Petfood is big business in the US, UK and Japan but not in Thailand - not yet anyway. It could mean big baht for the local industry, too, if consumers and suppliers alike would view it as a quality product, not a byproduct, say industry experts. Ten to 15 years behind the US and Japan, the Thai domestic market for processed petfood is a fraction of the markets in developed countries. In terms of volume, the local market for dog and catfood, both wet (canned) and dry, is estimated at 7000 tons per year, worth approximately US$ 12 million, not even a whisker if compared with japan's $908 million and US market's $8.4 billion.

In terms of variety, the US market offers dry, wet and semi-moist (dog biscuits, pet treats and snacks) products with a multitude of formulations in product lines segmented by pet type, age and activity. On the Thai market, on the other hand, dry dog accounts for 60 per cent of products available, wet catfood, 23 per cent and wet dogfood, 15 per cent. Dry cat is a distant fourth at 2 per cent, and semi-moist products are rare.

Not that there is no demand. Local demographic changes point to increased urbanization and smaller homes, with smaller family units. Add the rise in disposable income and the increasing knowledgeability of pet owners.

Demand for pet products has continue to rise. According to local sources, the expatriate community, the traditional petfood market, has even dropped behind the Thai market, especially in catfood.

Even with the rising demand, however, supply has been sluggish. Only a few new brands have appeared on the market over the past three years. A third of total dog and catfood marketed locally comes from overseas. Imports dominate the high-end categories. Products from the US, Japan, Australia and Europe from the majority of standard products for grocery distribution and monopolize the premium products in non-grocery outlets such as pet shops and veterinary clinics. Domestic products dominate only the lower-priced economy range for dogfood.

Slow growth The sluggish supply may be due to the lack of consumer data. No one knows, for example, the exact size of Thailand's cat and dog populations-the end users. Chulalongkorn University's Faculty of Veterinary Science estimates 6 million dogs in households, a number that excludes the considerable number of temple dogs. No figures are available for cats, nor are sufficiently in-depth profiles available on pet owners' preferences and lifestyles.

It is true that local pet populations are nowhere near, for instance, the US's 51 million dogs and 58 million cats. The Thai market, however, would not depend on pet population as much as on the change in habits of pet owners. For them to stop feeding their pets fish, meat and rice and turn to processed petfood, they need to be made aware of the benefits.