The United States, which boasts the world's
largest pet market and industry, often sees pets dining at the table with their owners
and even has professions dedicated to walking dogs. There are pet food trucks, dog-friendly cinemas, and even laws regarding pet custody in case of divorce. In China, outdoor pet fashion is popular,
with markets growing for carrying gear, outdoor toilet mats, clothing, collars, and more. Additionally, traditional Chinese medicine
for animals is prominent, with specia
lized education in traditional treatments even within
veterinary medicine. In Germany, known as a paradise for dogs,
owners must pay a pet ownership tax, and the dog bus fares are the same as child rates. However, dogs also receive medical insurance
benefits. Dogs in European Union countries even have
passports to travel freely among EU member states. Japan is a country in Neko(Cat)-nomics, where
cats outnumber dogs. One of the characteristics of pet culture
is the active use of pet trusts when
the owner passes away and the system of animal funerals
when the pet passes away first. As the pet market grows in South Korea, pet
products with IoT (Internet of Things) technology are increasing. In February 2022, the first national qualification
exam for Veterinary(Vet) Assistants was held in the country. Vet Assistants work under the supervision
of veterinarians in animal hospitals, assisting in nursing and treatment of animals. Furthermore, in the latter half of this year,
South Korea becam
e the first country in the world to implement a national certification
system for Pet Behaviorists. FYI(For Your Information), GDIN, the Global Digital Innovation Network,
and KVMA, the Korean Veterinary Medical Association, signed an MOU on January 25th to discover
and foster innovative companies in the field of veterinary medicine. Hello, lovely viewers! I'm excited to share,
this episode. I will briefly review the book 'Understanding
the Companion Animal Industry' It's an easy book designed t
o help with very
basic understanding. The authors are four professors: Choi Dongrak,
a professor of Companion Animal Industry at Pusan National University; Kim Songbyeong,
a professor of Animal Husbandry Welfare at Daegu University; Kim Hyunjoo, a professor
of Companion Animals at Bucheon University; and Kim Byungseok, a professor of Companion
Animal Health at Pusan National University. In the pet industry, Pet-tech, which combines
IoT(Internet of Things) and AI(Artificial Intelligence) is gaini
ng attention. While the market is becoming saturated with
global corporations, startups are targeting niche markets and attempting to expand their
scope through the integration of bio-medical fields. In this book, a brief overview of the companion
animal markets and industries in the United States, China, Germany, Japan, and South Korea
is provided. Firstly, over half of the population in the
United States owns pets. According to the American Pet Products Association,
the market size surpassed 1
00 trillion won (95.7 billion dollars) in 2019, and reached
130 trillion won (99 billion dollars) in 2020. In a survey targeting remote workers in the
United States, 69% responded that they have at least one pet. Currently, the estimated number of pet dogs
in the US is 95 million, and pet cats are 90 million, totaling over 185 million pets. As of 2021, the US pet food market is estimated
to be $61.6 billion (69 trillion won), with Nestle SA (8.3%), Cargill Inc (7.3%), and
Mars Inc (6%) leading t
he market share. Among pet food, the market for dog food is
the largest at 20.5 trillion won (29.6%), followed by cat food at around 9 trillion
won (13%). Some prominent pet food brands include Royal
Canin, Orijen, and Hill’s, Blue Buffalo, Purina, and Wellness. The term 'pet humanization' which refers
to treating pets like humans, and 'pandemicpuppy' reflecting the increase in pet adoption
during the work-from-home period due to the pandemic, have emerged. The trends include the rise of non-fac
e-to-face
e-commerce, accelerated urbanization, and a preference for cats. Cat litter made from corn kernels is popular. In the hi-tech field, the Pet Tech market
is growing, where devices are used to observe, feed, and play with pets left alone by their
owners. Snack feeders, location-tracking wearables, exercise trackers, health monitoring products, and subscription services for pet food are
widely utilized. In China, the number of pet dogs and cats
in urban areas surpassed 108 million in 2020
, estimated to be around 200 million now, driven
by the increasing pet ownership due to aging population. The cat population is also on the rise. With significantly low ownership per capita,
there is a substantial room for growth. The pet food and snack market is the largest
at 34%, followed by pet medical care (23%), pet products (16%), and adoption (12%). Pet food market is dominated by foreign brands
similar to South Korea. Companies like Mars, Royal Canin, Nestle,
Purina, and Hill's hold ove
r 70% of the market share. Pet supplies in China, like in other countries,
are characterized by premiumization and smart features. Chinese company Petalways has introduced products
like GPS trackers for dogs and anti-slip scratchers. Animal funeral culture in China includes burial,
cremation, tree burials, and taxidermy. Most people purchase pet supplies online. Among these supplies, the Pet Sterilization
Total Care Room is a room where dogs or cats enter and an air purifier operates to remove
d
ust and bacteria attached to their skin and fur. There is also a sterilization lighting device
to eliminate ticks and mold hidden deep in the fur. Pet robot companions can play games like fetching
a ball and even help with mealtime for your pets. As of 2020, Germany had 35 million pets, with
47% of households owning a pet. For dogs, 20% of households own one, and they
are legally entitled to almost the same treatment as humans. In other words, it's like a dog paradise where
not just anyone can o
wn one. Dogs must have an identification number embedded
in a microchip or tattoo, and like humans, they must pay taxes and bus fares. Of course, the owner pays for these expenses. They are allowed in all spaces, including
department stores, restaurants, and cafes. Dogs must also carry a passport issued by
an authorized veterinarian to travel freely within EU member states. Pet owners must pay an average of around 270,000
KRW per year in pet ownership tax to raise a dog, but indoor pets like cat
s or guinea
pigs are exempt from this tax. Instead, dogs receive medical insurance benefits. Failing to walk a dog can lead to charges
of animal abuse, punishable by up to 2 years in prison. Adoption fees from professional breeders can
cost around 10 million KRW, but most people adopt from public animal shelters like Tierheim(animal
home). For around 270,000 KRW, you can adopt a rescued
dog that has been vaccinated, registered, and issued a passport. In Tierheim, there is no such thing as euthan
izing
abandoned dogs. All dog owners are required to have liability
insurance, so citizens are compensated in case of dog bites or traffic accidents. Pet dogs are required to receive vaccinations
and health check-ups. They must obtain a certified veterinary certificate,
which can cost millions of won and take a lot of time. This shows that only those willing to invest
time and effort should raise a dog. There is a pet owner qualification test system,
similar to a driver's license for cars. Prosp
ective owners must take theory and practical
exams to obtain a license before adopting a pet. Of course, selling pets in private is prohibited. In regions like Essen and Braubach, there
are cemeteries where humans and animals can be buried together. Popular pet supplies include fur-removing
vacuum cleaners and cat sensor automatic litter boxes. As of 2020, Japan had around 8.489 million
pet dogs and 9.644 million pet cats, but contrary to global trends, the numbers have slightly
decreased after
the COVID-19 pandemic. This is because while the adoption numbers
are high, more pets have passed away. In the trend of aging populations, pets seem
to be aging alongside humans. Premium products and senior pet food are popular
choices. In Japan, popular cat mascots include the
Manekineko, which welcomes guests by waving its paw, and the globally famous Hello Kitty. There is even a cat priced at 10 million yen
($89,000) appearing in the market. The popularity of cats in Japan is associated
with
their characteristics. The delicate paw movements, unique faces of
each cat, aloof behavior, and meowing that seems to call out to humans are all charming
points. On the other hand, it is considered difficult
to have a pet dog in Japan. Firstly, the adoption fees are generally high. Small dogs are more popular than large dogs. While the adoption fees for large dogs range
from 150,000 to 250,000 yen, small dogs typically start at 200,000 yen (1.78 million won). In the case of Toy Poodles, (it exc
eeds)
1 million yen (8.9 million won). When adopting, one must sign a pile of documents,
and all members of the adopting family need to be present for verification. Moreover, most Japanese 'mansions' (a type
of housing between an apartment and a luxury villa) do not allow pets. Approval or permission must be obtained from
residents, management companies, and real estate agencies. The pet tech market is experiencing rapid
growth. Among the products, there is 'Inupathy', a device
shaped like a co
llar that analyzes a pet's heart rate and rhythm to determine their mood. Toleta is a smart litter box that uses IoT
technology to monitor a cat's health status. In Korea, according to a 2021 survey by KB
Financial Group, the population raising pets is around 6.04 million households (14.48 million
people), with 4.83 million households (11.61 million people) having pet dogs and 1.54 million
households (3.7 million people) having pet cats, accounting for about 30% of all households. Over the past
5 years, the number of pets
has increased by an average of 4.8% annually, with an average of 1.2 dogs and 1.4 cats per
household. According to the survey data for the following
year, 2022, the number of pet dogs increased to 5.45 million and pet cats to 2.54 million. The most commonly raised dog breeds are Maltese,
Poodle, Pomeranian, mixed breed, Chihuahua, Shih Tzu, Golden Retriever, and Jindo. For reference, in the United States, the most
commonly raised breeds are Bulldog and Retriever. The
performance of domestic companies in South
Korea is relatively poor. Companies like Harim, Dongwon F&B, and Pulmuone
are struggling. CJ CheilJedang and Binggrae have even considered
withdrawing from the business. Binggrae entered the pet milk market but had
to withdraw due to the smaller market size compared to pet feed. In the pet supplies market, it's a similar
story. Due to competition from international brands,
domestic companies like GS Retail and E-Mart only hold a market share of 5%. For
dog food, international brands have been
offering products tailored to different age groups such as puppies, adults, and seniors,
as well as products for specific skin and hair types for the past decade. They also introduced specialized products
like grain-free food. Korea's unique feature is the effort of various
startups to dive into pet tech and expand the market. For example, FITPET introduced 'Ahead', a basic
health check kit for pets, and 'Detect', a service for pet identification in 2018.
In 2019, they launched FITPET Mall, and in
2021, they started a subscription service for pet supplies called FITPET Box. RWave developed PetPulse, which analyzes animal
sounds with AI to interpret emotions, while Alphado released 'Alphado Pet Plus', which can
determine eye, teeth, ear, and skin conditions in pets just from photos. IT giants are also seeking opportunities. In 2021, Kakao Mobility acquired 'Pet me up',
the leading pet-only taxi service in Korea, and launched 'Kakao T Pet' service
. Naver invested in UriVet Korea, a pet healthcare
startup. Samsung Electronics introduced Smart Tag Plus,
an upgraded pet location tag. In this book, various trends in pet consumer
behavior are highlighted. Firstly, there is an increase in demand for
premium products. Secondly, there is a growing demand for natural
and organic products, including not only pet food and treats but also organic bedding and
chemical-free grooming products. Thirdly, there is a rise in online shopping. Fourthly, ther
e is an increasing interest
in health and wellness. Preventive veterinary services, health foods
and supplements, and exercise equipment for physical activity are gaining popularity. In Korea, government organizations dealing
with pets include the Ministry of Agriculture,Food and Rural Affairs, the Animal and Plant
Quarantine Agency, the National Institute of Animal Science, a research institute under
the Rural Development Administration, as well as specialized departments in each metropolitan
a
nd local government related to animal husbandry. This book presents the results of a survey
conducted on 1,064 citizens of Busan. Among the areas where monthly expenses are
high when living with pets, veterinary treatment costs (71.4%, multiple responses) ranked the
highest, followed by food and snack expenses (67.7%), and grooming expenses (30%). Respondents who expressed concerns about veterinary
costs highlighted that the highest burden was from surgery, hospitalization, and disease
treatment
costs (69.2%), followed by general check-up fees (11.9%) and vaccination costs
(15.3%). To reduce medical expenses, it was suggested
that policies supporting medical treatment and vaccination costs, introducing partial
public pet insurance, and establishing and operating public medical service centers at
the local government level are necessary. The spending categories that respondents wanted
to increase for their pets were veterinary expenses (49.2%), use of recreational facilities
(38.7%), an
d food and snack expenses (35.7%). Experts suggest implementing a phased animal
medical insurance system and providing support for veterinary expenses to vulnerable groups
such as basic livelihood recipients, elderly living alone, people with disabilities, and
Underprivileged multicultural family to reduce the number of abandoned animals. While there may be arguments against supporting
pets in households struggling to make ends meet, as basic livelihood recipients face
difficulties in survival,
it is worth considering that pets can contribute not only to emotional
stability but also to the broader social safety net. Experts also believe that domestic companies
should focus on innovating in deep tech pet businesses that combine bio tech rather than
just focusing on simple pet product platforms. Today's video will end here. Thank you for watching.
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