SEA’s pet tech firms have investors’ tails wagging

Note: Firms in the pets category refer to those offering lifestyle services ranging from grooming to pet-sitting and boarding.

Fancy a Louis Vuitton accessory for your dog?

Affluent dog owners rejoiced last October when the luxury fashion house released a line of collars, leashes, and other accessories made with its iconic Monogram Canvas leather.

It was Louis Vuitton’s first-ever collection for dogs and a nod to the global rise of pet ownership. As disposable incomes climb, birth rates fall, and the family unit evolves, more people across the world are swapping out having children for having furbabies or pets.

The pet care market in Asia Pacific is projected to surge at a compound annual growth rate (CAGR) of 4% between 2024 and 2029, surpassing North America and Western Europe, which are estimated to grow by 2.5% and 2.1%, respectively.

Pet owners in Singapore spent US$195 a year on their pets on average in 2024 compared to US$82 in Malaysia and US$17 in Indonesia, according to data analytics firm Euromonitor International. Despite less spending in emerging markets, there is room to expand as pet ownership is growing off a lower base.

Bright spot

With a CAGR of 8.7% between 2024 and 2029, Thailand is forecasted to take off the fastest out of all Southeast Asian markets.

This can be partly attributed to the country’s “more mature pet ecosystem” and prevailing local customs and religious norms that promote the care of animals, Sameer Mehta, head for Southeast Asia at VC firm DSG Consumer Partners, tells Tech in Asia.

Thailand’s gross domestic product per capita hit US$7,182 in 2023. This exceeded the US$7,000 threshold where China’s pet care industry reached its inflection point, he adds.

While pet owners in developed markets are opting for human-grade pet food, increasing awareness about pet nutrition is driving more owners in emerging markets to seek more premium food alternatives.

“We are confident that once the [rest of the] region achieves a similar level of economic growth, it will experience a similar surge in the pet category,” Mehta notes.

Emerging trends

One thing’s for sure: Catering to pets is no longer limited to pet-focused brands or platforms.

Mainstream brands are beginning to offer such products, notes Jane Peh, co-founder and CEO of pet influencer agency Pawjourr. Her company links up brands with pet personalities on social media.

Home appliance maker Dyson, for instance, now has a pet grooming kit, while Electrolux has a vacuum cleaner with a nozzle designed to remove pet hair from upholstery. Jewelry brands are launching matching jewelry sets for owners and their furry friends.

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