South Korea Pet Care Market Report and Forecast 2024-2032

South Korea Pet Care Market Outlook

The South Korea market for Pet Care reached a value of more than USD 1,427.18 million in 2023. The South Korean pet care market is majorly driven by pet food sector and is expected to grow at a CAGR of 9.4% between 2024 and 2032. The growing single-person household and pet insurance services in South Korea are the major drivers contributing to the growth and development of the South Korea pet care industry.

News and Developments in the Market

• Three digital platform firms will receive investments from Shinhan Financial Group totalling 77 billion won ($67.21 million). In order to provide financial solutions geared toward pet owners, Shinhan is keeping an eye on the quickly expanding pet care business. Shinhan will give PetEasy , which runs Banjjak, a more than 1,000-franchisee online booking service for pet grooming, 2 billion won.

• Sales of pet food, accessories, and supplies have increased significantly in Korea, which has sparked the creation of highly developed pet care services. These South Korean pet entrepreneurs  offer cutting-edge services, with the potential to go global.

• The South Korean government wants to launch a government-run insurance programme to pay for various pet animal treatments, with the central and local governments contributing a portion of the cost of the insurance premiums. Although some local governments, such as Seoul and Namyangju in Gyeonggi Province, already offer financial assistance to citizens who acquire pet insurance from private insurance companies. However, this is the first law that suggests having the central government pay for pets' medical expenses.

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Key Trends in South Korea Pet Care Market

Pets need care and affection to keep them healthy, happy, and safe. They need an adequate diet, clean and fresh water, and an accepting home. It is crucial for the pet owner to understand this lifetime commitment to a pet that depends on its owner for its health and well-being.

The Expansion of Pet Insurance  Services Due to High Veterinary Expenses is bolstering the Growth of the South Korea Pet Care Market

Since there are no formal or standardised veterinary pricing guidelines in South Korea, many veterinary clinics charge varying prices to treat the same ailments. With the number of pet owners approaching 15 million, there are increasing requests for the authorities to provide health insurance for animals. The National Assembly of South Korea is considering a number of legislations that would establish a state-run insurance scheme to pay for certain treatments, with the government contributing a portion of the cost of the insurance premiums. Although some local governments, such as Seoul and Namyangju in Gyeonggi Province, now offer financial assistance to citizens who acquire dog insurance from private insurance firms, this is the first law that suggests having the central government pay for pet medical expenses. Pet ownership in these regions has increased because of the support of the local government. 

The increasing number of single-person households along with low marriage and birth rate is augmenting the market growth

The rise in nuclear families and one-person households is primarily responsible for the sharp rise in the number of companion animals, particularly dogs and cats. By 2050 , 40% of South Korean families are predicted to be single-person households, which is anticipated to significantly contribute to the rapidly increasing number of pet owners in the country. This has led to a booming pet care sector, which now offers products like custom pet meals and premium photo sessions. These days, venture capital firms are interested in investing in businesses that deal with pets. Also, millennial and Gen Z buyers make up a large portion of the clientele, and they value their animals highly. Therefore, they spend more on pet care products and services, thereby augmenting the growth of South Korea pet care market.

Opportunities in the South Korea Pet Care Market

Increasing Health Issues and the Availability of Pet Hospitals 

Obesity among pets is a very prominent issue nowadays. Hence, the demand for nutritious pet meals and veterinary services is readily increasing in South Korea. A large number of pet shops and pet hospitals are available near all stations, making these facilities accessible to the public and aiding the market's growth. The market for pet care is also being driven by the rising popularity of internet channels and the capability to communicate with experts like veterinarians via telehealth or other online options. Due to busy lifestyles, the majority of people prefer to consult the doctor online via video calls. The easy accessibility to quality healthcare services for pets has helped the pet care market grow during the past few years

Pet Owners' Awareness Regarding Sustainability and Clean Labelling

Clean labels, which used to signify just the absence of undesirable substances, are no longer sufficient because many customers now demand meaningful ingredients in their pet food. Consumers prioritise functional benefits over other ones, such as those for their brains, guts, stress levels, energy, and sleep. Pet owners usually look into the various formulations as clean-label pet foods such as natural preservatives, non-grain carbohydrate options, non-GMO products, natural colours and flavourings, no by-product sources of protein, organic, vegetarian, and vegan, among others. Pet food buyers who read labels and are concerned about their pets' health are compelling the market to offer more of these choices. Pet owners are choosing high-end products for their pets and the growing awareness of clean labels and sustainability is boosting the demand for pet care products and services in the country. 

A gradual decline in dog meat consumption and Diversification of the Pet Care Market

The pet sector is becoming more diversified and combining with many other industries, such as pet grooming and insurance. In contrast, pet-related companies were formerly restricted to selling pets, pet meals, and pet healthcare. As such synergy grows, the industry is anticipated to account for a larger portion of the economy. Moreover, eating dog meat in South Korea is neither permitted nor expressly forbidden. However, the South Korean government said in November 2021 that it was considering making the consumption of dog meat illegal, which would also help improve the market in the long term.

Emergence of Pet Furniture and Rise in Disposable Income 

The vast majority of the population in South Korea does not have a lawn or porch in their homes where their pets can live and play. Therefore, they prefer pet furniture. It is anticipated that the popularity of pet furniture will accelerate market expansion. The pet care market of South Korea is also anticipated to increase because of rising disposable income and the growing availability of various premium goods and services, which especially attract millennial and Generation Z pet owners, thus augmenting the market growth.

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Challenges in South Korea Pet Care Market

Expensive Premium Pet Products and Services and a High Pet Tax

Expensive products and services are expected to limit the market among the low-income and middle-class populations of South Korea. Moreover, it is not overstated to claim that a rising proportion of Koreans nowadays view their dogs as essential members of their family. More and more people see their dogs as having equal value to their children. Pet owners in South Korea can't claim their animals as "legal dependents" on their tax returns since pet-related expenses are regarded as "personal expenses." Tax authorities need to revise the tax deductions that pet owners may claim for their pets and other associated pet care costs, given Koreans' preferences for tax laws and the increasing potential for sales of pet-related products. Pet owners should receive some support to have greater access to pet supplies and services at more affordable costs.

Market Analysis

Based on animal type, the South Korea pet care market can be segmented into dogs, cats, birds and others. Based on product type the market can be bifurcated into pet food, veterinary care and supplies/OTC medications and grooming care. On the basis of distribution channel, the South Korea pet care market can be segmented into hypermarkets/supermarkets, pet stores, online stores, and others. 

The comprehensive EMR report provides an in-depth evaluation of the market on the basis of Porter's five forces model, along with a SWOT analysis. The report gives a detailed analysis of the following key players in the South Korea pet care market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans. 

• Mars Incorporated

• CJ CheilJedang Corp.

• Sajo Group

• Daehan feed Co., Ltd.

• Daeju Industrial Co., Ltd.

• Setory Co.,Ltd

• Others

Market Share by Animal Type

Consumer spending on pet care is fuelled by pets being part of families. Expenditures on pet care items, including treats, medical treatment, toys, and other accessories, has increased in response to the rise in pet ownership. The dog category accounts for the majority of the market. Revenues from dog care items are rising since there are more pet dogs. The main factor driving the dog segment in the market is the belief that dogs are incredibly loyal and can prevent robberies. While the demand for cats is anticipated to develop significantly, the market for birds and other animals is primarily driven by increased consumer knowledge of their specie and access to items for their care. 

Cats and dogs are popular pets because they aid in reducing anxiety and stress levels, help people who suffer from depression and loneliness, as well as boost cardiovascular health. Additionally, the expansion of pet-related infrastructure is projected to support the growth of South Korea pet care market.

Market Share by Product Type

Pet purchase and adoption have increased significantly as a result of higher disposable incomes and nuclear households. Additionally, well-established pet care services in the markets contribute to the market's expansion. The preference for buying pet foods online and the expanding impact of clean labelling requirements are also helping to boost demand for pet foods. Veterinary care is becoming more crucial due to the increasing health concerns among pets due to the busy lifestyle of their owners and various environmental changes. It covers the sale of pharmaceutical items as well as regular veterinary care.

The demand for OTC pet drugs is expanding as people become more knowledgeable about pet health and diseases. Sales are increasing due to OTC medications being offered at affordable costs and through various distribution channels. The most popular OTC drugs are the ones used for treating flea and tick infestations, chronic pain, and arthritis. This is because the diseases spread by fleas and ticks most frequently affect pets are Lyme disease, dermatitis, and flea allergies.

Market Share by Distribution Channel

South Korea's leading distribution channels are offline stores like pet stores, supermarkets, and hypermarkets due to the easy access and availability of various products at competitive prices. However, the e-commerce segment is also rising exponentially. 

Additionally, in order to draw in more clients, e-commerce companies are implementing a number of techniques. These include offering options for fresh pet food and subscription delivery services. PetFriends is a website and mobile application that integrates all of an owner's demands and offers the best solutions. They guarantee to deliver the ordered products within an hour sets them apart from their competitors. Pet Friends is one of the biggest online sellers of pet care supplies in South Korea.

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Competitive Landscape

Mars Incorporated : With more than a century of experience, Mars is a family-owned company that produces a wide range of goods and provides services for both people and their pets. The corporation manufactures some of the most well-known brands in the world, including Pedigree, Royal Canin, and Whiskas, among others.  Mars also offers veterinary services through Banfield Pet Hospitals, Blue Pearl, VCA, and Pet Partners. Mars is headquartered in McLean, Virginia, and operates in over 80 countries, including South Korea.

Daejoo Industrial: The company DAEJOO, Inc. produces a variety of animal feeds. It does business through the following divisions: Consignment, Internal Trading, Animal Feed, and Can. One of its offerings is animal feed for dogs, pigs, cows, ducks, deer, and quails. The company's headquarters are in Seoul, South Korea, and it was established on January 16, 1962.

Sajo Group: The Sajo Group introduced the 'Opti-One' brand of organic pet food. Sajo group manufactures pet food made with organic and "superfood" components. Consequently, they are well known for their sustainable range of natural pet foods.

CJ Cheiljedang Corp.: One of Korea's top food producers, CJ Cheiljedang Corp., creates a range of food items for both people and animals. In the pet care industry, they are renowned for their raw ingredient functional pet foods that take into account the physical qualities of the pet, such as the skin, fur, and digestive system, as well as their pet diets that are tailored for each life stage.

Key Highlights of the Report