The Vietnamese pet food industry has moved beyond its initial, spontaneous phase to become a multi-million dollar sector. For pet shop owners and distributors, the crucial question is no longer “is the market promising?”, but rather “which channels are the products flowing through and where do I stand in that distribution chain?”.
What stage is the Vietnamese pet food market currently in?
If we place the Vietnamese pet food market within the industry lifecycle, we are at the beginning of a rapid growth phase, not yet in a saturation phase. The signs are clear: consumers have accepted the concept of specialized pet food, but most have not yet completely switched from the habit of feeding their pets leftover rice. Conversely, supply is increasing rapidly, with dozens of foreign brands entering the market each year. The gap between emerging demand and abundant supply creates a distinctive characteristic of this phase: competition isn’t about who has the product, but about who can build a sufficiently deep distribution system to deliver the goods to consumers. This is why, in recent years, the roles of importers and distributors have been significantly revalued compared to before.
Scale and growth rate as seen through the numbers.
The figures show a steady growth trajectory, not a short-term boom. According to Mordor Intelligence, the Vietnamese pet food market is projected to reach approximately US$167.98 million in 2026 and is forecast to hit US$242.39 million by 2031, representing a compound annual growth rate of 7.61%. Data released by the Ministry of Agriculture and Rural Development in March 2025 adds to this historical context: the market was US$128.3 million in 2023, rising to US$141.9 million in 2024, and projected to reach US$222.4 million by 2029, equivalent to an annual increase of approximately 9.4%, higher than the global average. What is noteworthy for businesses is not the absolute numbers, but the consistency of the growth. A market experiencing nearly double-digit growth for many consecutive years allows retailers to plan inventory, recruit staff, and open retail outlets with significantly lower risk compared to other consumer goods industries.
Why is the 5% figure good news for dealers?
In the overall data on the industry, the most concerning figure is that only about 5% of dogs and cats in Vietnam are currently eating specialized pet food, out of an estimated 27 million pet animals. Many interpret this number pessimistically, believing the demand is still too small. However, the opposite interpretation is more accurate: the remaining 95% represents room for conversion, and each additional percentage point of conversion is equivalent to hundreds of thousands of pets becoming regular customers. Unlike saturated industries where growth comes from poaching competitors, the Pet Food industry continues to grow primarily through expanding its user base. This has direct implications for distributors: the most profitable business today isn’t stealing customers from neighboring pet shops, but rather turning pet owners who haven’t used specialized pet food into regular customers.
Product structure: dog leads, cat sprints.
In terms of pets, dogs remain the largest contributor, accounting for approximately 61.12% of industry revenue in 2025. However, the growth is driven by cats, with projected annual growth of 8.27% until 2031. On e-commerce platforms, the disparity is even more pronounced, with cat products dominating pet industry sales at various times. By product line, traditional foods like dry kibble and basic pate still hold around 49.76% market share, while nutritional supplements and functional products are the fastest-growing at 11.62% per year. This picture suggests a rational portfolio structure for retailers: dry kibble and pate serve as the base sales engine and maintain repeat purchases, while functional nutrition, treats, and cat products generate profit margins and differentiate themselves from surrounding retailers.
Specialty stores still control the distribution channel.
A common misconception is that e-commerce has taken over the pet industry. The data says otherwise. Specialized stores, including pet shops and veterinary clinics, will still account for approximately 72.44% of pet food sales in Vietnam in 2025. This is due to the industry’s specific characteristics. Pet owners need advice based on breed, age, weight, and health status; they need to return or exchange food if their pets don’t tolerate it; and they make repeat purchases in short cycles, prioritizing convenience and reliability. These are values that a traditional e-commerce store can hardly replace. For distributors, the 72.44% figure carries a very specific strategic implication: the network of dealers and pet shops remains the most important distribution asset, and investing in the capacity of this system is still more effective than pouring all resources into advertising on e-commerce platforms.
Online channels are growing rapidly but have not yet replaced physical stores.
That doesn’t mean the online channel is less important. It’s the fastest-growing channel in the industry, with a compound annual growth rate of approximately 9.33%, higher than the market average. The structure of the online channel is also clearly defining: Shopee holds the majority of revenue in the pet industry, TikTok Shop is booming thanks to short content and livestreaming, and Lazada holds a smaller share. However, most online transactions are concentrated in the low-price and easily standardized categories such as accessories, supplies, and snacks. Large-scale main food items, items requiring consultation, and high-value orders still flow largely through physical stores. Therefore, the right approach isn’t about choosing online or offline, but about defining the role of each channel: online for reaching customers and building awareness, and physical stores for closing high-value orders and retaining repeat customers.
Imports and the shift towards official channels.
The Vietnamese pet food market relies heavily on imports, and this supply is increasing rapidly. According to the Ministry of Agriculture and Rural Development, pet food imports have increased by approximately 69% in the past five years. Simultaneously, there’s a subtle but significant qualitative shift: the market is moving away from unofficial imports and towards officially imported goods. This is due to factors on both sides. Consumers are increasingly concerned about expiration dates, product origin, and traceability in case of pet problems. Regulatory agencies are tightening product declaration and quarantine procedures. For distributors, this is a beneficial change. With documentation becoming mandatory, the competitive advantage shifts from “who can buy at the cheapest price” to “who has a stable and legitimate supply,” meaning distributors with established import relationships benefit.
Distribution trends: from sales to system building
The biggest trend in distribution over the next few years is the separation of roles. In the early stages of the industry, a business could import, wholesale, and retail simultaneously without conflict because the market was too small. As scale increases and pricing becomes more transparent online, that three-in-one model begins to self-destruct: distributors can no longer compete with their own suppliers. Therefore, serious importers are gradually shifting towards a purely distribution role, not retail, and diverting resources to tasks that distributors cannot handle themselves, such as price protection, providing sales materials, nutritional counseling training, handling near-expiry goods, and maintaining stable inventory. This is the most important trend to watch for anyone choosing a long-term supplier.
What should pet shops and retailers prepare for the upcoming period?
From the picture above, there are four things a distributor should do immediately. First, restructure the product portfolio into three categories: products that generate base sales, products that generate profit margins, and products that create differentiation, instead of importing a wide range of products based on intuition. Second, increase the proportion of products for cats and functional nutrition products, as these are the two fastest-growing categories. Third, build consulting capabilities instead of competing on price, because consulting is something e-commerce platforms haven’t been able to replace yet, and it’s also the reason why specialized channels still hold over 72% of the market share. Fourth, choose suppliers based on long-term criteria: those that import through official channels, have transparent pricing policies, and commit to not directly competing with distributors. These four things don’t require large capital, but they largely determine the sales outlet’s ability to survive for the next three to five years.
How does Petkin view the Vietnamese pet food market?
Petkin is an importer and distributor of pet food, and how we understand the market dictates how we work with our partners. With 95% of pets not yet using specialized pet food and the dedicated retail channel still accounting for over 72% of our revenue, we believe the greatest value of an importer lies not in quickly selling directly, but in strengthening the dealer network. That’s why Petkin pursues a non-direct retail distribution model, focusing on officially imported goods, stable pricing policies, and product knowledge support for dealers. The market is still vast, but the rewards will go to those with disciplined supply chains. If you are a pet shop owner or dealer and want to build a long-term supply chain, now is the right time to standardize your product portfolio and partnerships.