WORLD PET INDUSTRY 2023 - VIETNAM MARKET FORECAST IN THE FUTURE
With the rapid growth of the middle class, urbanization is rapid. In addition to demographic changes, the increasing number of older people, the trend of getting married and having children later lead to a push for people to own pets and create a community willing to spend much money for them.
From an overview of the world pet industry in 2023, specifically the slowdown of the US market in contrast to the continuous boom with more than 20% growth per year of the billion-person Chinese market, the pet market in Vietnam promises not only to reach the 500 million USD mark next year but also to reach the 1 billion USD mark soon.
The market of hundreds of billions of dollars is stagnant in the US.
The $136.8 billion U.S. pet industry is reportedly driven by technology. Thanks to technological advances, it is now easier for local businesses to enter the pet industry.
According to a 2023 Forbes survey, more than 66% of households in the United States own at least one pet, and the pet industry is powered by modern machinery. Pet owners can go to work and at the same time observe through cameras, home medical services, pet health care through index setting software, and services to create fun for pets. In addition, experts also say unique business opportunities can also come from ideas that reduce the inconvenience of owning a pet.
Research from the American Pet Products Association (APPA) estimates that spending on services, specifically for pets, will only increase from $11.4 billion in 2022 to $11.8 billion in 2023. Demand for high-end pet care services is expected to increase sharply soon, and locations that will attract attention include pet training centers and high-end spas with Pet services such as pet massage, grooming, fur dyeing,…
Among other pet market studies, the American Pet Products Association (APPA) also shows that pet industry sales will reach $143.6 billion by 2023, an increase of only 5% compared to the previous year. The average annual growth rate since 2002 has been just 5.4%, even though incomes have been rising steadily for more than 20 years.
Asia’s gold mine
The pet industry used to develop almost exclusively in Western countries, but in recent years, Asia has been considered a “gold mine” of this industry. According to Euromonitor estimates, by 2022, Chinese people will spend up to 46.3 billion yuan ($7 billion) on pets, up from 17.5 billion yuan in 2017, amid rapid growth of about 20% per year.
According to statistics, the Japanese pet market in 2021 is about 2.2 billion USD. Thus, up to now, Japan has the largest number of pets in Asia. Dogs and cats are the two most popular pets in Japan. Currently, Japanese dog owners are 9.6 million, cat owners are 12.2 million, and other pet owners such as fish, birds, and small animals are about 1.5 million.
In addition, the Korean Ministry of Agriculture also said that the livestock industry has grown an average of more than 14% per year since 2014. The market size is estimated at 2.6 trillion KRW (2.1 trillion KRW). KRW) last year and is expected to exceed 3 trillion KRW this year. The number of animal lovers is estimated at 10 million in 4.57 million households. Analysts say that as one- and two-person households increase and the population ages, society will see more pet owners.
According to Pet Fair Asia’s report, sales in Southeast Asia of the pet care industry reached 4 billion USD, of which Vietnam accounted for 13%, or about 500 million USD. In the future, this industry is forecast to continue to grow by 11% per year, demonstrating the great potential of the pet market in Vietnam.
According to the results of the “TGM 2023 Global Pet Care Survey” with data collected from 40 countries, this survey provided comprehensive information on the evolution of the pet care market and owner preferences. In the Vietnamese market, 294 people from 18 to 54 years old participated in the survey. TGM’s survey results have shown that among Vietnamese people interviewed, up to 48% consider their pets to be close companions. This shows that the trend of raising pets in Vietnam is growing very strongly. Vietnam will be an extremely promising pet market.
In parallel with their efforts to become dedicated parents, striving to bring the best to their pets, owners have begun to prioritize essential aspects of quality nutrition, veterinary services and nurturing the spirit of pets. It’s all aimed at protecting your pet’s health.
Comments from reputable studies and surveys show that the potential of the pet industry in Vietnam today is extremely large. Add to that the growing boom and the $1 billion milestone will only be a matter of time for the pet market in Vietnam. In addition, with the slowdown of the US market, in addition to the outstanding development in the Asian market in general, or China in particular, this “gold mine” will certainly grow even stronger in many countries.
In addition, to connect pet experts, it is expected that there will be an international platform gathering global pet experts in Vietnam, helping producers from local and neighboring countries meet potential customers. Realizing this is an outstanding opportunity for the Vietnamese market, pet exhibitions are increasingly being organized on a large scale. Among them, Petfair Vietnam 2024 – the first exhibition on the pet industry in Vietnam, will certainly be a trade bridge to help domestic and foreign businesses penetrate potential markets with many development opportunities.