Concrete Analysis | Pet theory: rising ownership in Hong Kong opens up a host of retail opportunities
Booming pet economy has also brought opportunities and insights to various property sectors in the city
To usher in the Year of the Dog most shopping centres in Hong Kong featured dog-related decoration themes over the Lunar New Year holiday. I’m sure we would expect nothing less if it were the Year of the Cat!
In Hong Kong, more families are welcoming pets into their homes with about 289 000 households keeping pets in 2015-16. A study commissioned by the Veterinary Surgeons Board of Hong Kong last year and previous thematic reports by the Census and Statistics Department, showed that pet ownership has undergone exponential growth over the last decade, rising 72 per cent from 297,100 dogs and cats in 2005/6 to 510,600 in 2015/16. It is expected to reach 545,600 in 2019.
Pet ownership is the highest among the more affluent families, with 11.1 per cent of the households earning HK$40,000 (US$5,112) or above owning dogs and 6.5 per cent of these households owning cats, according to a study from 2011.
Today’s devoted pet owners spend a lot of dough on their furry kids, spoiling them with luxury products and services, as consumption patterns have become increasingly “humanised and premiumised”. According to Statistia, revenue in Hong Kong’s pet food segment is expected to reach about HK$1.1 billion in 2018 and is expected to grow at a compound annual growth rate of 5.9 per cent between 2018 and 2021.
From a real estate perspective, the booming pet economy has also brought opportunities and insights to various property sectors in the city.
The expansion of pet shops and suppliers has been notable. For instance, Pet line opened six new retail locations over the last 12 months. Many pet shops have also used omni-channels to reach a wider and diverse customer base.