Thailand Pet Food Market - Analysis of Growth, Trends, and Forecast (2018 - 2023)
The Thailand Pet Food Market is expected to register a significant CAGR during the forecast period, 2018 to 2023.
With rapid urbanization, the growth of e-commerce, increase in awareness of animal welfare, increase in pet-product information availability and the increase in the locals pushing back plans for marriage and/or children, the pet ownership is growing steadily thereby fuelling the pet food market in Thailand. Supported by factors like 24 hour emergency veterinary assistance, easy availability of pet food, toys, grooming items and clothing for pets, Thailand’s pet sector occupies a prominent position in the Asian Pet industry. Owing to the country’s large devout Buddhist population, kindness towards animals is a central part of Thai culture.
Dogs are the most popular pets in the country, followed by cats, although smaller pets such as hamsters, rabbits, fish and reptiles are also seen frequently. Recently, the Thai pet welfare societies, such as the A CALL for Animal Rights Thailand, The Voice Foundation, Soi Dog Foundation, Lanta Animal Welfare, have been spreading awareness by posting videos and images of stray cats and dogs through the social media, encouraging pet adoption.
Rising e-commerce trend in Upper-Middle Class Population
The World Bank in 2011 improved the income categorization from a lower-middle income economy to an upper-middle income economy in Thailand due to the flourishing gross national income (GNI) per capita. Accordingly, the upper-middle class section occupied about twenty five percent of Thailand’s population of 69 million in the late 2016. This section’s purchasing power is high and the decisions are influenced by the social media interactions. The retail sector and distribution channels are organized and developed in Thailand fuelling the online shopping and the e-commerce trend.
The Thailand pet food market has been segmented by product, pricing, animals and sales channel type. Organic products are the fastest-growing sector, owing to high health awareness among pet owners. Cat food is a significant market, regarding market value, although high dog adoption rates are expected to propel the dog food market at a faster CAGR in the next five years.
Growing investments in the pet food sector
Thailand consists of a potential to welcome investors into the country’s growing premium pet food sector. Thailand, being a developing market, has a rising middle class that fuels the pet food market. The pet owners, owing to the trend of pet humanization, chose pet food that is rich with nutrients and which is healthy.
This trend of investment is evident from the expansion of the Thai Union Group. This canned tuna producer in the last quarter of 2016 expanded the company’s production facilities. Although the country enjoyed a strong baht, which resulted in increase of prices of Thai products for export markets, the pet food sales of Thai Union group in Thailand, increased by approximately 14 percent in 2016.
Also, Betagro, one more Thai pet food manufacturer, made investments to increase its ability to keep meats cold during processing. This way the company aims to increase its focus on the domestic market.
Key Developments in the Market: