Positive outlook for pet care in 2014
The popularity of keeping pets in South Korea is not long-established, and it is relatively new for people to think of a pet as a family member. People tend to keep pets for companionship and they are willing to spend on pet care. Several product types, especially premium pet food offering enriched nutrition, have gained popularity. Also, pet healthcare and pet dietary supplements, which have tended to be seen as optional products, gained greater consumer acceptance in 2014. This contributed significantly to the healthy growth projection for pet care in 2014.
Premiumisation of pet food drives retail value growth
South Korean consumers increased their expenditure on pet care. In particular, premium pet food is driving industry growth. As more owners regard their pets as part of the family, quality is becoming more important than price when choosing a brand or product. The premiumisation trend is visible in dry and wet dog and cat food. Manufacturers have been taking advantage of the trend by introducing premium pet food containing a variety of nutrients and upgraded raw ingredients.
International brands dominate pet care in South Korea
Pet care is dominated by international companies such as Nestlé Purina Korea Ltd and Royal Canin Korea. Eight of the top 10 players are international companies, while the presence of domestic firms remains limited. This is due to international brands having superior reputations and more experience. However, the positive outlook for pet care has encouraged domestic players to enter the industry and introduce economy to premium pet food. Also, hypermarkets’ continuous interest in opening pet shops on their premises contributed to a broader range of retail channels for domestic players.
Hypermarkets and internet retailing register healthy retail value sales growth
Hypermarkets and internet retailing are set to continue to post strong retail value sales growth in pet care in 2014. Internet retailing offers brands that are not available from store-based retailers. The convenience of comparing brands and prices online attracted consumers to the channel. Hypermarkets’ retail value share has grown consistently during the review period. Growth was due to business diversification, with hypermarkets operating in-house pet shops, directly or in cooperation with partners. Furthermore, new brands changed their marketing strategy to distribute quality products at reasonable prices via hypermarkets.
Healthy retail value growth is expected over the forecast period
Pet care is expected to continue to post healthy retail value growth over the forecast period. The rising pet population and pet humanisation trend will boost sales in pet care in South Korea. At the same time, manufacturers are likely to promote the concept of pets as family members, introducing premium pet food with enriched nutrition. In terms of pet types, the cat population is expected to grow faster than the dog population, which is already mature in South Korea. Thus, manufacturers which have mostly focused on dog foods may expand their product portfolio to include cat food. Furthermore, spending on pet healthcare or pet dietary supplements is likely to be considered essential rather than essential in the short to medium term.
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The Pet Care in South Korea 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 South Korea?
- What are the major brands in South Korea?
- 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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This industry report originates from Passport, our Pet Care market research database.