"Pet-Related Spending Rises 35% in Four Years"

NongHyup Bank Customer Data Analysis
Annual Per Capita Spending on Companion Animals Reaches 270,000 Won
Both Frequency and Amount of Spending Up from 2020
Increased Use of Kindergartens, Hotels, and Funeral Services
High-Value Veterinary Paym

The "Petflex" culture, which involves spending generously to ensure pets live happy and healthy lives, is spreading. Both the amount and frequency of spending have increased, and expenditures are expanding to cover all stages of a pet's life, including care, funeral services, and entrusted management. Now, expenses related to pets have become an important part of everyday spending, rather than just an optional choice.

According to an analysis of customer data in pet-related sectors by NongHyup Bank on August 19, spending on pets last year increased by 35% compared to 2020. This figure is based on NongHyup Bank's indexation of annual pet-related sector usage statistics from NongHyup Card, with 2020 as the baseline (including animal hospitals, grooming services, entrusted management, funeral services, etc.). The number of transactions and customers also rose by 20% and 11%, respectively. The annual per capita spending on pets was found to be 270,000 won.

The frequency of pet-related spending also increased. The number of customers who used pet-related services more than 10 times a year rose from 120,000 in 2020 to 150,000 last year. The number of customers who used these services 4 to 9 times a year increased from 250,000 to 270,000. In addition, the number of customers who spent more than 500,000 won annually on pets grew from 117,000 in 2020 to 165,000. NongHyup Bank explained, "As pet-related services diversify, more customers are spending frequently and generously for their pets."

Specifically, spending increased evenly across all areas necessary throughout a pet's lifetime. NongHyup Bank analyzed that spending on pet kindergartens and hotels has shown a marked increase since 2022. The number of customers using these services last year rose by 33% compared to 2020, and the number of transactions increased by 38%. The average amount spent per transaction grew from 74,000 won to 125,000 won over the same period. The number of specialized pet funeral service providers increased from 57 in 2020 to 83 last year, a 1.5-fold increase over five years. During the same period, the average per capita spending on funeral services more than doubled from 110,000 won to 260,000 won, and the number of customers using these services increased by 48%.

However, the burden of veterinary medical expenses has also increased. An analysis of payment data from animal hospitals in Seoul shows that the proportion of small payments (under 30,000 won) decreased from 37% in 2020 to 30% last year. In contrast, the proportion of large payments (over 100,000 won) rose from 19% to 27% during the same period.

NongHyup Bank also analyzed that the Petflex culture is expanding beyond simple consumption to include a culture of giving. According to a text analysis of NongHyup Bank's checking account transactions, 1 in 5 customers (20%) participated in donations related to abandoned animals more than twice over the past five years, based on the proportion of customers by the number of donation transactions from 2020 to last year. The number of customers who donated 12 times or more per year more than doubled last year compared to 2020.