THE PET CARE MARKET HAS OUTSTANDING GROWTH POTENTIAL

Global pet care market, especially in Vietnam, is showing strong growth potential with a compound annual growth rate of 7.03%. This shows the growing demand for pet care products, driven by many factors such as the increase in the number of pet owners, cultural changes, and growing the diversity  of distribution channels.

The article below will provide a comprehensive view of the pet care products market in Vietnam, from the overview picture, development potential to driving factors and challenges affecting the growth of this market. 

Overview of the world pet care market

In 2021, the global pet care market is priced at 150.67 billion USD (according to Grand View Research). By 2023, market size is estimated to reach about 302.89 billion USD and is expected to increase to 597.51 billion USD in 2033, with a compound annual growth rate (CAGR) of 7.03% from 2024 to 2033 (according to Precedence Research)

Among them, the Asia-Pacific region has been recognized as the region with the fastest growth rate during the forecast period. In 2023, product segment pet food holds the largest market share (obtaining 55%). As for animal types, the dog segment is the dominant group with the largest market share on the market. Regarding distribution channels, the store has taken the lead with the highest market share, up to 66% by 2023.

Overview of the pet care market in Vietnam

The increase in people’s income and the number of pet owners has fueled strong development of the market for pet care products in Vietnam. As reported by 6Wresearch, total retail sales of this market reached 104 million USD in 2019 and are expected to continue to increase to nearly 140 million USD by 2029 (according to Euromonitor), although this development will depend on many factors. including the economic conditions.

Pet care products market In Vietnam in 2023, the HHI index (Herfindahl-Hirschman Index – measuring the level of concentration in industries) is also recorded at 3176, a slight decrease compared to the HHI index of 4397 in 2017. This proves that the market is becoming more competitive (source: 6Wresearch). 

According to Euromonitor International’s report (May 2024), Hoang Anh Co., Ltd. continues to lead the market with its key brand Fay, prominent in the pet products. Thanks to its extensive distribution network, Hoang Anh’s products are available in hypermarkets, pet stores and pet supermarket chains throughout Vietnam, giving the company a significant competitive advantage compared to competitors. many other competitors..

Besides, Catsan (Mars Inc) occupies the leading position in the cat litter segment;  Merial (Boehringer Ingelheim Vietnam LLC) is the leader in pet health care, with Virbac (Virbac Vietnam Co., Ltd.) being the only other brand with a significant market share in this market. 

Potential for developing the pet care market in Southeast Asia and Vietnam

According to Euromonitor International, in the period 2023-2028, the pet care market in Southeast Asia is expected to record 9% growth per year, driven in particular by demand for premium cat food. In particular, the development of e-commerce contributes significantly to the growth of this market, with growth doubling in size in the region. Business models direct to consumer (D2C) subscription-based food packages will also grow in popularity.

Indonesia and Vietnam are forecast to lead the growth rate of the pet care market Southeast Asia during 2023-2028, thanks to the increase in pet ownership. Meanwhile, Thailand is a country with a stable growth rate, so it will contribute significantly to the total market value of the region.

Potential to export Vietnamese pet care products to international markets

According to research by 6Wresearch, America is the most potential market for businesses in Vietnam exporting pet care products in 2028, followed by China, Japan, South Korea and Germany. Although Germany leads in total import demand globally, when considering Vietnam as a partner, America promises to bring more opportunities to Vietnamese businesses in 2028, especially potential power needs that have not been met.  

Factors driving the pet care market in Vietnam 

Increase the number of people who own a pet: Vietnamese households increasingly keep pets, especially dogs and cats. According to a 2023 survey by TGM Research, more than half of households in Vietnam own multiple pets, reflecting a growing emotional bond with companion animals.

People’s disposable income increases: Vietnam’s economic development has led to increased disposable income, allowing pet owners to invest more in their pets’ health and well-being. This drives demand for products such as premium food, veterinary services and other pet care products.

Cultural change: Previously, pets in Vietnam were often considered service animals. However, nowadays, more and more people keep pets for the purpose of companionship and emotional support, especially the younger generation. This cultural shift creates a market for pet care services that goes beyond basic needs. Therefore, it will help increase sales from pet health care products, specialized nutrition, functional products, to Pet clothing and fashion accessories. 

Expansion of distribution network: Developing and expanding the distribution network is an important factor promoting the development of the pet care market in the future, helping businesses. The company easily provides products to many customers. Big brands can take advantage of the trend of anthropomorphizing pets by expanding distribution channels to large supermarkets and convenience stores in urban areas, to encourage consumers to buy products such as cat toys, scratching posts or beds. 

Factors holding back the pet care market

Pet overload and animal welfare issue : Responsible pet ownership regulations and awareness, including noise management and pet hygiene in urban areas,...can lead to pet abandonment and animal welfare issues (According to Vietnam Animal Welfare Organization, 2024).

Price sensitivity for low-income pet owners: Even though disposable income is increasing, price remains an important factor for many pet owners. Therefore, the problem of high prices of good quality pet care products may limit demand among low-income pet owners.

Sensitivity to economic factors: In addition to essential pet health care services, other pet products are often susceptible to economic downturns and price sensitivity from consumers. Many products, such as pet toys, are often considered non-essential and can easily be replaced with homemade items or readily available items such as tree branches. 

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