Asian Trends in Pet Food and Pet Health - Home - VIV Asia · ASIAN TRENDS IN PET FOOD AND PET HEALTH Alcoholic Drinks Apparel Automotive Beauty and Personal Care ... 2016-2021 Market

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

http://www.euromonitor.com/


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


Prospects


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



Characteristics of pet owners reflect the new consumerism tooPET OWNERS IN ASIA / PET CARE OVERVIEW / HEALTH AND WELLNESS IN PET CARE / PROSPECTS



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


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


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


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



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



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



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



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


Prospects


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



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



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



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



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



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



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


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


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



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



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

[email protected]

+65 6429 0590 ext. 6741

mailto:[email protected]

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Asian Trends in Pet Food and Pet Health - Home - VIV Asia · ASIAN TRENDS IN PET FOOD AND PET HEALTH Alcoholic Drinks Apparel Automotive Beauty and Personal Care ... 2016-2021 Market