Sector Trend Analysis – Pet food in the Philippines

Trade overview

Global imports

The major pet food importers are located in Western Europe and North America. Contrasting this, the Philippines emerged as the 30th largest global importer of pet food and ranked 7th within the Indo-Pacific region in 2023, boasting an import value of US$206.8 million. Notably, the Philippines exhibited the most rapid growth within the region, achieving a remarkable growth at a CAGR of 21.2% from 2019 to 2023.

Philippines imports

Thailand, China, and Italy were the top three largest suppliers of pet food to the Philippines in 2023 with values of US$100.5 million (48.6% market share), US$30.3 million (14.7% market share), and US$21.8 million (10.5% market share) respectively. Canada, the Philippines' 11th largest pet food supplier, experienced an increase in CAGR of 22.4% as pet food values grew from US$0.9 million in 2019 to US$2.0 million in 2023.

Canada's performance

In 2023, Canada ranked the 12th largest exporter of dog and cat food in the world, exporting US$713.5 million worth of dog and cat food to the world, a 2.9% share of the total global exports of dog and cat food.

The Philippines ranked the seventh-largest importer of Canada in the Indo-Pacific region, receiving 3.1% (US$4.5 million) of Canadian dog and cat food exports in 2023 with a 22.7% CAGR from 2019 to 2023.

Ontario accounted for 57.4% of the value of pet food exports to the Philippines in 2023, according to Canadian export data. Alberta, New Brunswick, and British Columbia made up the rest of the total.

Pet food market overview

In 2024, the Asia Pacific pet food market worth US$19.1 billion in retail value. The Philippines ranks the 12th largest market in the region, reaching US$381.4 million in 2024, representing an increase by a CAGR of 8.1% (2020-2024). The pet food retail sales in the Philippines is expected to grow to US$598.1 million in 2029 at a CAGR of 9.4%.

Pet humanization

Driven by the escalating trend of pet humanization, Filipino pet owners exhibit a strong inclination toward pampering their pets and actively seek out products that enhance their overall health and hygiene. This trend is particularly prominent in the dog food category, where a notable expansion in health-oriented product offerings is anticipated during the forecast period. This growth is fueled by increasing consumer health consciousness, which has been further accentuated by the experiences of the COVID-19 pandemic. Moreover, the development of dog food is expected to closely align with that of human food, with indications of a rising interest in vegan diets for dogs within the local market. Conversely, other pet categories demonstrate a comparatively weaker degree of pet humanization. This discrepancy can be attributed to the fact that dogs and cats, being more interactive and perceived as providing greater emotional comfort, receive a heightened level of humanization compared to other pets (Euromonitor International, 2023).

Affordable options

As economic challenges endure in the Philippines, a potential transition towards low-cost cat food is anticipated in the forthcoming years. The influx of brands into the market will diversify price points, providing pet owners with greater choices for exploring alternative brands that offer both nutritional quality and affordability. This trend mirrors the pattern seen in the dog food market, where consumers are similarly leaning towards more budget-friendly options. Consequently, dog food brands that strike a balance between nutrition and affordability are poised for accelerated growth in the forecast period (Euromonitor International, 2023).

Pet population and ownership

The pet population in the Philippines has increased at a CAGR of 4.0% from 56.3 million pets in 2020 to 65.9 million pets in 2024. The pet population is forecast to increase by a CAGR of 3.1% as the pet population is expected to grow to 76.8 million pets by 2029. In 2024, cats and dogs accounted for 35.0% of the pet population while other pets accounted for 65.0%. The cat and dog populations will reach 3.2 million and 24.3 million respectively in 2029.

Cat ownership in the Philippines is less common than dog ownership, but interest in cats as pets is growing. The pandemic has led pet owners and potential owners to consider a wider variety of pets. Cats are increasingly favored, particularly in urban areas with size restrictions on pets, such as residential condominiums. With many animal food businesses already investigating the cat food segment, there is substantial potential for market growth, especially considering the lower base of cat ownership compared to dogs (Euromonitor International, 2023).

Philippines' dog ownership experienced a 4.6% increase in CAGR from 9.7 million households in 2020 to 11.7 million households in 2024. The corresponding percentage of those households owning dogs increased from 36.9% in 2020 to 40.0% in 2024. The number of households owning cats increased from 1.7 million in 2020 to 2.0 million in 2024 representing an increase in the percentage of those same households owning cats from 6.5% to 7.0% in the same period.

Market Segmentation

Cat food

Total cat food retail value sales have steadily increased from US$43.6 million in 2019 to US$70.0 million in 2024, with notable growth across all product subcategories. Dry cat food and wet cat food segments have shown robust growth, with respective CAGR of approximately 10.1% and 9.9%. This growth is driven by both mid-priced and premium segments, indicating a preference for products offering quality and affordability.

In the Philippines, unlike the dominance of dry food in the dog food market, pet cat owners show a preference for wet cat food over dry options. This trend is anticipated to persist in the forecast period. There exists an opportunity for wet cat food manufacturers to capitalize on this trend by emphasizing the health benefits of their products, aligning with the broader health and wellness trends. Emphasizing wet cat food's role in improving hydration, especially considering cats' aversion to drinking water, can position it as a healthier option. With its high moisture content, wet cat food aids in keeping cats hydrated and may prevent conditions like urinary tract infections. Despite potentially higher upfront costs compared to dry cat food, the long-term benefits, such as reduced veterinary visits due to improved cat health, suggest potential cost savings for cat owners (Euromonitor International, 2023).

Total retail value sales of cat food are expected to rise steadily from US$70.0 million in 2024 to US$112.7 million in 2029, indicating a robust CAGR of 10.0%. Notably, each subcategory shows significant growth potential: cat treats and mixers are projected to experience a CAGR of 8.7%, dry cat food 10.1%, and wet cat food 10.1%. Within dry cat food, all segments - economy, mid-priced, and premium - are anticipated to expand, with economy dry cat food leading the growth at a CAGR of 10.5%. Similarly, both mid-priced and premium wet cat food segments are expected to see substantial growth, with projected CAGRs of 9.3% and 11.9%, respectively.

During the forecast period, cat food is poised to experience a surge in demand driven by the growing popularity of cats as household pets, particularly due to their carnivorous dietary needs, making them less reliant on table scraps. Compared to dogs, cats require a higher proportion of their diet to come from prepared food, further boosting the demand for cat food products. This trend is reinforced by the increasing urbanization trend in the Philippines, resulting in more condominium-style residences with limited space, where cats are preferred due to their compact size and quiet demeanor. Moreover, the relatively smaller appetites of cats compared to dogs lead to reduced feeding costs, encouraging cat owners to invest more in mid-priced dry food options compared to their counterparts who own dogs, who tend to favor economy food products (Euromonitor International, 2023).

Dog food

Despite the ongoing rise of dog food in the Philippines, growth is slowing due to significant challenges stemming from heavy reliance on imports. Disruptions in global supply chains, exacerbated by geopolitical tensions, have hindered local distributors' ability to secure shipments, leading to stock shortages since 2022 and persisting into 2023. Consequently, consumers have turned to alternative, often local, and more affordable brands. However, sustained growth in dog food can be attributed to the increasing pet ownership and escalating demand in recent years. Despite economic challenges, the substantial level of dog ownership ensures a consistently appealing market for dog food brands. While dog food sales will continue to grow strongly in volume terms, slower current value growth may occur as pet owners opt for more budget-friendly options amid economic constraints (Euromonitor International, 2023).

Total retail value sales of dog food surged from US$183.6 million in 2019 to US$307.5 million in 2024, indicating a robust growth at a CAGR of 10.9%. Among the subcategories, both dry dog food and wet dog food segments experienced notable growth rates, with CAGRs of 10.7% and 11.1%, respectively. This growth was propelled by all segments within these categories, including economy, mid-priced, and premium options. Notably, economy wet dog food exhibited an outstanding CAGR of 30.6%, indicating a substantial increase in demand for affordable options. Similarly, dog treats and mixers also saw remarkable growth, with a CAGR of 12.6% over the same period, reflecting evolving consumer preferences and a willingness to invest in supplementary pet products.

The total retail value sales of dog food are expected to increase from US$307.5 million in 2024 to US$479.1 million in 2029, demonstrating a solid growth at a CAGR of 9.3%. Notably, both dry dog food and wet dog food segments are projected to experience significant growth, with CAGRs of 9.5% and 8.8%, respectively. Within these segments, all categories - economy, mid-priced, and premium - are anticipated to witness considerable expansion. Moreover, the forecast suggests a notable uptick in demand for dog treats and mixers, with a projected CAGR of 6.7%.

Despite the challenges posed by the pandemic, dog food has managed to endure, hinting at further potential for growth as the Philippine economy rebounds. Interest in dogs as companions is anticipated to remain strong, with the pandemic highlighting the benefits of pet ownership during challenging periods. Efforts by companies like Mars and animal welfare organizations to improve the reputation of stray and mixed-breed dogs could broaden the consumer base for dog food products, which currently primarily cater to owners of purebred dogs. This shift in perception towards mixed-breed dogs has the potential to expand the market for dog food products (Euromonitor International, 2023).

Other pet food

Inflation has also impacted other pet food categories in the Philippines, affecting purchasing power. Total retail value sales of other pet food increased marginally from US$3.6 million in 2019 to US$3.9 million in 2024, with a CAGR of 1.6%. Among the subcategories, fish food demonstrated the most substantial growth, with a CAGR of 1.5% over the same period. Conversely, bird food remained relatively stagnant. Legal considerations, such as varying ordinances governing bird ownership, pose barriers to growth, requiring pet owners to ensure compliance with relevant laws (Euromonitor International, 2023).

Despite economic challenges, other pet food categories are expected to sustain growth as they remain a convenient option for pet owners.Total retail value sales of other pet food are expected to rise from US$3.9 million in 2024 to US$6.3 million in 2029, exhibiting a robust growth at a CAGR of 10.1%. Among the subcategories, fish food is anticipated to experience the most substantial growth, with a projected CAGR of 10.9%. Similarly, bird food is forecasted to see notable growth rates, with a projected CAGR of 8.4%.

Company shares

From 2019 to 2023, Mars Inc. consistently led the cat food sector with a gradual increase in market share, reaching 61.1% by 2023. In contrast, Nestlé SA experienced a significant decline, dropping to 4.2% market share over the same period. While some players saw minor fluctuations, Charoen Pokphand Group and Archer Daniels Midland Co notably expanded their shares.

Mars Inc. also maintained its lead in the dog food sector, with a steady increase in market share, reaching 41.6% by 2023. Charoen Pokphand Group notably expanded its share, growing from 7.6% in 2019 to 17.6% in 2023, reflecting a CAGR of 23.4%. Conversely, Consumer Care Products Inc. experienced a decline in market share, dropping to 11.0% by 2023. Noteworthy newcomers include GuanChong Pet (Shanghai) Co Ltd and Pet One Inc, showcasing substantial growth in their market shares. However, established players like Nestlé SA witnessed significant declines.

Mars Inc. has thrived since Alpo exited the category. Introducing the Pedigree WeR4Pets App, Mars offers consumers pet-related services, advice, and discounts conveniently. Additionally, Mars launched the "Better Cities for Pets" Movement to promote stray pet adoption, partnering with Animal Kingdom Foundation Inc. to organize online pet education sessions for students aged six to 12. These initiatives aim to raise awareness among future pet owners and expand Mars' consumer base to include owners of mixed-breed stray dogs (Euromonitor International, 2023).

Spectrum Brands Holdings Inc. maintained its lead in the other pet food sector, with a relatively stable market share, standing at 15.6% by 2023. Bio Research Inc. experienced a decline in market share, dropping to 8.2% by 2023. Conversely, Sera GmbH saw a modest increase in market share, reflecting a CAGR of 4.4%.

Brand shares

From 2019 to 2023, Whiskas by Mars Inc. consistently led the cat food market with a share ranging from 41.2% to 42.8%. Royal Canin, also under Mars Inc., notably grew its share from 3.2% to 6.4%, showing a strong CAGR of 18.9%. Other leading brands such as Sheba by Mars Inc. and SmartHeart by Charoen Pokphand Group demonstrated consistent growth. Conversely, brands like Friskies and Fancy Feast/Gourmet under Nestlé SA faced declines in performance.

Mars's Whiskas brand leads in both dry and wet cat food, while its Sheba brand dominates the premium wet cat food market. Monge leads the premium dry cat food segment. Whiskas has introduced specialized products addressing various cat needs, such as hairball and odor control (Whiskas Hairball Control and Whiskas Indoor), skin and coat care (Whiskas Skin & Coat), and a new variant for kittens (Whiskas Junior). Additionally, the brand has launched Tasty Mix, a line of cat treats (Euromonitor International, 2023).

During the COVID-19 pandemic, Century Pacific Food Inc. launched Goodest, a mid-priced wet cat food brand, amid its canned tuna reputation. Goodest competes in supermarkets, offering flavors like Chicken Chomp and Tender Tuna. Its launch coincided with Friskies' exit in 2020, creating opportunities with fewer competitors (Euromonitor International, 2023).

From 2019 to 2023, Pedigree by Mars Inc. consistently held a significant share of the dog food market, ranging from 27.8% to 30.9%. SmartHeart by Charoen Pokphand Group experienced notable growth, increasing its share from 7.4% to 17.1% with a CAGR of 23.3%. Vitality by Consumer Care Products Inc. witnessed a decline, while Royal Canin, also under Mars Inc., grew its share from 6.4% to 8.1%. Brands like Nutri Chunks by San Miguel Corp and Pet One by Pet One Inc also showed promising growth trends. However, there were declines in some brands like Monge and others in the same period.

New brands continuously enter the Philippine dog food market, sustaining growth by keeping consumer interest alive. Alps Natural Pure Treats, an imported dog treat brand, emphasizing its natural, preservative-free baking, debuted in Q1 2022. Towards the review period's end, Araton, an imported dry dog food distributed by Univet Nutrition, entered the market. Montego Classic, the flagship dry dog food from Montego Pet Nutrition in Africa, also emerged. Zert, a new premium dog treat, offers flavors like pistachio gelato and mango cheesecake, positioned as both a dessert and dental stick. These innovations launched during COVID-19 include Oasy, a budget-friendly premium dry dog food, Canis Prime, a probiotic-fortified dry dog food promoting digestion and immunity, and Beauty Pro, a Japanese dry dog food featuring Marine Collagen for skin and coat health. (Euromonitor International, 2023).

From 2019 to 2023, Tetra by Spectrum Brands Holdings Inc. consistently maintained a significant share in the other pet food market, ranging from 15.2% to 16.4%. Sera by Sera GmbH also demonstrated steady growth, increasing its share from 6.4% to 7.6% with a CAGR of 4.4%. However, Bio-Min and Bio-Gold by Bio Research Inc. experienced declines over the same period.

Other pet food brands often lack innovation, relying heavily on products developed by exporting companies. However, there's an opportunity for entrepreneurs to introduce new, less processed, or more natural options aligned with the health trend, though growth in other pet food segments may be limited due to low levels of pet humanization. Unlike in dog food, where local entrepreneurs are creating products like cakes, similar developments have yet to be explored in other pet food categories, presenting potential opportunities, particularly for small mammals (Euromonitor International, 2023).

Distribution channels

In the Philippine pet food market, retail channels have consistently dominated the distribution landscape, comprising 90.2% of the market share in 2024, with a marginal CAGR of 0.1% from 2020 to 2024. Within retail channels, offline retailing experienced a slight decline at a CAGR of −0.8%, mainly attributed to a decrease in non-grocery retailers such as home products specialists and other non-grocery retailers. Conversely, grocery retailers witnessed growth, particularly in hypermarkets, supermarkets, and small local grocers, with a collective CAGR of 5.8%. Retail e-commerce emerged as a notable player, experiencing rapid expansion at a CAGR of 16.1%, indicating a shift towards online purchasing behavior among consumers. Non-retail channels, primarily veterinary clinics, remained relatively stable with a slight decline in market share at a CAGR of −1.0%.

The Philippine dog food market has experienced a notable transformation in distribution channels due to the COVID-19 pandemic, with a surge in e-commerce adoption among pet owners. Although the economy reopened in 2022, e-commerce continued to grow steadily, alongside the expansion of pet specialty stores such as Pet Express and PetBuddy in shopping malls. These malls remain central to dog food sales, hosting various pet-related services. Major brands have innovated digitally, launching apps like Royal Canin Club and WeR4Pets by Pedigree to engage customers, with active promotion on platforms like Shopee and Lazada. Concurrently, subscription boxes, notably those offering dehydrated dog treats, are gaining popularity, catering to pet owners seeking healthier options. Cat food distribution closely mirrors that of dog food, with brands like Whiskas leveraging e-commerce promotions. This shift to online channels is expected to persist, with e-commerce driving growth for the broader pet food category, supported by established online presence and consumer habits. With regular sales festivals and promotions, e-commerce is poised to sustain its growth trajectory in the pet food segment in the Philippines (Euromonitor International, 2023).

Product launch analysis

From 2019 to 2023, a total of 290 pet food products were launched in the Philippines. The number of yearly product launches has declined by a CAGR of 5.2% from 53 pet products in 2019 to 65 pet products in 2023.

The top five categories of new launches included dog snacks & treats, dog food wet, dog food dry, cat food wet, and cat food dry. Among the top claims for these launches, 'pet - adult' remained predominant throughout the period, while 'vitamin/mineral fortified' and 'functional pet - skin & coat' also featured prominently. In terms of pricing, the majority of launches fell within the US$0.40 - US$4.39 range, steadily increasing over the years, followed by the US$4.40 - US$8.39 range. Ingredient claims varied, with 'animal origin' and 'vegetable-based' being prevalent, along with 'natural' and 'nutritional' claims.

As economic challenges persist, a potential shift towards economy cat food is anticipated in the forthcoming years. Notably, Century Pacific Food Inc. made a noteworthy entry into the pet care market by prioritizing cat food production. Unlike dog food, innovative formats like dehydrated treats and fresh food stored in upright freezers remain limited within the cat food sector, presenting significant opportunities for entrepreneurial ventures to explore novel formats beyond traditional dry and wet cat food products. Meanwhile, in response to the continued emphasis on nutrition in dog food brand selection, leading brands like Pedigree have introduced new variants such as Pedigree Pro, focusing on enhanced nutrition. Pedigree aims to encourage pet owners to transition from table food to commercial dog food by highlighting its superior energy content. Similarly, Nutri Chunks, another prominent brand, has introduced a dog food variant tailored specifically for small breeds, alongside advocacy efforts promoting equal treatment for all dogs, irrespective of breed or pedigree (Euromonitor International, 2023).

Product examples

For more information

The Canadian Trade Commissioner Service:

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

• Find a Trade Commissioner

More agri-food market intelligence:

International agri-food market intelligence
Discover global agriculture and food opportunities, the complete library of Global Analysis reports, market trends and forecasts, and information on Canada's free trade agreements.

Agri-food market intelligence service
Canadian agri-food and seafood businesses can take advantage of a customized service of reports and analysis, and join our email subscription service to have the latest reports delivered directly to their inbox.

More on Canada's agriculture and agri-food sectors:

Canada's agriculture sectors
Information on the agriculture industry by sector. Data on international markets. Initiatives to support awareness of the industry in Canada. How the department engages with the industry.

For additional information on the upcoming WOFEX 2024, please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
Agriculture and agri-food Canada
ben.berry@agr.gc.ca

Resources

• Global Trade Tracker, 2024
• Euromonitor International, 2024
• Euromonitor International 2023, Cat Food in the Philippines
• Euromonitor International 2023, Dog Food in the Philippines
• Euromonitor International 2023, Other Pet Food in the Philippines
• Mintel Global New Products Database, 2024
• Mintel 2023, A year of innovation in pet food and products, 2023

Sector Trend Analysis – Pet food in the Philippines
Global Analysis Report

Prepared by: Zhi Duo, Wang, Market Analyst

© His Majesty the King in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2024).

Photo credits
All photographs reproduced in this publication are used by permission of the rights holders.
All images, unless otherwise noted, are copyright His Majesty the King in Right of Canada.

To join our distribution list or to suggest additional report topics or markets, please contact:

Agriculture and Agri-Food Canada, Global Analysis
1341 Baseline Rd, Tower 5, 3rd floor
Ottawa ON  K1A 0C5
Canada
Email: aafc.mas-sam.aac@agr.gc.ca

The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein.

Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of agriculture and agri-food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document.

Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge.