Pet Care in VietnamFull Market Report

Pet Care in Vietnam
Euromonitor International
April 2021
PET CARE IN VIETNAM Passport i
LIST OF CONTENTS AND TABLES

Pet Care in Vietnam - Industry Overview...................................................................................... 1
EXECUTIVE SUMMARY .............................................................................................................. 1
COVID-19 impact on pet care ................................................................................................... 1
COVID-19 country impact ......................................................................................................... 1
Company response................................................................................................................... 2
Retailing shift ............................................................................................................................ 2
What next for pet care? ............................................................................................................ 3
MARKET INDICATORS ............................................................................................................... 3
Table 1 Pet Populations 2016-2021 .......................................................................... 3
MARKET DATA ............................................................................................................................ 4
Table 2 Sales of Pet Food by Category: Volume 2016-2021 .................................... 4
Table 3 Sales of Pet Care by Category: Value 2016-2021 ........................................ 4
Table 4 Sales of Pet Food by Category: % Volume Growth 2016-2021 .................... 4
Table 5 Sales of Pet Care by Category: % Value Growth 2016-2021 ....................... 4
Table 6 NBO Company Shares of Pet Food: % Value 2016-2020 ............................ 5
Table 7 LBN Brand Shares of Pet Food: % Value 2017-2020................................... 5
Table 8 NBO Company Shares of Dog and Cat Food: % Value 2016-2020 ............. 6
Table 9 LBN Brand Shares of Dog and Cat Food: % Value 2017-2020 .................... 6
Table 10 Distribution of Pet Care by Format: % Value 2016-2021 .............................. 7
Table 11 Distribution of Pet Care by Format and Category: % Value 2021 ................ 8
Table 12 Distribution of Dog and Cat Food by Format: % Value 2016-2021 ............... 9
Table 13 Distribution of Dog and Cat Food by Format and Category: % Value
2021 ........................................................................................................... 10
Table 14 Forecast Sales of Pet Food by Category: Volume 2021-2026 ................... 10
Table 15 Forecast Sales of Pet Care by Category: Value 2021-2026 ....................... 11
Table 16 Forecast Sales of Pet Food by Category: % Volume Growth 2021-
2026 ........................................................................................................... 11
Table 17 Forecast Sales of Pet Care by Category: % Value Growth 2021-2026 ...... 11
GLOBAL MACROECONOMIC ENVIRONMENT ........................................................................ 11
GLOBAL INDUSTRY ENVIRONMENT ...................................................................................... 12
DISCLAIMER ............................................................................................................................. 12
SOURCES.................................................................................................................................. 13
Summary 1 Research Sources ...................................................................................... 13
Cat Food in Vietnam - Category Analysis ................................................................................... 15
KEY DATA FINDINGS................................................................................................................ 15
2021 IMPACT ............................................................................................................................. 15
Dynamic although slower growth continues, from A low base ................................................ 15
Online marketing and in-store activation are preferred by players during COVID-19 ............. 16
Main players are expected to be more proactive in 2021 ....................................................... 16
RECOVERY AND OPPORTUNITIES ........................................................................................ 16
Dynamic growth due to rising cat ownership and improving incomes ..................................... 16
Dry cat food set to maintain strong growth as more owners feed prepared food .................... 17
Players will continue to invest in online marketing and boosting e-commerce........................ 17
CATEGORY INDICATORS ........................................................................................................ 17
Table 18 Cat Owning Households: % Analysis 2016-2021 ....................................... 17
© Euromonitor International
PET CARE IN VIETNAM Passport ii
Table 19 Cat Population 2016-2021.......................................................................... 18

Table 20 Consumption of Cat Food by Prepared vs Non-prepared: % Analysis
2016-2021 .................................................................................................. 18
CATEGORY DATA ..................................................................................................................... 18
Summary 2 Cat Food by Price Band 2021 .................................................................... 18
Table 21 Sales of Cat Food by Category: Volume 2016-2021 .................................. 18
Table 22 Sales of Cat Food by Category: Value 2016-2021 ..................................... 19
Table 23 Sales of Cat Food by Category: % Volume Growth 2016-2021 ................. 19
Table 24 Sales of Cat Food by Category: % Value Growth 2016-2021 .................... 19
Table 25 Sales of Dry Cat Food by Life-Cycle: % Value 2016-2021 ......................... 20
Table 26 Sales of Wet Cat Food by Life-Cycle: % Value 2016-2021 ........................ 20
Table 27 NBO Company Shares of Cat Food: % Value 2016-2020 .......................... 20
Table 28 LBN Brand Shares of Cat Food: % Value 2017-2020 ................................ 21
Table 29 Distribution of Cat Food by Format: % Value 2016-2021 ........................... 21
Table 30 Forecast Sales of Cat Food by Category: Volume 2021-2026 ................... 22
Table 31 Forecast Sales of Cat Food by Category: Value 2021-2026 ...................... 22
Table 32 Forecast Sales of Cat Food by Category: % Volume Growth 2021-
2026 ........................................................................................................... 23
Table 33 Forecast Sales of Cat Food by Category: % Value Growth 2021-2026...... 23
Dog Food in Vietnam - Category Analysis .................................................................................. 24
2021 IMPACT ............................................................................................................................. 24
Lower incomes due to COVID-19 lead to slightly slower growth rates.................................... 24
However, dynamic growth continues as the dog population rises .......................................... 24
Leader maintains its dominance, and switch to e-commerce seen ......................................... 25
Rising rates of growth throughout the forecast period ............................................................ 25
Mid-priced dog food set to continue to drive growth ............................................................... 26
Traditional channels will remain key despite growth of e-commerce ...................................... 26
Table 34 Dog Owning Households: % Analysis 2016-2021 ...................................... 26
Table 35 Dog Population 2016-2021......................................................................... 27
Table 36 Consumption of Dog Food by Prepared vs Non-prepared: % Analysis
2016-2021 .................................................................................................. 27
CATEGORY DATA ..................................................................................................................... 27
Summary 3 Dog Food by Price Band 2021 ................................................................... 27
Table 37 Sales of Dog Food by Category: Volume 2016-2021 ................................. 27
Table 38 Sales of Dog Food by Category: Value 2016-2021 .................................... 28
Table 39 Sales of Dog Food by Category: % Volume Growth 2016-2021 ................ 28
Table 40 Sales of Dog Food by Category: % Value Growth 2016-2021 ................... 28
Table 41 Sales of Dry Dog Food by Life-Cycle: % Value 2016-2021 ........................ 29
Table 42 Sales of Wet Dog Food by Life-Cycle: % Value 2016-2021 ....................... 29
Table 43 NBO Company Shares of Dog Food: % Value 2016-2020 ......................... 29
Table 44 LBN Brand Shares of Dog Food: % Value 2017-2020 ............................... 30
Table 45 LBN Brand Shares of Dog Treats and Mixers: % Value 2017-2020 ........... 30
Table 46 Distribution of Dog Food by Format: % Value 2016-2021 .......................... 30
Table 47 Forecast Sales of Dog Food by Category: Volume 2021-2026 .................. 31
Table 48 Forecast Sales of Dog Food by Category: Value 2021-2026 ..................... 32
PET CARE IN VIETNAM Passport iii
Table 49 Forecast Sales of Dog Food by Category: % Volume Growth 2021-

2026 ........................................................................................................... 32
Table 50 Forecast Sales of Dog Food by Category: % Value Growth 2021-2026..... 32
Other Pet Food in Vietnam - Category Analysis ......................................................................... 34
2021 IMPACT ............................................................................................................................. 34
COVID-19 has A negative impact as consumers cut costs where possible ............................ 34
Limited distribution and marketing activities in other pet food ................................................. 34
Other pet food remains fragmented ........................................................................................ 35
Growth set to be driven by economic recovery and growing population of other pets ............ 35
Fish food expected to see the best growth in other pet food .................................................. 36
Traditional pet shops set to remain the leading distribution channel....................................... 36
Table 51 Other Pet Population 2016-2021 ................................................................ 36
CATEGORY DATA ..................................................................................................................... 36
Table 52 Sales of Other Pet Food by Category: Volume 2016-2021 ........................ 36
Table 53 Sales of Other Pet Food by Category: Value 2016-2021 ........................... 37
Table 54 Sales of Other Pet Food by Category: % Volume Growth 2016-2021 ........ 37
Table 55 Sales of Other Pet Food by Category: % Value Growth 2016-2021 ........... 37
Table 56 LBN Brand Shares of Bird Food: % Value 2017-2020................................ 37
Table 57 LBN Brand Shares of Fish Food: % Value 2017-2020 ............................... 38
Table 58 Distribution of Other Pet Food by Format: % Value 2016-2021 ................. 38
Table 59 Forecast Sales of Other Pet Food by Category: Volume 2021-2026 ......... 39
Table 60 Forecast Sales of Other Pet Food by Category: Value 2021-2026 ............ 39
Table 61 Forecast Sales of Other Pet Food by Category: % Volume Growth
2021-2026 .................................................................................................. 39
Table 62 Forecast Sales of Other Pet Food by Category: % Value Growth
2021-2026 .................................................................................................. 40
Pet Products in Vietnam - Category Analysis ............................................................................. 41
2021 IMPACT ............................................................................................................................. 41
Slight negative impact from COVID-19, but this is short-lived ................................................ 41
Limited marketing activities in pet products ............................................................................ 41
Distribution of brands is locally discrete .................................................................................. 42
Dynamic growth expected due to rising pet population and economic recovery ..................... 42
Pet healthcare expected to maintain strong growth due to desire for pets’ wellbeing ............. 43
Distribution to play an important role in category development in 2022 and beyond .............. 43
CATEGORY DATA ..................................................................................................................... 43
Table 63 Sales of Pet Products by Category: Value 2016-2021 ............................... 43
Table 64 Sales of Pet Products by Category: % Value Growth 2016-2021............... 43
Table 65 Sales of Pet Healthcare by Type: % Value 2016-2021............................... 44
Table 66 Sales of Other Pet Products by Type: % Value 2016-2021 ........................ 44
Table 67 NBO Company Shares of Pet Products: % Value 2016-2020 .................... 44
Table 68 LBN Brand Shares of Pet Products: % Value 2017-2020........................... 44
Table 69 Distribution of Pet Products by Format: % Value 2016-2021 ..................... 45
Table 70 Forecast Sales of Pet Products by Category: Value 2021-2026 ................ 46
PET CARE IN VIETNAM Passport iv
Table 71 Forecast Sales of Pet Products by Category: % Value Growth 2021-

2026 ........................................................................................................... 46
PET CARE IN VIETNAM Passport 1
PET CARE IN VIETNAM - INDUSTRY

OVERVIEW
EXECUTIVE SUMMARY
COVID-19 impact on pet care

The impact of COVID-19 on pet care in Vietnam has been less serious than in many other
countries globally. This is thanks to strong control of the virus due to prompt actions by the
government, which helped maintain double-digit growth in both retail volume and current value
terms in 2020, and this is set to continue in 2021. At the beginning of 2020, people were
frightened and stocked up on food and essentials, but after that the situation calmed down, even
though several resurgences of the virus have been seen. All stores selling necessities, including
pet food, have been allowed to remain open throughout any lockdowns, and this has helped to
maintain growth. However, one of the main factors hampering sales has been falling disposable
incomes due to rising unemployment and salary cuts as a result of the pandemic. Therefore,
spending on pet care has not been as high as previous expectations, because such products
are not considered essential by most Vietnamese people, with the number of consumers who
use prepared food remaining low, as scraps from the table tend to be fed instead.
The growth rates of dog and cat food have been less negatively impacted than other pet food.
Demand for such products has remained higher as the community of dog and cat owners is
bigger and more stable than for other pet food. In addition, whilst many people still regard cats
and dogs solely for rodent control or as guard animals, a new generation of consumers is
emerging who regard pet cats and dogs primarily as companion animals. As such, the role that
dogs and cats play in Vietnamese society is changing, and pet owners are increasingly willing to
spend on their pets to keep them healthy and happy. The cat population has also seen
particularly strong growth in 2020 and 2021, which has contributed to growth. However, cat food
has lower sales than dog food, due to the lower percentage of households owning a cat, the
lower overall population of cats, the lower percentage of people feeding prepared food and the
smaller appetites of cats than dogs.
COVID-19 country impact

Vietnam was one of the first Asian countries to successfully contain the spread of COVID-19,
resulting in very few cases in the early stages of the pandemic. Vietnam suspended all flights
from mainland China on 1 February, followed by all international flights from 25 March. Social
isolation guidelines were introduced from 1-22 April 2020. During this period, grocery retailers
remained open, whilst many other stores were shut. In addition, social distancing of two-metres
was strictly imposed in all grocery retailers. Social isolation guidelines in Hanoi and Ho Chi Minh
City were subsequently lifted, although restaurants still had to comply with strict guidelines from
local authorities. Schools and businesses reopened from 4 May, but non-essential services such
as bars and karaoke parlours remained closed. The authorities in Ho Chi Minh City also
permitted sports centres and indoor sports activities, allowing gyms to reopen. In addition, the
limit on public gatherings was increased to 30 people, from a previous limit of 20. Vietnam
gradually opened up business activities, although restrictions on international travel remain in
place until further notice, with anyone entering the country having to quarantine for 14 days.
However, restrictions have had to be re-imposed in some high-risk areas. For instance, at the
end of July, Da Nang saw a resurgence of the virus, leading to a 15-day quarantine of the city
and the evacuation of 80,000 people. A few days later, the neighbouring city of Hoi An was also
quarantined. All activities, including the opening of bars and clubs, resumed in Da Nang on 25
September after it was believed to have controlled the outbreak of COVID-19. However, Hanoi
City authorities temporarily closed some bars and karaoke outlets for failing to comply with anti-
COVID-19 measures such as wearing face masks and having public gatherings. All passenger
transport services, including planes, buses and trains to and from Da Nang resumed operations
from early September. However, passengers have to follow health measures, including wearing
face masks and declaring their health status. The authorities eased social distancing measures
in Da Nang, including the reopening of shops and restaurants, although only for takeaways. In
addition, gatherings of more than 20 people remain banned, while non-essential businesses
such as beauty salons, karaoke, movie theatres and gyms remain closed.
On 9 February 2021, Ho Chi Minh City authorities announced the closure of all non-essential
businesses and entertainment activities such as bars, beauty salons, gyms, karaoke parlours,
night clubs, massage parlours, and cinemas until further notice in response to the city recording
more than 25 cases in a single day. In addition, religious gatherings were limited to 20 people.
However, petrol stations, retail stores, pharmacies and medical facilities remained open, but
with strict preventive measures. The government’s strict COVID-19 measures had kept cases to
less than 3,000 and deaths to only 35 by April 2021, making it one of the countries globally least
impacted by the virus. Vaccination has also started to be rolled out in the first quarter of the
year, although this is progressing only slowly.
Company response
Perfect Companion (Vietnam) continued to lead pet care in value terms in 2020, followed by
Mars and Guyomarc'h Vietnam. Together, these players accounted for approaching two thirds of
value sales in this year, and were the only players to hold double-digit value shares. This is
unsurprising, given these players are also the strong leaders in both dog food and cat food,
which are the largest pet care categories. In 2020, the leaders continued to see strong sales
growth (although Mars lost share), because of the intrinsic growth momentum of the pet care
industry, even though the pandemic hampered the rate of increase. It is hard to assess which
players performed particularly well in 2020, because the industry in Vietnam is not very
established, and more brands are constantly entering the market and helping overall sales to
grow. Brands such as Royal Canin, SmartHeart, CP, Me-O, Pedigree and Ganador are still
amongst the leaders, but they are facing increasingly tough competition from other smaller
brands. Indeed, the share of the smallest players, included under “others” increased in 2020,
reaching nearly a quarter of sales.
Due to restrictions on public gatherings and the implementation of social distancing due to
COVID-19, the leading players did not run outdoor activities such as exhibitions or pet events in
2020, but spent more time and effort on online marketing, e-commerce and distribution. For
example, Royal Canin used to organise many pet events at various times during the year, such
as Cat Day in November 2019 and Pet Weekend in April 2019, but it did not run any similar
activities in 2020. In 2021, the main players are expected to maintain their strategy from 2020
and prepare to quickly respond to any changes brought about by COVID-19.
Retailing shift
Despite the fact that stores selling pet care products have been able to open as usual during
the COVID-19 pandemic, changes in the distribution landscape have been seen. E-commerce
has been growing rapidly in Vietnam, including for pet care products, as some consumers have
been reluctant to visit public areas such as store-based retailers, and risk contact with people
who may be infected with the virus. As a result, store visits have been much lower during the
peak periods of infection during of the pandemic in Vietnam, leading to growth in e-commerce.
However, this channel has also maintained growth outside of these periods, as more consumers
appreciate its convenience, wide product range, comprehensive information and ability to
search for the lowest prices online; although delivery costs and product quality remain obstacles
to e-commerce in the country. Despite seeing a strong increase, the contribution of e-commerce
to total sales of pet care products remains low. The use of this distribution channel is only
common amongst consumers in big cities such as Hanoi, Ho Chi Minh City and Danang. In
addition, offline retailers keep improving, aiming to offer more convenience, whilst players are
working hard to expand their distribution reach to offer a wider choice to consumers.
It was pet shops which held for the highest share of distribution in pet care in 2020, and this is
expected to continue in 2021, accounting for three quarters of value sales. Many of these are
traditional local shops which are accessible to consumers, and have the widest product range of
all store-based retailers. Indeed, some products, such as other pet food, are only really available
via small independent pet shops. Consumers can also get the advice they need in pet shops, in
terms of both what food to purchase and pet care advice. Modern grocery retailers is the
second-largest channel for sales of pet care products, with consumers valuing the convenience
of being able to purchase such products along with their groceries.
What next for pet care?

After a slowdown in the rates of retail volume and current value growth in 2020, 2021 is set to
see an improvement, and this trend is expected to continue throughout the forecast period, with
rising rates of growth forecast. All categories are forecast to see growth, with cat food and dog
food set to perform particularly well. In 2022 and beyond, both industry players and pet owners
are likely to be well-prepared for any more developments related to COVID-19 and proactively
face any new situations in the future. People are also likely to take the time to prepare more
carefully for their future. In addition, the rollout of a vaccination programme in the country, which
has already started, is expected to reduce the impact of the pandemic in the coming years.
As the impact of COVID-19 passes, the country’s economy is expected to gradually recover,
which will lead more consumers to spend on their pets. In addition, although many older
consumers still regard these animals as inherently unclean and untameable, and therefore
unsuitable for human companionship, the keeping of dogs and cats as pets will increasingly be
viewed far more favourably amongst younger generations, and pets will become considered as
friends and members of the household. This will not only contribute to continued growth in the
pet population, but will also accelerate the pet humanisation trend, which is only just emerging in
the country. This is likely to lead to the increasing use of packaged prepared pet food instead of
feeding scraps, and some upgrading to premium products is likely amongst those that already
feed mid-priced pet food. Meanwhile, more pet owners will also spend on non-necessities such
as treats and pet products to maintain their pets’ happiness and wellbeing.
MARKET INDICATORS
Table 1 Pet Populations 2016-2021
'000s of animals
2016 2017 2018 2019 2020 2021
Bird Population 1,574.0 1,621.0 1,668.0 1,709.7 1,745.6 1,772.0

Cat Population 3,651.0 3,870.0 4,106.1 4,373.0 4,670.3 5,021.0
Dog Population 4,847.0 5,022.0 5,241.0 5,485.0 5,751.0 6,071.0
Fish Population 10,916.0 11,516.0 12,207.0 13,000.4 13,910.4 14,939.8
Reptile Population - - - - - -
Small Mammal Population - - - - - -
Pet Population 20,988.0 22,029.0 23,222.0 24,568.1 26,077.4 27,803.8
Source: Euromonitor International from official statistics
MARKET DATA
Table 2 Sales of Pet Food by Category: Volume 2016-2021
Tonnes
2016 2017 2018 2019 2020 2021
Dog and Cat Food 6,459.7 7,357.4 8,636.2 10,354.2 11,575.3 13,130.4
Other Pet Food 739.0 782.4 826.2 867.5 854.8 873.1
Pet Food 7,198.7 8,139.8 9,462.4 11,221.6 12,430.1 14,003.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 3 Sales of Pet Care by Category: Value 2016-2021
VND billion
2016 2017 2018 2019 2020 2021
Dog and Cat Food 590.8 695.1 833.2 1,024.7 1,169.3 1,350.1
Other Pet Food 58.7 64.8 71.4 78.3 81.1 85.3
Pet Food 649.5 759.9 904.7 1,103.0 1,250.4 1,435.4
Cat Litter 4.4 5.2 5.8 6.5 7.2 8.1
Pet Healthcare 29.2 33.0 36.9 41.1 44.8 49.5
Other Pet Products 128.2 145.5 161.5 178.5 196.4 219.9
Pet Products 161.9 183.7 204.3 226.1 248.4 277.5
Pet Care 811.3 943.6 1,109.0 1,329.2 1,498.7 1,712.8
Table 4 Sales of Pet Food by Category: % Volume Growth 2016-2021
% volume growth
2020/21 2016-21 CAGR 2016/21 Total
Dog and Cat Food 13.4 15.2 103.3

Other Pet Food 2.1 3.4 18.1
Pet Food 12.7 14.2 94.5
Table 5 Sales of Pet Care by Category: % Value Growth 2016-2021
% current value growth

2020/21 2016-21 CAGR 2016/21 Total

Pet Food 14.8 17.2 121.0
Cat Litter 11.5 12.7 81.7
Pet Healthcare 10.5 11.1 69.5
Other Pet Products 12.0 11.4 71.5
Pet Products 11.7 11.4 71.4
Pet Care 14.3 16.1 111.1
Table 6 NBO Company Shares of Pet Food: % Value 2016-2020
% retail value rsp

Company 2016 2017 2018 2019 2020
Perfect Companion 42.0 40.6 39.9 40.1 40.7

(Vietnam) Co Ltd
Mars Inc 28.5 27.0 25.0 22.5 21.5
Guyomarc'h Vietnam Co Ltd - - - 14.0 14.5
See-All Aquariums Co Ltd 1.2 1.8 1.9 1.8 1.6
Daejoo Co Ltd 1.0 1.2 1.4 1.5 1.6
Kodo Inc 1.4 1.4 1.4 1.4 1.4
CTCBIO Vietnam Co Ltd 0.9 1.0 1.2 1.2 1.2
Grobest & I-mei 2.1 1.6 1.4 1.3 1.2
Industrial (Vietnam) Co
Ltd
Vuong Viet Anh Co Ltd 1.3 1.2 1.1 1.0 0.8
Natural Core Co Ltd 0.6 0.9 0.9 0.8 0.8
Bavi Co Ltd 0.6 0.6 0.5 0.5 0.4
Bowwow Korea Co Ltd - - - 0.3 0.3
Tai Kong Corp 0.4 0.3 0.3 0.2 0.1
Neovia Vietnam Co Ltd 7.1 9.7 12.0 - -
ARC Co Ltd 0.4 - - - -
Texas Farm Products Co - - - - -
Inc
Natural Pet Co Ltd - - - - -
Others 12.4 12.7 13.1 13.5 13.9
Total 100.0 100.0 100.0 100.0 100.0
Table 7 LBN Brand Shares of Pet Food: % Value 2017-2020
% retail value rsp

Brand (GBO) Company (NBO) 2017 2018 2019 2020
SmartHeart (Charoen Perfect Companion 14.4 14.5 15.4 16.3

Pokphand Group) (Vietnam) Co Ltd
CP (Charoen Perfect Companion 16.8 15.9 14.5 14.2
Me-O (Charoen Perfect Companion 9.4 9.5 10.2 10.1
Pedigree Mars Inc 10.7 9.9 8.8 8.4
Ganador (Archer Guyomarc'h Vietnam Co Ltd - - 7.3 8.0
Daniels Midland Co)
Royal Canin Mars Inc 8.8 8.4 7.9 7.7
Minino (Archer Guyomarc'h Vietnam Co Ltd - - 6.7 6.5
Daniels Midland Co)

Whiskas Mars Inc 7.4 6.7 5.8 5.4
Sakura See-All Aquariums Co Ltd 1.8 1.9 1.8 1.6
Catsrang Daejoo Co Ltd 1.2 1.4 1.5 1.6
ANF (Wooriwa Co Ltd) Kodo Inc - - 1.4 1.4
Cat's Eye (CTCBIO CTCBIO Vietnam Co Ltd 1.0 1.2 1.2 1.2
Inc)
KaoKui (Grobest Grobest & I-mei 1.6 1.4 1.3 1.2
Group) Industrial (Vietnam) Co
Ltd
Vuong Viet Anh Cam Vuong Viet Anh Co Ltd 1.2 1.1 1.0 0.8
Trung
Natural Core Natural Core Co Ltd 0.9 0.9 0.8 0.8
Feed for Bird Bavi Co Ltd 0.6 0.5 0.5 0.4
Zenith Bowwow Korea Co Ltd - - 0.3 0.3
Azoo Tai Kong Corp 0.3 0.3 0.2 0.1
Ganador (Neovia) Neovia Vietnam Co Ltd 4.9 6.2 - -
Minino (Neovia) Neovia Vietnam Co Ltd - 5.8 - -
ANF Kodo Inc 1.4 1.4 - -
Blisk (Neovia) Neovia Vietnam Co Ltd 4.8 - - -
ARC Food ARC Co Ltd - - - -
Natural Core Natural Pet Co Ltd - - - -
Blisk (InVivo Group) Neovia Vietnam Co Ltd - - - -
Ganador (InVivo Neovia Vietnam Co Ltd - - - -
Group)
ANF Texas Farm Products Co Inc - - - -
Others Others 12.7 13.1 13.5 13.9
Total Total 100.0 100.0 100.0 100.0
Table 8 NBO Company Shares of Dog and Cat Food: % Value 2016-2020
% retail value rsp

Company 2016 2017 2018 2019 2020

(Vietnam) Co Ltd
Mars Inc 31.3 29.5 27.1 24.2 23.0
Daejoo Co Ltd 1.1 1.4 1.5 1.7 1.7
Kodo Inc 1.5 1.5 1.5 1.5 1.5
Jiangxi Welton Pet 0.1 0.1 0.0 0.0 0.0
Products Co Ltd
Inc
Others 10.3 10.6 11.3 11.8 12.3
Total 100.0 100.0 100.0 100.0 100.0
Table 9 LBN Brand Shares of Dog and Cat Food: % Value 2017-2020
% retail value rsp


Daniels Midland Co)
Daniels Midland Co)
Whiskas Mars Inc 8.1 7.2 6.3 5.8
Inc)
Vegebrand Jiangxi Welton Pet 0.1 0.0 0.0 0.0
Products Co Ltd
Group)
Others Others 10.6 11.3 11.8 12.3
Total Total 100.0 100.0 100.0 100.0
Table 10 Distribution of Pet Care by Format: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021
Store-Based Retailing 88.5 89.1 89.5 89.7 89.6 89.6

- Grocery Retailers 14.6 14.2 14.0 14.4 14.5 14.6
-- Modern Grocery 13.2 12.8 12.6 12.8 13.2 13.5
Retailers
--- Convenience Stores - - - - - -
--- Discounters - - - - - -
--- Forecourt Retailers - - - - - -
--- Hypermarkets 4.1 4.1 4.0 4.1 4.3 4.5
--- Supermarkets 9.0 8.7 8.6 8.7 8.8 9.1
-- Traditional Grocery 1.5 1.4 1.3 1.6 1.3 1.1
Retailers
- Mixed Retailers - - - - - -
-- Department Stores - - - - - -
-- Mass Merchandisers - - - - - -
-- Variety Stores - - - - - -
-- Warehouse Clubs - - - - - -
- Non-Grocery Specialists 73.8 74.9 75.5 75.3 75.1 75.0
-- Pet superstores - - - - - -
-- Pet shops 73.8 74.9 75.5 75.3 75.1 75.0
-- Health and Beauty - - - - - -
Specialist Retailers
--- Beauty Specialist - - - - - -
Retailers
--- Chemists/Pharmacies - - - - - -
--- Drugstores/ - - - - - -
parapharmacies
--- Other Health and - - - - - -
Beauty Retailers
-- Home and Garden - - - - - -
--- Home Improvement - - - - - -
and Gardening Stores
--- Homewares and Home - - - - - -
Furnishing Stores
-- Other Non-Grocery - - - - - -
Specialists
Non-Store Retailing 2.0 2.1 2.2 2.4 2.9 3.4
- Direct Selling - - - - - -
- Homeshopping - - - - - -
- E-Commerce 2.0 2.1 2.2 2.4 2.9 3.4
Non-retail channels 9.6 8.8 8.2 7.9 7.4 7.0
- Veterinary clinics 9.6 8.8 8.2 7.9 7.4 7.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 11 Distribution of Pet Care by Format and Category: % Value 2021
% retail value rsp

PF PP
Store-Based Retailing 89.4 90.5

- Grocery Retailers 16.2 6.5
-- Modern Grocery Retailers 14.9 6.5
--- Convenience Stores 0.0 0.0
--- Discounters 0.0 0.0
--- Forecourt Retailers 0.0 0.0
--- Hypermarkets 4.7 3.0
--- Supermarkets 10.1 3.5
-- Traditional Grocery Retailers 1.3 0.0
- Mixed Retailers 0.0 0.0
-- Department Stores 0.0 0.0
-- Mass Merchandisers 0.0 0.0
-- Variety Stores 0.0 0.0
-- Warehouse Clubs 0.0 0.0
- Non-Grocery Specialists 73.2 84.0
-- Pet superstores 0.0 0.0
-- Pet shops 73.2 84.0
-- Health and Beauty Specialist Retailers 0.0 0.0
--- Beauty Specialist Retailers 0.0 0.0
--- Chemists/Pharmacies 0.0 0.0
--- Drugstores/parapharmacies 0.0 0.0
--- Other Health and Beauty Retailers 0.0 0.0
-- Home and Garden Specialist Retailers 0.0 0.0
--- Home Improvement and Gardening Stores 0.0 0.0

--- Homewares and Home Furnishing Stores 0.0 0.0
-- Other Non-Grocery Specialists 0.0 0.0
Non-Store Retailing 3.5 2.7
- Direct Selling 0.0 0.0
- Homeshopping 0.0 0.0
- E-Commerce 3.5 2.7
Non-retail channels 7.1 6.8
- Veterinary clinics 7.1 6.8
Total 100.0 100.0
Key: PF = pet food; PP = pet products
Table 12 Distribution of Dog and Cat Food by Format: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021

-- Modern Grocery 15.7 15.2 14.9 14.9 15.1 15.3
Retailers
--- Hypermarkets 4.7 4.6 4.6 4.7 4.8 4.9
--- Supermarkets 11.0 10.6 10.3 10.2 10.3 10.4
Retailers
-- Pet shops 70.3 71.9 72.9 72.9 72.8 72.8
Retailers
--- Drugstores/ - - - - - -
parapharmacies
Beauty Retailers
Furnishing Stores
Specialists
- E-Commerce 2.3 2.4 2.5 2.7 3.1 3.5

Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 13 Distribution of Dog and Cat Food by Format and Category: % Value 2021
% retail value rsp

CF DF
Store-Based Retailing 88.9 89.2

- Grocery Retailers 17.6 15.4
-- Modern Grocery Retailers 16.3 14.7
--- Convenience Stores 0.0 0.0
--- Discounters 0.0 0.0
--- Forecourt Retailers 0.0 0.0
--- Hypermarkets 4.1 5.4
--- Supermarkets 12.2 9.3
-- Traditional Grocery Retailers 1.3 0.7
- Mixed Retailers 0.0 0.0
-- Department Stores 0.0 0.0
-- Mass Merchandisers 0.0 0.0
-- Variety Stores 0.0 0.0
-- Warehouse Clubs 0.0 0.0
- Non-Grocery Specialists 71.3 73.7
-- Pet superstores 0.0 0.0
-- Pet shops 71.3 73.7
-- Health and Beauty Specialist Retailers 0.0 0.0
--- Beauty Specialist Retailers 0.0 0.0
--- Chemists/Pharmacies 0.0 0.0
--- Drugstores/parapharmacies 0.0 0.0
--- Other Health and Beauty Retailers 0.0 0.0
-- Home and Garden Specialist Retailers 0.0 0.0
--- Home Improvement and Gardening Stores 0.0 0.0
--- Homewares and Home Furnishing Stores 0.0 0.0
-- Other Non-Grocery Specialists 0.0 0.0
Non-Store Retailing 3.6 3.4
- Direct Selling 0.0 0.0
- Homeshopping 0.0 0.0
- E-Commerce 3.6 3.4
Non-retail channels 7.4 7.4
- Veterinary clinics 7.4 7.4
Total 100.0 100.0
Key: CF = cat food; DF = dog food
Table 14 Forecast Sales of Pet Food by Category: Volume 2021-2026
Tonnes
2021 2022 2023 2024 2025 2026
Dog and Cat Food 13,130.4 15,069.1 17,531.5 20,624.5 24,535.2 29,516.5
Other Pet Food 873.1 898.0 930.1 970.3 1,019.4 1,079.0
Pet Food 14,003.5 15,967.1 18,461.6 21,594.7 25,554.7 30,595.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 15 Forecast Sales of Pet Care by Category: Value 2021-2026
VND billion
2021 2022 2023 2024 2025 2026
Dog and Cat Food 1,350.1 1,531.6 1,762.8 2,052.2 2,416.6 2,878.3
Other Pet Food 85.3 88.0 91.7 96.4 102.4 109.8
Pet Food 1,435.4 1,619.6 1,854.5 2,148.6 2,519.0 2,988.1
Cat Litter 8.1 8.8 9.7 10.7 12.0 13.6
Pet Healthcare 49.5 53.4 58.2 64.1 71.1 79.7
Pet Products 277.5 301.9 330.4 363.5 403.6 452.2
Pet Care 1,712.8 1,921.6 2,184.9 2,512.2 2,922.6 3,440.3
trade sources
Table 16 Forecast Sales of Pet Food by Category: % Volume Growth 2021-2026
% volume growth
2021/22 2021-26 CAGR 2021/26 Total

Pet Food 14.0 16.9 118.5
trade sources
Table 17 Forecast Sales of Pet Care by Category: % Value Growth 2021-2026
% constant value growth

2021/2022 2021-26 CAGR 2021/26 Total

Pet Food 12.8 15.8 108.2
Cat Litter 9.0 11.0 68.4
Pet Care 12.2 15.0 100.9
trade sources
GLOBAL MACROECONOMIC ENVIRONMENT
▪ The COVID-19 pandemic has forced governments to quarantine entire countries, disrupted
global supply chains, slashed business and consumer confidence and affected financial
markets. The effects on the global economy have quickly been felt and are already
substantial, but the exact magnitude will depend on the length of COVID-19 restrictions.
▪ COVID-19 has severely impacted both the supply and demand sides of the economy. At the
same time, monetary policy tools are almost exhausted due to the slow recovery from the
Global Financial Crisis. Interest rates have not recovered, so central banks have to resort to
Quantitative Easing programmes (QEs), but QEs have limited effect on labour markets,
consumer spending and other aspects of the real economy.
▪ Thus, countries have to turn to fiscal stimulus. However, the response to fiscal stimulus will be
limited too as long as people are quarantined in their homes. In the meantime, governments
are helping businesses and citizens by providing emergency loans to cover expenses and
lower the spillover effects through economies, but uncertainty surrounding the pandemic limits
economic activity.
GLOBAL INDUSTRY ENVIRONMENT
▪ With COVID-19 still spreading and social distancing measures still in place in many markets,
pandemic consumption routines should persist. Higher demand for pets amid more at-home
living should be met by breeders, leading to growth momentum in pet care sales.
▪ The premium end is holding its ground, aided by a strengthened humanisation trend and e-
commerce. Most major pet care manufacturers have had a positive year under the pandemic,
with core premium brands largely contributing to global pet care value growth. More time
spent at home has fostered pet bonding and strengthened the underlying humanisation trend,
leading pet owners to largely keep their product quality standards. E-commerce platforms
such as Zooplus and Chewy as well as subscription models have also enabled shoppers to
find better prices on premium brands.
▪ In markets such as China, South Korea and Australia where the spread of COVID-19 appears
under control, pet care sales have seen little impact from the virus. Meanwhile, the continued
spread of the virus in the Americas and persisting social distancing measures in the case of
Europe remain a major challenge for pet shops and veterinary clinics.
▪ Pet care sales growth should slow in 2021 following a stand-out year in 2020, with
unemployment putting a strain on the premium segment. The now realistic prospect of a
vaccine reinforces the probability of a return to pre-COVID-19 forecast growth rates from
2023.
DISCLAIMER
Forecast closing date: 12 April 2021
Report closing date: 27 April 2021
Analysis and data in this report give full consideration to the impact of COVID-19 on
consumer behaviour and market performance in 2020 and beyond. However, the situation
continues to develop rapidly, and the influence and severity of the pandemic are still evolving.
For the very latest insight on COVID-19 and its impact on industries and consumers, at both
global and national level, readers can access strategic analysis and updates
on www.euromonitor.com and via the Passport system, where new content is being added on a
systematic basis.
SOURCES
Sources used during the research included the following:
Summary 1 Research Sources

Official Sources Clinic of Animal Health
Customs Dept
Dept of Animal Health Vietnam
Hanoi Veterinary Dept
Institute of Hygiene & Epidemiology
Ministry of Agriculture
Trade Associations Vietnam Small Animal Veterinary Association

(VSAVA)
Trade Press An Ninh Thu Do
Bac Si Thu Y
Bao Ho Thuong Hieu
Bao Moi
Chocanhtrungthanh
Daily Info
Dat Viet News
Doanh Nhan Saigon Online
Fica News
Gia Dinh
Infonet News
Kien Thuc News
Kinh Te Do Thi
Lao Dong News
Massogroup
Nhan Dan
Nhip Cau Dau Tu News
Phap Luat
Phu Nu Vietnam
Rao Vat Xa Lo
Saigon Marketing
Saigon Times
Song Tre
Tai Chinh
Tien Phong News
Tiep Thi Gia Dinh
Tin Nhanh Chung Khoan
Tin Tuc
Tuoi Tre Online
Vat Gia
Vietbao
Vietnam Business Directory
Vietnamnet
VTC News
Zing News
Source: Euromonitor International
CAT FOOD IN VIETNAM - CATEGORY

ANALYSIS
KEY DATA FINDINGS
▪ Although growth rates in cat food are hampered by COVID-19 due to the economic impact of
the pandemic, the rates of increase remain dynamic
▪ Retail volume sales of cat food increase by 13% in 2021, to reach 4,264 tonnes, whilst current
value sales rise by 15% to VND505.2 billion
▪ Cat treats and mixers sees the strongest growth of 30% in current value terms in 2021, to
reach VND0.6 billion
▪ Cat food sees 2% growth in the average unit price in current terms in 2021, with growth
across all categories
▪ Perfect Companion (Vietnam) maintains its lead in cat food in 2020, holding a 29% value
share
▪ In the forecast period cat food is expected to see a current value CAGR of 22% (17% CAGR
at 2021 constant prices), and a volume CAGR of 19%
2021 IMPACT
Dynamic although slower growth continues, from A low base

Although cat food maintained dynamic retail volume and current value growth in 2020, which
is set to continue in 2021, the rates of growth have been hampered by the COVID-19 pandemic
in these years. Slower growth has been seen than in any other year of the review period,
although the rate of increase is expected to pick up slightly in 2021. The pandemic has
negatively impacted the incomes of some consumers. Prioritisation of spending has therefore
affected consumers’ habits, as people have tended to reduce their spending on their hobbies
and pets. Pet coffee shops are popular in the cities, where people can drink coffee whilst playing
with pets. However, consumers have been afraid to go out to meet up with friends due to
COVID-19, so these have faced difficulties maintaining their business. The number of cats at
these coffee shops has not increased, and spending on them has decreased.
However, the impact of COVID-19 has been lower in Vietnam than in many other countries
globally, and cat food still maintained double-digit growth in both retail volume and current value
terms in 2020, and this is set to continue in 2021. Opportunities for growth have been seen
despite the pandemic. The cat population saw stable growth over the review period, including
during COVID-19, whilst the percentage of households owning a cat has continued to rise. With
more communication about animal welfare, there is growing awareness of the benefits of
keeping cats as pets rather than consuming them as food. Affluent families living in first-tier
cities such as Ho Chi Minh City, Hanoi and Danang keep purebred cats as a way of showing
their elevated social and economic status. The owners of such cats generally want to feed them
with prepared cat food rather than table scraps, with premium brands often chosen. Although
remaining very low, the number of people using prepared cat food rather than left-over human
food is therefore increasing. In addition, the main players are making efforts to meet consumers’
demands, for instance Me-O launched new variants for Me-O mother and baby.
Dry cat food saw higher growth than wet cat food in 2020, and this is set to continue in 2021.
Consumer awareness of dry cat food is much higher, whilst overall value sales of dry cat food
are considerably higher than value sales of wet cat food. Although cat treats and mixers saw the
strongest growth in 2020, with this set to continue in 2021, this was from a very low base, and
whilst pet humanisation is starting to be seen in the country, it is in the very early stages.
Online marketing and in-store activation are preferred by players during

COVID-19
In cat food, only big brands tend to invest in above-the-line marketing activities, and
particularly in public activities. However, due to social distancing requirements and restrictions
on public gatherings during COVID-19, big brands such as Me-O and Royal Canin also
restricted their public events in 2020. In 2021, the COVID-19 situation is still complicated and
unpredictable, which is likely to mean the main players do not plan for big public events or
activities. People have been spending more time online, and this includes cat owners, who like
to share stories about their cats and their experiences of taking care of them with their peers.
Therefore, more online activations have been seen by players. This, along with fear of
contracting COVID-19, has also led to strong growth for e-commerce in 2020, which is set to
continue in 2021, although rising from a low base.
However, in-store activation is also essential for brands to win in retail, especially as the
category is growing rapidly and many brands have been launched, which can confuse
consumers. The most common means of in-store marketing include shelf displays and other
marketing materials, including posters, stands and leaflets, often in combination with
promotional discounts and free gifts with purchase. This will help pet shops to remain the
dominant distribution channel for cat food. In addition, pet shops tend to carry a wider cat food
assortment than most other retailers, and they also tend to offer these products under discounts
and promotions.
Main players are expected to be more proactive in 2021

Perfect Companion (Vietnam) continued to lead cat food in 2020 with its Me-O brand. The
company has made significant efforts to extend its distribution network. The success of this can
be seen in the fact that Me-O is now available in virtually every relevant retail outlet across all
important distribution channels, whilst the brand is obtaining positive feedback from both
customers and retailers. In addition, Me-O is positioned in the mid-priced segment, making it
affordable for large numbers of consumers and making it popular in pet superstores in urban
areas, as well as small pet shops in rural and suburban areas.
The development of the pandemic in Vietnam is still unpredictable, although with the rollout of
vaccines the situation is expected to improve. Although growth for many players has been lower
than their expectations before the pandemic, cat food still saw growth in 2020, which is a strong
background for them to maintain their business strategy despite the pandemic. The main
players in the category are therefore expected to be more proactive in 2021.
RECOVERY AND OPPORTUNITIES
Dynamic growth due to rising cat ownership and improving incomes

After a couple of years of slower growth due to COVID-19, cat food is expected to see rising
rates of retail volume and current value growth in 2022 and for the rest of the forecast period. In
2022 and beyond, the main players are expected to adapt to COVID-19 better than in
2020/2021, whilst positive news on the rollout of vaccines will make people and businesses
more optimistic. As the global economy starts to recover, consumers are also likely to become
more willing to spend on their cats. The cat population is also set to continue to rise, which will
continue to drive growth.
Cats have lived with people in Vietnam for many years. They are not just seen as pets, but
also as working animals, because they help people to protect their crops from rats. Cats and
dogs are the most popular pets in Vietnam, and cats tend to be easier and more convenient for
people in urban areas to take care of, and they are increasingly feeding packaged food. People
in rural areas mostly still feed their cats with left-over food, but more people in urban areas are
now getting used to packaged pet food and other pet care products. The existing community of
cat owners in Vietnam is stable, and they are expected to continue to keep cats in the future.
Meanwhile, despite life in big cities in Vietnam becoming busier, people can still feel lonely and
unhappy, and owning a cat may be considered for companionship.
Dry cat food set to maintain strong growth as more owners feed
prepared food
All categories within cat food are expected to see strong growth in the forecast period. Dry cat
food, especially mid-priced cat food, is set to see strong growth thanks to more new products
and more investment in creating demand from established brands such as Me-O or Royal
Canin. Most new entrants to cat food will also start by purchasing mid-priced dry cat food. The
move to prepared cat food is expected to continue as consumers become more aware of animal
welfare and the benefits to cats from feeding nutritionally balanced prepared cat food. Cat treats
and mixers is expected to see the fastest growth, although from a very low base, because more
people are aware of these products and more players have launched new products in this
category. Although seeing the slowest growth, wet food is likely to maintain a dynamic increase
thanks to continuing to witness new brands and variants, such as Me-O wet cat food. Rising
disposable incomes and the emergence of the pet humanisation trend are likely to support
further expansion in the range of premium cat food available in Vietnam, especially with the
rising number of people in urban areas owning pedigree cats.
Players will continue to invest in online marketing and boosting e-

commerce
Although e-commerce has been growing from a low base in cat food, it is expected to
continue to increase rapidly in the forecast period, due to the rising popularity of this distribution
channel for purchasing various fmcg, especially amongst consumers in urban areas. They value
the convenience of home delivery, and the ability to find a wider variety of products and search
for the best prices. Some people also tend to look for information on products online before
buying in stores, and brands therefore need to influence customers’ decisions at this stage.
Online channels are more effective for brands to target the right potential customers thanks to
data collection and analysis. In addition, unprecedented events such as COVID-19 have made
offline marketing activities harder to organise than before. Nevertheless, pet shops is expected
to continue to dominate in the forecast period, as many people like to see the products available
and be able to ask questions. In addition, not all consumers have access to e-commerce, mostly
those in urban areas, which will maintain the dominance of pet shops, with supermarkets and
veterinary clinics also expected to continue to account for notable shares of sales.
CATEGORY INDICATORS
Table 18 Cat Owning Households: % Analysis 2016-2021
2016 2017 2018 2019 2020 2021
% Households owning a 11.3 11.6 11.8 12.0 12.4 12.5

cat (% households)
Households owning a cat 2,911.7 3,031.4 3,127.5 3,224.4 3,369.5 3,435.8
('000 Households)
Table 19 Cat Population 2016-2021
'000s of animals
2016 2017 2018 2019 2020 2021
Cat Population 3,651.0 3,870.0 4,106.1 4,373.0 4,670.3 5,021.0

Table 20 Consumption of Cat Food by Prepared vs Non-prepared: % Analysis 2016-2021
% total consumption
2016 2017 2018 2019 2020 2021
Prepared cat food 0.3 0.3 0.3 0.3 0.5 0.6

Non-prepared cat food 99.8 99.7 99.7 99.7 99.5 99.4
trade sources
CATEGORY DATA
Summary 2 Cat Food by Price Band 2021
Wet cat food Premium Above VND175,000 Royal Canin, Natural
Core, Ciao
Mid-priced VND110,000-175,000 Whiskas, Me-O,

Morando
Economy Below VND110,000 No products available
Dry cat food Premium Above VND125,000 Royal Canin, Iskhan
Mid-priced VND80,000-125,000 Me-O, Whiskas,

Minino, Kitekat, Tony
Cat
Economy Below 80,000 No products available
Table 21 Sales of Cat Food by Category: Volume 2016-2021
Tonnes
2016 2017 2018 2019 2020 2021
Cat Treats and Mixers - 1.7 3.5 6.0 7.5 9.5

Dry Cat Food 1,770.7 2,075.9 2,546.0 3,219.7 3,571.8 4,031.5
- Economy Dry Cat Food - - - - - -
- Mid-Priced Dry Cat Food 1,647.1 1,927.1 2,370.4 3,010.3 3,341.5 3,775.9
- Premium Dry Cat Food 123.6 148.8 175.6 209.4 230.3 255.6
Wet Cat Food 156.0 167.5 179.7 192.7 206.2 222.7
- Economy Wet Cat Food - - - - - -
- Mid-Priced Wet Cat Food 156.0 167.5 179.7 192.7 206.2 222.7
- Premium Wet Cat Food - - - - - -
Cat Food 1,926.7 2,245.1 2,729.2 3,418.4 3,785.4 4,263.7
Table 22 Sales of Cat Food by Category: Value 2016-2021
VND billion
2016 2017 2018 2019 2020 2021
Cat Treats and Mixers - 0.1 0.2 0.4 0.5 0.6

Dry Cat Food 189.2 227.0 283.8 366.1 413.2 474.4
- Mid-Priced Dry Cat Food 163.1 195.1 245.5 320.0 361.6 415.8
Wet Cat Food 17.0 19.2 21.5 24.1 26.7 30.2
Cat Food 206.2 246.3 305.5 390.5 440.4 505.2
Table 23 Sales of Cat Food by Category: % Volume Growth 2016-2021
% volume growth
2020/21 2016-21 CAGR 2016/21 Total
Cat Treats and Mixers 27.0 - -

Dry Cat Food 12.9 17.9 127.7
- Economy Dry Cat Food - - -
- Mid-Priced Dry Cat Food 13.0 18.0 129.2
- Premium Dry Cat Food 11.0 15.6 106.8
Wet Cat Food 8.0 7.4 42.8
- Economy Wet Cat Food - - -
- Mid-Priced Wet Cat Food 8.0 7.4 42.8
- Premium Wet Cat Food - - -
Cat Food 12.6 17.2 121.3
Table 24 Sales of Cat Food by Category: % Value Growth 2016-2021

2020/21 2016-21 CAGR 2016/21 Total
Cat Treats and Mixers 30.0 - -

Dry Cat Food 14.8 20.2 150.7
Wet Cat Food 13.0 12.2 77.5
Cat Food 14.7 19.6 145.0
Table 25 Sales of Dry Cat Food by Life-Cycle: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021
Adult 88.8 88.6 88.4 88.0 87.5 87.0

Kitten/Pup 11.2 11.4 11.6 12.0 12.5 13.0
Senior - - - - - -
Other - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 26 Sales of Wet Cat Food by Life-Cycle: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021
Adult 87.7 87.6 87.5 87.3 86.6 86.1

Kitten/Pup 12.3 12.4 12.5 12.7 13.4 13.9
Senior - - - - - -
Other - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 27 NBO Company Shares of Cat Food: % Value 2016-2020
% retail value rsp

Company 2016 2017 2018 2019 2020

(Vietnam) Co Ltd
Mars Inc 36.1 33.0 28.9 24.4 23.1
Daejoo Co Ltd 3.1 3.8 4.2 4.4 4.5
Kodo Inc 0.3 0.5 0.7 0.8 0.9
Inc
Others 14.1 15.6 17.3 19.5 20.9

Total 100.0 100.0 100.0 100.0 100.0
Table 28 LBN Brand Shares of Cat Food: % Value 2017-2020
% retail value rsp


Daniels Midland Co)
Whiskas Mars Inc 22.9 19.7 16.4 15.3
Inc)
Others Others 15.6 17.3 19.5 20.9
Total Total 100.0 100.0 100.0 100.0
Table 29 Distribution of Cat Food by Format: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021

-- Modern Grocery 17.8 17.3 17.2 16.5 16.5 16.3
Retailers
--- Hypermarkets 4.3 4.2 4.2 4.0 4.0 4.1
--- Supermarkets 13.5 13.0 13.0 12.5 12.5 12.2
Retailers
-- Pet shops 69.6 70.3 70.5 70.6 70.8 71.3
Retailers
--- Drugstores/ - - - - - -
parapharmacies
Beauty Retailers
Furnishing Stores
Specialists
- E-Commerce 2.5 2.7 2.8 2.9 3.4 3.6
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 30 Forecast Sales of Cat Food by Category: Volume 2021-2026
Tonnes
2021 2022 2023 2024 2025 2026
Cat Treats and Mixers 9.5 12.1 15.7 20.4 26.7 35.2
Dry Cat Food 4,031.5 4,628.6 5,447.4 6,517.5 7,925.5 9,793.7
- Mid-Priced Dry Cat Food 3,775.9 4,342.3 5,123.9 6,148.6 7,501.3 9,301.7
Wet Cat Food 222.7 241.6 263.3 288.4 317.2 350.5
Cat Food 4,263.7 4,882.3 5,726.4 6,826.2 8,269.4 10,179.4
trade sources
Table 31 Forecast Sales of Cat Food by Category: Value 2021-2026
VND billion
2021 2022 2023 2024 2025 2026
Cat Treats and Mixers 0.6 0.7 1.0 1.3 1.7 2.3
Dry Cat Food 474.4 539.0 622.7 731.1 872.4 1,057.8
- Mid-Priced Dry Cat Food 415.8 474.1 549.9 648.9 778.7 950.0
Wet Cat Food 30.2 33.2 36.9 41.3 46.7 53.2
Cat Food 505.2 573.0 660.5 773.7 920.8 1,113.3
trade sources
Table 32 Forecast Sales of Cat Food by Category: % Volume Growth 2021-2026
% volume growth
2021/22 2021-26 CAGR 2021/26 Total
Cat Treats and Mixers 28.0 30.0 271.2

Dry Cat Food 14.8 19.4 142.9
Wet Cat Food 8.5 9.5 57.4
Cat Food 14.5 19.0 138.7
trade sources
Table 33 Forecast Sales of Cat Food by Category: % Value Growth 2021-2026

2021/2022 2021-26 CAGR 2021/26 Total
Cat Treats and Mixers 27.0 31.0 285.3

Dry Cat Food 13.6 17.4 123.0
Wet Cat Food 10.0 12.0 76.2
Cat Food 13.4 17.1 120.4
trade sources
DOG FOOD IN VIETNAM - CATEGORY

ANALYSIS
KEY DATA FINDINGS
▪ Although dog food maintains dynamic growth, the rates of increase slow in 2021 due to the
economic impact of COVID-19 and consumers’ focus on essentials
▪ Retail volume sales of dog food increase by 14% in 2021, to reach 8,867 tonnes, whilst
current value sales rise by 16% to VND844.9 billion
▪ Dry dog food sees the strongest growth of 16% in current value terms in 2021, to reach
VND793.9 billion
▪ Dog food sees 2% growth in the average unit price in current terms in 2021, with growth
across all categories
▪ Perfect Companion (Vietnam) maintains its dominance in dog food in 2020, holding a 53%
value share
▪ In the forecast period dog food is expected to see a current value CAGR of 20% (16% CAGR
at 2021 constant prices), and a volume CAGR of 17%
2021 IMPACT
Lower incomes due to COVID-19 lead to slightly slower growth rates

Dog food continued to see dynamic retail volume and current value growth rates in 2020, and
this is expected to continue in 2021. COVID-19 has had only a minor negative impact on the
growth rate of dog food, as the country has not been as badly impacted by the virus as others
globally, and has only seen intermittent restrictions as a result. However, growth in 2020 was
slightly slower than in previous years of the review period, which is set to continue in 2021. The
main reason for the slower increase is that some consumers’ disposable incomes have been
negatively impacted by COVID-19, which has led them to cut their spending on non-essential
products. Consumers have prioritised things such as food, education and health, whilst pets are
considered more as a hobby than a necessity in the lives of most Vietnamese people, and dogs
can be fed on scraps from the table rather than prepared food if necessary.
Meanwhile, many brand activations from the main market players to boost demand have been
cancelled or replaced by other types of activities, such as in-store promotions or online
activation. Thus, it has taken more time by brand owners to approach large audiences and
attract new users. Players have also tended to more cautious about investing more in new
brands or new channels in 2021, because the dog food category and the pandemic are still
uncertain and unpredictable.
However, dynamic growth continues as the dog population rises

Nevertheless, growth remained in the double-digits in 2020, and the rate of growth is set to
rise slightly in 2021. The dynamic increases seen by dog food throughout the review period
were partly due to rising disposable incomes, with this contributing to more people switching
from feeding non-prepared dog food to prepared dog food. With prepared dog food so easy to
obtain, more dog owners are making the switch to packaged, prepared dog food from table
scraps or home-made offerings. However, it should be noted that this trend has slowed during
the pandemic, as not as many consumers have been able to afford to switch, whilst the share of
households feeding prepared food remains very low.
Meanwhile, the dog population has also seen strong growth, which has led to rising sales of
dog food, as some of these new owners feed prepared food. Dogs have been popular for a long
time in Vietnam, both as pets and as working animals in families. Meanwhile, the continued rise
in the adoption of pets, including dogs, has also partly been due to the increasingly strong
movement to protect animals. New pet breeding laws passed through the Vietnamese
parliament in the review period, whilst campaigns from non-government organisations in
Vietnam have also been important, such as Four Paws. Campaigns from such organisations are
raising awareness that all animals, including dogs, should be respected and taken care of rather
than used as food. It is thought that more than five million dogs are still killed for consumption in
Vietnam every year, although this practice is being discouraged by government agencies.
Leader maintains its dominance, and switch to e-commerce seen

Perfect Companion (Vietnam) continued to dominate dog food in 2020 with its SmartHeart
and CP brands, which lead the largest category, mid-priced dry dog food. It should be noted that
there is only one brand with a presence in wet dog food, Pedigree from Mars, which would
suggest there is room for development by other players. Dog food is well distributed in Vietnam,
and the leading brands are all widely available through supermarkets and the small traditional
grocery stores that are ubiquitous in every residential neighbourhood throughout the country, as
well as pet shops.
Due to COVID-19, dog food players have invested more in online marketing and in-store
activation instead of events in public areas. Due to social distancing requirements and
restrictions on public gatherings implemented by the government, many events have been
forced to be cancelled or replaced by events held via online platforms. In any case, consumers
have also been reluctant to join in public events with many people, due to the risk of infection.
People have therefore spent more time at home online, including shopping online. This
contributed to strong growth in the share of sales of dog food via e-commerce in 2020, which is
expected to continue in 2021, although from a low base. E-commerce is also on the rise as it
offers consumers the convenience of home delivery, which is especially useful for large and
heavy pack sizes. This growth has mainly been at the expense of veterinary clinics and pet
shops.
Rising rates of growth throughout the forecast period

Dog food has seen only a minor impact from COVID-19 at the end of the review period, and is
set to return to higher rates of retail volume and current value growth from 2022. As the virus
comes under better control globally due to vaccination and as restrictions ease, the economy
will start to recover and consumers are likely to become more willing and able to spend on dog
food. Rising rates of retail volume and current value growth are therefore expected over the
course of the forecast period. Meanwhile, the continued rise in the dog population and the
increasing switch to prepared food will also contribute to growth. The wide availability of dog
food will make it more convenient to keep dogs as pets. This will create a virtuous cycle,
whereby the mere presence of dog food on retail shelves will encourage consumers to get a
dog, increasing demand and justifying the efforts of manufacturers and brand owners to widen
distribution.
As consumers’ disposable incomes rise, high-quality products are likely to receive more
attention from both players and pet owners. As pet humanisation is just starting to rise in the
country, more owners will care about their pets’ health, so they will want to help keep them
healthy, and will look to purchase products containing fresh and natural or organic ingredients.
This is likely to be seen mainly amongst pet owners in urban areas. To attract new consumers,
players will try to differentiate from their competitors and attract pet owners by introducing
higher-quality products.
Mid-priced dog food set to continue to drive growth

Nevertheless, nearly all sales of dog food are in the mid-priced segment, and this price
platform is set to continue to drive the growth of dog food in volume terms in the forecast period.
Products in this segment also occupy the largest space on shelves in stores. Mid-priced
products are affordable by customers, especially people who want to switch from feeding non-
prepared food such as scraps to packaged dog food, since no economy brands are available.
This price segment is populated with established major players such as Perfect Companion
(Vietnam), Guyomarc'h Vietnam and Mars, which set market trends, maintain demand and drive
growth over time. With only a limited number of dog foods brands available in Vietnam, this
would suggest considerable scope for existing players in the forecast period, as well as new
entrants to the category. For instance, as sales of economy wet and dry dog food remain non-
existent, this could provide the opportunity to encourage more people to switch from non-
prepared dog food.
Meanwhile, although sales of dog treats and mixers are expected to grow strongly towards
2025, growth is not forecast to be as strong as in wet and dry dog food, and growth will be from
a low base. The pet humanisation trend is only just starting to take root in the country, and it
may require more promotion by players to stimulate higher growth in this category in the
forecast period.
Traditional channels will remain key despite growth of e-commerce

E-commerce saw rapid growth in the review period, and has seen a particular boost during
the COVID-19 crisis as consumers have valued not having to leave their homes to shop, as they
can avoid the risk of infection. The growth of e-commerce is expected to continue for all fmcg in
the forecast period, including dog food. E-commerce significantly improved in Vietnam over
recent years in terms of delivery services, payment, and quality control of products, which is
expected to contribute to growth.
However, the rate of increase is likely to slow compared with during the pandemic, and the
reality is that traditional store-based channels such as pet shops will remain key. Traditional
channels are still more convenient, more affordable, and more accessible for most consumers
across the country, which is why pet shops is still expected to account for nearly three quarters
of value sales in 2021. Meanwhile, e-commerce is still mainly likely to be used by consumers in
urban areas.
CATEGORY INDICATORS
Table 34 Dog Owning Households: % Analysis 2016-2021
2016 2017 2018 2019 2020 2021
% Households owning a 16.2 16.4 16.6 17.0 17.2 17.3

dog (% households)
Households owning a dog 4,174.2 4,285.8 4,399.7 4,567.9 4,673.9 4,755.2

('000 Households)
Table 35 Dog Population 2016-2021
'000s of animals
2016 2017 2018 2019 2020 2021
Small Dog Popn (up to 2,305.0 2,400.0 2,532.0 2,684.0 2,850.0 3,055.0
20 lbs or 9 kg)
Medium Dog Popn (20 to 1,880.0 1,940.0 2,007.9 2,082.0 2,165.0 2,262.0
50 lbs or 9 to 23 kg)
Large Dog Popn (Over 50 662.0 682.0 701.1 719.0 736.0 754.0
lbs or over 23 kg)
Dog Population 4,847.0 5,022.0 5,241.0 5,485.0 5,751.0 6,071.0
Table 36 Consumption of Dog Food by Prepared vs Non-prepared: % Analysis 2016-

2021
% total consumption
2016 2017 2018 2019 2020 2021
Prepared dog food 0.3 0.3 0.3 0.5 0.7 0.9

Non-prepared dog food 99.7 99.7 99.7 99.5 99.3 99.1
trade sources
CATEGORY DATA
Summary 3 Dog Food by Price Band 2021
Category Price range per kg VND Brand examples
Wet dog food Premium Above VND150,000 Jerhigh, Royal Canin
Mid-priced VND100,000-150,000 Pedigree, SmartHeart
Economy Below VND100,000 No products available
Dry dog food Premium Above VND120,000 Royal Canin, Natural

Core, ANF, Zenith
Mid-priced VND60,000-120,000 SmartHeart, CP

Classic, Pedigree,
Ganador
Economy Below VND60,000 FIB’S, APro
Table 37 Sales of Dog Food by Category: Volume 2016-2021
Tonnes
2016 2017 2018 2019 2020 2021
Dog Treats and Mixers 22.8 25.9 30.1 35.5 40.2 45.6
Dry Dog Food 4,300.3 4,851.1 5,612.7 6,602.4 7,416.2 8,444.2
- Economy Dry Dog Food - - - - - -
- Mid-Priced Dry Dog Food 3,968.8 4,484.7 5,202.3 6,138.7 6,906.0 7,872.9
- Premium Dry Dog Food 331.5 366.4 410.4 463.7 510.1 571.3
Wet Dog Food 209.9 235.3 264.2 297.8 333.5 376.9
- Economy Wet Dog Food - - - - - -
- Mid-Priced Wet Dog Food 209.9 235.3 264.2 297.8 333.5 376.9
- Premium Wet Dog Food - - - - - -
Dog Food 4,533.0 5,112.3 5,907.0 6,935.8 7,789.9 8,866.7
Table 38 Sales of Dog Food by Category: Value 2016-2021
VND billion
2016 2017 2018 2019 2020 2021
Dry Dog Food 359.3 419.8 494.2 595.2 684.4 793.9
- Mid-Priced Dry Dog Food 291.6 343.3 407.3 494.6 571.2 662.6
Wet Dog Food 24.2 27.8 32.1 37.2 42.4 48.6
Dog Food 384.6 448.8 527.8 634.2 728.9 844.9
Table 39 Sales of Dog Food by Category: % Volume Growth 2016-2021
% volume growth
2020/21 2016-21 CAGR 2016/21 Total
Dog Treats and Mixers 13.5 14.8 99.8

Dry Dog Food 13.9 14.4 96.4
- Economy Dry Dog Food - - -
- Mid-Priced Dry Dog Food 14.0 14.7 98.4
- Premium Dry Dog Food 12.0 11.5 72.3
Wet Dog Food 13.0 12.4 79.6
- Economy Wet Dog Food - - -
- Mid-Priced Wet Dog Food 13.0 12.4 79.6
- Premium Wet Dog Food - - -
Dog Food 13.8 14.4 95.6
Table 40 Sales of Dog Food by Category: % Value Growth 2016-2021

2020/21 2016-21 CAGR 2016/21 Total

Dry Dog Food 16.0 17.2 121.0
Wet Dog Food 14.5 14.9 100.6
Dog Food 15.9 17.0 119.7
Table 41 Sales of Dry Dog Food by Life-Cycle: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021
Adult 74.5 74.3 74.5 75.0 76.0 77.0

Kitten/Pup 25.5 25.7 25.5 25.0 24.0 23.0
Senior - - - - - -
Other - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 42 Sales of Wet Dog Food by Life-Cycle: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021
Adult 92.1 92.0 91.5 91.0 90.0 89.0

Kitten/Pup 7.9 8.0 8.5 9.0 10.0 11.0
Senior - - - - - -
Other - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 43 NBO Company Shares of Dog Food: % Value 2016-2020
% retail value rsp

Company 2016 2017 2018 2019 2020

(Vietnam) Co Ltd
Mars Inc 28.8 27.6 26.1 24.1 22.9
Kodo Inc 2.2 2.0 1.9 1.9 1.9
Jiangxi Welton Pet 0.1 0.1 0.1 0.1 0.1
Products Co Ltd
Inc
Others 8.3 7.9 7.7 7.1 7.1
Total 100.0 100.0 100.0 100.0 100.0
Table 44 LBN Brand Shares of Dog Food: % Value 2017-2020
% retail value rsp


Daniels Midland Co)
Products Co Ltd
Group)
Others Others 7.9 7.7 7.1 7.1
Total Total 100.0 100.0 100.0 100.0
Table 45 LBN Brand Shares of Dog Treats and Mixers: % Value 2017-2020
% retail value rsp


Products Co Ltd
Others Others 39.8 41.0 40.9 41.3
Total Total 100.0 100.0 100.0 100.0
Table 46 Distribution of Dog Food by Format: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021

-- Modern Grocery 14.6 14.0 13.6 13.9 14.3 14.7
Retailers
--- Hypermarkets 4.9 4.8 4.8 5.1 5.3 5.4
--- Supermarkets 9.6 9.2 8.8 8.8 9.0 9.3
Retailers
-- Pet shops 70.7 72.8 74.3 74.3 74.1 73.7
Retailers
--- Drugstores/ - - - - - -
parapharmacies
Beauty Retailers
Furnishing Stores
Specialists
- E-Commerce 2.2 2.2 2.3 2.5 3.0 3.4
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 47 Forecast Sales of Dog Food by Category: Volume 2021-2026
Tonnes
2021 2022 2023 2024 2025 2026
Dry Dog Food 8,444.2 9,705.1 11,251.4 13,156.7 15,516.2 18,454.1
- Mid-Priced Dry Dog Food 7,872.9 9,053.8 10,502.4 12,287.9 14,499.7 17,254.6
- Premium Dry Dog Food 571.3 651.3 749.0 868.8 1,016.5 1,199.5
Wet Dog Food 376.9 429.7 494.1 573.2 670.6 791.3
Dog Food 8,866.7 10,186.8 11,805.1 13,798.3 16,265.8 19,337.1
trade sources
Table 48 Forecast Sales of Dog Food by Category: Value 2021-2026
VND billion
2021 2022 2023 2024 2025 2026
Dry Dog Food 793.9 901.8 1,038.5 1,206.4 1,413.6 1,670.4
- Mid-Priced Dry Dog Food 662.6 752.1 864.9 1,003.3 1,173.8 1,385.1
Wet Dog Food 48.6 54.2 60.7 68.6 78.2 89.9
Dog Food 844.9 958.6 1,102.2 1,278.5 1,495.8 1,765.0
trade sources
Table 49 Forecast Sales of Dog Food by Category: % Volume Growth 2021-2026
% volume growth
2021/22 2021-26 CAGR 2021/26 Total

Dry Dog Food 14.9 16.9 118.5
Wet Dog Food 14.0 16.0 110.0
Dog Food 14.9 16.9 118.1
trade sources
Table 50 Forecast Sales of Dog Food by Category: % Value Growth 2021-2026

2021/2022 2021-26 CAGR 2021/26 Total

Dry Dog Food 13.6 16.0 110.4
Wet Dog Food 11.5 13.1 85.0

Dog Food 13.5 15.9 108.9
trade sources
OTHER PET FOOD IN VIETNAM -

CATEGORY ANALYSIS
KEY DATA FINDINGS
▪ COVID-19 hampers the growth of other pet food, as despite the rising population of other pets
consumers cut back on non-essential purchases due to the economic impact of the pandemic
▪ Retail volume sales of other pet food increase by 2% in 2021, to reach 873 tonnes, whilst
current value sales rise by 5% to VND85.3 billion
▪ Fish food sees the strongest growth of 7% in current value terms in 2021, to reach VND61.2
billion
▪ Other pet food sees 3% growth in the average unit price in current terms in 2021, with growth
across both categories
▪ See-All Aquariums maintains its lead in other pet food in 2020, holding a 25% value share
▪ In the forecast period other pet food is expected to see a current value CAGR of 9% (5%
CAGR at 2021 constant prices), and a volume CAGR of 4%
2021 IMPACT
COVID-19 has A negative impact as consumers cut costs where

possible
After seeing solid growth in previous years, in 2020 other pet food turned to retail volume
decline and slow current value growth. Although the performance is expected to improve in
2021, with a return to retail volume growth, the rates of increase are not forecast to return to
those seen earlier in the review period, despite the continued rise in the population of other pets.
Demand for other pet food has been negatively affected by COVID-19 in 2020-2021. The
disposable incomes of many consumers have been negatively impacted by the pandemic,
leading them to prioritise food, healthcare and education. They have therefore cut their spending
on products considered less essential, such as other pet food, feeding non-prepared food where
possible and cheaper. Other pets are not considered essential for Vietnamese people, with
keeping birds and fish being a hobby or trend-based. It should be noted that small mammals
and reptiles do not tend to be kept as pets in Vietnam, and therefore sales of pet food for these
animals are negligible. Any such animals that are kept as pets are in major cities such as Hanoi
and Ho Chi Minh City, and instead of buying commercial pet food products, their owners often
choose to feed them with fresh vegetables, nuts and other types of fresh food that are cheap
and widely available from grocery retailers and specialist pet shops.
Limited distribution and marketing activities in other pet food

The population of other pets is low in Vietnam. This means there is a general lack of
marketing activities in other pet food. Perfect Companion, for instance, offers various products in
the category, but rarely engages in advertising or marketing activities. Players prefer to invest in
distribution rather than marketing activities. This makes sense, since the category is fragmented
and the small and weak distribution network needs to improve first. Also, at the end of the
review period players wanted to protect their financial resources during the uncertain COVID-19
situation. The distribution outlets for other pet food are small (mostly) independent retailers in
pet shops. Indeed, the presence of bird food or fish food is negligible in supermarkets and even
in chained pet stores. Therefore, other pet food is mostly distributed by independent specialised
pet food shops such as aquarium shops or bird shops. Brand visibility and availability vary
across stores, with the distribution networks of particular brands not widespread enough to
achieve the same brand visibility across stores.
This means that the support of retailers plays an important role in brand success within other
pet food, as there is a general lack of communication from manufacturers within the category.
Moreover, customers believe that retailers usually have wide knowledge of products and pet
care and therefore tend to ask for retailers’ advice before purchasing food for their other pets.
There is also great deal of competition between manufacturers vying for prominent shelf space
within retail outlets, with retailers having the ultimate say over which products to stock. However,
as in other categories, e-commerce saw a strong increase in its share of distribution in 2020 due
to COVID-19, which is expected to continue in 2021. E-commerce sites such as www.shopee.vn
and www.lazada.vn are increasingly popular as sources of other pet food, whilst social media
platforms such as Facebook and online social groups and forums are also facilitating sales of
other pet food by connecting pet owners and influencing their purchasing decisions. However,
growth is from a very low base and the share of this channel remains very low.
Other pet food remains fragmented

Fish food remained by far the largest category with other pet food in value terms in 2020.
Therefore, the two leading players in other pet food, See-All Aquariums and Grobest & I-mei
Industrial (Vietnam), are also the leaders in fish food. See-All Aquariums maintained the top
spot in other pet food in value terms in 2020, due to the strong performance of its fish food
brand Sakura. Sakura offers high-quality fish food, including variants formulated specifically for
koi fish, which are particularly popular in Vietnam. It also offers specific variants for Flower Horn
fish and Nishikigoi fish. Although the brand competes only in the mid-priced and premium
segments, it has been able to attract a wide and loyal audience thanks to its trusted reputation
and strong marketing support. For instance, Sakura is one of the few fish food brands with its
own official Facebook page in the Vietnamese language. Moreover, the brand offers major
retailers incentives to have the Sakura brand name and logo emblazoned on their signage,
which helps to raise and maintain strong brand awareness. However, there are many other
brands available in the market, many of which offer only one product, although it may come in
more than one pack size/type. This has maintained a high share of sales for the smallest
players, included under “others”, which accounted for more than a third of sales in 2020.
Growth set to be driven by economic recovery and growing population

of other pets
Other pet food is set to see rising rates of retail volume and current value growth over the
course of the forecast period. COVID-19 is expected to have less of an impact in 2021, and this
is forecast to continue from 2022, partly due to vaccination both in Vietnam and globally, which
will help the economy to gradually recover. Even if the COVID-19 pandemic is not completely
over, people and organisations are expected to adapt to the situation better than in 2020/2021.
Economic recovery will lead to higher disposable incomes and make consumers more willing to
spend on other pet food once again. When COVID-19 is better controlled and the market is
easier to predict, players will also tend to resume their investment in expanding the category.
The population of other pets is also expected to keep rising, as birds and fish have their own
exclusive characteristics which will maintain the interest of existing owners, as well as potentially
attracting new owners. For example, birds sing and fish are relaxing, which brings consumers
pleasure, and they cannot be replaced by other animals.
Fish food expected to see the best growth in other pet food
Fish food is set to see the strongest retail volume and current value growth rates in other pet
food in the forecast period. This is mainly due to the strong rise expected in the fish population,
whilst the increase in the bird population is forecast to be negligible. Fish are increasingly
preferred because they are convenient and easy to keep at home in a house or apartment, or
even in an office. It is easier for owners to take care of fish and aquariums than to look after
other pets, such as dogs or cats. Aquariums are not just kept for enjoyment of the fish, but also
for interior design or feng shui purposes. If placed in the right position, an aquarium is said to
bring wealth to the family. Feng shui also dictates the number of fish, colour of fish, water
source, layout of the items in the tank, as well as care of the fish, which is expected to help drive
growth in fish food in the forecast period. Bird food is set to see slower but stable growth, whilst
sales of small mammal/reptile food are likely to remain negligible.
Traditional pet shops set to remain the leading distribution channel

Although e-commerce has been growing strongly in other pet food in Vietnam, and this is
expected to continue, its contribution to distribution in this category is small. E-commerce and
online communication channels cannot replace traditional channels, because other pet food is
bought together with other pets in these outlets. In fact, people rarely buy fish and birds online,
but they usually visit traditional pet shops such as aquarium shops for fish and bird shops for
birds, not just to buy pets, but also to relax with the fish or enjoy the bird song. Pet shops is
therefore expected to remain the key distribution channel for sales of other pet food in 2022 and
beyond.
CATEGORY INDICATORS
Table 51 Other Pet Population 2016-2021
'000s of animals
2016 2017 2018 2019 2020 2021
Bird Population 1,574.0 1,621.0 1,668.0 1,709.7 1,745.6 1,772.0

Fish Population 10,916.0 11,516.0 12,207.0 13,000.4 13,910.4 14,939.8
Reptile Population - - - - - -
Small Mammal Population - - - - - -
Other Pet Population 12,490.0 13,137.0 13,875.0 14,710.1 15,656.1 16,711.8
CATEGORY DATA
Table 52 Sales of Other Pet Food by Category: Volume 2016-2021
Tonnes
2016 2017 2018 2019 2020 2021
Bird Food 477.8 505.5 531.3 552.6 530.5 535.8

Fish Food 261.2 276.8 294.8 314.9 324.3 337.3
Small Mammal/Reptile Food - - - - - -
Other Pet Food 739.0 782.4 826.2 867.5 854.8 873.1
Table 53 Sales of Other Pet Food by Category: Value 2016-2021
VND billion
2016 2017 2018 2019 2020 2021
Bird Food 19.3 21.1 22.8 24.2 23.7 24.2

Fish Food 39.4 43.7 48.6 54.2 57.4 61.2
Other Pet Food 58.7 64.8 71.4 78.3 81.1 85.3
Table 54 Sales of Other Pet Food by Category: % Volume Growth 2016-2021
% volume growth
2020/21 2016-21 CAGR 2016/21 Total
Bird Food 1.0 2.3 12.1

Fish Food 4.0 5.2 29.2
Small Mammal/Reptile Food - - -
Table 55 Sales of Other Pet Food by Category: % Value Growth 2016-2021

2020/21 2016-21 CAGR 2016/21 Total
Bird Food 2.0 4.6 25.3

Fish Food 6.5 9.2 55.2
Table 56 LBN Brand Shares of Bird Food: % Value 2017-2020
% retail value rsp

Vuong Viet Anh Cam Vuong Viet Anh Co Ltd 45.0 45.2 45.2 44.7
Trung
Feed for Bird Bavi Co Ltd 21.7 21.4 21.2 20.8
BGA Special Egg Botanical Garden - - - -
Cereal Association, Vietnam

Kim Anh Egg Cereal Kim Anh Bird Food Co - - - -
Minh Nguyen Minh Nguyen Co Ltd - - - -
Others Others 33.3 33.4 33.6 34.5
Total Total 100.0 100.0 100.0 100.0
Table 57 LBN Brand Shares of Fish Food: % Value 2017-2020
% retail value rsp

Sakura See-All Aquariums Co Ltd 32.0 34.5 35.6 35.5

KaoKui (Grobest Grobest & I-mei 28.0 26.7 25.9 25.4
Group) Industrial (Vietnam) Co
Ltd
Azoo Tai Kong Corp 6.0 5.0 4.1 2.9
ARC Food ARC Co Ltd - - - -
Others Others 34.0 33.8 34.4 36.3
Total Total 100.0 100.0 100.0 100.0
Table 58 Distribution of Other Pet Food by Format: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021

-- Modern Grocery 7.8 7.6 7.3 6.8 7.2 7.5
Retailers
--- Hypermarkets 2.2 2.1 1.9 1.7 1.8 1.9
--- Supermarkets 5.6 5.5 5.4 5.2 5.4 5.6
Retailers
-- Pet shops 78.8 78.8 78.9 79.0 79.3 79.3
Retailers
--- Drugstores/ - - - - - -
parapharmacies
Beauty Retailers

Furnishing Stores
Specialists
- E-Commerce 1.0 1.5 2.0 2.1 2.7 3.1
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 59 Forecast Sales of Other Pet Food by Category: Volume 2021-2026
Tonnes
2021 2022 2023 2024 2025 2026
Bird Food 535.8 543.8 554.7 568.6 585.6 606.1

Fish Food 337.3 354.2 375.4 401.7 433.8 472.9
Other Pet Food 873.1 898.0 930.1 970.3 1,019.4 1,079.0
trade sources
Table 60 Forecast Sales of Other Pet Food by Category: Value 2021-2026
VND billion
2021 2022 2023 2024 2025 2026
Bird Food 24.2 24.4 24.9 25.6 26.7 28.0

Fish Food 61.2 63.6 66.8 70.8 75.8 81.8
Other Pet Food 85.3 88.0 91.7 96.4 102.4 109.8
trade sources
Table 61 Forecast Sales of Other Pet Food by Category: % Volume Growth 2021-2026
% volume growth
2021/22 2021-26 CAGR 2021/26 Total
Bird Food 1.5 2.5 13.1

Fish Food 5.0 7.0 40.2
trade sources
Table 62 Forecast Sales of Other Pet Food by Category: % Value Growth 2021-2026

2021/2022 2021-26 CAGR 2021/26 Total
Bird Food 1.0 3.0 15.9

Fish Food 4.0 6.0 33.8
trade sources
PET PRODUCTS IN VIETNAM -

CATEGORY ANALYSIS
KEY DATA FINDINGS
▪ Despite maintaining a strong performance in 2020, COVID-19 leads to a slightly slower

increase than expected pre-pandemic, due to lower disposable incomes, but in 2021 growth
improves
▪ Current value sales of pet products increase by 12% in 2021, to reach VND277.5 billion
▪ Other pet products sees the strongest growth of 12% in current value terms in 2021, to reach
VND219.9 billion
▪ Hoang Anh maintains its lead in pet products in 2020, holding a 16% value share in a
fragmented category
▪ In the forecast period pet products is expected to see a current value CAGR of 15% (10%
CAGR at 2021 constant prices)
2021 IMPACT
Slight negative impact from COVID-19, but this is short-lived

In 2020, pet products saw a slight negative impact from COVID-19, as some consumers cut
back their spending on non-essential items due to the economic impact of the pandemic on their
disposable incomes. Although the country has not been as hard-hit by the virus as others, due
to measures being taken early, unemployment is rising and salary cuts have been seen,
therefore some people have tended to spend only on essentials for their pets. This meant that
the impact was different across categories. For example, cat litter is seen as essential for pets
and still performed well in 2020, whilst pet accessories and other pet products were not
considered to be as essential. Nevertheless, all categories have continued to see dynamic
growth, just slower growth rates compared with pre-COVID expectations.
In 2021, pet products is set to return to a higher current value growth rate as the pandemic is
not expected to have such a significant impact in this year, especially in the second half of the
year. Vaccination is being rolled out, which is likely to lead to fewer lockdowns and improve
business and consumer confidence. The performance of pet products also goes in tandem with
the pet population and pet food, and with the higher increase in the pet population expected in
2021, this will also contribute to stronger growth. Although the growth of pet products has been
negatively affected by the pandemic, it has continued to see dynamic value increases.
Limited marketing activities in pet products

Hoang Anh remained the overall leader in pet products in value terms in 2020, mainly due to
the combined popularity of its brands Fay and Palma in pet healthcare, although Fay also has a
presence in other pet products. The company’s extensive distribution network means that its
products are sold in hypermarkets, supermarkets, pet superstores and pet shops throughout
Vietnam. This has given Hoang Anh a major advantage over its competitors, most of which
distribute their brands exclusively through pet superstores, pet shops or veterinary clinics.
Moreover, Hoang Anh is actively engaged in efforts to maintain affordable prices, which has
broadened its appeal.
Pet products is fragmented within each category, with most brands not strong enough
financially to be able to invest in marketing activities. Pet products are often extended under
their umbrella brands so they can leverage the marketing activities of the main brand, for
example Me-O from Perfect Companion (Vietnam) has a presence in cat litter, taking advantage
of its well-known name in dry cat food, wet cat food and cat treats and mixers. However, pet
products is in the development stage in Vietnam, in which customers are learning about product
functions rather than caring too much about brand image.
Distribution of brands is locally discrete

Pet products are distributed across chained pet shops, independent pet shops and
supermarkets, although independent pet shops contributes the biggest share. In terms of
independent pet shops, this channel is locally different, with brand availability in pet products
varying across the different pet shops. It therefore needs a great deal of effort by players to
approach these retailers across the country, and it is hard for players to make their products
available and maintain wide distribution networks across the country.
However, the rise of e-commerce has allowed brands to make their products more widely
available. In a continuation of the trend seen in the review period, in 2020 e-commerce saw a
notable share increase, and this is set to continue in 2021, as some consumers wanted to avoid
leaving their homes to minimise the chance of infection with COVID-19. However, the share of
this distribution channel remains low, and has not had a major impact on overall distribution,
which remains mainly through pet shops.
Dynamic growth expected due to rising pet population and economic

recovery
Pet products is set to see a healthy, rising rate of current value growth in 2022 and for the rest
of the forecast period. The impact of COVID-19 is expected to lessen compared with 2020/2021,
as people and businesses are likely to adapt better to the pandemic, and it is also likely that
vaccination will be at a more advanced stage from 2022. This will lead to an improvement in the
economy and greater consumer confidence in spending on non-essentials. Meanwhile, the pet
population is set to continue to grow in Vietnam, with increases in the numbers of all types of
pets. In addition, more players are expected to join the category, which will offer more choice to
consumers and stimulate the competition. Therefore, in 2022 and beyond, pet products is
expected to develop to a higher level, with pet owners becoming more knowledgeable and more
sophisticated in their pet care.
In the past, dogs and cats were regarded as dirty and untameable, and not considered
suitable for human companionship. However, now that they are increasingly being seen
favourably, especially amongst younger people, growth in the cat population in particular has
boosted sales. Pet owners’ worries about diseases and sanitation still exist, however, with
concerns about rabies and pet allergies common amongst some Vietnamese people. However,
rising disposable incomes and better living standards are making people more inclined to be
charitable towards animals, resulting in more humane behaviours, with this promoted by the
passing of new breeding laws in 2018. This changing attitude to pets is also expected to
contribute to growth in the forecast period.
Pet healthcare expected to maintain strong growth due to desire for

pets’ wellbeing
With rising concern for the welfare of their pets, Vietnamese people are more likely to spend
money on their animals than they were in the past, to ensure their wellbeing. People
increasingly care more about their own health, and due to the emerging pet humanisation trend,
they are also beginning to care more about their pets’ health. Some segments within pet
healthcare, such as antiparasitic products or hair care products, are increasingly considered as
must-have products to provide basic care for pets to enable them to live side-by-side with their
owners.
Nevertheless, cat litter is set to see the strongest current value growth in the forecast period.
This is partly due to the low base, and partly due to the need to maintain hygiene if cats are
sharing accommodation with their owners in small living spaces in urban areas. The largest
category, other pet products, is also set to see strong growth, as more pet owners become
willing to spend on products other than just the essentials as their pets become members of
their family and their incomes rise.
Distribution to play an important role in category development in 2022

and beyond
Pet owners currently have the habit of visiting store-based retailers and asking for products
with specific functions, rather than asking for a specific brand, especially when it comes to fish
food or bird food. Therefore, product availability and retailers’ advocacy are important for players
in pet products. The development of distribution networks is therefore expected to be a major
source of growth moving forward. Currently, the distribution coverage rate is low for brands in
this category, and brand availability in each retailer is different, but this could improve with
efforts by players to expand their distribution. Those that succeed in this endeavour could
improve their positions in the competitive landscape in the forecast period. In 2020, the smallest
players, included under “others” accounted for more than three quarters of sales, but if
distribution is expanded by the larger players then this share could be reduced over the course
of the forecast period.
CATEGORY DATA
Table 63 Sales of Pet Products by Category: Value 2016-2021
VND billion
2016 2017 2018 2019 2020 2021
Cat Litter 4.4 5.2 5.8 6.5 7.2 8.1

Pet Healthcare 29.2 33.0 36.9 41.1 44.8 49.5
Pet Products 161.9 183.7 204.3 226.1 248.4 277.5
Table 64 Sales of Pet Products by Category: % Value Growth 2016-2021

2020/21 2016-21 CAGR 2016/21 Total
Cat Litter 11.5 12.7 81.7

Table 65 Sales of Pet Healthcare by Type: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021
Flea/Tick Treatments 52.9 53.0 53.5 54.0 50.0 47.0

Pet dietary supplements - - - - - -
Worming Treatments 8.1 8.0 7.8 7.6 7.0 6.5
Other Products 39.0 39.0 38.7 38.4 43.0 46.5
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 66 Sales of Other Pet Products by Type: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021
Accessories 10.5 10.7 11.0 11.3 11.5 12.0

Beauty Products 5.2 5.3 6.0 6.8 7.0 8.0
Other 84.3 84.1 83.0 81.9 81.5 80.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 67 NBO Company Shares of Pet Products: % Value 2016-2020
% retail value rsp

Company 2016 2017 2018 2019 2020
Hoang Anh Co Ltd 17.8 17.5 17.2 16.6 15.5

JBL GmbH & Co KG 3.8 3.7 3.6 3.5 3.4
Sera GmbH 2.2 2.1 2.1 2.0 1.9
Mars Inc 1.1 1.1 1.1 1.1 1.0
City Zoo Co Ltd 0.9 0.9 0.8 0.7 0.6
(Vietnam) Co Ltd
Others 74.0 74.4 74.9 75.9 77.4
Total 100.0 100.0 100.0 100.0 100.0
Table 68 LBN Brand Shares of Pet Products: % Value 2017-2020
% retail value rsp

Fay Hoang Anh Co Ltd 14.4 14.1 13.6 12.8

JBL JBL GmbH & Co KG 3.7 3.6 3.5 3.4
Palma Hoang Anh Co Ltd 3.1 3.1 3.0 2.7
Sera Sera GmbH 2.1 2.1 2.0 1.9
Catsan Mars Inc 1.1 1.1 1.1 1.0
City Zoo City Zoo Co Ltd 0.9 0.8 0.7 0.6
Others Others 74.4 74.9 75.9 77.4
Total Total 100.0 100.0 100.0 100.0
Table 69 Distribution of Pet Products by Format: % Value 2016-2021
% retail value rsp

2016 2017 2018 2019 2020 2021

-- Modern Grocery 5.8 5.7 5.2 5.4 5.8 6.5
Retailers
--- Hypermarkets 2.7 2.7 2.5 2.6 2.8 3.0
--- Supermarkets 3.1 3.0 2.7 2.8 3.1 3.5
-- Traditional Grocery - - - - - -
Retailers
-- Pet shops 84.8 84.7 85.0 84.7 84.6 84.0
Retailers
--- Drugstores/ - - - - - -
parapharmacies
Beauty Retailers
Furnishing Stores
Specialists
- E-Commerce 1.2 1.3 1.3 1.5 2.0 2.7

Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 70 Forecast Sales of Pet Products by Category: Value 2021-2026
VND billion
2021 2022 2023 2024 2025 2026
Cat Litter 8.1 8.8 9.7 10.7 12.0 13.6

Pet Healthcare 49.5 53.4 58.2 64.1 71.1 79.7
Pet Products 277.5 301.9 330.4 363.5 403.6 452.2
trade sources
Table 71 Forecast Sales of Pet Products by Category: % Value Growth 2021-2026

2021/2022 2021-26 CAGR 2021/26 Total
Cat Litter 9.0 11.0 68.4

trade sources

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Pet Care in Vietnam

LIST OF CONTENTS AND TABLES

Table 19 Cat Population 2016-2021.......................................................................... 18

Table 49 Forecast Sales of Dog Food by Category: % Volume Growth 2021-

Table 71 Forecast Sales of Pet Products by Category: % Value Growth 2021-

PET CARE IN VIETNAM - INDUSTRY

COVID-19 impact on pet care

COVID-19 country impact

What next for pet care?

Bird Population 1,574.0 1,621.0 1,668.0 1,709.7 1,745.6 1,772.0

Table 3 Sales of Pet Care by Category: Value 2016-2021

Table 4 Sales of Pet Food by Category: % Volume Growth 2016-2021

Dog and Cat Food 13.4 15.2 103.3

Table 5 Sales of Pet Care by Category: % Value Growth 2016-2021

% current value growth

Dog and Cat Food 15.5 18.0 128.5

Other Pet Food 5.2 7.8 45.4

Table 6 NBO Company Shares of Pet Food: % Value 2016-2020

% retail value rsp

Perfect Companion 42.0 40.6 39.9 40.1 40.7

Table 7 LBN Brand Shares of Pet Food: % Value 2017-2020

% retail value rsp

SmartHeart (Charoen Perfect Companion 14.4 14.5 15.4 16.3

Daniels Midland Co)

% retail value rsp

Perfect Companion 46.2 44.3 43.3 43.2 43.5

% retail value rsp

SmartHeart (Charoen Perfect Companion 15.7 15.7 16.6 17.5

Table 10 Distribution of Pet Care by Format: % Value 2016-2021

% retail value rsp

Store-Based Retailing 88.5 89.1 89.5 89.7 89.6 89.6

Table 11 Distribution of Pet Care by Format and Category: % Value 2021

% retail value rsp

Store-Based Retailing 89.4 90.5

--- Home Improvement and Gardening Stores 0.0 0.0

Table 12 Distribution of Dog and Cat Food by Format: % Value 2016-2021

% retail value rsp

Store-Based Retailing 87.1 88.1 88.9 89.2 89.1 89.1

Non-retail channels 10.6 9.5 8.6 8.1 7.8 7.4

% retail value rsp

Store-Based Retailing 88.9 89.2

Table 14 Forecast Sales of Pet Food by Category: Volume 2021-2026

Table 15 Forecast Sales of Pet Care by Category: Value 2021-2026

Table 16 Forecast Sales of Pet Food by Category: % Volume Growth 2021-2026

Dog and Cat Food 14.8 17.6 124.8

Table 17 Forecast Sales of Pet Care by Category: % Value Growth 2021-2026

% constant value growth

Dog and Cat Food 13.4 16.3 113.2

GLOBAL MACROECONOMIC ENVIRONMENT

GLOBAL INDUSTRY ENVIRONMENT

Summary 1 Research Sources

Dept of Animal Health Vietnam

Hanoi Veterinary Dept

Institute of Hygiene & Epidemiology

Trade Associations Vietnam Small Animal Veterinary Association

Trade Press An Ninh Thu Do

Bao Ho Thuong Hieu

Dat Viet News

Doanh Nhan Saigon Online

Kien Thuc News

Lao Dong News

Nhip Cau Dau Tu News

Tien Phong News

Tiep Thi Gia Dinh