Urbanisation impacts the development and growth of pet care
Indonesia is one of the countries in Southeast Asia experiencing fast rates of urbanisation. The increasing populations in cities affect the rate of pet ownership, which is more common in urban households. Retail value sales of pet care in Indonesia are recording healthy growth as the pet population rises. This is being stimulated by urbanisation, leading to urban population growth and increasing disposable incomes. The cat population is growing faster than the dog population. The majority of the population is Muslim; therefore, people are not encouraged to keep dogs as pets. In 2014, retail value sales of pet care are set to grow at a faster than in 2013.
Average unit prices rise as the rupiah weakens against the US dollar
In 2013, the Indonesian currency continued to weaken against the US dollar, falling to its lowest point since 2009. Pet care, and other industries, has been affected by high import costs due to the weakened rupiah. As a result, significant increases in unit prices produced robust retail value sales growth for premium brands of pet food. These premium brands cater to high-income pet owning households.
Thai brands invade economy and mid-priced pet food in Indonesia
Brands originating from Thailand are actively entering Indonesian pet food, competing with local and other imports. Imported Thai products are positioned in the economy and mid-priced segments to attract lower- and middle-income pet owners. Importers of Thailand brands face a more stable currency exchange rate, which means their products are less likely to incur significant price changes. Thai brands are gaining popularity as some pet owners searching for economy and mid-priced products are less brand loyal. They are keen to try out different brands, depending on pricing and variety. In addition, economy products from Thailand are commonly bought by breeders in need of cheap food to cover the costs of raising dogs and cats before they are adopted.
Pet shops continue to contribute the highest retail value sales
Pet shops commonly offer larger ranges of pet care products than other channels, such as hypermarkets and veterinary clinics. Besides pet food, other pet products, such as toys and accessories and pet healthcare and pet dietary supplements can be found in pet shops, turning shopping into a fun experience for the customer. The growing number of outlets in Indonesia has resulted in year-on-year retail value sales growth in pet shops. In bigger cities like Jakarta, pet shops can be found on almost every corner, making them more accessible to pet owners in the area. Meanwhile in rural areas, smaller pet shops can also be found although they sell a narrower assortment, mostly consisting of economy and mid-priced products. The high availability of pet shops for regular and walk-in customers fosters the habit of owners obtaining necessary items from these outlets rather than buy from other channels. Many pet shops also offer a delivery service, which saves the customer time and effort. They do not need to visit the shop or carry large packs of pet food, for example.
Human health food trends cross over to pet food
The rise of health and wellness products in human food is boosted by heavy promotion, communicating the benefits to one’s health and the environment. In Indonesia, changing lifestyles are stimulating a trend for organic produce and grain-free diets. As pet owners make changes to their food choices and eating habits, they are increasingly likely to choose healthy food for their beloved pets. The availability of natural and grain-free pet food still has plenty of room to grow; and further development is anticipated in the forecast period, as the health and wellness trend accelerates.
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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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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?
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- Gain competitive intelligence about market leaders
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- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Pet Care market research database.