Market Trends of South Korea Pet Food Industry
Increasing pet population and consumer expenditure on premium pet food
Pet humanization is gaining global acceptance in the pet industry as more pet owners seek human-like products and experiences for their animals. In South Korea, rapid urbanization and lifestyle changes have sparked renewed interest in pets, particularly cats and dogs.
According to the Korea Times, 6.41 million households owned pets in 2023, with one in four South Korean adults being pet owners. The number of households with cats and dogs is increasing. A survey by the Korea Pet Food Association revealed that dog owners spend an average of USD 232 annually on pet food and USD 156 on pet snacks. Dog and cat food comprise 99% of pet food sales in Korea.
The growing focus on pet food and care has led to increased pet food expenditure and product diversification. While low-priced pet food remains dominant, premium pet food sales have risen significantly as more owners consider their pets as family members. Consequently, the pet treats category is experiencing substantial growth. Businesses are capitalizing on this trend by introducing high-end pet food and treats made from natural, protein-rich ingredients without artificial colors, flavors, or preservatives. Product development in pet food and treats has also resulted in a diverse range of offerings, including pet probiotics and mealworm-based products.
Increasing Import of Pet Food
Imports constitute over 70% of South Korea's pet food market, as reported by the United States Department of Agriculture (USDA). China leads as the primary supplier with a 30% market share, followed by the United States at 21% and Thailand at 13%. However, 2023 saw a decrease in pet food imports, primarily due to the strengthening of domestic pet food manufacturers producing high-quality products that resonate with consumers.
The premium pet food segment is experiencing the fastest growth in the country. While imported products dominate the market, many Korean companies have recently entered the pet food industry, launching high-quality, competitively priced products to challenge imported brands.
In previous years, imported pet food held a significant market share in South Korea. Pet food producers from Europe and Southern Asia are increasingly challenging the leadership of US and Chinese brands, which currently hold the top positions by volume and value, respectively. China dominates the snack market due to its proximity, while the US, European countries, and Canada benefit from duty-free status and maintain a larger share of the pet food market.
According to a survey by the Korea Pet Food Association, variety and nutritional benefits are the primary factors influencing pet owners' choice of imported pet food. Consumers' low price sensitivity and high brand loyalty towards imported products provide international companies with opportunities to expand their market presence.
