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NIQ Korea, South Korea's pet food market grows rapidly... Annual sales exceed 900 billion won
- Writing language: Korean
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Summarized by durumis AI
- As of February 2024, the domestic pet food market recorded 895.2 billion won, growing 11.1% year-on-year, with online channel sales accounting for 78%.
- Online channel sales increased by 14.3% year-on-year, driving overall market growth, but the top 10 brands' market share decreased by 8% compared to two years ago, indicating intensified competition.
- NIQ Korea emphasized that the pet food market is experiencing not only quantitative growth but also qualitative growth, and it is necessary to discover differentiation through accurate analysis of channel-specific opportunities and consumer selection criteria for each item.
Presentation on the '2024 Megaju K-Pet Fair' with a diagnosis and outlook on the pet food market
Online channel sales account for 78% of the entire market, driving growth in the domestic pet food market
The domestic pet food market is showing robust growth, reaching an annual sales amount of 895.2 billion won based on NIQ (NielsenIQ) Korea data in February. Including sales from channels not included in the statistics, such as pet shops and veterinary clinics, the market is estimated to have exceeded 900 billion won. Of this, online channel sales accounted for 78%.
NIQ Korea, a global consumer intelligence company, participated in the '2024 Megaju K-Pet Fair' held at KINTEX in Goyang, Gyeonggi Province from March 17 to 19, hosted by the Korea Pet Food Association, and presented the latest trends and prospects of the domestic and international pet food market.
According to NIQ Korea's presentation, the annual sales amount of the domestic pet food market in February increased by 11.1% year-on-year. This figure slightly exceeded the global pet food market growth rate of 8.2% (as of December 2023). Offline channels saw a slight increase in sales by 0.9% year-on-year, but sales volume decreased by 1%. In contrast, online channels saw an increase in both sales amount and volume by 14.3% and 9% respectively, driving overall market growth.
The influence of online channels is also significant in the share of sales amount by channel. In the past year, online channel sales reached 698.3 billion won, accounting for nearly four-fifths of the entire domestic pet food market. In 2023, online channels already held a high share of 75.8%, but they have been continuously expanding the market size until now. Compared to the 39% share of online channel sales in the global pet food market during the same period, the reliance on online channels in Korea is even more pronounced.
While the domestic online pet food market is large and growing rapidly, the top 10 brands' market share has decreased by 8% from two years ago, reaching 26%, and the number of new brands has increased by 17.4% during the same period, indicating intensified competition within the market. NIQ Korea stated that there are differences in popular products based on sales platforms, such as ultra-low-priced bulk dry food or high-priced functional wet food, and the forms of collaboration between distributors and manufacturers are also diverse, so entering the online pet food market requires a more detailed strategy, taking into account the characteristics of the target channel and selecting product types (dry, wet, snacks), item and quantity by price range.
New products that have entered the online market are generally securing market competitiveness through differentiation in ingredients from existing products. In particular, the release of main meals with enhanced palatability and functionality using vegetables, raw meat, etc., and nutritional supplements in the form of snacks that help with various diseases is actively taking place, resulting in a 104.4% and 14.1% increase in the average price per weight of new dog food and snacks compared to existing products (as of February 2024). On the other hand, in the cat snack category, bulk new products targeting multi-cat households or outdoor cat feeding are gaining popularity, with prices per weight also being 8.8% lower than existing products.
NIQ Korea Managing Director Kim Na-young said, “The pet humanization trend, where pets are considered family members, is driving not only quantitative but also qualitative growth in the domestic pet food market.” “As competition intensifies with the release of various new products, it is important to identify opportunities based on accurate analysis and understanding of channel-specific opportunities, consumer selection criteria by product, etc., and discover the company’s own differentiators to seize the crucial opportunity to ride the market trend,” she said.
Website: https://nielseniq.com/global/en/
Contact
NIQ PR Agency
KPR
Kim Soo-bin
02-3426-2281
