Nestlé to Launch New Pet Care Division in South Korea

After more than a decade, Nestlé is moving to establish its own pet care business in South Korea, ending its collaboration with Lotte Wellfood.

Nestlé Purina PetCare will launch on 1 April 2025, and the business rights currently held by the joint venture (JV) will transfer back to Nestlé Korea.
 

A GlobalPETS market analysis revealed that South Korea has been importing less pet food amid an increase in local suppliers.
 

Strong Platform

Nestlé launched its JV with long-established South Korean producer Lotte Wellfood in 2014 as Lotte-Nestlé (Korea) to leverage the strength of the Nestlé portfolio and Lotte's local market intelligence and distribution capabilities.
 

At the time, it was hailed as 'a strong platform to deliver growth and value' by Nestlé Korea's then-CEO Graeme Toft. The JV was not only for the pet care range but also for human food products.
 

You could be interested

European Pet Food Maker Kormotech Expands Presence in Romania through Retail Chains

Global Priorities

Fast-forward to 2025, and current Nestlé Korea CEO Thomas Casso says the two partners have agreed to wind down the JV by the end of the first quarter of 2026.
 

'Nestlé and Lotte made this decision after comprehensively considering various factors, such as overall global priorities, domestic market conditions and the two companies' shared capabilities,' he says. 'Both companies will strive to ensure stable operation and change management until the end of the joint venture.'
 

Market Challenges

The South Korean pet care market has faced challenges in recent years due to economic slowdown and rising inflation.
 

Euromonitor's 2024 analysis indicated that consumers were basing their purchases on affordability while cutting back on non-essentials. It also noted a preference for trusted and familiar brands and strong growth in cat food as the country's cat population was growing faster than dogs.
 

Nestlé Growth

Nestlé reported that its 2024 group sales and net profit had decreased across its vast portfolio. However, its pet care division was delivering growth, especially in the Purina range in North America. Market share gains have been made in Europe, and it has 'reignited growth momentum' in Asia, Oceania and Africa.
 

The company recently announced a $198 million (€187M) investment in its pet food processing facility in Wisconsin, enabling it to increase wet food production by up to 50%, and a £150 million ($200.5M/€180M) investment in its Purina pet care facility located in Wisbech, UK.  

By Steve Randall

Source: GlobalPets