Vietnam Pet Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Vietnam Pet Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Vietnam pet food market is projected to grow at a CAGR of 5.7% during the forecast period (2021-2026). Vietnam is a very nascent market and recently opened up the consumer space. The very low consumer awareness levels not just regarding the different products but also about the basics of pet healthcare, ownership is a challenge to the pet market. Despite these factors, Vietnam is a newly induced market space with lax regulatory structures giving significant leverage to big players. International brands, especially mid-priced brands, are expected to maintain their leading positions in the category, as the presence of local brands remains negligible. The success of the pet foods here is largely dependent on the interaction capabilities of the manufacturers with the customers and promotional strength of the companies. Higher disposable incomes, rising demand for other pet food as well as busy consumer lifestyles are the key factors supporting this growth.

Key Market TrendsSpecialized Pet Shop in Vietnam is Driving the Sales of Pet Food

Pet humanization is a trend highly seen in major urban cities like Ho Chi Minh City (Saigon) and Hanoi, and in secondary urban centers of Hai Phong, Can Tho and Da Nang of Vietnam. According to UNESCAP, Large concentrations of middle-class families in these places, are usually in their 30's or older are with full control of family budgets and are responsible for all purchases that include pet food and pet services. Vietnam's pet food sector is open for business and the industry's success will be largely dependent, on the promotional strength and consumer interaction capabilities of the manufacturers. Most of the specialized pet shops in Vietnamese are family financed due to very high leasing rates in urban centers, local products relying on expensive imports, supply chain and warehousing issues, a restrictive legal and business environment, difficulties in obtaining investment and operating capital from financial institutions. Profit margins are slim as Vietnamese pet owners buy on price, as they prefer the economy to mid-priced products. The emergence of these modern pet retail shops is being developed by young, pet-loving entrepreneurs seeing the need to offer pet care products and services for small companion animals. The SpringGroup, formerly known as VeeGroup has launched the first of all pet stores named PetCity and has its presence in Hanoi (5), Hai Phong (1), Ho Chi Minh City (3) and Da Nang (1).

Export of Pet Food is Dominating the Vietnam Pet Food Market in Terms of Value

Vietnam's pet product manufacturing sectors of pet food, for both export and local markets, are in a state of developing. According to the International Trade Centre, The United States, China, Cambodia are the major importer of pet food from Vietnam with the United States holding a major share. Competition is fierce from an abundance of inexpensive pet products of low to economic price range in the region. International manufacturers from Japan (Hotta) and USA (RefinedKind Pet Products) have their pet products manufactured in Vietnam through private manufacturing agreements with local Vietnamese OEM companies, where all products are shipped and sold outside Vietnam. Kim Binh Minh Co., Tran Danh Co., Ltd. Lien Thang Manufacturer, Investment & Trading Co., are the leading top three manufacturers of pet products in Vietnam not only for the local market but also for the international market.

Competitive Landscape

The Vietnam Pet Food Market is consolidated with top global and regional players competing fiercely with local players to garner market share. Companies are increasingly investing in R&D infrastructure to develop continuous product development cycles. Some of the major players in the Nestle Purina Petcare Company, Mars Inc., Colgate Palmolive (Hillspet), Perfect Companion Vietnam co. Ltd and Happy Chews PetFood.

Additional Benefits:

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

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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