Daekyo, known for its 'eye-level learning materials,' opened an education center at the pet kindergarten 'Howlpot Kindergarten' in Hannam-dong, Seoul, in March. Dogs registered at this kindergarten can receive various pet programs, including socialization education and cognitive development. As the company's core educational business has slowed due to low birth rates and a declining school-age population, it is interpreted that Daekyo has entered the pet education market as a growth alternative.
Noroo Paint & Coatings recently introduced pet-friendly paint, and home appliance corporation Cuckoo Electronics is developing a pet appliance brand called 'Nello.' The bed brand Simmons launched a pet-specific mattress called 'N32 Jjokkomi,' and the funeral corporation Boram Funeral Service has even introduced pet funeral services.
Small and medium-sized corporations are entering the pet market as their existing businesses stagnate and they look to engage in the rapidly growing pet industry.
According to the Ministry of Agriculture, Food and Rural Affairs, the number of households raising pets in Korea is 5.91 million, accounting for 26.7% of all households. The related market size is projected to grow from 8 trillion won in 2022 to 21 trillion won by 2032.
Small and medium-sized corporations entering the pet market come from various sectors including education, paint, appliances, beds, and funerals. There is even talk that 'both small and medium-sized corporations are entering the pet market.'
Experts explain that the pet business extends its service targets to pets, making it easier to enter the market compared to starting a completely new business. However, they also express concerns that it could be detrimental.
Lee Hak-beom, the CEO of Daily Vet and a former veterinarian, said, 'Many corporations are entering the pet market due to the difficult economy,' adding, 'While entry is relatively easy, entering the market too easily can work against them.'
Most corporations that have entered the actual pet market are falling short of expectations due to fierce competition. Moreover, small and medium-sized corporations tend to have shorter experience in the pet business, leading to lower brand recognition.
A representative from a medium-sized corporation that entered the pet market last year said, 'We are not seeing proper sales yet,' and noted, 'We are looking at it in the long term, not just the short term.'
Bang Hye-won, a senior researcher at Euromonitor Home & Living, explained, 'Simply entering the pet market because it is on a growth trajectory carries significant risks,' emphasizing that developing customized products for aging pets and innovating with products not available in the existing market is essential for long-term success in business.