The Petconomy Era: Love and Growth Intertwined

By the end of 2024, the number of pet owners in Korea had surpassed 15 million, and today, pets are increasingly coming to be regarded as true members of the family. Riding on this cultural shift, the petconomy is transforming the country’s economic landscape. Against this backdrop, the Sungkyun Times (SKT) aims to explore the scale of the petconomy, its key sectors, and its social impact.

From Companions to Business

-Paws in Daily Life

Today, Korea is a society where companion animals can be found almost everywhere, making it difficult to imagine a world without pets. According to the 2023 national survey on public awareness of animal welfare conducted by the Ministry of Agriculture, Food and Rural Affairs, one-quarter of all households in Korea own pets. As pet-owning households continue to grow, the so-called petconomy is also expanding rapidly. A portmanteau of pet and economy, the term refers to the growing market centered on companion animals, encompassing industries such as pet food, pet healthcare, and more. In fact, data from KPMG Samjong Accounting Corporation shows that the domestic pet market value was estimated at ₩8.5 trillion in 2022 and is expected to reach ₩21 trillion by 2032. This explosive market growth is reflected in consumer choices, with purchases increasingly centered on pet-related products. A survey reported by The Chosun Ilbo showed that on the online shopping platform Gmarket, pet strollers accounted for 57% of stroller sales between the first and third quarters of 2024, surpassing baby strollers for the first time. Such developments demonstrate that pet-related spending is no longer a niche form of consumption but has firmly taken root as a mainstream trend in everyday life.

-New Family Members

Behind the rapid growth of Korea’s pet market lie various social and cultural factors. Among them, changes in family structure, such as the rise of single-person households, have helped pave the way for the petconomy. Statistics Korea data shows that more than half of pet-owning households in 2020 were one-person or two-person households, suggesting that smaller households are more likely to keep pets. This trend coincides with the growing phenomenon of pet humanization, in which pets are treated as if they were family members. This change in perception has led to a significant increase in spending on pets’ well-being and happiness, which, in turn, has fueled the pet industry’s expansion. In Korea, for instance, a burgeoning pet culture has led to the rise of services like pet-friendly hotels, luxury pet spas, and pet food delivery. As lifestyles and perceptions continue to evolve, pets are becoming vital parts of both daily life and the economy.

Shaping a New Pet Lifestyle

To capture the emerging petconomy market, in August 2023, the government categorized the industry into four major sectors: pet food, pet healthcare, pet technology, and pet services.

-Pet Food: Fueling the Petconomy

The pet food sector encompasses pet meals, snacks, and petfriendly restaurants, making it one of the core areas of the pet industry. According to the KB Financial Group Management Research Institute, nearly half of all pet-related household expenditures go toward food, making this the fastest-growing sector within the petconomy. Along with this upward trend, various domestic companies are launching products that reflect their unique characteristics. For example, the bakery café and restaurant Sniff has introduced two exclusive pet menu items, Mong Chicken and Mong Pizza, while the brand Jibbab Project offers products based on traditional Korean recipes such as tteokgalbi. In this way, pet food has emerged as a central driving force of the petconomy, fueling both market growth and product innovation.

-Pet Healthcare & Technology: Innovating Care and Beyond

Growing interest in pet health and safety has brought pet healthcare and technology markets into the spotlight. Since 2023, the KB Financial Group Management Research Institute has reported that pet health management remains the top priority for petowning households. Thus, pet healthcare services that integrate artificial intelligence (AI) technologies have been introduced to help predict and detect pet illnesses early, reducing the burden on pet owners. Notably, in 2022, Korea’s telecommunications provider SK Telecom launched X Caliber, an AI-powered veterinary diagnostic support service. This service analyzes pets’ X-ray images using AI to assist veterinarians in making more accurate diagnoses, making it an innovative example in the pet tech sector. Additionally, rising veterinary costs have fueled the rapid growth of pet insurance services, leading to an increase in specialized insurance products. In June 2025, Korea’s first pet-focused insurance company, MyBrown, was launched. It aims to demonstrate the practical value of pet insurance by developing electronic medical recordbased products, automating claims, and building a comprehensive service platform for pet owners.

-Pet Services: Expanding Horizons

The scope of services for pets has expanded beyond basic care to include specialized care and leisure, driving a rapid increase in demand for pet-related services across everyday life. In particular, households that cannot always be at home with their pets — such as dual-income and single-person households — are increasingly using pet care services. Boarding services such as dog kindergartens have also attracted attention. In an interview with the SKT, Goh Eun-young, a pet owner who uses a dog kindergarten, said, “The kindergarten offers various activities like picnics and holiday events, and the staff sends photos of these events every time. So, even when we are apart, I feel reassured.” Airlines are also rolling out various services to meet the growing demand for traveling with pets. Korean Air, for example, operates a pet membership program that allows members to travel with their pets year-round upon paying an annual fee, offering perks such as designated pet-friendly seating. In this way, pet services are rapidly broadening across education, leisure, and travel, solidifying their role as driving forces in the pet industry.

Unleashing the Pawtential

-Tides of the Petconomy

As the petconomy market continues to grow, its social impacts are becoming increasingly visible. First, the wide range of petrelated services has led to the creation of new jobs. According to the recruitment platform Job Korea, job postings related to the pet industry from January to April of 2025 increased by 21% compared to 2021, with a sharp rise in postings for dog kindergartens and pet e-commerce positions. Kim Ok-jin, a Professor of the Department of Animal Health at Wonkwang University, explained to the SKT, “The new job sectors arising from the increasing population of pet owners are helping create employment opportunities, benefiting both young job seekers and seniors seeking work after retirement.” Moreover, keeping pace with global market growth, domestic petconomy companies are expanding beyond Korea. The Korea Agro-Fisheries & Food Trade Corporation reported that Korea’s pet food exports reached $160 million in 2023, increasing about 12.5 times compared to 2011. Prominent pet food companies like Dongwon F&B and Wooriwa are also expanding their sales overseas, contributing to the global growth of the petconomy. In this way, Korean pet food companies are gaining recognition and strengthening their presence abroad.

-Governing the Petconomy

As the petconomy expands, various institutions are taking active measures in response. First, the National Assembly has begun addressing pet-related legislation. In May 2025, the first comprehensive law regarding the pet industry, the Companion Animal Industry Promotion Act, was proposed to provide a systematic framework for industry growth, including measures to assist entrepreneurs and businesses, and to establish a dispute mediation committee. Representative Lee Gae-ho, who proposed the bill, stated in an interview with Daily Vet, “By enacting the Companion Animal Industry Promotion Act, we aim to contribute to the growth of the pet industry and the development of the national economy.” Furthermore, local governments are collaborating with relevant organizations to establish pet-friendly regional products and industrial foundations. For instance, in May 2025, Gumi City held a briefing with Gyeongbuk Technopark and other related institutions to establish a foundation for fostering pet-related industries. The plans included industrializing pet technology, implementing international certification systems, and expanding tech-based startups. In this way, the petconomy has established itself as a significant emerging industry, growing sustainably and multidimensionally through legislation and regional development.

With their adorable faces hiding a shining future within, pets have firmly entered our daily rhythms. As these furry friends become true family, the petconomy opens doors to playful and heartwarming moments, blending love with new opportunities. Kingos, get ready for the boundless pawtential of this adorable market to bloom.