Hong Kong outpaces overall Asia-Pacific pet food market

The nations of eastern and southern Asia hold some of the fastest-growing markets for pet foods. A Euromonitor International report documents how Hong Kong’s pet food market stands out from other Asia-Pacific regions, including the rest of China. The report covers the pet food markets of Hong KongTaiwan, Japan, South Korea, Singapore, Thailand, Malaysia, China, Philippines, Indonesia, Vietnam and India.

The Asia-Pacific region houses more pet dogs and cats than any other. An estimated nearly 300 million pet dogs and cats live in Asia-Pacific households, approximately 100 million more than in North America. That pet population grew at an 11.8% compound annual growth rate from 2016 to 2021.

That massive pet population resulted in a pet care market value of US$27.1 billion in 2021 for the combined pet care markets of Taiwan, Japan, South Korea, Hong Kong, Singapore, Thailand, Malaysia, China, Philippines, Indonesia, Vietnam and India.
The Asia-Pacific region is also the fastest growing with a compound annual growth rate of 11.8% between 2016 and 2021.

Hong Kong compared to other Asia-Pacific pet food markets

While Hong Kong’s pet care sales were dwarfed by the rest of the People’s Republic of China, Hong Kong had the highest per capita spending on pets among all nations in the Euromonitor report. Hong Kong’s pet owners also spent more than those in nations with similar socio-economic factors and pet cultures, such as Taiwan, Japan and Singapore. Pet owners in Hong Kong spent approximately US$140 per capita in 2021, distantly followed by Taiwan’s pet owners at more than US$60 per capita.

“Pet care in Hong Kong is now moving towards an ultra-premium positioning compared to other markets in Asia Pacific,” Euromonitor International analysts Nozomi Hariya and Prudence Lai wrote in the report.

Even though Singapore and Hong Kong have similar numbers of pets per household, pet owners in Hong Kong spent nearly six times as much on their pets. Other nations, including Japan and South Korea, have higher per capita pet populations than Hong Kong, but spent half as much on pet care per capita.

One reason for this discrepancy is the higher proportion of dogs and cats in Hong Kong, compared to fish and small mammals in Singapore’s market. Nevertheless, Japan and South Korea have equivalent levels of dog and cat ownership to Hong Kong and larger overall pet dog and cat populations, but lower spending on pet food and care. The premiumization of dog and cat foods fuels the growth of Hong Kong’s market relative to others. Premium dog and cat food makes up nearly 75% of Hong Kong’s market, compared to between 55% and 60% in Japan, Taiwan and Singapore.

Ultimately, pet owners’ earnings may be a major deciding factor in pet food spending. While Japan and Taiwan have similar median household incomes, Hong Kong’s median household income is 50% higher.

Hong Kong may serve as a model for the growing pet food markets of Taiwan, Japan, South Korea, Singapore, Thailand, Malaysia, China, Philippines, Indonesia, Vietnam and India.