Between pet shops and beauty parlors, pet businesses form a highly commercialized market in Japan. As animal companions have been integrated into the modern household system and treated as family members, the products and services are not limited to daily necessities anymore. Japan’s pet market has grown steadily in the last decade, with
. However, as the peak of the most recent pet boom at the start of the 2020s has passed, pet food will be important for the future growth of the wider pet market.
Cats and dogs – who are the favorites?
Apart from traditional pets like cats and dogs, Japan is home to many exotic pets. Ferrets, hedgehogs, beetles, and flying squirrels do not fall under nature conversation regulations and are therefore allowed to be kept in private households. Nonetheless, cats and dogs remain the
most popular pets among Japanese owners, with dogs pulling ahead of their feline rivals. Influenced by the cuteness (
kawaii) culture and the space limitations in metropolises, small breeds are preferred among Japanese dog owners. However, while dogs were in demand for their friendly behavior, the
cat population was estimated to have surpassed the dog population by over two million, implying that cats were more commonly kept in pairs.
Everything needed to pamper pets
Manufacturers are latching on to the popularity of cats and dogs, with products directed at their owners constituting the
majority of pet goods shipments. Beauty parlors, pet hotels, and leisure facilities provide services to spoil four-legged friends, and funeral services allow owners to send off their departed pets. As pets, particularly dogs and cats,
are considered a form of mental support to their owners and a family member similar to children or siblings, spendings are not dictated by cost-effectiveness anymore. Especially in the
growing share of childless households, pets become a proxy to a child and the target of their owners’ affection.
Premium treats as a chance for future growth?
With the passing of the pet boom from the stay-home period and an increased hesitation to welcome a new pet at home, businesses are focusing on creating higher-value products to compensate for a potential decline in
pet food shipments on a volume basis. As consumers are becoming more health conscious, the desire to provide their animal companions with healthy diets consisting of human-grade food opens new possibilities for pet food brands, particularly in the dog and cat food segments in the future. Store-based sales will remain the stronghold of established brands, but online channels open the market to new brands and startups.
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