Pet Products in Vietnam

Euromonitor International
May 2022
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LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2022 DEVELOPMENTS ............................................................................................................... 1
Signs of improvement as COVID-19 fears soften ..................................................................... 1
Hoang Anh leads A fragmented field ........................................................................................ 1
Pet healthcare on the rise as consumers become better informed about the needs of their
pets ........................................................................................................................................... 2
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
Distribution expansion seen as important to brand development ............................................. 2
Changing attitudes towards pet ownership should support growth ........................................... 2
Changing attitudes towards pet ownership presents new opportunities ................................... 3
CATEGORY DATA ....................................................................................................................... 3
Table 1 Sales of Pet Products by Category: Value 2017-2022 ................................. 3
Table 2 Sales of Pet Products by Category: % Value Growth 2017-2022................. 3
Table 3 Sales of Pet Healthcare by Type: % Value 2017-2022................................. 4
Table 4 Sales of Other Pet Products by Type: % Value 2017-2022 .......................... 4
Table 5 NBO Company Shares of Pet Products: % Value 2017-2021 ...................... 4
Table 6 LBN Brand Shares of Pet Products: % Value 2018-2021............................. 4
Table 7 Distribution of Pet Products by Format: % Value 2017-2022 ....................... 5
Table 8 Forecast Sales of Pet Products by Category: Value 2022-2027 .................. 6
Table 9 Forecast Sales of Pet Products by Category: % Value Growth 2022-
2027 ............................................................................................................. 6

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PET PRODUCTS IN VIETNAM

KEY DATA FINDINGS
▪ Retail value sales grow by 10% in current terms in 2022 to VND297 billion
▪ Pet healthcare is the best performing category in 2022, with retail value sales growing by 12%
in current terms to VND55.4 billion
▪ Hoang Anh Co Ltd is the leading player in 2021, with a retail value share of 15%
▪ Retail sales are set to rise at a current value CAGR of 14% (2022 constant value CAGR of
10%) over the forecast period to VND565 billion

2022 DEVELOPMENTS

Signs of improvement as COVID-19 fears soften

Pet products saw a slight negative impact from COVID-19, as some low- and mid-income
consumers reduced 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
pandemic as others, unemployment is rising and salary cuts have been seen. As a result, some
people have tended to spend only on essentials for their pets.
Despite these challenges pet products continued to see double-digit growth in current value
terms in 2021, with this continuing in 2022. The successful rollout of Vietnam’s vaccination
programme has allowed the government to ease restrictions, which in turn has helped to boost
economic activity and restore consumer confidence. The performance of pet products also goes
in tandem with the pet population, which continues to rise at a strong pace.

Hoang Anh leads A fragmented field

Hoang Anh Co Ltd remained the overall leader in pet products in value terms in 2021, 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. Elsewhere, Mars Inc has a strong lead in cat litter with its Catsan brand,
with the company able to benefit from the established distribution network for its range of pet
food. There is, however, a limited presence of major players in the market, with the relatively low
level sales being insufficient to attract significant interest.
The competitive landscape within pet products is becoming increasingly fragmented, with
most brands lacking the financial muscle to be able to invest in significant 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, with it 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,
with many customers being more concerned about learning the product’s functions rather than
caring too much about brand image.

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Pet healthcare on the rise as consumers become better informed about

the needs of their pets
Pet healthcare continues to see healthy growth in Vietnam. The main contributor to sales in
pet healthcare is antiparasitic products such as flea/tick treatments. Demand for these products
is growing as consumers become better informed about the importance of these products in
keeping their pets healthy. Parasites such as ticks, fleas and sandfly are relatively common in
Vietnam and can lead to the transmission of diseases such as Leishmania which can be
potentially fatal to pets.
Besides flea/tick treatments, there are also pet products for dental care, ear care and dietary
supplement. These products are more recent additions to the market and are attracting new
players and brands that are looking to gain first-mover advantage over the competition. As
interest in pet healthcare grows so too does the distribution of these products, with retailers
looking to provide convenience to pet owners. This includes the expansion of e-commerce, with
the online channel seeing its value share within pet products double since the start of the
pandemic. E-commerce has also helped smaller players to get a foot in the market, as well as
making it easier for pet owners to research different products.

PROSPECTS AND OPPORTUNITIES

Distribution expansion seen as important to brand development

The lack of investment in marketing means that distribution will likely continue to continue to
play a significant role in the growth and expansion of pet products in Vietnam. In 2021, the
smallest players, included under “others”, accounted for more than three quarters of value sales
within pet products, with most having very limited distribution. The development of wider
distribution networks is therefore expected to be a major source of growth for brands moving
forward. Those that succeed in this endeavour could improve their positions in the competitive
landscape in the forecast period as well as starting to establish some form of brand loyalty,
which so far is largely absent in pet products. E-commerce could also play a role in this, not only
in terms of driving sales but also through digital marketing, with social media platforms
presenting opportunities for brands to build engagement with pet owners

Changing attitudes towards pet ownership should support growth

Pet products is projected to see a healthy growth over the forecast period. Thanks to the
country’s successful vaccination campaign economic activity is expected to gradually pick up
which should help restore consumer confidence. This in turn should support spending on non-
essentials within pet products such as toys and beauty products. Meanwhile, the pet population
is also set to continue growing in Vietnam, with a further increase 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 help stimulate the competition. Therefore, pet products is expected to develop
to a higher level, with pet owners becoming more knowledgeable and more sophisticated in their
purchases.
In the past, dogs and cats were regarded as dirty and untameable, and unsuitable for human
companionship. However, these perceptions are changing, especially amongst younger people,
with growth in the cat population in particular helping to boost sales of pet products. The
pandemic also resulted in a rise in the number of people suffering from loneliness, some of
whom saw pets as suitable companions. Alongside cats and dogs a growing number of people
have also started to keep birds and fish, with this presenting opportunities for players to launch
new products targeting this audience. Concerns about diseases and sanitation still exist,

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however, with concerns about rabies and pet allergies common amongst some Vietnamese
people. Nevertheless, 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, as consumers become more willing to
invest in the health and wellbeing of their pets.

Changing attitudes towards pet ownership presents new opportunities

The pet humanisation trend has played a key role in driving the development of pet care in
many global markets, but it remains at the early stages of development in Vietnam. In the past
animals such as cats and dogs were often seen as working animals or even as a source of food,
but these attitudes are changing with people increasingly viewing their pets as companions. This
trend is being supported by the rise of social media with consumers often keen to show off
photos and videos of their pets online. Furthermore, the internet has also helped people to see
the benefits of pet ownership, as well as showing how to take care of your pets in the best
possible way.
This shift in attitudes is crucial to the expansion of pet products as it will encourage
consumers to invest in a wider array of products such as pet carriers, toys, beds, grooming
products and dietary supplements. Pet healthcare will likely remain the key category with these
products seen as more essential, with products such as flea/tick treatments and worming
treatments not only protecting pets but also preventing additional veterinary costs. With the
number of veterinary clinics in Vietnam almost doubling since the start of the review period this
reflects the increasing importance being placed on pet health and also points towards the strong
potential of pet healthcare.

CATEGORY DATA
Table 1 Sales of Pet Products by Category: Value 2017-2022

VND billion
2017 2018 2019 2020 2021 2022

Cat Litter 5.2 5.8 6.5 7.2 7.9 8.7

Pet Healthcare 33.0 36.9 41.1 44.8 49.5 55.4
Other Pet Products 145.5 161.5 178.5 196.4 213.0 233.3
Pet Products 183.7 204.3 226.1 248.4 270.4 297.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Pet Products by Category: % Value Growth 2017-2022

% current value growth

2021/22 2017-22 CAGR 2017/22 Total

Cat Litter 10.0 10.9 67.7

Pet Healthcare 12.0 11.0 68.2
Other Pet Products 9.5 9.9 60.3
Pet Products 10.0 10.1 61.9
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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Table 3 Sales of Pet Healthcare by Type: % Value 2017-2022

% retail value rsp

2017 2018 2019 2020 2021 2022

Flea/Tick Treatments 53.0 53.5 54.0 50.0 47.0 43.0

Pet dietary supplements - - - - - -
Worming Treatments 8.0 7.8 7.6 7.0 6.5 6.2
Other Products 39.0 38.7 38.4 43.0 46.5 50.8
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Sales of Other Pet Products by Type: % Value 2017-2022

% retail value rsp

2017 2018 2019 2020 2021 2022

Beauty Products 5.3 6.0 6.8 7.0 10.0 12.0

Accessories 10.7 11.0 11.3 11.5 12.0 14.0
Other 84.1 83.0 81.9 81.5 78.0 74.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 NBO Company Shares of Pet Products: % Value 2017-2021

% retail value rsp

Company 2017 2018 2019 2020 2021

Hoang Anh Co Ltd 17.5 17.2 16.6 15.5 14.5

JBL GmbH & Co KG 3.7 3.6 3.5 3.4 3.2
Sera GmbH 2.1 2.1 2.0 1.9 1.8
Mars Inc 1.1 1.1 1.1 1.0 0.9
City Zoo Co Ltd 0.9 0.8 0.7 0.6 0.5
Perfect Companion 0.2 0.2 0.2 0.2 0.2
(Vietnam) Co Ltd
Others 74.4 74.9 75.9 77.4 78.9
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 LBN Brand Shares of Pet Products: % Value 2018-2021

% retail value rsp

Brand (GBO) Company (NBO) 2018 2019 2020 2021

Fay Hoang Anh Co Ltd 14.1 13.6 12.8 12.0

JBL JBL GmbH & Co KG 3.6 3.5 3.4 3.2
Palma Hoang Anh Co Ltd 3.1 3.0 2.7 2.5
Sera Sera GmbH 2.1 2.0 1.9 1.8
Catsan Mars Inc 1.1 1.1 1.0 0.9
City Zoo City Zoo Co Ltd 0.8 0.7 0.6 0.5
Me-O (Charoen Perfect Companion 0.2 0.2 0.2 0.2

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Pokphand Group) (Vietnam) Co Ltd

Others Others 74.9 75.9 77.4 78.9
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 Distribution of Pet Products by Format: % Value 2017-2022

% retail value rsp

2017 2018 2019 2020 2021 2022

Store-Based Retailing 90.4 90.3 90.1 90.5 90.5 90.5

- Grocery Retailers 5.7 5.2 5.4 5.8 6.6 7.1
-- Modern Grocery 5.7 5.2 5.4 5.8 6.6 7.1
Retailers
--- Convenience Stores - - - - - -
--- Discounters - - - - - -
--- Forecourt Retailers - - - - - -
--- Hypermarkets 2.7 2.5 2.6 2.8 3.0 3.1
--- Supermarkets 3.0 2.7 2.8 3.1 3.5 3.9
-- Traditional Grocery - - - - - -
Retailers
- Mixed Retailers - - - - - -
-- Department Stores - - - - - -
-- Mass Merchandisers - - - - - -
-- Variety Stores - - - - - -
-- Warehouse Clubs - - - - - -
- Non-Grocery Specialists 84.7 85.0 84.7 84.6 83.9 83.4
-- Pet superstores - - - - - -
-- Pet shops 84.7 85.0 84.7 84.6 83.9 83.4
-- Health and Beauty - - - - - -
Specialist Retailers
--- Beauty Specialist - - - - - -
Retailers
--- Chemists/Pharmacies - - - - - -
--- Drugstores/ - - - - - -
parapharmacies
--- Other Health and - - - - - -
Beauty Retailers
-- Home and Garden - - - - - -
Specialist Retailers
--- Home Improvement - - - - - -
and Gardening Stores
--- Homewares and Home - - - - - -
Furnishing Stores
-- Other Non-Grocery - - - - - -
Specialists
Non-Store Retailing 1.3 1.3 1.5 2.0 2.7 3.1
- Direct Selling - - - - - -
- Homeshopping - - - - - -
- E-Commerce 1.3 1.3 1.5 2.0 2.7 3.1
Non-retail channels 8.3 8.4 8.4 7.5 6.9 6.4
- Veterinary clinics 8.3 8.4 8.4 7.5 6.9 6.4
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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Table 8 Forecast Sales of Pet Products by Category: Value 2022-2027

VND billion
2022 2023 2024 2025 2026 2027

Cat Litter 8.7 9.3 10.1 11.1 12.3 13.8

Pet Healthcare 55.4 60.7 67.0 74.8 84.1 95.0
Other Pet Products 233.3 249.6 269.6 293.9 323.2 358.8
Pet Products 297.4 319.6 346.8 379.7 419.6 467.6
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 9 Forecast Sales of Pet Products by Category: % Value Growth 2022-2027

% constant value growth

2022/2023 2022-27 CAGR 2022/27 Total

Cat Litter 7.5 9.7 58.8

Pet Healthcare 9.5 11.4 71.5
Other Pet Products 7.0 9.0 53.8
Pet Products 7.5 9.5 57.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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