Animal welfare refers to the “physical and mental state of an animal in relation to the conditions in which it lives and dies”, according to the definition by the World Organization for Animal Health (OIE). In other words, it aims for coexistence and mutually beneficial relationships between animals in captivity and humans by considering animals as living creatures with consciousness and emotions and by taking their well-being into consideration.

This concept and its relevant practices are gaining ground around the world, particularly in developed markets such as European countries and the US, as evidenced by tighter regulations on the treatment of livestock and pets. In Japan, the Animal Protection and Control Law was revised in 2019 and phased in over 2020–22. Animal welfare concerns can constitute a business risk, as in the case of the 2022 suspension of “Neko Hodai”, a cat subscription service provided by Nora Neko Bank (JPN) where the user can own and return a shelter cat freely, even if the business itself does not fall under any regulations.