14.48 Million Pet Owners
Luxury and Hotel Industries Launch Diverse Products and Services
[Asia Economy Reporter Heo Midam] As the number of 'Petfamjok (Pet+Family)' who cherish their pets like family members increases, the related market size is growing significantly. Unlike previous generations who raised pets with minimal costs, Petfamjok are characterized by spending generously to ensure their pets eat well, wear good things, and live happily and healthily. Accordingly, luxury brands such as Gucci, as well as the hotel industry, are paying attention to the pet market.
According to the '2021 Korea Pet Report' published by KB Management Research Institute, the population raising pets in Korea is 14.48 million people (6.04 million households), which means one out of every four people owns a pet. Among them, households raising dogs account for 80.7%, and those raising cats account for 25.7%. The monthly fixed expenses spent on dog and cat food, snacks, etc., were surveyed to be 130,000 KRW and 100,000 KRW respectively.
As the number of households raising pets increases, related industries are launching various items. In particular, luxury brands are releasing various high-priced products targeting consumers who boldly open their wallets for their pets.
In June, Gucci launched the 'Gucci Pet Collection,' showcasing mini sofas, feeding bowls, leashes, and more for pets. The feeding bowls are priced in the 900,000 KRW range, and leashes range from 600,000 to 700,000 KRW. Especially, the mini sofa with the Gucci signature logo became a hot topic with a price reaching 11.8 million KRW. Additionally, Herm?s sells dog leashes priced between 1 million and 1.2 million KRW, and Fendi offers large dog beds for 2.1 million KRW.
Meanwhile, the hotel industry is also releasing various package products that allow guests to enjoy 'Hokangs (Hotel+Vacation)' with their pets. 'Chosun Palace Seoul Gangnam' first introduced a dog-only package in 2021, and due to positive customer responses, it continued to release up to the Season 3 package this year. The package includes a pet-exclusive treadmill and a dog stroller rental service.
'Grand Chosun Busan' has also prepared pet-only rooms since last year to accommodate guests with dogs. The pet-only rooms are equipped with items for dogs such as dog beds, mats, and slide stairs.
Although demand for traveling with dogs is increasing, the cost burden is not insignificant. According to the '2022 Pet Travel Survey' announced by the Korea Tourism Organization in June, 53% of Petfamjok traveled domestically with their dogs within the past year. They spent an average of 289,771 KRW per person on accommodation travel with their dogs, which significantly exceeds the average expenditure of general travelers (192,000 KRW).
Meanwhile, the pet market is expected to grow further in the future. According to the Korea Rural Economic Institute, the domestic pet market size was 3.4 trillion KRW in 2020, growing 78.9% compared to 1.9 trillion KRW in 2015. It is predicted to grow to over 6 trillion KRW by 2027.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
