In a recent development, the US Department of Agriculture (USDA) Foreign Agricultural Service (FAS) has identified South Korea as a significant export opportunity for the US pet food industry. This decision comes in the wake of the United States being the leading agricultural importer to South Korea, with imports valued at $10.4 billion in 2022, as reported by Trade Data Monitor LLC. The US-Korea Free Trade Agreement, established in 2012, has facilitated improved market access, which is now proving beneficial for the US pet food sector. South Korean pet owners are increasingly seeking high-quality pet food that promotes optimal nutrition and well-being, a demand that US brands are well-equipped to satisfy. In 2022, South Korea’s global pet food imports surged to $347 million, marking a 45% increase from $239 million in 2018. Despite the United States being the top agricultural importer, China leads in pet food imports with a 30% market share. The United States follows with a 21% share, trailed by Thailand. The pet ownership trend in South Korea is on the rise, with the cat population growing by 4% in 2023 and the dog population experiencing a steady annual growth of up to 3% since 2019. Urbanisation and the increase in single- and two-person households are contributing factors to this growth, particularly in the cat population, as noted by Euromonitor International. Wet dog food is emerging as a significant opportunity, aligning with the growing preference among South Korean pet owners. However, the country is experiencing inflationary pressures, leading to a 20% increase in retail prices for dog food, which has resulted in cautious spending on pet food products. Despite these challenges, the outlook for 2024 and beyond remains optimistic. The report anticipates that an economic recovery in China will bolster South Korean exports, and private consumption and investment in South Korea are expected to gradually rebound. The duty-free tariff status on US dog and cat food exports to South Korea paints a promising picture for the international distribution of American-made pet nutrition products, indicating potential growth and expansion in this sector.
