The number of people living with pets has increased dramatically over the past decade, and pet awareness is rising. We look at the industries and services that have captured the hearts and minds of the pet-fam.
According to the Korea Rural Economic Institute (KREI), the number of pet owners in Korea has proliferated from 17.4 percent in 2010 to 27.7 percent in 2020. As of last year, the industry predicts reaching about 15 million people or 30 percent of the total population. As the pet population grows, so too does the number of pet parents who consider their pets members of the family and spend as much time and money on them as they do on their children. This trend is driven by social factors, such as the rise of DINK-pets (dual-income couples who live with pets instead of having children), the increase in single-person households, the aging population, and changing perceptions of pets. As a result, there is a growing interest in pet-friendly neighborhoods with adequate facilities and businesses for pets. Since November last year, KB Kookmin Bank has been providing location information on pet-friendly facilities on its KB Real Estate complex information page, showing pet-friendly cafes, restaurants, veterinary clinics, pet grooming salons, and hotels within 1 km of each apartment complex in Seoul. The service is currently available in Seoul, but the company plans to expand to other regions due to overwhelming interest.
As the number of pet-fam has increased, the pet-related market, or petconomy (Pet + Economy), has grown and is estimated to be worth around 4.5 trillion won. This is larger than the 4 trillion won baby products market, and the Korea Rural Economic Research Institute said, “The pet-related market is growing at 10 percent annually.” In line with this trend, last summer, the government decided to promote the pet industry as a national strategic industry and announced a plan to “increase the domestic market size to 6 trillion won by 2027 and more than double the number of companies with an enterprise value of more than 100 billion won.”
As the market grows, so does the variety of things we buy for our dogs and cats. Beyond food, clothing, and toys, consumption is becoming more specialized, including furniture, training, hotels, flights, insurance, and telemedicine. The demand for quality pet products and services has led to the emergence of the term “Petsherry,” combining pet and luxury. According to KB Management Research Institute’s 2023 Korea Pet Report, the average monthly pet expenditure for pet households will increase from KRW 123,000 in 2018 to KRW 154,000 in 2023.
The growth of the pet economy can be seen in many products and services around us. Firstly, the increase in pet travelers has led airlines to launch several tailor-made products. Jeju Air launched a “dog charter flight” service between Gimpo and Jeju on April 5 and 8 to celebrate International Dog Day. As a prize for one dog per two owners, the airline offered various pet products and a veterinarian on board to ensure safety. The well-designed product for pet lovers sold out immediately, and by the 5th, 114 passengers and 57 dogs had traveled to Jeju. Jeju Air is not the only airline that offers pet-related products in Korea and abroad.
In honor of International Puppy Day, Estar Jet launches an adoption campaign with Korean dogs. (Source: Estar Jet)
In addition to the products, Estar Jet is running an adopt-a-dog campaign until December 31 this year, introducing one dog a week and offering unlimited domestic pet flights and a pet passport upon adoption confirmation. Incheon International Airport also launched a pet service in March. For travelers leaving their dogs behind to travel abroad, the airport’s Dog Boarding Consignment Service is notable, where passengers can drop off their dogs at the counter near Gate 14 on the west side of the first floor of Terminal 1 and be cared for at ‘Dog Dog,’ a premium dog hotel on Yeongjong Island, Incheon. Additionally, there is a pet garden in the basement of the Terminal 1 Transportation Centre, where passengers can take a break with their dogs before departure, and a dog lounge is planned to open in the autumn.
Samsung iD PET Card (Source: Samsung Card website)
Also worth watching are pet finance products, which include credit cards, insurance, trusts, etc., with pet services and benefits. Pet cards from various credit card companies have attracted much attention, including Samsung Card’s ‘Samsung iD PET Card,’ which offers a 30 percent discount at veterinary clinics and pet shopping malls, up to a maximum of 50,000 won per month, depending on the previous month’s spending. Earlier this month, KB Insure and KB Card jointly launched ‘My Pet Card,’ which offers a 20 percent discount on pet insurance premiums. Woori Card’s ‘Dangdang Nyang-i,’ the classic card, was issued around 160 percent more last year than in 2022. Pet insurance, which covers medical expenses for pets, is also increasing. Until 2017, only three insurers offered pet insurance, but last year, the number rose to 10, including Meritz Fire & Marine Insurance, DB Insurance, and Samsung Fire & Marine Insurance. The number of policies has also increased almost 16-fold in five years, from 7,005 in 2018 to 109,088 last year. Insurance services are also becoming more sophisticated, with Meritz Fire&Marine Insurance gaining popularity by partnering with more than 400 veterinary clinics nationwide and introducing an automated claims system for pet owners. There is also a lot of discussion about a trust contract product, which transfers funds to a new pet owner to care for the pet if the owner cannot due to death, illness, etc.
Beyond pet-fam, there are ‘Petme’ people who love and care for their pets as if they were their own, and ‘Viewnimal’ people who enjoy pet culture through online videos and images, even if they don’t have pets. With pet love and social awareness at an all-time high, it’s worth imagining what a world where both humans and pets are happy would look like, as this is the pet market and lifestyle trend of the near future.
By Editorial Department
2024.06.24