Asia-Pacific nations had higher annual sales growth rates than any other
Although the United States still holds the title of planet’s largest pet foodmarket by far, the Asia-Pacific region leads global momentum of sales growthfor dog and cat food, said Galen Rokey, process technology director forextruder manufacturer Wenger, during the company’s Pet Food Process TechnologySeminar in Singapore on October 1.
Rokey presented Euromonitor International data on the Asia-Pacific region. For2018, the Asia-Pacific region accounted for lower sales value than NorthAmerica, Western Europe and Latin America. However, Asia-Pacific nations hadhigher compound annual growth rates (CAGR) than any other region at 12.5%compound annual growth rate. When considered along with the 1.7% CAGR inAustralasia, the Western Pacific rim presents large growth potential for petfood companies.
China leads Asia-Pacific potential pet food market growth
Among Asia-Pacific countries, China stands out. In 2018, Chinese pet ownersspent US$2.217 billion on all pet foods, according to Euromonitor datapresented by Rokey. Euromonitor analysts project that figure to reach US$6.125billion in 2022, a CAGR of 28.9%. Within the overall pet food market, dog foodsales in China stood at US$1.485 billion in 2018. By 2022, dog food sales inChina may grow to US$4.103 billion. Cat food reached US$718.7 million in 2018and may grow to US$2.005 billion in 2022.
The United States and Chinese pet food markets are now the mirror opposites ofeach other, Rokey said. While the U.S. pet food market dwarves the rest of theworld, there is little potential growth potential in that mature market. Onthe other hand, the Chinese pet food market is still much smaller than theU.S., but has grown dramatically and seems likely to continue.
China’s importance to the future of pet food partly results from a growingpopulation of pet dogs and cats in the country. Euromonitor ranked China #1 intotal growth of projected dog and cat population. Other Asian countries alsoranked in the top seven. India and Vietnam ranked second and fifthrespectively in total growth. Along with China, India and Vietnam, Indonesiaand Malaysia ranked in the top seven for CAGR of dog and cat population.
As pet populations grow, the Asia-Pacific region, along with Latin America,seems likely to lead global sales growth for dog, cat and other pet foods.Euromonitor forecast that economy, mid-priced and premium varieties of bothdog and cat food will all have a CAGR of more than 10% in the Asia-Pacificzone. Mid-priced cat food may increase by nearly 20%.
The Asia-Pacific region seems poised to increase in its importance to the petfood industry, as both sales and volume seem likely to grow in the nearfuture.
Source: Tim Wall – Petfood Industry
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