BANGKOK — The Thai government has once again announced support for pet goods and services businesses after Prime Minister Srettha Thavisin posted a picture with his dog and encouraged Thai entrepreneurs to seek trade and investment opportunities in the growing pet industry.
On July 20, Chai Wacharonke, spokesperson for the Prime Minister’s Office, announced that the Prime Minister is encouraging Thai businesses to follow the ‘Pet Parent’ trend. The government will push for the opening of new export markets, elevate the quality of Thai pet products, and increase competitiveness in the global market.
This clear push comes from the Ministry of Commerce leading 18 Thai pet product entrepreneurs to participate in the Taipei Pets Show 2024 in Taiwan from July 5-8. The aim was to promote Thai products, match businesses to increase trade alliances, and increase the export value of Thai pet products, including food, snacks, services, and health products for pets.
The event featured about 400 exhibitors with 1,800 booths, including international exhibitors from countries such as South Korea, Singapore, Thailand, China, and Japan. Approximately 160,000 visitors attended. The Thai exhibition booths attracted interest from importers from Taiwan and various countries.
Thai exporters negotiated with 200 importers, expecting annual purchase orders of more than $2.5 million. This includes purchasing officers from department stores and large retailers in Taiwan such as RT-Mart, Carrefour, and Great Tree, a famous Taiwanese pharmacy chain.
Currently, pet ownership is becoming increasingly popular. In 2023, Taiwan’s top import of pet products, especially dog and cat food, was from Thailand, valued at $87.18 million, accounting for 33.05% of their pet food imports.
At the same time, Thailand is a significant source of pet food imports for Taiwan, resulting in importers showing great interest in negotiating business with Thai exporters, especially for pet food and pet lifestyle products.
Ms. Oramon Sapthaweetham, Director General of the Department of Enterprise Development at the Ministry of Commerce, explained that the lifestyle of people in society has changed compared to the past, with more people staying at home and spending time alone. This has led to pets being incorporated into leisure time to alleviate loneliness, with pets often becoming like family members.
According to the June 2024 Economic Analysis, the ‘pet industry’ has grown in terms of new establishments and registered capital over the last five years (2019-2023). As of June 30, 2024, there were 5,009 registered pet businesses in Thailand, divided into three categories: 1.233 pet farms, 2,138 pet food/toy stores and 1,638 pet care/service stores with a total registered capital of 98.798 billion baht or 2.7 billion US dollars.
Of this, pet farms accounted for 11.966 billion baht, pet food/toys for 80.444 billion baht and pet care/services for 6.388 billion baht.
Most pet businesses are registered as limited companies, with 3,900 businesses and a registered capital of 93.342 billion baht or 2.57 billion US dollars. This is followed by limited partnerships/partnerships with 1,105 businesses and a registered capital of 1.789 billion baht, and joint stock companies with 4 businesses and a registered capital of 3.667 billion baht.
In the classification by size, small enterprises (S) have the most businesses with 4,498 businesses, followed by medium-sized enterprises (M) with 382 businesses and large enterprises (L) with 129 businesses.
“The pet business has grown steadily over the last five years as consumers increasingly keep pets as companions to alleviate loneliness, making them almost like family members,” she said.
This has led to growth in three business categories: Pet Food and Toys, Pet Care/Services and Pet Farms. There are 5,009 pet industry companies in Thailand with a registered capital of almost 100 billion baht (27.5 billion US dollars).
In 2023, the total revenue amounted to 258.703 billion baht (7.12 billion US dollars), with a net profit of 14.990 billion baht or 412 million US dollars.
In addition, foreign investment in Thailand’s pet industry amounted to 5.333 billion baht. Of this, 228 million baht is for pet farms, 4.807 billion baht for pet food/toys and 298 million baht for pet care/services. The top three foreign investors are Singapore with an investment of 1.647 billion baht, followed by Australia with 871 million baht and Japan with 728 million baht.
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