Petfood growth in Asia still strong
Despite the worldwide recession, the petfood industry is still growing-though Euromonitor International says the growth rate has slowed dramatically from the huge increases of recent years.
But the Asia-Pacific market is one in which growth will stay healthy: Sales of dog and cat food will increase more than 17% from now through 2014, reaching US$5.98 billion, according to Euromonitor, even greater than the 15% growth the Asia market has enjoyed from 2004-2009. (see Table 1 ). As of November 2009, the region's cat and dog food sales totaled US$5.1 billion, up from US$4.34 billion in 2003.
Breaking down the data by country, Euromonitor says all the main Asia-Pacific markets will enjoy double-digit growth in cat and dog food sales from 2009-2014. As dynamic as those rates are, nearly all are lower than over the past five years; and most of the growth is happening on very small bases.
For example, China's cat and dog foods sales rose 78% from 2004-2009 but still only amounted to US$305 million for the last year. Euromonitor predicts the growth rate will decline to 33% from now through 2014, with sales reaching US$407 million that year.
But, good news for the host country for Petfood Forum Asia: Thailand's cat and dog food sales will increase 45% over the next five years, according to Euromonitor, reaching a total of US$409 million in 2014. The Thai cat and dog food market had grown 133% from 2004-2009.
And, while developed, mature petfood markets elsewhere in the world will see much lower growth-and in some cases, even declines-Japan's sales will rise 12.7% from now through 2014, Euromonitor projects, up from 9% over the past five years. That growth will lead to a total of US$4.285 billion in 2014.
Euromonitor also projects volume (in metric tons) of dog and cat food sold in Asia-Pacific will grow by nearly the same amount (15.5%) as will sales.
All the data points to a steadily growing petfood market for this part of the world.