Thailand Pet Care Market

Thailand’s pet industry in currently the second largest in Asia next to China valuing at 700 – 800 million USD (2019).

Generally, pet dogs and cats are the most popular pets in Thailand at 47% and 42% respectively, followed by Fish (11%), Bird (4%), Rabbit (3%), and Rodents (3%). There are approximately 8.9 million dogs and 3.3 million pet cats in the Thai households (Hypercube Insights, 2020)

According to the Thai Pet Product Industries Association (TPIA), the Thai pet market has been growing at the average of 10% annually since 2011. Between 2017 – 2019, the pet market in Thailand is valued at 29.3 billion , 32.2 billion, and 36 billion Thai Baht respectively. 

Pet Food holds the largest market share at 45%, followed by pet healthcare services at 33% (this includes hospitals, clinics, pet care centers, grooming services, etc.), and the rest are pet apparel, accessories, and toys. 

In 2019, overall value of Thai pet market was at 35,453 million Thai Baht (US$1.06 billion), with pet food at 45% (15,954 million Thai Baht; US$475 million), pet services at 32% (11,345 million Thai Baht; US$337.8 million), and pet supplies at 23% (8,154 million Thai Baht; US$242.8 million)(Pet Expo Thailand, 2020).

Pet Humanization Phenomenon

For the past decade, Thailand has been experiencing the ‘pet humanization’ phenomenon, where economy continues to grow and as birth rate starts to decline. Many households now consist of singles, childless couples, and empty nesters. This leads to a higher pet acquisition rate, where people are no longer ‘Pet Owners’ but are now ‘Pet Parents’. These pet parents are willing to spend more on high quality food, clothes, accessories, and various pet services such as pet day care centers, pet spas, pet parks, etc. With the rising Middle Class, the demand for quality pet products is steadily growing with no sign of decline in the near future. 

Pet Food Market in Thailand

With the highest market share in the market and despite the COVID-19 pandemic, pet food sector had registered an average of 10% growth from January to October in 2020. The value of pet food export in Thailand during Q1 2020 was at 16 billion Thai Baht, which increased at 10% rate y-o-y. The value of pet food exports to markets such as India, USA, ASEAN countries and Australia was 620 million, 3.4 billion, 3.6 billion, and 733 million Thai Baht respectively. Dog and cat food accounts for 81% of the export with 90% for the OEM market. 

Thailand is ranked 4th largest pet food exporter as reported by World’s Top Exports with the total of 15.1 billion USD as of 2019. The other top fives include Germany (1.8 billion USD), USA (1.6 billion USD), France (1.5 billion USD), and Netherlands (1.2 billion USD). 

In 2019, Thailand was also ranked 2nd largest pet food exporter to Europe after China with value at 215 million Euro. See below table.

Pet Food Market Structure in Thailand

As pet food market in Thailand continued to performed well in the past years, more and more companies are trying to expand into the market which leads to intense competition. There are now more than 30 brands in the market competing for their share. 

Main players in the Thai market are leading Thai food producers what expanded their businesses into the pet food sector, this includes CP (Charoen Pokphand Group), Betagro (DOGnjoy), Asian Group (Monchou), Thai Union Group, etc. and global companies such as Mars Inc. and Nestle Purina, with production hubs in Thailand to serve the local and export demand. Imported pet food only have about 5% market share, mostly from USA, France, South Korea, Australia, and Austria respectively (Customs Department, 2020)

Pet Food Trends in Thailand

With pet humanization on the rise, many pet parents are willing to spend on high quality products, as such, premium pet food is in high demand. Pet parents are seeking products that are made from natural raw ingredients with no artificial substances like flavors and colors. With this trend, many brands are offering various food recipes to the Thai pet consumers. Pet owners in Thailand are looking for products that are:

  • Natural, organic, and grain-free
  • Vegan or plant-based food 
  • Fish-based food
  • Specific food for different breeds, weight, ages, and activities
  • Innovative products (E.g. prescription food, supplement, functional food, food for pets with various health issues, etc.)

There is also an increasing demand in pet health products, pet treats/snacks, freeze-dried meat for dogs, fruit and vegetables-based food, biscuits, dental/oral care sticks, etc. as well 

Distribution Channels for Pet Products in Thailand

Main distribution channels for pet products in Thailand are mainly special trade channels (i.e. pet shops, clinics, hospitals, and pet farms/breeders) and modern stores (i.e. supermarkets, hyper markets, and convenient stores). Both channels make up approximately 90% of the market. Special trade channels offer a larger variety of pet products from economy options to premium options, while the supermarkets offer a more limited selection due to smaller spaces. Below, you can see that 40% is made up of modern trade supermarkets and convenience stores, while the 60% made up of pet shops and specialty stores like pet clinics (Royal Canin Thailand, 2019)

 

Additionally, e-commerce are booming in Thailand especially during the COVID-19 pandemic. Consumers are turning to online shopping due to the convenience of delivery services, time-saving, and more wide-ranging offers. E-commerce platforms in Thailand includes Lazada, Shopee, JD Central, and other supermarkets with online stores. 

Source: “Pet Food Market in Thailand” by Flanders Investment & Trade Market Survey, 31.12.2020