The Growing Pet Industry in Bali and Lombok: Opportunities for Foreign Investors in 2025 and Beyond

Introduction

In recent years, Indonesia has experienced a remarkable rise in pet ownership, with Bali and Lombok standing out as two of the fastest-growing markets. What was once considered a niche lifestyle choice is now a mainstream trend, particularly among young professionals, families, and the ever-expanding expat and digital nomad communities. Pets are no longer just companions, they are seen as part of the family, leading to increased demand for premium food, grooming services, veterinary care, and even pet-friendly travel experiences.

The growth of this sector is particularly visible in Bali, where pet cafés, luxury grooming salons, and boutique pet shops are becoming commonplace. Lombok, while less saturated, is following a similar trajectory as its tourism and expat communities grow, making it a fertile ground for new businesses. Both islands are witnessing lifestyle changes that mirror global urban trends, where pet ownership is tied closely to wellness, emotional well-being, and social identity.

This evolving consumer mindset creates a unique opening for entrepreneurs and investors. The Pet Industry in Bali and Lombok is booming, spanning food and accessories, veterinary clinics, grooming and boarding, and even integration with hospitality and tourism. Understanding this growing demand and the local regulations that shape it is essential for anyone looking to enter or expand within this market.

In short, the pet sector is no longer an afterthought, it is becoming a key part of the lifestyle economy in Bali and Lombok, and its opportunities are only just beginning.

The Rise of the Pet Industry in Bali and Lombok

Indonesia’s pet market has been experiencing steady double-digit growth over the past decade, reflecting global lifestyle shifts where pets are treated as family members rather than simply animals. According to market insights from Euromonitor and local business reports, spending on pet food, accessories, and veterinary care in Indonesia has grown significantly, with Bali and Lombok showing unique dynamics compared to the national trend.

Bali has long been a hub for international tourism, attracting digital nomads, long-term expats, and lifestyle-driven visitors who bring global expectations for pet care with them. This influence has helped shape Bali into one of the country’s most advanced markets for pet services. Here, it is common to find specialized veterinary clinics with international-standard care, premium pet food retailers, pet hotels, and grooming salons catering to both locals and foreigners. The Pet Industry in Bali and Lombok also benefits from the island’s strong culture of wellness and hospitality, as many businesses integrate pet-friendly spaces into cafés, hotels, and co-living setups.

Lombok, by contrast, is still in its early stages but shows enormous potential. As the island develops through initiatives such as the Mandalika tourism project and growing foreign investment, more expats and local families are settling there. This population shift creates a rising demand for veterinary services, grooming, and reliable pet food supply chains. Entrepreneurs entering Lombok today face less competition than in Bali, making it an attractive option for those who want to establish themselves early in the market.

In short, the Pet Industry in Bali and Lombok reflects two different stages of development: Bali’s mature and competitive market versus Lombok’s growing but less crowded scene. For investors and entrepreneurs, understanding these differences is crucial for building sustainable businesses in the region.

Core Segments of the Pet Industry in Bali and Lombok

The Pet Industry in Bali and Lombok is diverse, covering everything from basic food supply to advanced digital services. Each segment presents its own challenges and opportunities for entrepreneurs and foreign investors.

1. Pet Food & Accessories

One of the largest and fastest-growing segments of the Pet Industry in Bali and Lombok is pet food. Pet owners, particularly expats and middle-to-upper-class Indonesians, increasingly favor premium, organic, and imported brands. Global names like Royal Canin, Hill’s, and Orijen are popular, but there’s also a growing market for locally produced sustainable options, such as grain-free or plant-based pet food. Accessories such as collars, beds, and toys have also seen strong growth, especially those that emphasize eco-friendly or artisanal qualities—an area that aligns with Bali’s wellness-driven culture.

E-commerce platforms are playing a crucial role here. Online pet stores offering same-day delivery are booming in Bali and are slowly making their way into Lombok, providing opportunities for startups and investors to fill the logistics and supply chain gap.

2. Veterinary Clinics & Health Services

Veterinary care is another cornerstone of the Pet Industry in Bali and Lombok. In Bali, modern clinics equipped with international-standard diagnostic tools and surgical services are already established, especially in expat-dense areas like Canggu, Ubud, and Seminyak. Preventive care such as vaccinations, deworming, and dental health is increasingly prioritized by both expats and local owners. Emergency services are also becoming more important as pet ownership expands.

Lombok, however, still lags behind. The lack of advanced veterinary infrastructure creates strong opportunities for investors to establish modern clinics or partner with local veterinarians. Given the growth in tourism and expatriate communities, Lombok represents an untapped market in this space.

3. Grooming & Boarding Services

The tourism-driven lifestyle in both Bali and Lombok has directly fueled demand for pet grooming and boarding facilities. Many digital nomads and traveling professionals need reliable care for their pets while they are away. This makes pet hotels, daycare centers, and grooming salons essential services. In Bali, professional grooming, covering everything from simple washes to specialized treatments like flea control and styling, is already a competitive sector. Boarding services with safe, spacious, and hygienic facilities are in high demand, especially those offering updates through apps or social media.

Lombok, with its emerging tourism scene, offers fewer established businesses in this segment. Investors who introduce international-standard grooming and boarding facilities there are likely to gain an early advantage.

4. E-commerce & Pet Tech Startups

The digital shift is transforming the Pet Industry in Bali and Lombok. Online platforms offering pet supplies, veterinary consultations, grooming bookings, and subscription services are becoming more common. Pet apps that provide services like health tracking, vaccination reminders, or pet-sitting networks are also gaining traction. In Bali, where digital nomads are already tech-savvy, this trend is accelerating quickly. Lombok, although behind, is poised to follow as internet penetration and digital adoption grow.

For foreign investors, this is an exciting space because the barriers to entry are lower compared to physical businesses, and the scalability across islands is much greater.

In conclusion, the Pet Industry in Bali and Lombok spans multiple interconnected sectors, each shaped by unique cultural, economic, and lifestyle factors. From premium food to pet tech innovations, opportunities are abundant for those ready to navigate regulatory and logistical challenges.

Pet-Friendly Tourism & Hospitality in Bali and Lombok

The booming travel and hospitality sectors are increasingly intertwined with the Pet Industry in Bali and Lombok. As pet ownership rises among expats, digital nomads, and wealthier locals, many travelers now expect accommodations that welcome their furry companions. Hotels, villas, and even boutique guesthouses are recognizing this demand, introducing pet-friendly policies and amenities such as dedicated outdoor spaces, in-room pet beds, and menus tailored for pets.

Cafes and restaurants are also joining this trend, particularly in Bali. Popular areas like Canggu and Ubud already boast cafés where pets are not just tolerated but celebrated, often with events like “dog brunches” or pet adoption drives. Lombok, while less developed in this space, presents a clear opportunity for investors to create pet-friendly venues that cater to both domestic and international tourists.

Another driver is the digital nomad community. Many professionals relocating to Bali or Lombok are unwilling to part with their pets. For them, the availability of pet-friendly co-living spaces, villas, and cafes can be a deciding factor in choosing where to stay or settle long-term. Businesses that position themselves as pet-inclusive can gain a competitive edge in attracting this growing demographic.

Of course, compliance with local regulations is essential. Pet-friendly establishments must follow hygiene and zoning requirements, ensuring that human and animal safety standards are met. This means proper waste disposal systems, separation of food preparation areas, and sometimes special permits.

For foreign investors, the integration of hospitality and the Pet Industry in Bali and Lombok offers fertile ground. Establishing or partnering with hotels, resorts, or cafés that position themselves as pet-inclusive not only fills a market gap but also aligns with broader global tourism trends. As demand for unique, lifestyle-driven experiences grows, “pet-friendly tourism” is no longer a niche but a mainstream expectation—especially in destinations as iconic as Bali and Lombok.

Licensing, Compliance, and Legal Considerations

As the Pet Industry in Bali and Lombok grows, investors and entrepreneurs must recognize that compliance is not optional—it’s the foundation of sustainable operations. Starting any pet-related business, whether it’s a veterinary clinic, grooming salon, or boarding facility, requires adherence to specific Indonesian regulations. Each segment comes with its own licensing needs, and failure to comply can result in fines, business closure, or reputational damage.

For veterinary clinics, strict licensing is required. Only certified veterinarians licensed by the Indonesian Veterinary Association (PDHI) are permitted to practice. Clinics must also obtain permits from the Ministry of Agriculture and local government authorities, ensuring they meet standards for hygiene, medical waste disposal, and proper handling of animals. Boarding and grooming facilities, while less regulated, still require general business licenses (NIB via OSS) and compliance with zoning and health regulations.

Import and export regulations are another crucial area. Many pet businesses rely on imported food, supplements, or medicines. These products must be registered with the Indonesian Food and Drug Authority (BPOM) or the Directorate General of Livestock and Animal Health Services, depending on the category. Incorrect labeling, missing approvals, or unregistered imports can result in confiscation at customs and significant financial losses.

Non-compliance remains one of the biggest risks in this sector. Businesses operating without the correct permits not only face closure but also risk damaging the broader credibility of the Pet Industry in Bali and Lombok. With growing scrutiny from both local authorities and consumers, professionalism and transparency are vital.

For foreign investors, partnering with a reliable local legal consultant or business advisor is highly recommended. They can help navigate the complexities of veterinary licensing, import approvals, and labor laws, ensuring that your business is not just profitable but also legally secure. In an industry that revolves around the health and well-being of pets, compliance isn’t just about legality—it’s about trust.

Exotic Pets in Indonesia: What’s Legal and What’s Not

The fascination with exotic animals is growing, especially in destinations like Bali and Lombok where both locals and foreigners are drawn to unique pets such as rare birds, reptiles, and even primates. However, the legal framework surrounding exotic pets in Indonesia is strict, and understanding what’s permitted versus prohibited is essential.

Under Law No. 5 of 1990 on Conservation of Natural Resources and Ecosystems, many species are classified as protected wildlife. This includes native birds like the Bali Starling (Leucopsar rothschildi), certain reptiles such as Komodo dragons, and most primates. Keeping or trading in these animals without proper permits is a criminal offense and can result in heavy fines or imprisonment.

That said, not all exotic pets are off-limits. There are legal avenues for businesses dealing with exotic species, particularly in regulated breeding programs or licensed pet shops. Accessories and specialized care products for reptiles, fish, and exotic birds also represent legitimate opportunities within the pet industry.

For foreigners, the risks are even higher. Being caught with a protected species or engaging in unlicensed trade can jeopardize residency permits or even lead to deportation. Therefore, anyone interested in this segment must work with officially licensed breeders and ensure compliance with permits issued by the Ministry of Environment and Forestry.

In short, while exotic pets are undeniably appealing, navigating the legal landscape is critical. Responsible ownership and business practices not only protect investors but also safeguard Indonesia’s biodiversity.

Opportunities and Growth Potential for Foreign Investors

The Pet Industry in Bali and Lombok is no longer a niche—it is evolving into a robust and highly diversified market. Rising demand comes from three main groups: Indonesia’s growing middle class, a steady influx of expatriates, and digital nomads who increasingly choose these islands as long-term homes. This demographic shift has created demand for premium services, ranging from high-quality pet food to luxury grooming, boarding, and even specialized veterinary care.

For foreign investors, the market presents multiple entry points. Franchising international pet brands offers a fast track into the sector, especially for premium pet food and accessories. Joint ventures with local partners can be another effective model, helping navigate licensing, cultural nuances, and compliance requirements. Meanwhile, setting up a PT PMA (foreign-owned company) allows full operational control for those seeking to establish veterinary clinics, grooming salons, or e-commerce platforms in the pet care space.

The long-term outlook is equally promising. With Bali already positioned as a lifestyle hub and Lombok emerging as the “next big destination,” there’s significant room to develop pet-friendly tourism, sustainable pet products, and digital solutions such as pet care apps and delivery services. The global trend toward eco-conscious and health-driven lifestyles also opens doors for organic, locally sourced pet foods and environmentally friendly accessories.

Ultimately, the Pet Industry in Bali and Lombok represents more than just business—it aligns with lifestyle, sustainability, and wellness trends. For foreign investors willing to navigate licensing and compliance properly, the sector offers a strong balance of profitability and long-term growth potential.

Challenges to Consider

While the Pet Industry in Bali and Lombok offers attractive opportunities, foreign investors should also prepare for several challenges. The first is competition with established local businesses. Many Indonesian entrepreneurs already operate grooming salons, small-scale veterinary clinics, and pet shops. Entering the market with premium services requires differentiation and a clear value proposition.

Another hurdle lies in the bureaucratic process of licensing and compliance. Setting up veterinary practices, pet boarding facilities, or even importing pet food and medicine involves multiple government agencies. Delays in permits, unclear regulations, and frequent policy updates can slow down operations if not handled strategically.

Cultural differences in pet care also play a role. While urban pet owners in Bali may embrace Western-style grooming and luxury boarding, many locals still view pets differently, focusing on functionality rather than lifestyle. Bridging these perspectives with sensitivity is crucial for building trust and long-term customer loyalty.

Finally, investors must recognize infrastructure gaps, particularly in Lombok compared to Bali. Veterinary facilities, supply chain logistics, and reliable pet care services are less developed on Lombok. This creates both an opportunity for pioneers and a challenge in terms of investment and operational planning.

In short, the Pet Industry in Bali and Lombok holds promise, but success depends on thorough preparation, strong local partnerships, and adaptability to regulatory and cultural landscapes.

Future Outlook of the Pet Industry in Bali and Lombok

Looking ahead, the Pet Industry in Bali and Lombok is set for steady growth well into 2025 and beyond. Rising pet ownership among locals, the influx of digital nomads, and the continued presence of expatriates are all driving demand for premium services and products. Industry analysts predict double-digit growth across segments such as veterinary care, grooming, and pet-friendly hospitality, making these islands a hotspot for long-term investment.

The digital economy will play a transformative role in shaping the industry’s trajectory. From online marketplaces for pet food and accessories to subscription-based grooming or health packages, convenience-driven services are gaining traction. Mobile apps connecting pet owners with veterinarians, trainers, or pet sitters are likely to expand further, especially in Bali, where the expat community is highly tech-savvy. Lombok, though still emerging, will benefit from this digital shift as infrastructure improves.

Another defining trend is sustainability as a competitive advantage. Eco-friendly pet products, organic food options, and environmentally responsible boarding facilities are no longer niche offerings but increasingly mainstream expectations. Investors who align with sustainable practices will find themselves better positioned to appeal to both conscious locals and international pet owners.

In conclusion, the Pet Industry in Bali and Lombok is not just a passing trend but a long-term growth market, with opportunities grounded in digital innovation, sustainability, and evolving lifestyle preferences.

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