Thailand’s pet food exports have been growing by around 4% per year, and in 2019 the country’s pet food export value reached approximately USD 1.693 billion. This placed Thailand as the world’s fourth-largest pet food exporter, following the United States, the European Union (EU), and China.
One key driver behind this growth is Thailand’s network of free trade agreements (FTAs) with partners such as ASEAN countries, China, Australia, New Zealand, Chile, Peru, and Hong Kong. Under these agreements, import tariffs on pet food products from Thailand were eliminated in those markets.
In 2019, these FTA partner countries accounted for about USD 954 million of Thailand’s total pet food exports.
While most countries (except Japan, South Korea, and India) still impose tariffs on certain categories of pet food from Thailand, the signing of additional FTAs with the countries mentioned above during the COVID-19 period enabled Thailand to expand pet food exports further.
Auramon Supthaweethum, Director-General of the Department of Trade Negotiations, stated that Thailand’s pet food exports remained strong in Q1 2020, reaching USD 466 million, a 10% increase year-on-year. Of this total, dog and cat food accounted for 81%.
According to a report by The Nation/Asia News Network, Supthaweethum also noted that pet food export values to India, the United States, ASEAN countries, and Australia were USD 19 million, USD 104 million, USD 111 million, and USD 22.5 million, respectively—representing increases of 52%, 19%, 13%, and 9%.
FTAs continue to provide a strong tailwind for Thai trade, and pet food exports to New Zealand also rose in 2020. Following bilateral discussions held at the end of 2019, Thailand successfully obtained approval from New Zealand’s Ministry for Primary Industries to export Thai pet food products containing beef into New Zealand. As a result, Thailand’s pet food exports to New Zealand have increased by 531% since the FTA with New Zealand took effect.
In response to Supthaweethum’s call, companies such as Thai Union Group have encouraged local pet food manufacturers and exporters to make even greater use of the tariff elimination made possible through FTAs.
Thai Union Group—primarily a seafood-focused food company—recently announced additional investment into its pet food business to add value to by-products from seafood processing. In 2019, strong performance in its frozen seafood and pet food businesses also contributed to a 46.5% year-on-year increase in the group’s quarterly net profit, reaching a total of approximately USD 39.91 million.