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Malaysia Pet Food Market - Growth, Trends, Covid-19 Impact, And Forecasts (2022 - 2027)

Malaysia Pet Food Market - Growth, Trends, Covid-19 Impact, And Forecasts (2022 - 2027)

  • April 2022
  • 103 pages
  • ID: 6271921
  • Format: PDF
  • Mordor Intelligence LLP


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The Malaysia Pet Food market is projected to witness a CAGR of 6.1% during the forecast period (2022-2027).

The COVID-19 pandemic had a significant influence on Malaysia’s pet food sector. Due to the panic purchase of pet food by pet parents in March and April of 2020, there was a big supply and demand discrepancy. With the supply chain interruptions and poor logistic services, the pet food industry was unable to meet demand. Consumers preferred to shop through e-commerce because of the lockdown restrictions, which resulted in a surge in internet sales. With the restrictions being uplifted in the country, the market is slowly getting back on track with the sales and production and is anticipated to grow during the forecast period.

The growing trend of pet humanization has made Malaysian pet owners more conscientious about ensuring their pets get the greatest nutrition possible. The provision of quality cat food for the aging Malaysian cat population has been aided through innovation, which has helped to lengthen their longevity. Pet food is gaining popularity in Malaysia due to its high nutritional value present in pet food. It is easily digested by pets and helps in avoiding health issues like food allergies, obesity, and a sensitive stomach. Premium pet foods are natural, organic, higher quality, and safer than regular pet foods. With the increasing demand for premium pet foods globally, several companies are planning to produce high-quality pet food products to occupy major market shares in the segment. The rising e-commerce has also positively impacted the pet food market in the country. Various online retailing players are delivering pet food at consumers’ doorstep. This easy availability of various pet food products has increased demand globally, especially for premium pet food. Due to increasing pet parenting, coupled with rising awareness of feeding pets with premium and packed pet food, the pet food market in the country is anticipated to grow during the forecast period.

Key Market Trends

Increasing Pet humanization

Pet ownership is shifting to millennials, resulting in a shift in attitudes toward pet ownership and the adoption of western culture. As per a survey conducted in 2021, it was observed that Malaysia was one of the top 10 countries where the pet humanization rate had spiked up in 2020 from the past 5 years. In 2020, according to the Department of Statistics Malaysia, the number of Malaysia’s working age (15-64 years) is about 69.7% of the total population have adopted pets, especially cats and dogs. According to a study in 2021, on the impact of pets on the mental health of the Malaysian working-class population, it was observed that in comparison with people without animals, pet owners had significantly higher levels of mental wellbeing, and they felt they could cope better with adverse situations and experienced significantly more positive emotions during the lockdown. Many Pet Associations are also taking various initiatives regarding the adoption of pets in the country. For instance, Voice For Paws holds adoption drives in Malaysia’s biggest city, Kuala Lumpur. The pets are put on display so people can play with them to see if they feel a connection. Consumers, who are fully aware of the labeling and substances used in food products, are concerned about the safety and nutritional needs of pets. However, due to an increase in the country’s middle-class population and a better level of disposable income, people are ready to spend more on their pets than in the past, particularly on higher-quality pet food. Furthermore, this tendency coincides with the expansion of particular pet food segments, such as healthy snacks, specialty pet foods, and other high-end products. Therefore, with the increase in pet adoption rates and increasing disposable incomes of the people, the market is anticipated to grow during the forecast period.

Growing trend of E-Commerce is driving the market.

Customers are increasingly using e-commerce platforms for multitudes of purposes, and this trend has influenced the pet food products available online. With the increasing number of internet users, the e-commerce trend may fuel the market further. There was a significant increase in pet food sales through e-commerce channels during the COVID-19 pandemic, as pet owners prefer online purchases due to safety reasons and the closure of brick and motor stores. In Malaysia, high internet access has encouraged the adoption of e-commerce sites as a viable distribution method. Due to the convenience and wide choice of products, online sales of pet food have a market share of 24.7 percent in 2020 and are expected to grow in the forecast period. Convenience, prosperity, exclusivity, and market knowledge are all important factors in the Malaysian pet food business. The market is being fueled by the government’s fast urbanization and connection programs, such as Paws Animal Welfare Society, Penang Animal Sanctuary Society, Penang Animal Welfare Society, SPCA Penang, and SPCA Selangor. Consumers have been forced to rely on imported goods due to the unreliability of local goods. An increase in the number of smartphone users, internet users, and young pet owners, coupled with innovations in product offering and marketing strategies in e-commerce, may encourage higher pet food sales in the country.

Competitive Landscape

The Malaysia pet food market is consolidated with major players holding the majority of the market share. Mars Inc, Nestle Purina Petcare Company, Perfect Champion group (Charoen Pokphand Group), Colgate Palmolive (Hill’s Pet Nutrition), and Perfect Champion Group are the key players in the market. The major players in the industry are continuously competing with local player’s low prices and trying to gain significant market share in Malaysia. These major players are investing in new products and improvisation of products, expansions, and acquisitions for business expansions. Another major area of investment is the focus on R&D to launch new products at lower prices.

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