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How many households in Japan have a dog as a pet? (Please break out small vs. large dogs). How much do these households spend on their dogs, what do they buy and what areas do they splurge on?
Hello! Thanks for your question regarding the dog pet market in Japan. I found a bunch of great sources to answer your questions, the most useful two being Japan's Pet Market Summary and A Look At Japan's Pet Business Market.
The short version is that Japan's pet market is worth 1.4 trillion yen (12.8 billion USD) and there are approximately 9.9 million dogs as pets in Japanese households. Below you will find a deep dive of my findings.
OVERVIEW
The Japan Pet Food Association (JPFA) conducts surveys every year, and "t hese survey results are used in various areas as the only pet caring survey material available in Japan…This survey becomes the basic data for calculating the market size of the pet industry."
According to the survey's findings, the market size of Japan's pet market has stayed stable at around 1.4 trillion yen (12.8 billion USD) a year for the last few years. There are approximately 9.9 million dogs as pets currently in Japanese households, which equates to about 17% of the population being dog owners when we assume that each household only has a single dog.
When it comes to size, there is a preference for small to medium breeds. According to Japan News Website Nippon, "Space concerns and neighborhood environments are particularly pertinent to dog owners, and are reflected in a general preference for small-sized breeds. According to the Japan Pet Food Association survey, the three top breeds in 2015 were the miniature dachshund, the toy poodle, and a domestic breed, the shiba inu."
The dog population in Japan is divided into small (10kg/22lbs or less) or large (weighing more than 10kg/22lbs). The JPFA report states that 67.8% of the dog population in Japan is small dogs (10kg/22lbs or less), which equates to about 6.7 million ((9.9million x 67.8%) / 100). Large dogs (weighing more than 10kg/22lbs) account for 32.2% (100%-67.8%), which equates to about 3.2 million ((9.9million x 32.2%) / 100).
SPENDING ON DOGS
According to the JPFA report and a report released by the United States of America Dept. of Commerce, the largest amount of the annual spend for dog owners goes to food and services that include animal hospitals, training schools, daycare and insurance. Annually, households in Japan spend around 17,000 yen (156.16 USD) on pets as of 2015, according to Bloomberg Markets. However, this is the overall average for pets in general, not dogs specifically. An earlier report (2013) from ZENOAQ does address dogs specifically, though this is the most recent of this statistics. According to them, dog owners in Japan spend around 7,500 yen (68.90 USD) a month on their dogs. Annually, this would be 90,000 yen (826.25 USD).
When it comes to products, 78.9% of dogs live their entire lives indoors in Japan — including using the "bathroom" — and so "goods that are used daily, especially pet waste care and toiletry products, have steady demand." The report also notes that when it comes to products that are considered long-use, the demand is not as high, "On the other hand, goods that are used for longer periods of time, such as cage, large toys, beds and mattresses are low in demand because they are considered as one-time goods. Trends are not expected to change unless a game changer product is introduced into market."
When it comes to pampering their four-legged friends or purchasing luxury products the Japanese dog owner seems willing to spend, "...spa services for pets (especially dogs) such as massages and facials are very popular in Japan...Elaborate pet funerals that may cost several thousand dollars are very much in vogue as well…the Japanese will spend huge amounts of money on doggie couture, including designer duds and accessories by the likes of Prada and Gucci." The JPFA report also supports this, stating that, "due to the preference of Japanese owners, the market needs for high quality products remains high."
Euromonitor released a report covering pet trends in Japan, and while the bulk of the report is behind a paywall, the summery has some key insights including that the growth of pet products in Japan is expected to remain slow (around 1% per year), and the largest part of the market will be in pet health and toys that will entertain pets when they are left alone indoors all day.
CONCLUSION
To wrap up, around 17% of the population of Japan are dog owners, equating to about 9.9 million dogs. About 67.8% of those are small dogs, and the other 32.2% are large dogs. Japan's pet market is worth 1.4 trillion yen (12.8 billion USD), and when it comes to dogs, the majority of this is spent on health related services and food. There does seem to be a market for luxury goods and services, as well as anything that makes the dog's time alone indoors more comfortable.
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