South Korea has set a goal of turning its entire pet market into a 15 trillion won industry (about US$11.47 billion currently) by 2027 with government-led initiatives to further prepare its growth, reports the Petfood Industry website.
The expansion plan is triggered by encouraging industry statistics that saw the industry grow to 8 trillion twenty last year.
Lee Jae-shik, an official in charge of animal welfare policies at the Ministry of Agriculture, Food and Rural Affairs, announced measures to significantly strengthen the country’s animal industry in response to the growing number of families that have dogs or cats. Over the past 10 years, pet ownership has grown from 3.64 million in 2012 to 6.02 million last year, according to the site.
“To face evolving market trends, such as the humanization of domestic animals, technological innovation and demographic changes, it is necessary to cultivate domestic animal industries that can generate new production and create increased demand,” the ministry said in a statement.
Expansion plans include aligning pet food industry standards for nutrition, product packaging and advertising with those of the US and EU.
The country will also build a testing center for new animal products to be called “One-Welfare Valley,” Yonhap news agency reported. It will provide companies with suitable R&D facilities for testing animal products under strict safety conditions. The expansion plan also includes financial aid for local pet businesses in the form of low-interest loans for product development.
To make pet ownership less expensive, the government is eliminating value-added taxes on essential or frequently required veterinary services for pets and making it mandatory for veterinary clinics to display prices for a wider range of treatments. A 2022 survey on pet expenses showed that South Koreans budget 150,000 won (US$123) per month on average for their pets.
By 2027, South Korea aims to significantly increase its total pet food exports from US$149 million last year to US$500 million, the ministry said.
In terms of volume, the country’s pet food exports were 61.2 million kilograms in 2022, data from market research company Statista showed. Pet foods made in South Korea were mainly destined for Japan, Thailand and Australia.
Statista also reported that animal feed imported into South Korea last year came mainly from the United States (about 19 thousand tons) and China (15.6 thousand tons).
