Pet care business for beloved pets

The global market size of pet care products is approaching $200 billion, and has been growing even during and after the COVID-19 pandemic amid drastic lifestyle changes and economic volatility. Since the pet owner population among Millennials and Generation Z, whose purchasing power is rapidly growing, particularly in the US and China, is increasing, the market is expected to keep growing further.

At the same time, pets are becoming ever more important living companions in Japan and other countries where single-person households are on the rise due to declining birth rate and rising life expectancy. Pets can promote healthy lifestyles among owners by providing emotional comfort through daily interactions and encouraging light physical activity through regular walks. Data shows that elderly people living with pets have lower healthcare costs than their pet-free counterparts.

By protecting the health of pets, which are today irreplaceable companions for many of us, Sumitomo Corporation’s pet care business seeks to support the well-being of both pets and their owners, thereby linking pet health to human health.

Selling pet care products requires solid supply chain management including a license in each county, competitive and reliable manufacturing partners and regulatory expertise in cross-border transactions. In addition to that, we need to develop a sales strategy tailored to local business practice and consumer needs/preferences. Our advantage is solid partnerships with competitive companies enabled by the global network of Sumitomo Corporation group. The long-term goal of Sumitomo Corporation is to leverage this advantage and expand the global sales network.

One example is an equity partnership with Petgo initiated in 2018. It is an ecommerce provider specializing in pet care supplies and has more than half a million members in Japan. Sumitomo Corporation provides Petgo with products such as medications for pets. Ecommerce providers have precious data on pet owner buying trends. Sumitomo Corporation and Petgo are working together to find out the real needs of pet owners and utilize them in product development and marketing.

Another expansion is the distribution of Hartz brand products in Japan through Summit Agro International. It primarily sells dental toys and gum in retail stores and on ecommerce sites supported with digital promotions such as Instagram, aiming to reach as many consumers as possible.