The Resilient Indonesian Pet Food Market during the COVID-19 Pandemic

by | Apr 8, 2021 | Study Insight | 0 comments

The Increasing Number of Pets Adopted during COVID-19

Indonesia is one of the rapidly emerging South-Asian economies, and the growth is fuelled by the rapidly increasing urbanization and industrial rates. This demographic change is very crucial to the future growth of the pet food market. Pet ownership has been increasing amongst the millennial generation across all continents. Shifting cultural landscapes combined with increasing incidences of loneliness is prompting the younger generation to purchase pets as a source of companionship. The Indonesian Pet Food Association estimates its sector to be growing at 20% annually with 60% of the market to be found in Java where the capital Jakarta and other big cities are located.

The COVID-19 pandemic has also contributed to the increasing number of pets adopted as people feel that pets could be their companions during their time at home. According to a recent study, the presence of pets not only reduces boredom and loneliness, but it can also increase physical and mental health. Letter One recently published a new study which shows that having pets such as cats and dogs has a positive effect on up to 50% compared to those without pets. The study is compiled from analyzing 139 groups of data from a number of countries worldwide. Researchers connect the data with various health conditions such as cardiovascular, physical health, mental health, and welfare in pet owners. Consequently, the pet care market has surged as they require constant monitoring. A significant portion of expenses is directed towards pet food.

The Current Trend in Pet Foods in Indonesia

Humanization of pets in Indonesia

The humanization of pets has become a new trend among the nuclear Indonesian household. This was further boosted by increasing single-populations who preferred to have a pet companion along with them. Larger low and middle-income group Indonesian populations are favoring the growth of economic pet foods. Since the past few years, the demand for organic pet foods has surged as consumers become more aware of the adverse effects of feeding synthetic foods on pet health.

Limitation for the dog food market in Indonesia

The major constrain offered by the region is that owning a dog is a limitation among the Muslim populations of Indonesia. Restriction of dogs in the home is based on the hadith which says: “Angels do not enter a house which has a dog or picture in it.” This is accepted by the majority of Muslims to bar owning a dog as an indoor pet, but it does not rule out owning dogs for protection or hunting. Therefore, a larger cat population can be witnessed in the country compared to dogs.

E-commerce in the pet food market during COVID-19

The rise in internet sales and the growth of e-commerce is important for pet food markets. With consumers facing lockdown restrictions in the US due to COVID-19, shoppers are now moving to online pet retailers to meet their needs more than ever before. The Indonesian Pet Food Association also noted that pet food sales via e-commerce are steadily growing, commanding 30% of the market and may soon take away half of the traditional pet food channels’ business.

More expensive pets support the demand for more expensive food

Premiumisation was starting to be seen in other pet food towards the end of the review period. This was in line with the growing number of more expensive and rarer breeds of other pet types such as Koi and Louhan fish and imported birds such as African parrots, lovebirds, and canaries.

Major Players of the Pet Food Industry in Indonesia

International brands accounted for over 95% of the Indonesia Pet food market while that of local brands summed up the remaining 5%. Nestle Purina with its dominant presence in both the cat and dog food segment is the leader in the Indonesia Pet food market share. Mars Indonesia closely followed Nestle holds the remaining major market share. These include international companies such as Holistic select, Ecotrition, Total ailments, Wellness pet food, Natural life, Nutro choice, Nutrisource. Local products such as Feli Cat, Vittamax, and My dear cat are slowly gaining prominence due to their higher discounts on online retail channels.

  1. Mars Inc
  2. Hill’s Pet Nutrition
  3. Nestle Purina Petcare Company
  4. J.M. Smucker
  5. Diamond Pet Foods

The Pet Food Industry in Indonesia Continues to Grow Despite Global Economic Challenges.

New growth targets, new premium products, and new-but-experienced companies are keeping the Indonesian pet food sector bullish despite the COVID-19 pandemic.

Central Proteina Prima (CP Prima) leads thanks to diverse offers and ongoing investment in new product development. Other pet food in Indonesia continues to be led by Central Proteinaprima. The company benefits from offering a wide selection of other pet food for birds, fish, and small mammals/reptiles. Central Proteina Prima said it is expanding its pet food production in 2020 as it sets its sights on 30% business growth from sales of food for pet dogs, cats, birds, fish, and rabbits. Much of its success will be hinged on sales from its three leading brands: Bolt for dogs and Bolt for cats, Hiro for koi fish, and the newly launched Cleo for cats.

Neovia Pet Food Indonesia, for its part, plans to become one of the top five pet food companies in the country in 2020. The subsidiary entered the local pet food market in 2005 with products (mainly for cats) coming from Neovia Group’s pet care production facilities in Brazil, Mexico, China, and Vietnam.

In February 2019, Neovia’s parent company was acquired by Archer Daniels Midland Company for €1.544 billion (US$1.67 billion) to become a global leader in value-added products and solutions for both production and companion animals.

Also taking interest in Indonesia’s pet food market is Nutricell Pacific, veterinary medicine and animal nutrition company, which started 2020 by launching the Ciclos and Must super premium dog and cat food brands by ADM Animal Nutrition. Nutricell’s President Director Suaedi Sunanto told Asian Agribiz that the combined market knowledge of Nutricell and the animal nutrition expertise of ADM allows them to deliver high-quality pet care solutions and technical services. He also likened Indonesia’s pet food business to sugar — for new players attracted by the sweet 23,000 tons of monthly demand for dry and wet pet food.

Citra Mandiri Kencana benefits from targeting different consumer bases with different brands. Second-placed in the rankings in other pet food in 2019 was another domestic company, Citra Mandiri Kencana. The company’s leading brands are Beauty and Fancy, which are both produced under license by Taiwan-based Fwusow Industry Products Co Ltd.

BRIGHT Indonesia Will Assist You to Enter the Market

The pet food industry is still growing despite the COVID-19 situation. The situation itself has affected the industry in a relatively positive way as demand increases with the increase of pet adoptions during the period. The changing trend in pet humanization also contributes to the growing industry as pet owners are more selective in the quality of pet food. The pet food companies should also take the opportunity while e-commerce in pet foods is one of the big contributors to the industry.

BRIGHT Indonesia provides several services such as Market Insight Research, Business Partnership Engagement, and  Business Registration and Establishment services that can help you in expanding and developing your business, register and establish your products and company, as well as obtain the work and stay permit in Indonesia ((expatriates utilization plan (RPTKA), expatriates utilization permit (IMTA), limited stay permit (KITAS)) easier. 

BRIGHT Indonesia always strives to give excellent services designed only to fulfill your company’s needs with experiences in assisting multiple global clients in entering Indonesia and Southeast Asia Market. Having successfully collaborated with several clients, BRIGHT Indonesia has extraordinary experience with global companies. These collaborations are proof of our unrivaled service. 

For more information, email info@brightindonesia.net.

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