to reach $500 million (€461M) by 2027. Between 2016 and 2023, exports increased from $13 million (€12M) to $150 million (€138M).

The country’s Vice Minister of Agriculture, Food and Rural Affairs, Han Hoon, says the government will provide “systematic support” for pet-related businesses to gain more momentum in entering overseas markets.

“For the pet food-related industry to grow rapidly to become a leading export industry, we need the government’s continued attention and support,” he says. 

The South Korean government plans to offer pet players tailored support for overseas countries’ different market entry requirements. This would include assistance with certifications, consulting and legal advice. 

Seoul officials also plan to promote “Korean exhibition spaces showcasing the pet-related industry.” 

Last year, South Korea announced its plans to expand its pet industry to ₩15 trillion ($11.4B/€10.3B) over the following 3 years.  

Rising pet insurance market

It is believed that each Korean pet parent spent ₩353,000 ($268/€245) on pet services and products in 2022, the highest amount in 4 years. In the following year, the number of pet insurance contracts signed rose 51.7%. 

According to data released by 10 major South Korean General insurance companies, 109,088 pet insurance contracts were signed by the end of 2023, of which 58,456 were new contracts, representing a 66.4% year-over-year (YoY) growth. 

Following this, data from the Korea Insurance Research Institute (KIRI) saw a 22.3% increase, with 87,911 insurance policy subscriptions in the first half of 2023.

Despite the staggering growth, only 1.4% of the 8 million pets in the country have pet insurance coverage. However, this is higher than in 2022, when it was estimated that 7.2 million pet owners (0.8% of the total) had insurance for their animals.