Recently, I visited a friend in Tokyo and had a drink with him. Interestingly, he brought his dog along. We had a pleasant time for about three hours before I returned to Fukushima. I was surprised to see that there are places in Tokyo where you can spend time with your dog anytime. The pet business is expanding in Japan as well. Even more so than in Japan, the pet food market in China seems to be rapidly expanding. In 2022, the number of dogs and cats kept as pets reached 116.55 million, an increase of about 30% compared to 2018. According to a 2023 survey, the number of pets in Japan is approximately 15.91 million. China seems to have more than ten times the business potential of Japan. Pets have transformed into a source of “healing” after the increase in income and the COVID-19 pandemic. The awareness of pets as family members is spreading.
It has been empirically known that interacting with dogs is beneficial for dementia patients. In recent years, the reasons for this have become clearer. The main reason is that interacting with dogs increases the secretion of oxytocin. Interacting with dogs has been beneficial for dementia patients and some patients with mental illnesses. Owning and interacting with a dog seems to have significant meaning in improving social relationships. This hormone is also called the “happiness hormone,” and the higher the secretion amount, the better social relationships can be maintained. Just as oxytocin is secreted when interacting with close people, it is also secreted when spending time with pets. The secretion of oxytocin leads to a feeling of happiness and a healing effect. This trend is rapidly progressing in both Japan and China.
In 2024, the Chinese pet care market is expected to reach 93.3 billion yuan (approximately 1.9 trillion yen), an increase of about 40% compared to 2020, more than double the size of the Japanese market. This market is expected to reach 106.8 billion yuan by 2029. Currently, this market is dominated by three companies: Mars (USA), Nestlé (Switzerland), and Gambol Pet (China), which together hold about a 20% market share. Companies naturally enter markets with high growth potential. Unicharm’s market share is currently less than 1%, but they seem to have a secret strategy. They are aiming for future growth in China, a market twice the size of Japan’s. Unicharm’s approach focuses not only on the pets themselves but also on improving the quality of life (QOL) for pet owners. They consider not only how easy the food is for pets to eat but also how easy it is for owners to feed them. Furthermore, they incorporate features such as dietary fiber to aid in digestion. Due to these unique product characteristics that differentiate them from competitors, their products are priced 1.5 to 2 times higher than standard products. Despite this higher price point, sales appear to be growing steadily.
