The pet industry is evolving rapidly due to changing consumer preferences, technological advancements, and a greater focus on sustainability. According to EuroMonitor, in 2024, the pet product market reached a total value of 55.17 billion USD, reflecting the growing demand for pet-related goods and services. Some of the best-selling products include cat litter, valued at 10.85 billion USD, and pet healthcare, reaching 10.91 billion USD. Leading companies in the industry such as Nestlé SA, Elanco Animal Health Inc, and Central Garden & Pet Co continue to dominate the market, thanks to their strong reputation and consistent product quality.
The Pet Industry in Vietnam
Vietnam’s pet industry is expanding rapidly, driven by increased pet ownership, changing consumer attitudes, and a growing variety of product options. According to a report from EuroMonitor, in 2024, retail sales of pet products in Vietnam increased by 8%, reaching VND 406 billion. The fastest-growing segment was pet healthcare, which grew by 11% to VND 76.6 billion, as pet owners became more aware of pet health and wellness, investing in flea and tick treatments, dietary supplements, and other preventive care products.
Despite its strong growth potential, the Vietnamese pet market is highly fragmented, with many brands competing in different categories. Hoang Anh Co Ltd is the largest player, holding 11% of the market share, while international brands such as Catsan (Mars Inc.) lead in cat litter, and Merial (Boehringer Ingelheim Vietnam LLC) is a major player in pet healthcare.
Although Vietnam’s pet industry presents great opportunities, economic instability can impact spending on non-essential pet products. Many consumers are price-sensitive and may opt for lower-cost alternatives or switch brands when necessary. However, the expansion of distribution channels, including online marketplaces, pet superstores, and veterinary clinics, is expected to drive further industry growth. As Vietnam’s urban population expands and incomes rise, demand for premium and specialized pet products is set to increase, positioning the country as a key emerging market in the global pet industry.
To further explore the advantages of establishing a manufacturing hub in Vietnam as well as some other countries, watch the video below, where we delve into the specific benefits businesses can achieve in each location.
Sourcing Strategies and Market Expansion
As the pet industry grows, sourcing strategies are becoming increasingly important. Asian countries, particularly Vietnam, China, Thailand, and Cambodia, are key manufacturing hubs for pet products, each offering unique advantages and challenges.
China remains the largest supplier of pet products, with a well-established manufacturing network producing everything from pet food to smart pet gadgets. However, given the renewed trade tensions, including tariffs, under the second Trump administration, businesses are exploring alternative manufacturing locations. Therefore, countries in Southeast Asia among others are attracting increased interest as potential manufacturing hubs.
Vietnam has gained attention as a reliable sourcing destination, particularly for eco-friendly materials like bamboo, coconut fibers, and sustainable textiles. The country’s skilled workforce and improving production infrastructure make it a competitive alternative to China.
Thailand is a leading exporter of pet food, specializing in high-quality, grain-free, and organic pet food. The country’s strong seafood and poultry industry provides an advantage in pet nutrition.
Cambodia is an emerging player in pet product manufacturing, particularly for affordable, handcrafted pet accessories. Its growing textile and leather industries provide opportunities for unique and artisanal pet products, although infrastructure and supply chain stability remain areas for improvement.
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Innovation and Strategic Actions for Best Businesses
The pet industry continues to evolve with health, sustainability, and technology as the main drivers of innovation. Smart pet gadgets, such as AI-powered pet cameras, automated feeders, and GPS trackers, are reshaping pet care. Meanwhile, biodegradable toys, organic bedding, and recyclable packaging are becoming industry standards as sustainability gains importance.
To stay competitive, businesses must take strategic actions to align with these trends. Investing in research and development will help create innovative health-focused products and smart pet technology. Companies should prioritize sustainability by integrating eco-friendly materials, reducing plastic waste, and adopting energy-efficient production methods. Expanding distribution channels, including e-commerce, direct-to-consumer subscription models, and pet specialty stores, will ensure wider reach and customer engagement.
Compliance with stricter regulations on pet food safety and transparency in ingredient sourcing is essential to maintaining consumer trust. Additionally, leveraging AI-driven customer insights will enable businesses to offer personalized pet care solutions, such as custom nutrition plans and breed-specific grooming products. Companies that focus on innovation, sustainability, and personalized solutions will gain a competitive edge in the evolving pet industry.
Humanization Trend in the Pet Industry
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A major trend shaping the pet industry is the increasing humanization of pets. More people consider their pets as family members, leading to greater demand for high-quality pet food, healthcare products, and luxury accessories. Pet owners are now looking for nutritious food, premium grooming products, and smart pet accessories. The demand for pet insurance, training services, and pet-friendly travel options is also rising. In response, businesses are introducing more personalized and health-focused products to meet the needs of modern pet owners.
This shift in pet ownership behavior has also influenced sourcing strategies and product innovation, as businesses aim to meet the increasing expectations of consumers who want safe, high-quality, and sustainable products for their pets.
Final Thoughts
The pet industry is entering a new era of growth, shaped by changing consumer behavior, sustainability initiatives, and technological progress. As pet owners seek high-quality, responsibly sourced, and innovative products, manufacturers and suppliers must adapt by expanding sourcing options, using sustainable materials, and incorporating smart pet technology. Looking ahead, companies that embrace transparency, regulatory compliance, and sustainable business practices will play a leading role in shaping the future of the pet industry.
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Source: Vietnam Insider