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Bangkok Post
Bangkok Post
Business

More than four-legged friends

The Tourism Authority of Thailand recently launched a pet-friendly sign for hotels, restaurants, tourist attractions and others to download at its platform for entrepreneurs to advertise that pets are welcome.

Pets are often regarded as integral members of the family rather than merely animals.

The pandemic led to a surge in pet ownership, resulting in unprecedented growth in the pet economy this year.

New independent companies have emerged offering a variety of products and services, with some adopting a collaborative approach by partnering with veterinarians to co-develop pet food and increase consumer confidence in their products.

Pet owners in Thailand often take them to malls, restaurants, coffee shops and hotels, while places that were previously off limits such as cinemas are now becoming pet-friendly.

Furthermore, the use of pets to promote tourism is expected to lead to a significant increase in the number of pet-friendly hotels and resorts this year.

Many pet owners consider their pets to be surrogate children.

PETS WELCOME

Khajornrit Khwanmongkol, director of the Product and Tourism Business Group of the Tourism Authority of Thailand (TAT), said tourism spending increased by 20% per trip when travellers bring their pets along.

As this group of travellers tend to be high spenders, they present a new potential market, he said.

To encourage tourists to travel with their pets, the TAT introduced the "Amazing Happy Paws Thailand" sign to showcase pet-friendly hotels to tourists.

"After launching pet-friendly signs last week, more than 50 hotels, restaurants, cafes and tourist attractions have approached our platform to use the pet-friendly signs," Mr Khajornrit said.

He said the TAT is promoting the pet-friendly sign at https://petfriendly.tourismthailand.org.

Entrepreneurs that want to use the sign to publicise that they are pet-friendly can download the sign at this website for free.

Mr Khajornrit said various hotels in popular tourist destinations such as Bangkok, Chiang Mai, Phuket, Ayutthaya, Sukhothai, Hua Hin and Prachuap Khiri Khan have registered as pet-friendly venues on their platform. Some hotels include the Sukhothai Hotel on Sathon Road in Bangkok, The Standard Hua Hin, Terra Nara Hotel, Tolani Hotel and Te Mata Glamping.

The TAT plans to collaborate with partners to develop pet-friendly tourist packages during the Pet Expo Thailand, which is scheduled from May 4-7 at Queen Sirikit National Convention Center (QSNCC).

In addition to hotels and restaurants, the TAT is also in talks with airlines to improve pet-friendly facilities in economy class.

The pet food brands Bellotta, ChangeTer and Marvo produced by iTail.

AMPLE ROOM FOR GROWTH

Sakchai Patrapornkul, managing director of N.C.C. Management and Development Co, the operator of QSNCC, said the company has seen the development of the local pet economy over the years.

"At the first Pet Expo held at QSNCC in 2000, we had around 100 booths spanning 3,000 square metres of space, but at our 23rd Pet Expo to be held this month we require up to 15,000 sq m with almost 400 booths participating, demonstrating the growing popularity of the industry," he said.

"The company also discovered that human trends, such as nutrition, fashion apparel, accessories and others, have now spread to pet products. More Thai households own pets than ever before."

According to a recent survey by the College of Management, Mahidol University, Thailand's pet industry has strong potential to expand exponentially among "petsumers", as more than 49% of Thais surveyed prefer to adopt pets over having children.

The report defines petsumers as a new type of customer who is willing to pay to pamper their pets. The term was adopted by marketers focusing on high-spending pet lovers.

The study revealed 49% of the sample group considered their pets to be surrogate children, a practice known as pet parenting, followed by pet prestige for social status (33%) and pet healing (18%).

Dogs continue to be the most popular pet, preferred by 40.4%, followed by cats (37.1%) and exotic animals (22.5%).

Some 39.3% of respondents are willing to spend an average of 10,000 to 20,000 baht per pet annually.

The average annual cost of caring for a dog or cat is 14,200 baht. Bathing and grooming are the most frequently used services, accounting for up to 61% of all services.

Euromonitor predicts the global pet market will be worth up to US$218 billion in 2026, representing a 7.2% annual growth rate.

The Department of Business Development estimates the Thai pet market will grow at an average annual rate of 8.4% to 66.7 billion baht in 2026.

Swirl Pate cat food offered by iTail Corporation.

RS JOINS THE FRAY

"Over the past few years, there has been a broad expansion of pet services. The pet economy has experienced rapid growth and the number of pet parents has increased dramatically," said Supapat Piyachaiwut, chief executive of Hato Pet Wellness Center Co.

"As the pet business is an area of potential growth, we decided to team up with RS Group to grow our business."

He said the strategic partnership with RS will enable the company to expand its business to cover downstream and upstream.

Hato Pet Wellness Center is a full-service centre focused on pet quality of life through a preventive programme to protect them from illnesses and promote their wellness.

Hato operates five wellness centres of three different types and Bangkok Chaiyapruek Animal Hospital, which opened earlier this year.

The company recently sold a 51% stake for 100 million baht to RS affiliate RS Pet All Co.

RS chief executive Surachai Chetchotisak said in addition to the Hato investment, RS is planning to launch other related businesses in an effort to become a leading industry player, eventually listing on the Stock Exchange of Thailand within three years.

Hato generated total income of 60 million baht in 2022. With RS as a strategic partner, the company anticipates raising revenue to 100 million baht this year.

In 2023, the company plans to focus on two business models: the launch of two five-star Hato Animal Hospitals in prime areas of Bangkok and the development of Hato Vet Select grooming and spa products as well as wellness treats for pets.

The products are expected to be available via online platforms and pet shops nationwide in order to widen Hato's customer base.

Pet owners take their pets for a walk at Pet Expo 2022. According to a recent survey more than 49% of Thais currently prefer to adopt pets over having children. Somchai Poomlard

PET FOOD EXPANSION

Pichitchai Wongpiya, chief executive of i-Tail Corporation Plc, a subsidiary of seafood giant Thai Union Group Plc, said the company plans to invest 2.1 billion baht this year to expand its pet food business, with the budget mainly for the construction of a new production plant in Samut Sakhon that is expected to be operational by the end of this year.

He said the new factory will have an automated packing line that will increase i-Tail's capacity in wet pet food and treats by 18.7%.

The company also plans to invest in a new automated warehouse in Samut Sakhon and a Songkhla plant, as well as machinery, R&D and innovation projects to support its expansion, said Mr Pichitchai.

To ensure ongoing business growth, i-Tail wants to expand into private label pet food in the US and European markets.

He said the company is working to grow its private label business with leading retailers and e-commerce channels, particularly in the US, the UK and France, with plans for shipment in the second half of this year.

Mr Pichitchai said i-Tail also plans to open a palatability testing centre called i-Cattery at Mahidol University's Salaya campus this month.

The corporation has been in the pet business for more than four decades and posted sales of 21.4 billion baht last year, with 99% from the export market.

The company produces its own pet food for three brands -- Bellotta, Marvo and ChangeTer -- and makes pet food for original equipment manufacturers. In addition to Thailand, these three brands are now available in China and Russia.

The company recently collaborated with Major Cineplex Group to debut i-Tail Pet Cinema -- the first pet-friendly cinema -- at Mega Cineplex, EastVille Cineplex and Major Cinema's Robinson Ratchapruek this quarter.

The collaboration aims to increase i-Tail's pet food sales and brand awareness in the domestic market, he said.

Mr Pichitchai said the company is also looking for new potential partners to expand its pet business locally this year.

Pets flaunt their skills at Pet Expo 2022. Somchai Poomlard
Mr Pichitchai Wongpiya said iTail Corporation plans to invest 2.1 billion baht this year to expand its pet food business.
Pet food is processed at a food production facility of iTail Corporation.
Dog Chips of iTail Corporation.
Dr. Supapat Piyachaiwut, DVM, Chief Executive Officer of Hato Pet Wellness Center Co., Ltd.
A Bengal cat is pictured in this photo. According to a recent survey, dogs continue to be the most popular pet for pet owners, while cats followed as second rank.
A pet owner carries a puppy at a Pet Expo.
According to a recent survey, dogs continue to be the most popular pet for pet owners.
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