Nestlé (Thai), a prominent manufacturer and marketer of consumer goods, has allocated 6 billion baht towards the expansion of its manufacturing infrastructure to cater to the escalating demand for pet care products.
According to Victor Seah, chairman and chief executive of Nestlé Indochina, the pet food market has witnessed continuous growth post the Covid-19 outbreak, with individuals dedicating more time to their pets, especially given the prevalence of remote work setups.
The surge in demand for pet food products is fueled by several factors such as an increasing preference for premium offerings, the trend of humanizing pets, higher disposable incomes, and a heightened emphasis on pet well-being.
In addition, Nestlé observed a shift in pet owners’ preferences towards more sophisticated choices in pet food.
There is a notable uptick in the demand for premium and nutritionally rich pet food items, driven by the mindset of considering pets as integral family members, often referred to as the “humanization of pets,” as per insights from ttb analytics, the research division of TMBThanachart Bank (ttb).
This inclination is evident across both seasoned pet owners, who have altered their approach to pet care, and new pet owners. Consequently, the expenditure per pet for their upkeep has seen a substantial increase.
Estimations from ttb analytics project that the annual cost of caring for a pet as part of the family could average around 41,100 baht, with a significant portion of 22,500 baht allocated to pet food expenses.
Moreover, ttb analytics anticipates that the evolving trend of “pet humanization” will bring positive outcomes for the pet food sector and animal care services.
The pet market in Thailand is anticipated to reach a value of 75 billion baht in the current year, exhibiting a 12.4% surge from 2023, with the pet food segment poised to be valued at 44.6 billion baht, as per ttb analytics’ analysis.
In alignment with the increasing demand for pet care products, Nestlé has augmented its production capacity, committing approximately 6 billion baht towards the expansion of its manufacturing facilities spanning from 2021 to 2026.
