A national association of pet food manufacturers and sellers in Japan is calling on its members to expand into new areas that support the health of pets to encourage their owners to buy. The Pet Food Association of Japan believes that by exploring new growth areas, the group can curb the effects of pet food retail price inflation that is expected to continue throughout 2024.
In a New Year’s address to its 94 member companies, Hiromitsu Kodama, chairman of the Pet Food Association of Japan, said that health-conscious foods and gourmet foods that will please both pets and owners of these can be revived in consumption, which he said is in a decline. He cites pet snacks as another area where they can provide better consumer satisfaction resulting in more desire to buy.
Kodama said the industry has been plagued by inflation since 2022 which has led to high prices for many raw materials and energy. Also, Kodama said the weakened Japanese yen, which at one point exceeded 150 yen to the US dollar, had a significant impact on the pet industry.
“In the pet food market, the retail price per kilogram of all categories for both dog and cat food exceeded 700 yen (US$4.77), an increase of more than 20% from last year,” Kodama said. “From 2022, prices have increased in all major pet food price ranges. The amount of the increase varies from a few percent to more than 20%, but the rate of increase is particularly high and influenced consumers’ product choices.”
A survey of commercial pet food expenditures conducted by the association in October 2023 found that monthly spending per dog, which includes treats in addition to the main diet, was 5,366 yen (US$36.56), an increase by only 2.1% from 2022. Expenditure per cat is 4,550 yen (US$31), an increase of 7.5% from last year.
Another survey conducted by the association last year revealed that the percentage of Japanese households without pets is already at 73.5%, and is increasing every year. The total number of dogs kept is estimated at 6.844 million, almost half of the 13.1 million dogs kept as pets in 2008. The current estimated number of pet cats is 9.069 million, showing a flat trend.
This year, Kodama said they will continue to review their nutritional standards based on new findings related to the health and nutrition of dogs and cats. Kodama also pledged to assist their members’ business operations by ensuring a stable supply of raw materials and working to increase pet food exports.
Also part of the association’s 2024 plans is to reach out to other East Asian countries with growing pet markets. “By introducing our association’s pet food test, pet food salesperson certification system, and pet food safety manager certification system to industry organizations in East Asian countries, we hope to contribute to the development and healthy growth of the pet industry in every country,” Kodama said.
Finally, the association will spend 2024 promoting activities related to the protection and better understanding of pets and their important role in enriching people’s lives.
Over 90% of the Japanese pet food market is served by association members.
