Increasing disposable income sustains pet’s adoption
With an estimated GDP growth rate of 6%, the Indonesian economy continued to expand during 2013 as disposable incomes increased, making owning and maintaining pets increasingly affordable. Despite the low household penetration of pets, pet ownership rates are subject to steady annual increases. Ownership of cats is recording the highest growth, boosted by the rising demand for pure breeds such as Persian and Exotic. Overall, volume and current value growth in pet care are each set to be one percentage point lower in 2013 than in 2012, although growth is set to remain strong.
Premium dog and cat food continues to register the best performance
Rising disposable incomes also favour premium pet care products. Although there are many pet owners in all of Indonesia’s various income segments, the penetration of pet dogs and cats is far higher among middle-income and high-income consumers. More affluent people are also known to be more careful spenders when it comes to maintaining their pets’ wellbeing. Premium products which are regarded as superior in quality tend to fare better than other more mainstream products despite carrying considerably higher unit prices. Products which guarantee visible results such as improved health, skin and coat and which are backed by positive reputations among pet owning communities tend to be more popular among savvy pet owners. New product developments and launches are also more common in the premium segment, especially more specialised, health-focused variants.
Foreign manufacturers appoint local companies as authorised distributors
Only a very limited range of dog and cat food in Indonesia is available under local brands. The majority of dog and cat food brands are imported from Western countries in North America and Europe as well as Australia. In economy dog and cat food and mid-priced dog and cat food, meanwhile, there are also some Thai brands. Due to the low penetration of dog and cat food in Indonesia and the relatively small size of the category, there are no foreign companies manufacturing these products locally. Instead, local companies are appointed to oversee importation and distribution. These local companies are either wholly owned-subsidiaries or independent distribution partners. Having local partners remains crucial to maintaining the availability of certain products in dog and cat food in Indonesia, particularly in terms of achieving nationwide distribution. These local companies also often act indirectly as the marketing arms of certain pet food companies.
Internet retailing is emerging
Although internet retailing is set to comprise just 1% of total pet care retail value sales in 2012, internet retailing is an emerging distribution channel which is riding the robust growth in the household penetration of broadband internet connections in Indonesia. The number of internet retailing websites offering online sales of pet care such as Toko Bagus, Kaskus and Tokopedia means that distributors need not develop their own websites. With limited distribution networks in Indonesia’s less developed towns and cities, pet care retailers have been extending their distribution networks using online shops, especially outside of Java by utilising the more established distribution networks of local courier services for delivery. Many pet care companies offer free delivery services within a certain distance of a store-based retailer which offers the same brand.
Pet care is set to enjoy a strong performance during the forecast period
The rising household penetration of dogs and cats is set to boost demand for pet care throughout the forecast period. Continuous urbanisation and changing lifestyles is driving demand for pets and pet care as Indonesia’s pets are more often being treated as fully-fledged family members and companions, resulting in higher spending on pets. In addition, the sustainable economic growth expected in Indonesia during the forecast period is also set to fuel spending on pet care throughout the forecast period.
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Discover the latest market trends and uncover sources of future market growth for the Pet Care industry in Indonesia with research from Euromonitor's team of in-country analysts.
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If you're in the Pet Care industry in Indonesia, our research will save you time and money while empowering you to make informed, profitable decisions.
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The Pet Care in Indonesia market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Pet Care in Indonesia?
- What are the major brands in Indonesia?
- How did the downturn affect pet care spending?
- Which is the best-performing category within pet care?
- Which is the fastest-growing pet food manufacturer?
- How have pet specialists fared in recent years?
- What are growth prospects for pet care in the next 5 years?
Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Pet Care market research database.