Imports are more than twice the exports... Trade balance deficit for 11 consecutive years
Quick Look
- The domestic pet food market has grown to 2.5 trillion won, but the government is unable to determine the share of imported products, and the export support budget has increased fivefold in two years, but export amounts remain at the same level.
- Last year, pet food imports were 2.1 times the export amount, resulting in a trade deficit of $182 million, which has been the 11th consecutive year of deficit since 2015.
AI-generated summary
Why It Matters
The domestic pet food market increased 67.4% in five years from $1.0648 billion in 2020 to $1.783 billion last year, and last year's market size was equivalent to approximately 2.5 trillion won in Korean currency.
The export support budget has increased fivefold in two years, but exports remain stagnant.
(Seoul = Yonhap News) Reporter Cho Min-jung = Although the domestic pet food market has grown to 2.5 trillion won, it has been revealed that the government is not even able to understand the proportion of imported products in the domestic market.
According to data submitted by the Ministry of Agriculture, Food and Rural Affairs on the 4th by People Power Party lawmaker Kim Seon-kyo, a member of the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee, the domestic pet food market is estimated to have increased by 67.4% in five years from $1.0648 billion in 2020 to $1.783 billion last year. Last year's market size was equivalent to approximately 2.5 trillion won in Hanwha.
Despite the rapidly increasing scale, it appears that the government is not even securing basic statistics.
In data submitted to the National Assembly's Office, the Ministry of Agriculture, Food and Rural Affairs wrote 'no relevant data' regarding the share of imported products in the domestic pet food market.
Regarding this, Rep. Kim pointed out, “We do not even have basic statistics to judge industrial competitiveness, such as the market share of domestic and imported products.”
Last year, pet food imports amounted to $342.5 million, 2.1 times the export amount of $160.5 million, resulting in a trade deficit of $182 million. The pet food trade balance has recorded a deficit for 11 consecutive years since 2015.
Meanwhile, the government's export support budget has increased significantly.
The budget for the overseas export industrialization project for companion animal-related industries has expanded 4.9 times in two years from 1.84 billion won in 2024 to 9.095 billion won this year.
However, pet food exports only increased by 7.1% from $149.8 million in 2023 to $160.5 million last year, and are virtually unchanged compared to 2024 ($160.1 million).
Rep. Kim said, “In line with the rapidly growing pet market, we need to properly analyze basic statistics and industrial competitiveness and prepare a comprehensive development strategy that includes the use of domestic raw materials, research and development, product advancement, and expansion of overseas sales channels.”
What to Watch
AI outlook — possibilities, not facts
The government will secure basic statistics on the pet food industry and conduct industry competitiveness analysis.
Possible · Within months
Open Questions
- What is the specific reason why the government cannot determine the share of pet food imports?
- What is the reason for the stagnation of exports despite a significant increase in the export support budget?
- When will a comprehensive development strategy for the pet food industry be prepared?
