Sector Trend Analysis – Pet food in Japan

Trade overview

Global imports

The major pet food importers are located in Western Europe and North America, except Japan. Canada was the fifth-largest importer of dog and cat food, reaching US$1.3 billion in 2023. Japan was the tenth-largest importer of pet food, reaching US$724.2 million in 2023.

Japan imports

Japan has a diverse supply network of pet food providers. Thailand, China and South Korea were the largest suppliers of pet food to Japan in 2023, with values of US$307.8 million (42.5% market share), US$111.1 million (15.3% market share) and US$70.8 million (9.8% market share), respectively. Canada, as Japan's seventh-largest pet food supplier, experienced an increase in CAGR of 18.2% as pet food values grew from US$12.6 million in 2019 to US$24.6 million in 2023.

Canada's performance

In 2023, Canada ranked as the tenth-largest exporter of dog and cat food in the world, exporting US$713.2 million worth of dog and cat food to the world, a 3.1% share of the total global exports of dog and cat food.

Japan, ranked the fourth-largest importer from Canada, received 3.3% (US$23.2 million) of Canadian dog and cat food exports in 2023, with a 7.8% CAGR from 2019 to 2023.

Ontario accounted for 50.5% of the value of pet food exports to Japan in 2023, according to Canadian export data. Alberta, British Columbia and Quebec made up most of the rest of the total.

Pet food market overview

In 2023, the global pet food market was worth US$134.0 billion retail value. Japan was ranked the ninth-largest market in the world, reaching US$4.2 billion in 2023, representing a decrease by a CAGR of 0.5% (2019-2023). Pet food retail sales in Japan are expected to grow to US$5.3 billion in 2028 at a CAGR of 4.6%.

Pet humanization

Japanese pet owners are increasingly treating their pets as cherished family members, driving demand for pet treats with specific attributes such as quality and ingredient source. The COVID-19 pandemic has heightened concerns over food safety, prompting pet owners to seek not only delicious tastes but also enhanced product specifications. Concurrently, the pandemic has led to a growing focus on personal health among Japanese consumers. Aligned with the health and wellness trend, pet owners are now more conscientious about their pets' health and are actively searching for premium, high-quality pet food to ensure complete nutrition and a balanced diet. This trend, driven by pet humanization, is expected to persist despite inflation and economic uncertainty (Euromonitor International, 2023).

Premiumization

Despite inflation and increased financial strain on consumers, the enduring trend of pet humanization, coupled with stronger bonds with cats, will sustain the premiumization of cat food. Pet owners are unlikely to cut back on their spending for cat food; instead, they prioritize food quality over cost considerations for their cherished feline companions. Consequently, premium cat food products, including gourmet, functional, and natural options, continue to thrive, contributing to overall value growth in this market. Within the premiumization trend, health remains a paramount focus, gaining momentum in the cat food segment. Pet owners are increasingly health-conscious, not only for themselves but also for their pets. Products with specific health functions are particularly capturing the attention of pet owners, further driving the premiumization of cat food (Euromonitor International, 2023).

Sustainability

Japanese pet owners, while still in pursuit of high-quality pet food, are concurrently developing heightened concerns about the planet's future. Responding to this environmental consciousness, Mars Japan Ltd joined the "Go Ethical" initiative, repurposing products previously discarded due to renewal or packaging issues. Roster Bell Ltd innovatively introduced "Umi no Oyatsu," dog treats upcycled from fish scraps (Euromonitor International, 2023). To address plastic pollution, Purina in Japan revamped its Mon Petit Crispy Kiss cat snacks with a new paper outer pack, achieving a substantial 66% reduction in plastic use (Mintel, 2023).

Pet population and ownership

The pet population in Japan has increased at a CAGR of 0.6%, from 54.5 million pets in 2019 to 55.8 million pets in 2023. The pet population is forecast to decrease by a CAGR of 0.3%, to 55.0 million pets by 2028. In 2023, cats and dogs accounted for 28.1% of the pet population, while other pets accounted for 71.9%. The cat and dog populations will reach 8.6 million and 6.2 million, respectively, in 2028.

Japan's dog ownership experienced a 2.3% decrease in CAGR, from 6.0 million households in 2019 to 5.5 million households in 2023. The corresponding percentage of those households owning dogs decreased from 10.8% in 2019 to 9.6% in 2023. The number of households owning cats increased from 4.85 million in 2019 to 4.88 million in 2023, representing a decrease in the percentage of those same households owning cats from 8.8% to 8.6% in the same period.

The pandemic-induced shift to remote work and social isolation further boosted cat adoption. However, with Japan's declining population and low birth rate, the cat population has now reached maturity, impacting the cat food market. Looking ahead, a decline in the dog population is expected due to changing demographics, such as an aging population, increasing dual-income and single-person households, and limited urban living space. Cat ownership is favoured for its compatibility with busy lifestyles, with a preference for small-to-medium breeds in smaller living spaces. Ongoing demographic shifts discourage ownership of larger pets like dogs but support demand for other pets. Nevertheless, the significant decline in Japan's overall human population due to a declining birth rate will impact the growth of the overall pet population, including other pet (Euromonitor International, 2023).

Market Segmentation

Cat food

Current value sales of cat food have grown by 1.8% (CAGR, 2018 to 2023) to US$2.2 billion. Cat treats and mixers had the best performance and most dynamic category in 2023, with a CAGR of 9.2% from 2018 to 2023.

Japanese consumers increasingly prioritize indulgent treats for their cats, emphasizing communication and shared time (Euromonitor International, 2023).

Japanese customers spent US$1.1 billion on dry cat food and US$627.1 million on wet cat food in 2023. They spent more money buying premium dry cat food (US$858.0 million in 2023) than mid-priced dry food (US$82.5 million) and economy dry food (US$133.7 million). They also spent more money buying premium wet cat food (US$357.8 million in 2023) than mid-priced wet food (US$226.9 million) and economy wet food (US$42.3 million).

Retail sales of cat food will continue to grow throughout 2023-2028 with an expected CAGR of 5.4%, achieving US$2.9 billion by 2028. Retail sales in premium non-therapeutic dry cat food will experience the highest CAGR of 7.0%, while economy wet cat food will experience the lowest CAGR of 0.1% in the forecast period.

Cat treats and mixers will continue to lead cat food categories, driven by pet owners enhancing their bond with cats. Innovation and expansion in this category are expected, catering to a broad audience. While demand for cat treats, especially wet purée formats, will grow, wet cat food is likely to decline due to the shift towards wet treats. The preference for a balanced diet with dry cat food and the rise of pouch packaging over cans, influenced by cost and aluminum price hikes, is impacting wet cat food volumes. Manufacturers, like AIXIA Corp, are adjusting product offerings to focus on mid-priced and premium ranges in pouch packaging, discontinuing wet canned products. These trends will persist, influencing the volume performance of wet cat food in the forecast period (Euromonitor International, 2023).

Dog food

Despite a decline in overall demand for dog food during the review period due to a shrinking dog population, positive value sales persisted, driven by inflation and premiumization. In the forecast period, certain dog food categories, including treats and mixers, as well as premium therapeutic and non-therapeutic options, are expected to maintain positive current value performances, aligning with the pet humanization trend (Euromonitor International, 2023).

Retail sales of dog food reached US$1.9 billion in 2023, at a CAGR of −1.3% from 2018 to 2023. Premium therapeutic wet dog food had the best performance in 2023, with a CAGR of 2.2% from 2018 to 2023. Premium dry food led sales of dry dog food (US$780.0 million in 2023), with a −0.5% CAGR from 2018 to 2023. Premium wet food led sales of wet dog food (US$147.1 million in 2023), with a −1.3% CAGR from 2018 to 2023.

Retail sales of dog food will recover throughout 2023-2028 with an expected CAGR of 3.6%, achieving US$2.2 billion by 2028. Retail sales of dog treats and mixers will experience the highest CAGR, with 5.7%, while economy wet dog food will experience the lowest CAGR, with −5.2% in the forecast period. It is forecast that premium dry food will continue to lead sales in dry dog food (US$926.9 million in 2028) with a 3.5% CAGR from 2023 to 2028, while premium wet dog food (US$171.1 million in 2028) will continue to lead sales in wet dog food with a 3.1% CAGR from 2023 to 2028.

Other pet food

Retail sales of other pet food decreased at a CAGR of 2.1%, from US$163.3 million in 2018 to US$146.8 million in 2023 and are expected to recover at a CAGR of 3.8%, reaching US$176.9 million by 2028.

Small mammal/reptile food was the largest category of other pet food in absolute value terms, with retail sales of US$68.2 million (46.5% market share) in 2023, declining 0.9% in CAGR from retail sales of US$71.8 million in 2018. Retail sales of small mammal/reptile food are expected to increase in CAGR by 4.2% to US$83.9 million by 2028.

During the 2018-2023 period, retail sales of fish food experienced the largest decrease, with a CAGR of 3.3% from US$61.4 million in 2018. Retail sales of fish food are forecast to recover by a CAGR of 3.2% to US$60.5 million by 2028.

Retail sales of bird food decreased at a CAGR of 2.5%, from US$30.5 million in 2018 to US$26.9 million in 2023, and are expected to recover at a CAGR of 3.9% reaching US$32.5 million by 2028.

Company shares

Inaba Foods Co Ltd, Mars Inc and Unicharm Corp clearly dominate the cat food sector, representing 56.2% of the market share in 2022, ahead of other competitors. However, Mars Inc had a negative CAGR of −4.5% from 2018 to 2022. Pet Line Corp gained the highest CAGR with 11.3% over the past five years.

Inaba Pet Food maintained its leadership in Japan's cat food market, with a strong presence in cat treats, particularly the Ciao Churu brand. The purée format treats, constituting over 70% of total cat treat sales, are packaged in small sachets, promoting intimate feeding moments and fostering communication between owners and pets. Inaba's active innovation and expansion, including the introduction of functional treats, like the AIM line to prevent kidney disease, contributed to double-digit value growth in 2022. AIM's potential to increase cats' life expectancy from 15 to 30 years has attracted considerable attention, solidifying Inaba's success (Euromonitor International, 2023).

Mars Inc, Colgate-Palmolive Co and DoggyMan HA Co Ltd dominate the dog food sector, accounting for 50.4% of the market share in 2022. In particular, Inaba Pet Food Co Ltd had a high CAGR of 44.7% from 2018 to 2022.

Kamihata Fish Ind Ltd, Marukan Co Ltd and Yeaster Co Ltd dominate the other pet food sector, accounting for 40.4% of the market share in 2022. In particular, Nippon Pet Food Ltd had a high CAGR of 54.3% from 2018 to 2022.

Brand shares

Ciao by Inaba Foods Co Ltd is the top brand in cat food (23.1% share in 2022), followed by Gin No Spoon by Unicharm Corp (11.6% share) and Royal Canin by Mars Inc (8.4% share). Ciao saw the biggest CAGR of 9.1% from 2018 to 2022.

Royal Canin by Mars Inc leads the brand in dog food (11.5% share in 2022), followed by Hill's Science Diet by Colgate-Palmolive Co (8.9% share) and Hill's Prescription Diet by Colgate-Palmolive Co (5.8% share). Inaba saw the biggest CAGR of 44.7% from 2018 to 2022.

With increased bonds formed during home seclusion, pet owners now better understand their dogs' needs. Specialist dog food brands, like Nestlé's Pro Plan and Unicharm Corp's Grand Deli, tailored for various pet types, life stages, and health functions, have shown strong double-digit value growth in 2022 (Euromonitor International, 2023).

Hikari by Kamihata Fish Ind Ltd leads the brand in other pet food (20.1% share in 2022), followed by Marukan by Marukan Co Ltd (12.5% share) and Yeaster by Yeaster Co Ltd (7.8% share). Comet saw the biggest CAGR of 5.4% from 2018 to 2022.

Distribution channels

Pet food retail sales in Japan were distributed primarily through retail offline channels (70.9% market share representation), while the remaining pet food retail sales were distributed via retail e-commerce and veterinary clinics (29.1% market share representation) in 2023. Most distribution channels' market share representation declined in varying CAGRs between 2019 to 2023. In contrast, retail e-commerce increased by the largest CAGR (6.6%) in all channels, from a 17.9% market share recorded in 2019.

Product launch analysis

From 2019 to 2023, a total of 1,890 pet food products were launched in Japan. The number of yearly product launches has declined by a CAGR of 6.0% from the larger launch of 438 pet products in 2019 to its lowest and most recent launch of 261 pet products in 2023. Cat food wet, cat food dry, and dog food dry were the top categories of newly released pet food product launches, while no additives/preservatives, free from added/artificial colourings, and functional pet - digestion were the top claims associated with new pet food products released during the prescribed period.

Product examples

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Resources

• Global Trade Tracker, 2024
• Euromonitor International, 2024
• Euromonitor International 2023, Cat Food in Japan
• Euromonitor International 2023, Dog Food in Japan
• Euromonitor International 2023, Other Pet Food in Japan
• Mintel Global New Products Database, 2024
• Mintel 2023, A year of innovation in pet food and products, 2023

Sector Trend Analysis – Pet food in Japan
Global Analysis Report

Prepared by: Zhiduo Wang, Market Analyst

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