In Mongolia, a landlocked country in East Asia, livestock far outnumber humans and pets. Only about 250,000 pets live amongst 3.5 million people based on estimates, but the population of sheep, goats, cattle, horses and camels stands at 57.6 million as of 2024.
At first glance, it seems unfeasible to find a pet food market here, where only a quarter of a million pets need to be fed. But while the domestic pet food market is small, Mongolia actually has a nascent pet food sector strategically positioned for exports using meat from its livestock industry.
A study by the United States Agency for International Development (USAID) has identified pet food production and exports as an attractive business for the Mongolian meat industry. The agency said the processed nature of pet food can help Mongolian producers overcome the barriers they face when trying to export fresh meat to neighboring markets.
Despite experiencing a “dzud” — a Mongolian term for harsh winter — that killed more than 7 million animals in 2024, Mongolia’s meat sector continues to have a steady supply of inexpensive meat and meat byproducts that are considered environmentally clean. Pasture-fed, sheep and cows from Mongolia enjoy traditional Mongolian rearing that results in meat rich in omega-3 fatty acids, antioxidants and essential vitamins. This is a very good selling point when marketing pet food to its Asian neighbors like Japan, Korea and China where many pet owners are meticulous about the quality of food they give their pets.
Mongolian horse meat is particularly ideal for pet food as it is cheap, culturally acceptable in many Asian markets and, generally, disease free. In 2022, Mongolia exported 16,100 tons of meat and byproducts from horses, sheep and goats. This year (2025), Mongolia’s meat market is expected to generate US$1.548 billion in revenue and, by 2029, it is poised to produce as much as 172.4 million kilograms of meat.
Aside from those Asian markets already mentioned, Mongolian meat producers have also exported pet food to India and Philippines. Market intelligence agency Statista said Mongolia’s pet food products also reached Russia, Spain and the United Kingdom.
ReportLinker, a technology company that looks at business activities worldwide using artificial intelligence, said Mongolia had exported around 12,000 kilograms of pet food in 2017. It then grew to 32,000 kilograms in 2018.
USAID said the high quality of meat from Mongolia when used for pet food keeps importers from Japan and South Korea interested as they cater to consumers who are driven by claims of “healthy” and “natural.” However, the agency cautioned that Russia and China may be less accommodating of pet food exports from Mongolia because both have highly protectionist import policies and their own formidable manufacturing industries.
Partnership, cooperation as established pathways to more exports
With the right support, Mongolia can create ripples in China’s pet food industry — an observation made by China Briefing, the publication unit of Dezan Shira & Associates, a firm that assists foreign investors into China.
“The synergy between Mongolia’s agricultural potential and China’s booming pet market represents a business opportunity of the decade … For discerning investors, the timing couldn’t be better,” China Briefing wrote.
While the task of scaling up to meet the demands of the Chinese pet market is challenging, Mongolian producers can use it as an opportunity to ramp up their production and export, China Briefing added. As the Chinese pet food market grows to over US$8 billion by 2025, Mongolian producers are advised to forge collaborations in areas of capital and expertise, and to always highlight the health benefits that Mongolia’s quality meat promises to improve pets’ health.
Meanwhile, USAID recommended that Mongolian pet food makers seek partnerships with leading country importers and manufacturers to help them enter sophisticated and brand-conscious markets like Japan and South Korea.
“A more powerful option would be to seek cooperation with multinational brands interested in developing a manufacturing presence in the region and accessing Mongolia’s environmentally clean agricultural resources,” the U.S. agency added.
Mongolia’s pet ownership, pet food revenue on the rise
At 5,180 feet high above most countries in the world, cold Mongolia has recently warmed up to the concept of owning pets. An ongoing mining boom has dramatically improved economic conditions that helped change Mongolians’ attitude toward animals, which led to a dramatic increase in pets and the country’s first animal rights law passed in January 2024.
From around 250,000 pets in 2022, Mongolia’s pet population is expected to rise to 468,000 by 2029, according to Statista.
This year (2025), Statista said Mongolia’s revenue from its budding pet food market could amount to US$4.18 million, while the average volume per person is projected at 0.8kg. In 2026, a volume growth of 4.2% is expected and will continue to grow till it reaches 3.17 million kilograms by 2029. Overall, the market is headed for an annual growth of 7.44% (CAGR 2025–2029) with most of the revenue to be generated in the United States.
Meanwhile, there are over 320,000 stray dogs and cats in Mongolia, which the animal rights law wishes to protect by putting an end to inhumane culling. Once adopted and rehabilitated to become pets, the former strays can further beef up Mongolia’s pet ownership and pet food market numbers.
A blueprint for Mongolia’s pet food export goals
USAID’s recommendation is for Mongolian companies to focus on the local production of fully processed products that will enable them to bypass strict import regulations for fresh meat, achieve lower transportation costs of shelf-stable products and capture higher profit from value-added activities.
The agency also suggested that Mongolian companies should focus on producing canned pet food products using 100% premium meat and dry treats made of 100% animal by-products. This would allow them to maximize the full benefits of Mongolia’s competitive position using meat as a primary raw material.
“Higher meat content and the presence of ‘real’ meat chunks in a canned product are also synonymous with better quality and a premium product,” said the USAID study. “The production of ‘real’ products, canned or dried, versus extruded or reformed meat-like products, requires simpler manufacturing technologies and lower capital investments.”
In addition, the agency said it is important that Mongolian companies give highest priority to marketing and branding when seeking to enter new markets. It will also help if the country can soon develop its own standards and regulations for meat and for pet food. In its absence, Mongolia simply applies the same standards used for exports of human food to pet food by default.