General Manager Jones

The pet food and healthcare products market has become an important part of the pet economy as people's concern for the health of their pets continues to grow. The global pet maret is expected to be worth US$45.2 billion by 2028, growing at a CAGR of 3.36%, and the pet industry is poised for a “golden age”!
Currently, the growth in demand for pet products in Taiwan is slowing down, and competition in the industry has entered a white-hot stage. So in order to help brand owners to better meet the opportunities and challenges on the pet track, we also analyzed the current state of the pet market.

I. Global Pet Healthcare Market: U.S. Leads, Asia Has Huge Potential

The U.S. is the world's largest pet food consumer market, accounting for 35% of the global market size. The huge market is driven by the high pet ownership rate and high spending power of American households. According to statistics, 69% of U.S. households own at least one pet, and 61% of pet owners are willing to pay more to improve the quality of pet food and meet their nutritional needs. While traditional purchasing channels such as supermarkets and hypermarkets remain the primary means, the rapid rise of e-commerce is changing consumer behavior. According to IMARC, 18% of pet product sales come from e-commerce and the percentage continues to grow. Consumers are more likely to purchase pet supplies on e-commerce platforms because of the convenience and variety of choices.

In the U.S. pet market, joint care products, heart health products and intestinal health products are particularly popular. These products not only meet the daily nutritional needs of pets, but also help prevent and improve health problems, further improving the quality of life of pets. The market in Europe and the United States has developed earlier and is now basically mature, with limited room for growth. Asian countries, such as China and Japan, have huge market potential, especially in the mid-range and high-end products market has shown strong growth momentum.

II. Diversified dosage forms and types: meeting the needs of different pets

Global pet healthcare products are available in a variety of dosage forms, including chewable tablets, powders, capsules and drops, etc. Each dosage form has its own unique advantages to meet the needs of different pets and their owners. Among them, chewable tablets are the most popular dosage forms in the market due to their convenience, portability and acceptance by pets.

Powder: Suitable for mixing into food, ideal for pets who do not like chewing tablets. Powders are often used in probiotics, enzymes and other nutritional supplements, making it easy for owners to flexibly adjust the dosage according to their pet's needs. Of course, the addition of chicken meal, made from domestic black-feathered chickens, as a natural food attractant can make pets love to eat directly from the powder packets.
Capsules: Capsules are a good choice for supplements that require precise dosage control. They usually contain highly concentrated nutrients, which prevents the loss of active ingredients.
Soft chewable tablets: These are similar to snacks and are easier for pets to accept. Chewable tablets with added health ingredients not only provide essential nutrients, but also fulfill your pet's chewing needs.
Drops: Ideal for situations where rapid absorption is needed, such as stress relief or skin problems. Drops can usually be applied directly to your pet's food or water for easy absorption.

The popularity of these dosage forms varies in different countries and regions. For example, chewable tablets are particularly popular in the United States and Canada, where pet owners place greater emphasis on convenience and ease of use. In contrast, powders and drops are more popular in Europe, particularly in Germany and France, where consumers are more interested in natural ingredients and functionality.

III. Pet Product Type Preferences in Individual Countries

# Europe

The European pet market is growing rapidly, driven by the trend of humanization and premiumization of pets. The demand for natural organic products and functional healthcare products continues to rise. Demand for products targeting specific health issues such as skin care and digestion is particularly strong in Germany and France.

According to the latest data from the European Pet Food Industry Federation (FEDIAF), 92 million households in Europe will have pets in 2023, representing 47% of all households. The market is worth €29.5 billion, with cats being the most popular type of pet.

Germany: Europe's largest pet market

With 47 million pets, Germany is one of Europe's leading pet markets. According to the German Pet Products Industry Association (IVH), the market will reach US$10.8 billion in 2023. Around 49% of German households own at least one pet, with cat and dog food being the main products sold. The cat food market is growing significantly due to an aging population, with increasing consumer demand for functional and quality products.

France: Europe's top three pet markets

France is home to 14.2 million cat owners, 7.4 million dog owners and around 1.2 million owners of other pets such as birds, fish and small animals. Cat food is the most popular product, while the development of health supplements focuses on the prevention of urinary tract infections to meet the needs of cat owners.

UK: Health and Nutrition in the Spotlight

According to the Pet Food Manufacturers Association (PFMA), 17.6 million households in the UK will own a pet in 2023, with dogs accounting for 35% of all household pet ownership and cats 29%. Wet food products continue to make up the bulk of the UK pet market. Demand for weight management, skincare and digestive health products is on the rise, especially weight loss products for dogs and cats. 52% of dogs and 45% of cats in the UK are obese, and demand continues to grow as the problem of obesity in pets worsens.

Italy: Most Pet Stores and a Focus on Sustainability

In Italy, pet owners rely on veterinarians for dietary advice. Italy has the largest number of pet specialty stores in Europe and emphasizes sustainability. Consumers value recycled materials and are willing to pay more for sustainable products.

# Asia

Asia's pet market is growing rapidly, driven by economic growth and urbanization, along with increased awareness of pet health and wellness, and growing demand for high quality pet products. Below is an update on the China, Japan and Taiwan markets.

Taiwan:

The pet market in Taiwan is also growing rapidly, especially in the pet healthcare and premium food segments. According to the latest market research, the pet market in Taiwan is expected to exceed NT$10 billion by 2024. Key drivers include rising per capita incomes and an emphasis on pet health. Pet owners in Taiwan are experiencing increased demand for high quality and versatile healthcare products. The most popular products include: pet probiotics (to help improve the digestive health of pets), skin and hair care products (including anti-allergy and nourishing products), kidney and urinary health products (to prevent and manage urinary tract disorders), and joint health products (especially for aging pets).

China:

The pet market in China is expected to reach RMB 50 billion by 2024. Rising incomes and awareness of pet health are driving demand for pet nutrition products. Preferred products include pet probiotics, kidney and urinary related products, hair and skin care products, and pet oral hygiene products.

Japan:

The Japanese market emphasizes on the overall health and longevity of pets. The Japanese pet food market is expected to grow from US$50,488 million in 2023 to US$67,564 million in 2028. The most common distribution channels include importers and wholesalers to specialty pet food stores and pet stores. Japanese consumers prefer multifunctional supplements with integrated nutrition, especially for older pets, such as joint and bone health products.

# Southeast Asia

Demand for pet healthcare products in Southeast Asia is increasing in Thailand, Indonesia, and the Philippines. Due to differences in geography, culture, and religion, pet ownership preferences vary across Southeast Asia, with Indonesia and Malaysia favoring cats, while pet owners in the Philippines, Thailand, Singapore, and Vietnam prefer dogs. Thai pet owners are more likely to buy mid-priced products, while mid-priced products are the most popular in the Indonesian market.

Due to the wide range of economic standards, the differences in the market can be seen in the spending habits of pet owners in different countries.

Singapore:

In better developed countries such as Singapore, owners see their pets as part of the family and therefore prefer to buy nutritious food and private label products.

Malaysia:

Some of the more affluent owners prefer to buy healthcare products. Mid-priced pet products are still the mainstay of the Thai market.

Philippines:

The Philippines will have the highest number of dogs in Asia in 2021, with 67%, and the second highest number of cats in Asia, with 43%, due to the lack of strict breeding laws and the availability of home care. More than 50% of pets in the Philippines are still fed fresh food rather than processed food. Pet food is mainly dog food, but cat food is growing at a faster rate.

Indonesia:

As a Muslim country, dog ownership is taboo and even touching a dog is considered unclean, and the relatively low pet ownership rate is a major constraint in promoting pet products in the country.

Vietnam:

In Ho Chi Minh City, owning a dog or cat is a symbol of economy and status, and has even become a fashion statement for young people, who are willing to spend money to satisfy their needs.

IV. Future Opportunities

In recent years, the pet market has been growing relatively fast, mainly because of the lower entry threshold, the number of branded enterprises has increased significantly, and the total market supply has been increasing rapidly. And with the demographic changes, improved economic standards, and gradual changes in the concept of consumption of pet products, demand is also rising year by year. In particular, the young generation is gradually becoming the main force of pet ownership, nearly half of the pet owners are young people aged 26-35 years old. As pet owners are young and familiar with the use of e-commerce platforms, the sales of pet products in e-commerce have created amazing figures.

The pet healthcare market varies from country to country in terms of product type, but all share the same focus on pet health, addressing specific health issues, and a preference for natural and organic products. As consumer interest in pet health increases, the pet healthcare market will continue to expand and offer more innovative products. For pet health brands, understanding the needs and trends of each country's market will help them gain a competitive advantage across the global marketplace.

If you have any pet healthcare product development needs, talk to us today and let us create a high value product for you.