Analysis: Why is South Korea importing less pet food?
The emergence of more local players could be behind the decline for the first time in 10 years. GlobalPETS delves into the details.
South Korean pet food imports declined for the first time in 2023 after a decade of constant increase and domination of the pet market.
New data from the US Department of Agriculture (USDA) suggests that South Korean pet food imports declined by 11.4% year on year (YoY) to $307 million (€276M).
Dog food represented more than 60% of all pet food exports in 2023, accounting for $186 million (€167.2M), followed by cat food at $121 million (€108.8M)
Import volumes also decreased by 16.4% YoY to 59,392 tons of dog and cat food – almost the same level as in 2020.
Unusual decline
US officials believe the drop in value and volume in 2023 is “unusual” due to the consistent growth in pet food imports. The USDA report attributes last year’s decline to the enhancement of local pet food businesses, which anticipate the pet food industry growing further.
Between 2013 and 2022, the value of pet food imports grew consistently from $130 million (€116.9M) to $342 million ($307.5M). The volume of pet food also increased during the same period, from 39,000 tons to 69,173.
A 2021 survey from the Korea Consumer Agency (KCA) indicated consumer preference for imported pet food (70.5%) over locally produced products (29.5%).
In 2023, the South Korean government announced its ambition to reach $500 million (€461M) in pet food exports by 2027.
Top exporters
In terms of value, China (32.6%), the United States (16%), Thailand (12.4%) and Japan (7.5%) accounted for 68.4% of the import market share.
For volume, imports from China (26.5%), the United States (18.1%), Thailand (15.4%) and Canada (8.7%) totaled 68.72% of the market share.
Pet population
A survey by the Ministry of Agriculture, Food and Rural Affairs (MAFRA) found that a quarter of South Korean respondents (25.4%) owned pets in 2022.
Three-quarters of respondents (75.6%) had dogs, while just over a quarter had cats (27.7%). Fish were the third most popular pet, with 7.3% ownership.
The government estimated a combined population of 7.98 million pet dogs and cats.
Increase in pet adoptions
In 2022, 18.4% of South Koreans adopted a pet, compared to 2.6% in 2012. The rise in adoptions directly correlates to increased pet care budgets led by the humanization of pets, considering them as family and the push from the pandemic.
2018 was the only year that witnessed a sudden decline in adoptions to 3.3% from 8.8% the previous year. Since then, Koreans have warmly welcomed companion animals into their homes, with adoptions jumping to 7.6% in 2019 and 13.2% in 2021.
Latest developments
South Korea is witnessing strong growth in the pet industry. The increase in pet adoptions has also been compared to the plummeting birth rates in South Korea, indicating a higher preference for being a pet parent.
The opening of new pet-friendly spaces, investments into Airbnb-like services for companion animals, increased accessibility for pet air travel and government-subsidized pet cremation services all attest to the potential of the pet care space.
Korean credit card company Shinhan Card recently revealed that in 2022, South Korean pet parents spent the most in 4 years, with an average annual spending of ₩353,000 ($268/€245) per person.
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