The United States, ranking as the foremost contributor to South Korea’s agricultural imports with an impressive $10.4 billion in 2022, as per Trade Data Monitor, LLC, has been identified by the USDA Foreign Agricultural Service (FAS) as a crucial export opportunity for diverse commodities and finished goods. The ongoing benefits of the US-Korea Free Trade Agreement, initiated in 2012, are proving advantageous for the US pet food industry.
The assessment underscores the active pursuit of high-quality pet food by South Korean pet enthusiasts, emphasizing the importance of optimal nutrition and overall pet well-being. Brands originating in the United States are strategically positioned to meet this discerning demand.
While the United States leads as the primary agricultural importer to South Korea, China takes the forefront in pet food imports, commanding a notable 30% market share. In the South Korean pet food market, the United States holds a substantial 21% share, with Thailand following closely at 13%.
Encouraging trends in pet ownership within the country signal continuous opportunities for pet food imports. Projections indicate a 4% growth in the cat population for 2023, while the dog population maintains a steady annual growth rate of up to 3% since 2019, driven by urbanization and the rise of single- and two-person households, according to Euromonitor International.
The report points out wet dog food as a significant opportunity, given its increasing popularity among South Korean pet owners. However, the nation is not immune to inflationary pressures, resulting in a noteworthy increase of up to 20% in retail prices for dog food nationwide and prompting cautious spending on pet food products.
Despite these challenges, the outlook for South Korea appears optimistic for 2024 and beyond, with hopes pinned on an economic recovery in China boosting South Korean exports. The report anticipates a gradual rebound in private consumption and investment.
With the advantage of duty-free tariff status, US dog and cat food exports to South Korea present a promising avenue for the global distribution of American-made pet nutrition products