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Available online: www.jmvm-online.com
ธุรกิจอาหารสําหรับสัตว์เลี้ยงของไทยและโภชนวิทยาการสัตว์เลี้ยง
Beynen, A.C.1,#
1Vobra Special Petfoods, Veghel,
บทคัดย่อ:
คําสําคัญ:
# สัตวแพทย์มหานครสาร. 2556. 8(2): 103-113.
E-mail address: beynen@freeler.nl
Beynen, A.C. / J. Mahanakorn Vet. Med. 2013. 8(2): 103-113.
104
Thai Petfood Industry and Pet Nutrition Science
Beynen, A.C.1,#
Vobra Special Petfoods, Veghel, The Netherlands
Abstract: The Thai petfood market is among the fastest growing markets in the world. The
encouraging outlook on Thailand’s economy stimulates petfood sales. The percentage of
pets fed on commercially prepared food will be increasing. An additional factor is the rising
number of dogs and cats. Most petfood on the Thai market is produced domestically. The
amount of petfood exported by Thailand-based manufacturers is much greater than the size
of the local market. Given the growth of local, regional and global markets, perspectives for
the Thai petfood manufacturers are bright. It is suggested that further growth of Thai petfood
business requires an intimate alliance with pet nutrition science. The petfood industry has to
develop products in the light of issues such as market differentiation, nutrition trends,
scientific progress and shrinking inventories of common ingredients. Other points to be
addressed are education of pet owners and control of food safety. To face the various
themes and to maintain growth, the Thai petfood industry should increasingly team up with
experts in pet nutrition. To meet the need of experts, veterinary and agricultural schools at
Thai universities should enhance education in pet nutrition and facilitate research in this
domain.
Keywords: Food, Dog, Cat, Industry, Trend, Education, Thailand
#Corresponding author J. Mahanakorn Vet. Med. 2013. 8(2): 103-113.
E-mail address: beynen@freeler.nl
Introduction
Petfood business in Thailand is growing
rapidly and will become more significant for
employment and economy. More workers
will be employed by petfood activities, both
directly and indirectly. The growth of local
sales value will increase mass and
differentiation of retail distribution.
Expansion of the Thai petfood market goes
hand in hand with an increase in local
petfood manufacture. The export of petfood
by Thailand, which is greater than local
sales, will gather more volume. Thus, the
Beynen, A.C. / J. Mahanakorn Vet. Med. 2013. 8(2): 103-113.
105
petfood industry becomes increasingly
important for the Thai agricultural sector.
This paper addresses the relationship
between petfood industry and pet nutrition
science. It is advanced that the expected
strong growth of the petfood industry in
Thailand should be supported by experts in
pet nutrition. The need of experts requires
the promotion of pet nutrition science at
Thai universities.
Thai petfood market
Thailand ranks number four on the list
with fastest growing dog and cat food
markets in the world (Taylor, 2011). Until
2015, predicted annual amount of growth is
on average 8.3% and sales volume will
reach US$ 456 million. The estimated
number of dogs in Thailand in 2004 was 6.90
million (MapXL Inc., 2013), the number of
cats being about half (Keomahakarl, 2007).
For comparison, France had 8.15 million
dogs in 2004 and until 2015 the dog and cat
food market is anticipated to grow annually
by on average 1.6% at a volume of US$
4.219 million (Taylor, 2011; MapXL Inc.,
2013). Thailand has more rural and stray
dogs that are not going to contribute to the
petfood market, but the comparison with
France points at a huge potential for
petfood sales. This is further substantiated
by the assessment that the numbers of dogs
and cats in Thailand are still growing and
that only about 10% of total dog or cat food
consumption consists of industrially
prepared products (Keomahakarl, 2007).
About 50% of the Thai dog and cat
food market, when expressed as value of
retail selling price, is in the hands of three
players: Effem Foods Thailand, Nestlé Purina
Pet Care and Charoen Pokphand Group
(Keomahakarl, 2007). The major dog food
brands are Pedigree and Alpo from Effem
and Nestlé Purina, respectively. Charoen
Pokphand Foods brings dog food brands
such as CP, A-Pro, Smart Heart and Big Boss.
Although growing rapidly, the market share
of private label brands is still small
(Keomahakarl, 2007).
About 95% of the petfoods on the
Thai market is produced locally
(Keomahakarl, 2007). Effem, which falls
under the Mars Inc. multinational concern,
produces petfood in Pakchong,
Nakonratchasima. Nestlé Purina Pet Care
(Nestlé SA) has a petfood plant in Amata
City, Rayong and Perfect Companion Co. Ltd.
(Charoen Pokphand Group) manufactures
petfoods in Kaengkhoi, Saraburi. Major
imported brands are Eukanuba and Iams
from P&G Pet Care (Procter & Gamble Co.),
but the contribution of imported petfood to
the Thai market is only about 5%
(Keomahakarl, 2007). A small segment of
imported foods is taken by the veterinary
therapeutic diets from Royal Canin (Mars
Beynen, A.C. / J. Mahanakorn Vet. Med. 2013. 8(2): 103-113.
106
Inc.) and Hill’s Pet Nutrition (Colgate-
Palmolive Co.). The Thai import regulations
for petfood are very strict, relating to the
BSE-free status of the country. Imported
petfoods must be free of ingredients of
ruminant origin.
The petfood market in terms of retail
selling value is about four times larger for
dog than for cat food (Keomahakarl, 2007).
Petfoods may be categorized according to
form such as dry, extruded foods or wet,
canned foods. Dry foods contain about 10%
water and generally are rich in starch-
containing ingredients. Canned foods contain
about 80% of water and are mainly based
on animal materials. For dogs foods on the
Thai market, the percentages of dry and wet
products, as based on the retail sales, are
about 80 and 15% and for cat foods they
are 60 and 40% (Keomahakarl, 2007). The
petfood market for dogs includes about 5%
as treats (Keomahakarl, 2007).
Petfood sales go thorough different
outlets. In Thailand, about 50% of the retail
selling value is sold by pet shops, 40% by
supermarkets and 5% by veterinary clinics
(Keomahakarl, 2007). The fraction of pet
shop sales is somewhat greater for dog food,
whereas supermarkets sell a higher
percentage of cat food (Keomahakarl, 2007).
More than half of the national petfood
spending through the veterinary channel
takes place in Bangkok (Keomahakarl, 2007).
Market developments
The main driving factor for growth of
the petfood market in Thailand is its
economy. The overall economic prospect is
propitious (International Monetary Fund,
2012). More spending ability will cause a
steady move from the use of table scraps to
industrially produced convenience foods
with health claims. Furthermore, the
increase in pet ownership (Keomahakarl,
2007) most likely is among the population
segment that is able and willing to buy
commercial petfood. During the next phase,
as the market matures and sales flatten,
distinct segments may arise with economic
and superpremium foods on the extreme
ends of the scale. By then, most receptive
consumers have already been drawn to
high-end petfoods.
Economic petfoods are reasonably
priced while meeting the nutritional
requirements of dogs and cats. Premium and
superpremium foods are more expensive
and generally bear health claims as based
on the addition of special (functional)
ingredients. Within the premium foods there
is differentiation by targeting on age and
breed of pets. There are life-stage products
for growing, adult or senior animals. There
also are all-breed and breed-specific foods.
In a maturing market, the share of veterinary,
therapeutic diets will grow. Below, the
Beynen, A.C. / J. Mahanakorn Vet. Med. 2013. 8(2): 103-113.
107
various types of petfoods are described in
more detail.
Petfood export
The Thai petfood industry relies
heavily on export. The USA dog and cat
food market is the largest in the world,
accounting for over one third of the global
sales of about US$ 55 billion at retail. For
the USA market, Thailand is the second
source for import (Anonymous, 2011). The
landed cost of the total USA import of dog
and cat food is about US$ 480 million/year,
which equals about US$ 2,400 million of
retail value. Thailand has an USA import
market share of 25% (Anonymous, 2011) and
the size of the local Thai petfood market is
US$ 456 million at retail (Taylor, 2011). It
follows that Thai export to the USA is about
30% larger than the total local market.
Canned food and treats are the major export
constituents.
Clearly, Thailand also exports petfood
to countries other than the USA. For the
Canadian market, Thailand is the third
source for import (Agriculture and Agri-Food
Canada, International Markets Bureau, 2011).
Thailand only contributes 1% to total
petfood import into Canada, but the volume
seems to go up rapidly (Agriculture and Agri-
Food Canada, International Markets Bureau,
2011). In the not too distant future, the
growing petfood markets in (South-East) Asia
may become increasingly important for the
petfood industry in Thailand. The BSE-free
status of Thailand and its nearby location,
implying low transportation costs, provide
significant advantages. Certainly, the
experienced Thai petfood manufacturing
operations are in a favorable position for
times to come.
In the future, the USA may remain an
important export destination for petfood
produced in Thailand. Despite the economic
turndown in the USA, the petfood market in
this country maintains respectable retail
value gains (Taylor, 2011). Pet owners are
not cutting back as petfood reinforced itself
as an essential item for consumers (Taylor,
2010a). The market is saturated in terms of
pet ownership and the percentage of pets
consuming commercially prepared food.
Continuous differentiation and
premiumization are driving growth in the
well-established USA market. The ongoing
development of enhanced petfoods creates
further market segmentation with pet health
as the focus. In addition, nutrition trends and
the development of coupling products drive
USA market growth. Nutrition trends are
discussed below.
Types of petfood
Dogs and cats can be fed industrially
produced, complete diets that are
considered suitable for all phases during
Beynen, A.C. / J. Mahanakorn Vet. Med. 2013. 8(2): 103-113.
108
their life. Legally, complete foods without
further qualification must provide for all the
energetic and nutritional needs for all life
stages. Thus, a given dog may be fed such a
complete food from the puppy into the
senior phase. Complete foods are typically
found in the economy segment.
Food differentiation towards various
types and degrees of animal individuality is a
continuous trend in pet nutrition. Examples
of individualization are the availability of life-
stage and breed-specific foods. Life-stage
nutrition for dogs and cats is justified by
scientific data on age-dependent nutrient
requirements and risk of disease. Dogs of
different breeds, but of identical age, can
have different nutrient requirements or
different sensitivity to the negative effect of
high intakes of certain nutrients. Breed also
is a predisposing factor for the development
of nutrition-related diseases. With adequate
knowledge of the breed differences it is
possible to formulate either all-breed or
breed-specific, life-stage diets that promote
optimum health. However, current
knowledge on special nutritional
characteristics, if any, of many breeds of
dogs is absent or at the most scarce.
Generally, the lines of all-breed, life-
stage foods also comprise adult foods with
special functional claims such as intestinal
health, joint support, urinary-tract care, skin
and coat condition, weight control, immunity
and behavior benefits. Functional petfoods
are assumed to be more than a vehicle for a
balanced block of nutrients. These petfoods
generally contain so-called nutraceuticals or
functional ingredients that provide health
and medical benefits, including the
prevention and treatment of diseases. In the
mature, saturated markets, where
competition among petfoods is fierce,
functional petfoods are still on the rise. The
more expensive premium or superpremium
petfoods with functional claims drive sales
growth in saturated markets and they reflect
a key trend that follows the humanization of
petfoods.
The wide availability of breed-specific
and functional life-stage foods illustrates the
individualization in pet nutrition. The
functional foods rub against the veterinary
(therapeutic, dietetic) diets, which represent
another form of individual feeding that is
based on the diagnosis of disease. Veterinary
diets represent a very small portion of the
petfood market, but they are of great
importance to veterinarians as adjuvant to
management of a wide variety of disease
conditions. Veterinary therapeutic or medical
foods are generally intended as sole source
of nutrition to animals with specific medical
conditions. The foods have a composition
that is adapted to the specific medical
condition and should be used under the
direction of a veterinarian.
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109
Natural trend
In relation to petfood marketing,
different types of trends may be
distinguished. The trends of humanization,
differentiation and individualization have
been described briefly above. These trends
have been initiated by the petfood industry.
Another example of a nutrition trend
changing buying behavior is the pet owners’
interest in so-called natural foods. The
natural trend has been inspired by
consumers.
During recent years, sales in the USA of
natural petfoods have surpassed that of
petfoods overall (Taylor, 2010b). This also
holds for organic and holistic foods which
account for a much smaller share of the
market. At this moment, the claim natural is
most commonly used and is still on the
increase (Taylor, 2011). Natural is the
buzzword that strongly determines the
preference of the petfood buyer in the USA.
In the slipstream of the claim natural, the
recommendations of organic and holistic
follow. Owners of dogs and cats associate
natural with health. In contrast to other
claims on petfoods, the claim natural does
not need further explanation. Back to nature
is easily understood and it is appealing to
people.
Amongst others, natural nutrition is
translated into grain-free foods. Following
the USA, Western Europe experiences an
increasing interest in grain-free dog foods.
The trend is based on emotional and
incorrect arguments. It is said that grains do
not have nutritional value and are bad for
pet health. It is also said that grains do not
to fit into the natural diet of dogs, that
digestion and metabolism of dogs cannot
handle the starch in grains and that dogs are
carnivores and thus are no grain eaters. Well
meant, but misleading online messages
continue to fan the trend, which has
evolved into a true hype. As stated, the
natural trend is based on misconceptions.
There are no scientific arguments and
experimental data against the presence of
heat-treated grains in dog food. The notion
that dogs are pure carnivores is wrong also.
Both grain-containing and grain-free foods
can be adequate nutrition for dogs, provided
that the foods meet the nutrient
requirements and are palatable and safe.
Manufacturers of dry petfoods should
have a suitable answer to the trend of grain
free. The sales representatives should have
factual knowledge to support their products
that by certain owners are not perceived as
natural. Possibly, grain-free products will not
become more than a lucrative niche
product. Nevertheless, manufacturers should
consider an extension of the existing dry
food assortment with grain-free products.
This could involve products in which grains
have been replaced by other starch-rich
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110
ingredients such as potato or cassava. In this
way, market demand would be met. In reply
to the natural trend, some manufacturers
simply label their dry foods as natural.
Others are now using “fresh” meat as one of
the ingredients for dry foods. From a
nutritional point of view it is possible to feed
dogs on foods with a wide diversity of
ingredient compositions, including grain-rich
and grain-free diets.
Petfood manufacturers should detect
latent, but oncoming demands in the
market. Possibly, the trend of grain free slips
into carbohydrate free and a new niche can
be carved out in the petfood market. A
proactive manufacturer should develop the
production of a carbohydrate-free dry food.
If not already operational, it may be decided
to produce extruded dry foods with the use
of fresh meat as ingredient, or rather meat
slurry injected at extrusion. On the waves of
the natural trend, pet owners will drive
sustainability in petfood. Manufacturers are
now considering how consumers may define
“green” petfoods (Phillips-Donaldson, 2010).
The subsequent challenge is how to convert
the consumer demand into food products.
Taken together, petfood manufacturers
must deal adequately with nutrition trends.
They should be able to justify their current
products, either fitting the trend or not.
Consumers are going online for information
on feeding their pets (Phillips-Donaldson,
2009). The internet has become an
invaluable information source, but some of it
is patently false. Petfood manufacturers
should face customers openly and provide
transparency and evidence-based information
as to their products. Premature trends should
be picked up by manufacturers and be
transformed into compatible and sound
petfoods. To deal with trends optimally,
manufacturers should have employees
trained in pet nutrition science.
Petfood palatability
Palatability and acceptability are keys
in petfood production. An unpalatable food
will be rejected by the pet and
subsequently by the owner. Thus, there will
be no continuation purchase of the brand
concerned. Pet owners like to see their pet
eat and enjoy the food offered, whereas
trifling leads to buying another brand.
Palatability is not an indicator of the food’s
adequacy in terms of level and balance of
nutrients. However, any unpalatable food
will have low marketing value.
Consequently, petfood manufacturers aim at
launching highly palatable foods on the
market.
Production of highly palatable foods
and maintaining and improving palatability is
a continuous challenge for nutritionists and
product engineers. Senses of smell and taste
provide different information to dogs and
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111
cats as is provided to humans. Without
preference and acceptance testing, the
palatability of a given petfood cannot be
determined. In the development process of
new petfoods both functionality and
palatability are crucial. Ideally, both aspects
are developed and evaluated in a science-
based manner. The contribution of scientists
with expertise in pet nutrition is valuable.
Petfood safety
Bad publicity can ruin a petfood brand
and so can empty shelves in the shop due
to impaired arrivals. In both cases, pet
owners shift to another brand and will be
reluctant to return to the previous one. The
combination of bad publicity and empty
shelves occurs with a recall due to a
calamity. The petfood industry is no stranger
to tainted and recalled products. The largest
petfood recall in history has resulted from a
single ingredient, wheat gluten, which was
intentionally adulterated with melamine for
economic gains. Enticed by a bargain price,
the petfood manufacturer had switched
suppliers of wheat gluten. Numerous cases
of acute renal failure in dogs and cats were
caused by a variety of petfood products
contaminated with melamine and cyanuric
acid (Osborne et al., 2008).
Calamities cannot be excluded, but
petfood manufacturers should do their
utmost to fortify the weak links in the
supply chain. The suppliers’ certificates of
analysis, including safety criteria, should be
scrutinized and own testing might be
required. Audits of suppliers by third-party
companies cannot invariably guarantee that
the products were made under good
manufacturing practice (GMP). The audits
may be supplemented by own inspections.
Petfood manufacturers should be ensured
that foreign suppliers comply with the
regulations that are operative in the area of
their market. For growth and maintenance of
the Thai petfood industry, the risk of
calamities must be put down to the
absolute minimum. To this end, the input of
experts in pet nutrition science will be
helpful.
Alternative ingredients
Ingredient inventories for the petfood
industry are under stress (Collins, 2011). With
the increasing ingredient prices, permanent
review of formulations is necessary to
control ingredient cost while maintaining
nutritional profile, diet efficacy and brand
image. In order to control ingredient cost,
petfood manufacturers have to search for
uncommon, alternative ingredients.
Introduction of such ingredients requires
prior testing. To raise sales opportunities, it is
necessary to develop new formulations with
substantiated health claims. To reduce
overall cost, efficiency refinement of the
Beynen, A.C. / J. Mahanakorn Vet. Med. 2013. 8(2): 103-113.
112
production process is essential. To sustain
delivery and to avoid calamities, safety and
quality control of ingredients and end
products require careful attention. Needless
to say that for growth and maintenance of
the Thai petfood industry the input of
experts in pet nutrition science is
indispensable.
Alliance between industry and science
Ideally, booming of the Thai petfood
market and production is attended by an
increase in pet nutrition experts. To furnish
these experts, training programs in animal
nutrition should offer specialization in pet
nutrition. Courses on pet nutrition should be
organized for active nutritionists that wish to
further specialize in pet nutrition. The
curriculum of veterinary students should
involve classes on pet nutrition and
dietetics. For veterinary practitioners, post-
graduate courses on pet nutrition should be
developed. Major topics of the courses
should be interpretation of petfood labels
and claims and the role of nutrition in
health and disease of dogs and cats.
Universities should facilitate scientific
research in pet nutrition.
As to petfood business, the future
winners will be those Thai petfood
manufacturing companies now making good
profit and using this for innovation, research
and development. For profit generation it is
crucial to combine elements such as
engaged employees, knowledge, creativity,
cost control as to formulations and
production, outstanding customer service,
loyalty, speedy settlement of current and
oncoming matters, proactive stand towards
customers, production and delivery,
continuous development of new products at
rapid rate and early detection of slumbering
nutrition trends and market threats. The
essential mix of elements should be
enriched by the appointment of employees
trained in pet nutrition science.
References
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