Emerging Pet Industry in Vietnam, a young industry with much potential
It was only 2006 that the first registered Pet Shop was opened in Saigon, Vietnam. Rising humanization of pets, disposal incomes and the social status of the ownership of western pets has dramatically increased the growth in dog and cat ownership and the demand of essential goods and services, since this first commercial pet store opened.
EuroMonitor International began tracking and reported on the development of the Pet Industry in Vietnam since 2009 with their annual ‘Pet Care Industry in Vietnam’ report. Each year, their summary outlook is positive, as pet care products and services, especially food, will enjoy strong growth in the coming years, due to the trend of moving away from feeding dogs and cats ‘table scraps’ to buying mid-priced commercial produced pet food and due to responsible pet ownership (pet humanization).
All Key External Drivers of Retail Pet Industry in Vietnam are increasing
- The number of pets (cats and dogs) in Vietnam are increasing
- Per capita disposable income of the emerging middle class of Vietnam is increasing
- The number of households with dogs and cats (pet ownership) in Vietnam is increasing
- The supply of Pet food, supplies and services is slowly growing. However, demand for new pet products and services from pet owners is not being addressed. There lies opportunity.
A Snapshot of the Pet Markets in Vietnam
Vietnam has a population of 90 million and quickly approaching 100 million and is the 12th most populous country in the world.
The largest cities in Vietnam, with a total population of 25.4 million (30% of the population) are HCMC (Sai Gon), Ha Noi, Hai Phong, Can Tho, Da Nang, Bien Hoa, Nha Trang, Buon Ma Thuot, Hue and Thai Nguyen. Rapid urbanization and migration to urban areas are increasing these cities populations in Vietnam.
The largest market of pet owners are between the ages of 45 and 54, and 80% female. Women also comprised the second and third biggest market segment from the ages of 35 to 44 years old, and 25 to 34 years old.
The most promising and exciting market segment is young pet owners between the ages of 20 and 30 years old, whereas 60% of Vietnams population is 35 years old and younger.
Long term stay Expat market segments in Vietnam consisting of mostly males with a 80-20 ratio and predominantly dog owners. There are currently 75,000 living and working in Vietnam (2011). The average stay is 1 to 3 years. Extended stay Expats, living more than 3 years are rising, where conditions and the environment improves for pet ownership.
Surprisingly, cat ownership is gaining in numbers to dog ownership in Vietnam.
Overall social status in Vietnamese society is gaining attention in the ownership of Western cats and dogs, fueling a demand for the purchase of premium pet goods and services.
Income for female pet owners that includes their own business, earnings from investments (gold, real estate & equities) and their spouse. The income earned per year in women pet owners group are well above the national average of Per Capita $3,549 USD (2012 est.), estimated at 12,000 USD.
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