$29 billion: the potential of the Asia Pacific pet care market
Euromonitor forecasts that the region’s pet industry will grow at a faster pace than North America and Europe. Which countries are in the lead?
Recent estimates from Euromonitor International suggest that the Asia-Pacific (APAC) pet care market will reach $29 billion (€26.6B) in 2024. The APAC currently has the third-largest pet care market globally and is expected to retain this position over the next 5 years.
The market is forecasted to witness a 4% compound annual growth rate (CAGR) between 2024 and 2029 – mainly driven by the humanization of pets and product innovation – against the global market’s 3%, North America’s 2.5% and Western Europe’s 2.1%.
High-potential markets
India and Thailand are expected to grow the most by 2029 – 9.4% and 8.7% respectively.
The rapid increase in dog and cat populations and a notable increase in packaged food purchases are the leading reasons for the rise of these markets.
Thailand, boasting Southeast Asia’s largest pet care market, is poised for further growth driven by rising pet health awareness.
It is also interesting to note that Vietnam, Malaysia, the Philippines and South Korea display growth rates between 4.5% and 6%.
Over $100 per pet
In 2024, China will contribute to the highest sales in the region, with a market size of $13.2 billion (€12.1B). It also boasts the highest absolute value change (the country’s projected growth) in the APAC region, even though its CAGR to 2029 is 3.3%.
The average annual spending per pet in “well-developed” nations is expected to exceed $100 (€91.7) this year. Pet parents in Hong Kong are expected to spend the most ($1,100/€1,000), followed by South Koreans ($360/€330), Singaporeans ($195/€179) and Japanese ($101/€92).
According to Euromonitor, “developing” countries like Indonesia, the Philippines and Vietnam are seeing no more than double-digit dollar spending per annum.
Humanization-led demands
The notion of “prevention over treatment,” led by rising concerns for pet health, is boosting demand for pet dietary supplements.
Value-added pet products are also leading innovations in the pet care space – be it the incorporation of functional and novel ingredients in products or developments in packaging and presentation.
Euromonitor notes that Singapore saw the appearance of 144 new pet food products in 2023 alone.
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