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HomeDog FoodPet meals manufacturing positive aspects momentum in Kazakhstan regardless of challenges

Pet meals manufacturing positive aspects momentum in Kazakhstan regardless of challenges


An area firm in Kazakhstan is planning to construct the primary large-scale pet meals manufacturing facility in Central Asia within the coming years, signaling an enormous change within the area, the place native companies have been hesitant to spend money on massive manufacturing services.

KazPetFood has scheduled the beginning of development for Central Asia’s first large-capacity pet meals manufacturing facility in 2025. Zhanat Jandosova, KazPetFood improvement director, advised Petfood Trade that the ability will likely be operational within the second half of 2026. On the preliminary stage, the manufacturing facility is predicted to fabricate 40,000 tonnes of dry pet meals per yr, working state-of-the-art European gear and uncooked supplies primarily of native origin, Jandosova mentioned.

KazPetfood has expertise in manufacturing pet meals, although at a unique scale. “Our firm was one of many pioneers of the pet meals business in Kazakhstan,” Jandosova mentioned. “It is a small manufacturing, primarily centered on kennel canines and specialised breeders.”

She added that the corporate plans to promote pet meals not solely in Kazakhstan but in addition all through Central Asia and past.

Pivotal time for Kazakhstan’s pet meals market

As of as we speak, Kazakhstan’s pet meals market is primarily managed by Mars Pet Care and Nestle Purina, which collectively account for 80% of gross sales. A number of different manufacturers, together with Nature’s Safety, Lider, Russia’s Miratorg and Monge, have expanded their market share. The market additionally contains a number of native manufacturers, corresponding to Attila and Yummi, Jandosova mentioned.

The brand new plant will likely be a game-changer for the area, which has traditionally relied on imported pet meals.

Zooinform, a Moscow-based pet business media, estimated the worth of the Kazakhstan pet meals market to be between $80 million and $100 million.

The previous few years have been pivotal for Kazakhstan’s pet meals market. Since 2022, the Kazakhstan market has been in turbulence, with issues arising at market gamers “like an avalanche,” Yulia Dolzhenkova, improvement director of Zooinform, advised Petfood Trade.

“Merchandise imported from Europe and China have turn out to be dearer in the course of the pandemic as a result of extra difficult logistics, however issues have turn out to be even worse after many producers refused to move their merchandise by the shortest route — by Russia,” she mentioned.

For instance, Royal Canin pet meals, which has at all times been imported from France, used to cross two borders to achieve Kazakhstan. Now it has to cross 4. Because of this, its retail value jumped by 60% to 80%, based on native pet enterprise participant.

KazPetfood determined to spend money on its personal pet meals manufacturing facility in 2023, Jandosova mentioned. At the moment, the market panorama was considerably altered.

Some premium meals manufacturers, which till not too long ago loved good demand and wonderful prospects in Kazakhstan, have virtually disappeared from retail as the value skyrocketed, apart from these shops specializing in premium merchandise. Yulia Dolzhenkova mentioned the value improve is just a part of the issue, with provide disruptions being the larger concern.

KazPetFood is just not the solely Central Asian producer creating its enterprise, in response to the market turmoil. Yummi has not too long ago established the export of pet meals to Russia and Kirgizia. The corporate has began distributing its merchandise by the main Russian marketplaces Wildberries and Ozon. Nevertheless, native gamers have comparatively small manufacturing capacities.

Uzbekistan suffers from gray imports 

The outlook for establishing pet meals manufacturing in different Central Asian international locations stays unsure. As an example, Uzbekistan, the area’s second-largest pet meals market, continues to wrestle with gray market imports, an issue that can be widespread in different components of Central Asia.    

“In keeping with market gamers interviewed by Zooinform, the share of gray import accounts for not less than half of the product vary in most pet shops,” mentioned Yulia Dolzhenkova. “These are items imported into the nation with out paying customs duties, with out paperwork — if they’re wanted, passing by the ‘black’ money register and never burdened with taxes.”

The primary circulation of gray provides comes from China, she added. This commerce circulation is believed to undermine the native business and harm its funding attractiveness.

Pet meals retail additionally lacks order. As Yulia Dolzhenkova defined, nobody appears to know what number of pet outlets are working in Uzbekistan, not even massive wholesalers. Principally, Uzbekistan lacks statistical data on the pet market, which everyone seems to be accustomed to in additional mature markets. There are indicators, nonetheless, indicating gross sales in the market is likely to be on an upward observe, particularly within the pet food phase.

“Now, there’s a speedy improve within the variety of pet outlets in Tashkent and different cities,” she added. “On the identical time, the big ones don’t push out the small ones. There may be sufficient demand for everybody, regardless of the final value battle.”

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