The Indonesia pet food market is projected to grow at a CAGR of 5.1% during the forecast period (2020-2025). Indonesia is one of the rapidly emerging South-Asian economies, and the growth is fuelled by the rapidly increasing urbanization and industrial rates. This demographic change is very crucial to the future growth of the pet food market. The humanization of pets has become a new trend among the nuclear Indonesian household. This was further boosted by increasing single-populations who preferred to have a pet companion along with them. Larger low and middle-income group Indonesian populations are favoring the growth of economic pet foods. The major constrain offered by the region is that owning a dog is a limitation among the Muslim populations of Indonesia. Larger cat population can be witnessed in the country compared to the dogs. The rise in internet sales and the growth of e-commerce is important in convenience-oriented pet food markets.

Key Market Trends

Pet Humanization is Influencing the Purchase Decison

Pet humanization is a result of rising income, changing demographic patterns, and consumer preferences. There has been a shift toward pet ’parenting’ from ’ownership’, which influenced the purchasing decisions of pet products. Furthermore, the rise in income led to more imports of pet foods for retail sale in Indonesia. The consumers demand clearly defined clean labels due to increasing health consciousness for their pets. Currently, pet owners resolute about knowing the food constituent information of the various pet food products. As a result, some pet food companies claim transparency in the sourcing and processing of ingredients. As consumers become progressively more concerned about their health, particularly in relation to their diet, similar concerns about the diets of their pets are increasing significantly. Furthermore, they highly prefer natural and organic products. Owners who are highly involved with their pets often spend a large amount on pet food and other pet care products. Moreover, in Indonesia, the growth of premium and super-premium pet foods is primarily driven by the humanization of pet foods.

Import is Dominating the Indonesia Pet Food Market

According to the International Trade Centre (ITC), Thailand, China, France, and the United States are the major exporters of pet food in Indonesia for retailing with Thailand holding 70% of the export. The Indonesia Pet Food Market comprises 95% of the international brands and only 5% of the share goes to the local players in the region. As pet food generally contains products of animal origin, its production facility must be approved by the Ministry of Agriculture, c.q. Directorate General of Livestock and Animal Health Services before an importer can import from the pet food producing facility. There is an increasing trend for high-income consumers to feed their pets nutritionally balanced raw food diets. An increasing number of premium brands entered dog food in 2018, attracted by the sales potential offered by the intensifying humanization and premiumization trends. Black Hawk brand from Australia, which has a natural positioning, and is produced using premium ingredients such as hormone-free chicken and pasture grazed lamb has entered the Indonesian Pet food market in late 2018.

Competitive Landscape

International brands accounted for over 95% of the Indonesia Pet food market while that of local brands summed up the remaining 5%. Nestle Purina with its dominant presence in both cat and dog food segment is the leader in the Indonesia Pet food market share. Mars Indonesia closely followed Nestle holds the remaining major market share. These include international companies such as Holistic select, Ecotrition, Total ailments, Wellness pet food, Natural life, Nutro choice, Nutrisource. Local products such as Feli Cat, Vittamax, and My dear cat are slowly gaining prominence due to their higher discounts on online retail channels.

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support