‘Pet humanisation’ trend playing a big role in expanding Thailand’s pet market

Thailand’s pet market in 2024 is projected to be worth 75 billion baht, representing a 12.4% growth year on year, according to ttb analytics. 

The main factor driving this growth is the shifting trend in pet ownership.

Pet owners today increasingly view their pets as family members, a concept known as "Pet Humanisation”. This has led to the idea of "petriarchy", where pets are seen as the centre of the family, and the rise of "pet celebrity", where pets gain popularity and social influence, ttb analytics said.

These trends have significantly increased pet care expenses. On average, pet owners spend around 41,100 baht per pet annually, which is five times higher than the average cost of 7,745 baht per year for free-range pets.

Mayura Pratanaplean, from Food Institute, revealed that several factors supported the growth of the pet market, including:

Changes in population structure: As Thailand shifts towards an ageing society, people have more free time and turn to pet ownership for companionship.

Lifestyle changes: The younger generation prioritises their quality of life and happiness, both for themselves and their pets.

Technology: Advancements in technology have led to a wider variety of modern pet products and services.

Growth in pet-related businesses: The rise of pet cafes, pet hotels, veterinary clinics, and pet supply stores has made it easier for consumers to access pet products and services.

Studies reveal that the cat product market in Thailand holds a dominant 63% market share. The key reason behind this is the variety of products that effectively meet the needs of cat owners, ttb analytics said.

Meanwhile, the dog product market continues to grow, holding around 31% of the market share. The primary factors driving growth in this market include the rapid development of dog products.

Additionally, services like pet hotels and grooming salons are expanding. Another 6% of the market is dedicated to products for exotic pets, which have seen a 50% increase in sales, reflecting the growing diversity of pets and the demand for more specialised products, ttb analytics said.

Dr Kritika Chaisupattanakul, CEO of Thonglor Pet Hospital, noted that Thailand’s pet market typically grows by an average of 10% per year. However, during the Covid-19 pandemic, growth surged to 12-13% per year, reaching 16% in 2022. Afterwards, growth began to normalise, returning to 10% in 2023. Growth is projected at around 7-9% in 2024.

This year, the number of pets in Thailand would number around 20 million, including 12 million dogs and 8 million cats. There are approximately 3,500 pet hospitals in the country, with 80% being small hospitals, 15% medium, and 5% large hospitals.

Thonglor Pet Hospital plans to expand its business through portfolio management, encompassing both pet hospitals and pet well-being services in collaboration with various partners, including other pet hospitals and different business sectors.The goal is to excel in pet healthcare, enhance pet quality of life, and elevate the veterinary profession to make Thailand a hub for Southeast Asia in the future.

Dr Thassawarin Kanchanachaya, the CEO of Arak Animal Healthcare Co Ltd and co-founder of Arak Animal Hospital, noted that the growth of the pet hospital market had led to increased competition. In 2023, 600 to 700 new animal hospitals and clinics were opened across the country, showcasing the market's potential and growth opportunities.

As a result, the company plans to continue expanding its business. The company plans to open two more branches in Bangkok next year.

"Despite the overall economic challenges, Thailand’s pet market continues to grow due to changing consumer behaviour," Dr Thassawarin added.

Pornchai Tatiyachaitaveesuk, chief commercial officer of i-Tail Corporation Pcl, said that the pet food market grew by around 30% in the first half of the year, driven by the pet humanisation trend, which gained popularity during the Covid-19 pandemic and continues to expand.

"Currently, we are focusing primarily on exports, accounting for 98% of sales across more than 10 countries. Our three main markets are the United States, Germany, and Japan. The US is our largest market, representing 50% of total exports, as American consumers are willing to spend on pets, even in tough economic times," Pornchai said.

The company has recently expanded exports to Bahrain and plans to target Muslim markets and supermarkets in the UK, the Netherlands, Italy, Spain, and Canada, aiming for 15% growth this year.