Pet Products in Vietnam

PROSPECTS

Pet humanisation trend continues to boost sales of pet products

Buoyant sales of pet products can be attributed primarily to the increasing propensity among Vietnamese consumers to treat their cats and dogs as fully-fledged family members. This marks a major departure of the previous cultural norm of keeping such animals solely for traditional functional roles, mainly guarding the home in the case of dogs or catching rodents in the case of cats.

Changing attitudes towards animals likely to underpin sales growth

In the past dogs and cats were regarded as dirty and untameable and not considered suitable for human companionship. However, now that they are increasingly being seen favourably, especially among younger people, growth in the cat population in particular has boosted sales of cat litter.

Pet dietary supplements remains a negligible category

Pet dietary supplements remains the only pet products category to register negligible sales in Vietnam and this is mainly due to low awareness of the benefits of such products. Furthermore, with many pet food brands advertised as meeting the complete nutritional needs of cats and dogs and other types of pets, it is not uncommon for pet owners to perceive pet dietary supplements as non-essential items.

COMPETITIVE LANDSCAPE

Hoang Anh Co maintains its lead in pet products

Hoang Anh remained the overall leader in pet products in 2019 mainly due to the combined popularity of its brands Fay and Palma in pet healthcare. Furthermore, the company’s extensive distribution network means that its products are sold in hypermarkets, supermarkets, pet superstores and pet shops throughout Vietnam.

Pet products remains highly fragmented

With the exception of category leader Hoang Anh, no company present in pet products was able to achieve a double-digit value share in 2019. The highly fragmented competitive environment in the category can be partially explained by the fact that product types such as pet beds, clothing, leashes and other accessories are high-volume, low-profit items in which it is virtually impossible for one company to make its mark.

New product launches have the potential to spark dynamism

With sales in pet products highly fragmented, it can be difficult for new products and new players to make much of an impact. As a result, most players concentrate on widening their distribution networks and less so on marketing or new product development.

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