Indonesia Pet Market

Indonesia’s pet ownership rate is steadily growing as the country’s economy is rapidly advancing, fueled by the increasing urbanization and industrial rates. Millennials are owning more pets as cultural landscapes shifted and more incidences of loneliness contributed to younger generations purchasing pets as companions. The Indonesian Pet Food Association (AMHKI) estimates that Indonesian pet food sector will grow at 20% annually with 60% of the market in Java, where Jakarta and other large cities are located.  

72% of Indonesian household own pets with the majority owning cats at 47%, followed by fish at 22%, birds at 18%, and then dogs at only 10% (Rakuten Insight Propriety, 2021). As expected of a Muslim majority country, dog ownership rate is quite low due to religious and cultural beliefs. 

Pet Food Market

The Indonesia pet food market is projected to grow at a CAGR of 5.1% during the forecast period (2021-2026) (Sdki, 2021)

In 2015, the pet food market in Indonesia was US$882 million, it is expected to reach US$1.84 billion in 2025. The average consumption per capita in value terms was at 3.46 USD per capita in 2015, it grew at a CAGR of 8.41 in the last five years. But is expected to slow down to an increase of 4.77% for the next five years (WMStrategy, 2021)

Current Trends in Pet Food

Humanization of Pets in Indonesia

Pet Humanization trends are increasingly popular among the nuclear Indonesian households, coupled with growing single-populations who preferred pets over children. The market is seeing more low and middle-income group favoring more economic pet foods among the Indonesian population. The demand for organic pet foods also surged for the past few years as pet owners are becoming more educated about the adverse effects of synthetic foods to their companions. 

Limitation for Dog Food Market in Indonesia

Due to religious and cultural beliefs, many of the Muslim households in Indonesia do not own dogs as pets. However, owning dogs for protection and hunting are still allowed. This contributed to the lack of dog food and supplies in the country. 

E-Commerce during COVID-19

The Indonesian Pet Food Association (AMHKI) also noted that pet food sales during COVID-19 via e-commerce platforms are growing steadily and are currently occupying 30% of the market. It is expected that it will overtake half of traditional pet food channels’ business in the near future. 

More Expensive Pets leads to High Demand for Premium Products

As pet owners are purchasing more expensive breeds (Koi and Louhan Fish or imported birds such as African parrots, lovebirds, and canaries), the demand for more premium products also increased. Pet owners are now looking for more quality pet food for specific breeds of pets. 

Major Pet Food Players in Indonesia

International pet food brands occupy 90% of the pet food market in Indonesia, leaving only 5% to the local businesses. Nestle Purina is at the lead for dog and cat food, while Mars Indonesia closely follows. Other international brands include “Holistic Select”, “Ecotrition”, “Total Ailments”, “Wellness” pet food, “Natural Life”, “Nutro Choice”, and “Nutrosource”. Local products like “Feli Cat”, “Vittamax”, and “My Dear” are also gaining prominence due to their higher discounts on online retail channels. The top five companies are: 

  1. Mars Inc.
  2. Hill’s Pet Nutrition
  3. Nestle Purina Petcare Company
  4. J.M. Smucker
  5. Diamond Pet Foods
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