The Thai pet food industry is poised for substantial growth, with projections indicating a 12% increase in market value by 2025. According to recent research, this growth is attributed to the rising number of pets in the country, as well as a continuously expanding global export market.

Estimates suggest that the sales volume of pet food will reach approximately 398,000 tons in 2025, reflecting a 6% growth from the previous year, driven by an anticipated 6% increase in pet ownership, which is expected to rise to around 5.38 million pets, comprising 3.45 million dogs and 1.94 million cats.

Market analysts indicate that more than 76% of pet food sales will comprise dog food, though the share of cat food sales is expected to rise in the future.

From 2021 to 2025, the average number of pet cats is projected to grow by 28% annually, outpacing the 19% growth rate of dog ownership over the same period.

Bangkok and its surrounding areas represent a significant market potential, home to approximately 310,000 pets, which accounts for 6% of the total pet population in Thailand.

The higher-than-average monthly income of pet owners in this region, approximately 35,901 baht, contrasts with the national average of 29,030 baht, indicating a robust purchasing power.

By 2025, the market value of pet food in Thailand is expected to reach 46 billion baht, continuing an upward trend in profitability alongside rising sales figures.

However, the industry faces heightened competition, with 317 registered companies operating in the pet food sector in 2024, an increase of 36 new entities.

This competitive landscape includes businesses entering from outside the pet sector, such as food, entertainment, and IT retail.

Furthermore, the domestic market has seen a notable increase in food imports, which grew at an average annual rate of 17% from 2019 to 2024, predominantly from China, which accounts for approximately 40% of imports.

This growth in imports reflects both the rising demand for pet food domestically and the competitive dynamics of the market.

On the export front, Thai pet food exports continue to expand, leveraging the global trend of pet humanization.

The primary markets include the United States and the European Union, where there is significant purchasing power and a high number of pets.

Contributing factors to the growth of pet food exports from Thailand include changing demographic factors, such as an increasing aging population and smaller family sizes.

In the United States, for example, the average income per capita is around $85,373, alongside a pet population of 144 million, both indicating strong buying capacity.

Additionally, countries like Japan, where nearly 30% of the population is aged 65 or older, exhibit a rising trend of elderly individuals keeping pets for companionship.

Meanwhile, in Australia and New Zealand, pet ownership has grown significantly among younger generations, who are often delaying marriage or parenthood.

From 2019 to 2024, the global average annual growth rate for pet food imports was approximately 12.7%.

The markets that exceeded global averages include key export destinations for Thailand, such as the United States and ASEAN nations, indicating a promising outlook for the pet food industry.

In 2025, Thai pet food exports are predicted to reach about $3.1 billion, marking a 15% increase but a slowdown from the previous 28.4% growth rate.

This deceleration is attributed to a reduction in growth from primary markets like the U.S., Italy, and Japan, which collectively account for over 50% of the exports.

Despite the challenges, including heightened competition from countries such as Mexico and South Korea, the Thai pet food industry remains resilient.

The cost of production remains volatile due to fluctuating raw material prices, with tuna comprising over 60% of overall production costs, a situation exacerbated by changing weather conditions affecting supply levels.

Environmental regulations and other trade barriers also potentially impact Thailand's export capabilities.

Regulations such as the EU's Farm to Fork strategy emphasize carbon reduction and traceability, while trade measures like the EU's CBAM could extend to the agricultural and food sectors, necessitating compliance with sustainability guidelines throughout the supply chain.

Concerns regarding the U.S. Reciprocal Tariff measures further contribute to the complexities surrounding the industry.