Thailand Pet Food Market

Thailand production of pet food (RTE) stood at 288 thousand tonnes in 2023 and the consumption stood at 157 thousand tonnes. Thailand exported 144 thousand tonnes of ready-to-eat (RTE) pet food in 2023. USA, Japan, Malaysia, Philippines, and Australia are the major importers of pet food products from Thailand. Thailand's pet food export trend has shown significant growth in recent years, reflecting the country's emergence as a major player in the global pet food market.

Market/ Product Overview

Thailand's pet food market has emerged as one of Southeast Asia's fastest-growing sectors, buoyed by a thriving pet culture and a robust manufacturing base. Valued at approximately USD ** billion in 2023, the market is expected to witness a compound annual growth rate (CAGR) of **% from 2024 to 2030. Key drivers include rising disposable incomes, urbanization, and the increasing preference for pets as companions.

The market is segmented into dry food, wet food, treats, and nutritional supplements for various pet types, including dogs, cats, and exotic pets. Domestic brands compete alongside international giants such as Mars Petcare and Nestlé Purina, ensuring diverse product availability. Additionally, Thailand’s strategic location and strong export capabilities make it a hub for regional and global trade in pet food products.

Growing awareness of pet health and wellness is leading to a surge in demand for organic, grain-free, and protein-rich pet food. However, the industry faces constraints such as high production costs and stringent regulations, which require manufacturers to adapt continually. The government's support for agricultural and food-processing industries further strengthens Thailand’s position as a key player in the global pet food market.

Importance of Thailand in Global Supply of RTE Pet Food Products

Thailand's pet food market has experienced significant growth in recent years due to factors such as increasing urbanization, rising disposable income, and changing lifestyles. Pet ownership has become more common, particularly among the urban population. As a result, the demand for pet food, especially high-quality and nutritious options, has surged. This has led to a flourishing pet food industry in Thailand, with both domestic and international players vying for market share.

Thailand plays a crucial role in the global pet food supply chain due to its robust manufacturing capabilities, strategic location, availability of raw materials, and competitive pricing. Many multinational companies have established production facilities in Thailand to take advantage of its skilled labor force, advanced infrastructure, and favorable business environment. The country's efficient supply chain networks also enable timely distribution of pet food products to various international markets, further solidifying its position in the global pet food industry.

Pet Population & Pet Ownership Trend in Thailand

Thailand’s pet population has been steadily increasing, with an estimated 14.5 million pets in 2023, including 8 million dogs and 4.5 million cats. Urbanization and changing societal norms have contributed to a growing number of households adopting pets, particularly among millennials and aging populations seeking companionship. This trend is further amplified by social media, where pets are celebrated as part of the family.

Pet humanization has significantly impacted consumer behavior, with owners spending more on premium food, grooming, and healthcare. Small-breed dogs and exotic cats are particularly popular in urban areas, influencing demand for specialized pet food. Additionally, the rise of pet-friendly facilities, such as cafes and parks, reflects Thailand’s evolving pet culture. These factors collectively bolster the pet food industry, creating opportunities for growth and innovation.

Pet Food Production and Demand Trend in Thailand

Thailand is a leading producer of pet food, leveraging its strong agricultural base and advanced food-processing technology. In 2023, the country produced over ** million metric tons of pet food, with approximately 60% destined for export markets, including the US, Europe, and Japan. The domestic market, valued at USD ** million, is growing due to rising demand for premium and specialized products.

Consumer preferences are shifting towards high-protein diets, grain-free formulations, and organic ingredients. Wet food and treats are experiencing robust growth, driven by their perceived nutritional benefits and appeal to pets. Additionally, small and medium-sized enterprises (SMEs) are contributing to market diversification by introducing unique, locally sourced products.

However, production faces challenges such as fluctuating prices of key ingredients like corn, fishmeal, and poultry by-products. Despite this, manufacturers are adopting innovative solutions, such as alternative protein sources and sustainable practices, to maintain competitiveness. The government’s support through favorable policies and investment incentives further strengthens Thailand’s position as a global pet food manufacturing hub.

Thailand Pet Food Market Dynamics

Thailand's pet food products market is buoyed by increasing pet ownership, driven by urbanization and changing lifestyles, which have led to a surge in demand for premium and specialized pet food options. Rising disposable incomes among Thai consumers have further fueled this trend, prompting pet owners to prioritize nutrition and health benefits for their furry companions. This has created a lucrative market for both domestic and international manufacturers, leveraging Thailand's robust manufacturing capabilities and efficient supply chains.

However, the market is not without challenges, including stringent regulatory frameworks, intense competition from global and domestic players, and evolving consumer preferences. To succeed in this dynamic landscape, companies must innovate their product offerings, optimize supply chains, and embrace sustainability practices to meet the diverse needs of pet owners while complying with regulatory requirements and standing out in a crowded marketplace. Understanding and adapting to evolving consumer trends are essential for navigating the complexities of Thailand's pet food market dynamics effectively.

■ Increasing pet ownership and humanization of pets.
■ Rising disposable income and willingness to spend on pet health and nutrition.
■ Growing awareness about the benefits of commercial pet food over homemade diets.
■ Expansion of distribution channels, including online platforms.
■ Introduction of innovative and premium pet food products catering to specific dietary needs.

■ Price sensitivity among some consumer segments.
■ Concerns regarding the quality and safety of pet food products.
■ Competition from alternative pet food options, such as raw diets.
■ Regulatory challenges related to labeling, import/export regulations, and food safety standards.
■ Economic uncertainties and fluctuations in currency exchange rates affecting import/export dynamics.

■ Maintaining product quality and safety standards amidst increasing competition.
■ Addressing environmental sustainability concerns related to pet food production and packaging.
■ Balancing affordability with premiumization to cater to diverse consumer preferences.
■ Navigating complex regulatory frameworks governing pet food ingredients and additives.
■ Ensuring adequate distribution infrastructure to reach remote and rural areas.

■ Sourcing quality ingredients at competitive prices.
■ Ensuring efficient logistics and transportation networks for raw materials and finished products.
■ Compliance with food safety and quality standards throughout the supply chain.
■ Developing partnerships with reliable suppliers and distributors to streamline operations.
■ Addressing workforce challenges, including skill shortages and labor regulations.

Thailand Trend of Pet Food Demand & End-Use Pet Type

Thailand’s pet food demand is shaped by the growing preference for premium and specialized products. Dogs and cats dominate the market, accounting for over 80% of total pet food consumption. Small-breed dogs and exotic cat species are particularly popular among urban pet owners, driving demand for tailored dietary solutions.

Wet food and treats are gaining traction due to their palatability and perceived nutritional benefits, while dry food remains a staple for cost-conscious consumers. Functional foods, enriched with probiotics and omega-3 fatty acids, are emerging as a preferred choice among health-conscious owners. The rising popularity of exotic pets, such as rabbits and reptiles, is also creating niche opportunities for specialized pet food products.

The trend of humanized pet care continues to influence purchasing decisions, with owners seeking products that mimic human food in quality and variety. This evolving demand underscores the market’s dynamic nature.

Thailand Trend of Pet Food Innovations

Innovation is at the forefront of Thailand’s pet food market, with manufacturers focusing on sustainability, nutrition, and convenience. Alternative protein sources, such as insect-based and plant-based ingredients, are gaining popularity due to their environmental benefits and high nutritional value. Companies are also exploring novel formulations, including grain-free, organic, and functional foods tailored to specific health needs like joint care and weight management.

Packaging innovations, such as resealable and eco-friendly options, address consumer demand for convenience and sustainability. The incorporation of advanced technologies, such as freeze-drying and extrusion, ensures product freshness and quality.

Digitalization plays a pivotal role in innovation, with personalized pet food subscriptions and apps offering customized dietary recommendations. Local manufacturers are increasingly leveraging Thailand’s rich agricultural resources to create unique, value-added products. These trends highlight the market’s adaptability and commitment to meeting evolving consumer expectations.

Thailand Pet Food Market: Consumer Insights

Thai consumers are increasingly discerning in their pet food choices, prioritizing quality, nutrition, and safety. The shift towards pet humanization has led to heightened awareness of ingredient sourcing and product transparency. Urban pet owners, in particular, favor premium brands that offer functional benefits, such as improved digestion and coat health.

Convenience is a critical factor, with busy lifestyles driving demand for ready-to-serve wet food and single-serve packaging. E-commerce platforms have transformed purchasing behavior, enabling consumers to access a wide range of products and compare prices easily. Discounts, subscription models, and online reviews further influence buying decisions.

Affluent consumers are willing to invest in organic and customized diets, reflecting a commitment to their pets' well-being. Regional differences also play a role, with rural areas favoring cost-effective options and urban centers leaning towards specialized products. These insights underline the diverse and evolving nature of consumer preferences in Thailand’s pet food market.

Thailand Pet Food Trade (Export & Import) Trend

Thailand is a leading exporter of pet food, leveraging its strong manufacturing base and strategic location. In 2023, the country exported over USD 900 million worth of pet food, primarily to the US, Europe, and Japan. High-quality production standards and competitive pricing make Thai products attractive in international markets.

Imports account for a smaller share, catering to niche demands for specialized and premium brands not manufactured domestically. Imported products, mainly from the US and Australia, target affluent consumers seeking unique offerings such as freeze-dried and organic pet food.

Trade challenges include compliance with international quality standards and fluctuating global demand. The industry’s reliance on exports makes it susceptible to geopolitical tensions and currency volatility. However, free trade agreements and government support initiatives have mitigated some of these risks.

Thailand’s robust trade performance underscores its critical role in the global pet food supply chain. Expanding into emerging markets and diversifying product offerings will be essential for sustaining growth in this competitive landscape.

Thailand Pet Food Market Competitive Analysis

In Thailand's competitive pet food market, multinational giants like Mars Petcare, Nestlé Purina, and Hill's Pet Nutrition lead with their extensive product lines and global reach. Local heavyweights such as Thai Union Group, Charoen Pokphand Group, and Betagro Group also play significant roles, leveraging their local expertise and manufacturing capabilities. Additionally, niche players focus on organic, natural, and grain-free options to meet the demand for healthier choices. Pedigree, Me-O, Whiskas, Royal Canin, and Smart Heart are the major brands sold in Thailand pet food market.

Intense competition drives price wars, product innovation, and marketing strategies aimed at differentiation. Companies continuously introduce new formulations and packaging while investing heavily in marketing campaigns to capture market share and meet changing consumer preferences. This dynamic environment underscores the need for constant adaptation and innovation to thrive in Thailand's pet food industry.

Key Companies in Thailand Pet Food Market include (Producers/ Processors/ Exporters),

■ Mars Petcare
■ Nestlé Purina
■ Hill's Pet Nutrition
■ Thai Union Group
■ Charoen Pokphand Group (Perfect Companion Group Co., Ltd.)
■ Betagro Group
■ Asian Group
■ Royal Canin (Thailand) Co., Ltd.
■ Sea Value PLC.
■ Perfect Companion Group
■ Thai Foods Group
■ Thai Awesome Co., Ltd.
■ Hunter Group Ltd.

Future Outlook

The Thailand pet food market is poised for continued growth driven by urbanization, increasing pet ownership, and rising consumer awareness about pet health and nutrition. The market is likely to witness further product diversification, with a focus on premiumization and functional pet food offerings. Expansion into international markets, particularly in the Asia-Pacific region, will remain a key strategy for many players. However, challenges related to regulatory compliance, supply chain efficiency, and market competition will require proactive management to sustain growth and profitability in the long term.