Market Overview

The total pet business market size by retail amount (end-user price) for FY2023 expects a rise to 1,862,900 million yen, 104.5% on a year-on-year basis. Because of soaring costs for raw materials, ingredients, logistics, manpower, etc. during FY2022 and FY2023, market players have raised their prices for products and services, as they became unable to secure profits or quality only by their efforts on streamlining their work and reducing costs on manufacturing and logistics. As a result, the sales have been on the rise through promotions of high value-added products and by launching products geared to cats that has slightly increased ownership (*), though overall numbers of pets kept, i.e., the very core of the pet business, are declining (*).

As the prices of dogs and cats themselves seem to be soaring from what used to be before the pandemic, demand is shifting to more affordable small animals and fishes. Therefore, demand for small animals and fishes continues to be promising for future. 

*Source: Japan Pet Food Association

Noteworthy Topics

Despite Price Hikes by Each Company, Premium Food Market Expanded Both for Dogs and Cats due to Higher Health Consciousness

Despite price hikes on pet foods and pet supplies from FY2022 to FY2023 by each company due to soaring commodity prices, the market has grown by increased sales value, covering the loss from declined sales volume stemming from decreased pet ownership (*).

Rising health consciousness for pets by pet owners is the growth factor of the pet food market.

In the dog food market, demand for costly premium foods is on the rise. In particular, the domestically produced pet foods, showing strength in export taking advantage of price and safety owing to the weak yen, and those products with the appeal of using natural ingredients, dispensing with additives, or large percentage of meat are showing favorable sales. Consequently, dry as well as wet foods, the staple food for pets that was leveling off in recent years due to slowdown in dog ownership (*) and aging dogs causing decreased ration, seem to be on the uptrend both for FY2022 and FY2023.

Minding health on cats is also rising, which is reflected in the cat food market where functional food development has become general, such as food for feline lower urinary tract disease that cats are apt to suffer from or for maintaining kidney health. Because the transition in the number of cats owned is stabler than that of dogs, relatively higher expectations for cat food market by pet food manufacturers are observed. Active new releases in cat food and the tendency to expand sales floors for cat supplies and foods at retailers are also contributing to market expansion.

Note that robustness continues in the market of pet snacks both for cats and dogs. Each of manufacturers have launched pet snacks that can be used not only as communication tools, but also from the aspects of “health” and “safety and assurance”.

*Source: Japan Pet Food Association

Future Outlook

The total pet business market size by retail amount (end-user price) for FY2024 expects a rise to 1,902,600 million yen, 102.1% on a year-on-year basis.

In the pet food market, human grade pet food has grown the sales mainly through online by newly entered companies. Positioned as “super-premium food” with even higher price range than premium food, human grade pet food is not mere pet food but can be called as “meal", pursuing special ingredients, production quality, and visual. Though not a large market, super premium food is likely to widespread, as pets have become companion animals that are regarded as family members or partners, which have raised the consciousness on health, safety and assurance for pets by pet owners.

For pet supplies, various products have been developed to cater to ever diversifying demand, as more pet owners have come to consider health and fulfilled lives for pets. Especially, oral and dental care products expect market growth due to the enlightenment efforts by market players. Expansion is also projected for the market of cat food and supplies with stabler numbers of ownership than dogs, and for the market of other small animals.

With numerous types of pet food and supplies now in market and with growing numbers of qualified and costly products attracting premium-inclined pet owners, the total pet business market based on retail amount (end-user price) is projected to expand, while covering the loss of sales volume caused by decreased pet ownership (*). Meanwhile, the market size after FY2024 cannot expect huge growth, considering no major price hikes scheduled like in the period during FY2022 and FY2023.

*Source: Japan Pet Food Association

Research Outline