Huge Pet Market: The 7 Notable Companies

Investor A (Seasoned Investor): The momentum in the pet market has reached a level where we can no longer call it a "boom." I read an article in Nikkei Veritas that says the market size for fiscal year 2024 was 1.9108 trillion yen, and it is expected to exceed 2 trillion yen by fiscal year 2027.

Investor B (Young growth-stock enthusiast): I was surprised. In Japan, the number of dogs and cats in households (about 15.7 million) is larger than the number of children under 15 (1.366 million). Even as the birthrate declines, pets have become so prominent.

Investor A: Yes. One point to watch is that the impact spans across all areas of "medicine, food, and housing." For example,Unicharm (8113)Their pet-care business has an operating profit margin of 17%, surpassing their main diaper and sanitary products businesses (13%).

Investor B: Unicharm is also expanding overseas aggressively. In addition to growth in China and North America, they plan to strengthen Southeast Asia in 2026. They’re a global growth stock worth watching.

Investor A: The "medical" sector is hot too. With pets aging, the demand for insurance is rising.Anicom Holdings (8715)With domestic pet-insurance enrollment still at a low 9.4%, there is seen to be further room for growth.

Investor B: Regarding Anicom HD, it’s interesting that Dalton Investments, known as a vocal shareholder, continues to increase its stake. The stock price has also risen to above 1,000 yen.