Asia Pacific has one of the smallest per capita consumption of dog food in the world, indicating strong growth opportunities for packaged dog food players. They can capture sales from dog owners switching from home-made dog food or scraps to packaged dog food, and encouraging existing current consumers to trade up to more premium tiers. Thailand, India and Indonesia are promising markets for economy and mid-priced packaged dog food brands, where the pet humanisation trend is less developed.
Table scraps and home-made dog food are still being fed to dogs instead of packaged dog food. In China and Thailand, the two fastest growing markets over 2013-2018 in absolute value terms, prepared food shares for dogs are 3% and 23%, respectively, in 2018, indicating large growth opportunities. This can be done by converting dog owners from scraps or home-made dog food to packaged dog food. Existing dog owners on packaged dog food can be incentivised to trade up to more premium products.
With its increasingly aged population, cats are more preferred to dogs in Asia Pacific as they are easier to maintain. Cats are more sedentary, require fewer walks and interaction, and do not need to be bathed as often as dogs. Consequently, this has driven down sales of dog food in Japan, while cat food is still growing in value terms. In terms of prepared food share for dogs, Japan has one of the highest percentages in the region, at 91% in 2018, indicating limited upside for packaged dog food players.
With more consumers educating themselves and making dog food purchases online, packaged dog food players have shifted their marketing focus to internet retailing. This is especially prevalent in China, among smaller premium domestic players which are leveraging the lower cost base to compete with more established multinational companies. Hypermarkets, supermarkets and pet shops have consequently lost distribution share in China and South Korea.
Price sensitivity towards premium packaged dog food variants is still strong in Thailand, India and Indonesia, where the pet humanisation trend is relatively weaker. Mass-market consumers are largely opting for economy or mid-priced variants, which are priced more affordably.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page