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ASIAN TRENDS IN PET FOOD AND PET HEALTH
VIV ASIA BANGKOK
16 March 2017
Emil FaziraSenior Analyst
Food & Nutrition, Singapore
Introduction
Pet Owners in Asia
Pet Care Overview
Health and Wellness in Pet Care
Prospects
© Euromonitor International 3
Research CoverageASIAN TRENDS IN PET FOOD AND PET HEALTH
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Research ExpertiseASIAN TRENDS IN PET FOOD AND PET HEALTH
Alcoholic Drinks
Apparel
Automotive
Beauty and Personal Care
Consumer Appliances
Consumer Electronics
Eyewear
Fresh Food
Health and Wellness
Home and Garden
Home Care
Hot Drinks
Consumer Health
Luxury Goods
Nutrition
Packaged Food
Personal Accessories
Pet Care
Soft Drinks
Tobacco
Toys and Games
Tissue and Hygiene
Consumer Products
Services
Consumer Foodservice
Institutional Channels
Consumer Finance
Retailing
Travel
Supply
Ingredients
Packaging
Economies
Business Dynamics
Cities
Economy, Finance and Trade
Industrial
Consumers
Lifestyles
Income and Expenditure
Households
PopulationEthical Labels
Digital Consumer
Introduction
Pet Owners in Asia
Pet Care Overview
Health and Wellness in Pet Care
Prospects
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Urbanisation is a major factor supporting pet carePET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
1.5%Decline in no. of children per
household in APAC, 2016
3%Growth of apartments as dwelling,
APAC 2011-2021
0.1%
0.8%
1.1%
1.3%
3.3%
2.4%
1.8%
Urban Population Growth, 2011-2021
Strongergrowth
Weakergrowth
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Characteristics of pet owners reflect the new consumerism tooPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
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Consumers in Asia are investing more into health and wellnessPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
AsiaPacific
NorthAmerica
WesternEurope
LatinAmerica
MiddleEast and
Africa
EasternEurope
Australasia
Health and Wellness Food & Beverages, 2016-2021
MarketSize
PerCapita
ForecastCAGR %
US$21billion
Health and Wellness Food and Beverage in
APAC, 2016
85%Fortified/Functional and
Naturally Healthy portion of total HW
5%CAGR growth of HW in
APAC, 2016-2021
US$42billion
Vitamins and Dietary Supplements in APAC,
2016
29%Herbal/Traditional
Products portion of total Consumer Health in
APAC, 2016
5%CAGR Growth of
Paediatric Consumer Health, APAC 2016-2021
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Traditional medicine
• Formalisation by the WHO• Botanical options• Cultural positioning
Naturally Functional
• Plant-based food with intrinsic benefits• Novel ingredients• Sustainably sourced ingredients
Targeted Positioning
• Claims addressing health issues• Fortifications targeting specific health
conditions
Developments in human health food and healthcare replicated for petsPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
Introduction
Pet Owners in Asia
Pet Care Overview
Health and Wellness in Pet Care
Prospects
US$12billion
Pet Food & Products in APAC, 2017
65%Dog and Cat Food % of total Pet Care in APAC,
2017
8%CAGR growth of Pet Care
in APAC, 2017-2022
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Dogs are typically preferred but cats are more suited for urban lifestylesPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
Cat population %
share of total dogs & cats:
<50%
50-70%
>70%
Cat Population Share of Total Dogs & Cats Population in Asia by Market, 2017
0%
2%
4%
6%
8%
10%
Cat food Dog food
Growth of Cat and Dog Food, APAC 2017
Value Volume
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AnisuWater by Pet OdorBusters containing clover tree extract, mushroom extract, basil, parsley, ActinidiaPolygama etc.
0%
10%
20%
30%
40%
JP SG HK KR MY APAC TW PH ID TH VN IN CN
Value Growth of Dog and Cat Food, 2017
Emerging markets lead growth, but developed markets lead innovationPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
Developed markets Emerging markets
Nutripe limited edition Blackfoot Abalone & Chicken with Green Lamb Tripe Formula
Ciao collagen-infused wet cat treat by InabaFoods Co Ltd
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South Korea, 11%
Taiwan, 20%Thailand,
14%
China, 35%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Value CAGR of Pet Treats in APAC, 2017-2022
Cat treats Dog treats
Seeds by Seeds Taiwan Co Ltd (Taiwan)
- No added colours
- Affordable option for better quality and healthier alternative
Kit Cat Purr Purree by Kit Cat International Trading (Philippines)
- Grain-free, 100% natural
- Omega 3&6, Taurine, Prebiotics, Vitamin E
Milk-Bone Good Morning Daily Vitamin Treats by Big Heart Pet Brands (USA)
- DHA, Vitamin C, Glucosamine
- Real chicken as no. 1 ingredient
Potential for pet food is expanding rapidly beyond core meals to treatsPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
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Retail pet healthcare and dietary supplements face stiffer competitionPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
0%
2%
4%
6%
8%
Cat Litter Other PetProducts
PetHealthcare
Pet DietarySupplements
Value Growth of Pet Products by Type in APAC, 2012-2022
2012-2017 CAGR 2017 2017-2022 CAGR
Fur Magic Soap
Philippines
Nurture Pro Tofu Cat Litter
Singapore
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Habits of snacking and reward
Humanisation
Key trends behind the numbers in 2017PET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
Polarisation
Indulgence
Family
Trading down to basics
Beginnings of premiumisation
Rising consumer sophistication
Pampering of furkids
Introduction
Pet Owners in Asia
Pet Care Overview
Health and Wellness in Pet Care
Prospects
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Therapeutic Pet Food
• Veterinary-only and recommended• Specific health condition• Science-based formulation
Pet Healthcare and Dietary Supplements
• Directly treats a pet’s health condition• Maintains and complements a pet’s daily diet
Specialty Pet Food
• Includes natural, organic, grain-free, holistic, limited ingredients, carnivore diets, etc.
• May have claims and endorsements by vets
Multiple options available for improvements to pet healthPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
US$3 bnAcross 10 markets
globally, 2017
US$5 bnGlobally, 2017
1
2
3 US$31 bnPremium Dog & Cat Food globally, 2017
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0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
Russia Spain Mexico UK Germany Brazil France Japan Italy US
Va
lue
Sa
les,
US
D m
illi
on
Therapeutic Pet Food in Selected 10 Markets Globally, 2017-2022
Market Size CAGR 2017-2022
Therapeutic pet food growth is slower in developed marketsPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
Data collected is based on 10 selected markets
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Global Sales of Therapeutic Pet Food by Company, 2017
Colgate-Palmolive Co
Mars Inc.
Nestlé SA
Others
Top three companies hold majority market share of therapeutic pet foodPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
Data collected is based on 10 selected markets
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0%
20%
40%
60%
80%
100%
KR JP TW IN TH HK MY VN SG CN PH
Pet Healthcare by Type in Value, 2017
Flea/Tick Treatments Worming Treatments Other Products
Types of pet healthcare differ greatly across APACPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
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Premiumisation and segmentation are more evident in pet healthcarePET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
Rise of prescription-only,
cannibalising over-the-counter sales
Pet ageing
Weakening joints Excess weight Vision health Urinary health
Life expectancy of dogs rose to a record high of 13.2 years in 2014.
- Tokyo University of Agriculture and Technology and the Japan Small Animal Veterinary Association
Life expectancy of cats in the US rises by 10% in a decade, while that of dogs rises by 4%.
- 2013 Banfield State of Pet Health Report
Japan42-50% of dog and cat food are targeted for senior pets in 2017,
highest in Asia
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Non-Science based specialty pet food is booming worldwidePET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
Examples of specialty
positionings
Grain-free
Holistic and Natural
Carnivore
Limited Ingredients
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Product launches in Asia tend to prioritise quality and ingredientsPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
iti Biti Beef Recipeiti Biti Pet Food CoSingaporeNovember 2016USD 50 per 1kg
GMO & grain-free, free-range Parsley, green lipped mussel,
dried chicory
I Pet MilkSeoul Dairy CorpSouth KoreaJanuary 2017USD 2 per 180ml
Lactose-free Yucca extract, calcium,
Taurine, collagen, vitamins
VetiveLife CordycepsGreen Spring China LtdHong KongJanuary 2015USD 51 per 33g
Contains cordyceps Claims to improve health
issues, e.g. incontinence
Introduction
Pet Owners in Asia
Pet Care Overview
Health and Wellness in Pet Care
Prospects
US$17billion
Pet Food & Products in APAC, 2022
72%Dog and Cat Food % of total Pet Care in APAC,
2022
ChinaStrongest value CAGR of
21% for 2017-2022
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Premiumisation expected to be more prominent by 2022PET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
0%
2%
4%
6%
8%
10%
12%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Economy Mid-priced Premium
Value CAGR of Pet Food by Price Tier in APAC, 2017-2022
Cat Food Dog Food Overall Cat and Dog Food
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Sustainability claims, gourmet diets, and further segmentation expectedPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
1 Sustainabilityclaims
2 Novelingredientssupportingspecialtyclaims
3 Customisedand specific
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New consumerism will prevailPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS
- Pampering and premiumisation
- Back to basics
- Time and financial investment
- Humanisation
CONTACT DETAILSEmil Fazira
Senior Analyst
Food & Nutrition, Singapore
+65 6429 0590 ext. 6741