Special report: Feed makers tap thriving pet food market

(First of 2 parts)

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MANILA, Philippines — A quick search on Google Maps for stores selling pet food in Quezon City would spawn multiple red pins across the metropolis’ more than 16,000 hectares of area.

Some of these stores are located along Quezon Avenue, one of the city’s main thoroughfares. One of them is just a stone’s throw away from Marionne, a fur mom of three Shih Tzus and a Golden Labrador.

“It is just across our home,” Marionne Lopez, a government employee, tells The STAR.

“It” is a poultry supply store, one of many nationwide that have also decided to sell pet food to take advantage of the booming industry amid tepid demand for traditional animal feeds like those for hogs.

The thought of dog food being sold at a poultry supply store surprised Lopez, who has been a fur mom for eight years.

“It was my father who bought the dog food and mentioned to me that he bought it from a poultry store. I even asked him if he was sure that they were for dogs and not for chickens,” she recalled.

“One time, I tagged along with him, and I saw firsthand that they were indeed dog food, and I told myself, ‘legit nga,’ ” she added.

The rise in the number of traditional poultry supply stores offering not just pet food but also other pet-related items like vaccines and vitamins is a manifestation of the growing pet food market in the country, says Edwin Mapanao, president of the Philippine Association of Feed Millers Inc.

And the booming pet market makes it enticing for the local feed milling industry to recalibrate their production lines to cope with the dwindling demand for traditional animal feeds caused by the incursion of avian influenza and African swine fever in the country.

For example, the loss of millions of pigs nationwide, Mapanao explains, resulted in a plunge in demand for hog feeds, creating a dent in the usual markets supplied by the feed millers.

Special Report

“Before, poultry outlets carried minimal pet food items, but now they are occupying more shelves than ever. Probably now, 50 percent of what they sell is pet food,” Mapanao tells The STAR.

Billion-peso industry

But just how huge is the country’s pet food market? It is valued at nearly P24 billion, and it keeps growing each year, says Mapanao, who is also the vice president for marketing and corporate affairs of UNAHCO Inc., a feed products manufacturer.

Mapanao attributes the growth of the local pet food industry to a confluence of factors: rising disposable income due to economic growth, lifestyle changes of Filipinos—both young and old—and growing psychosocial needs.

“The Philippines will soon be in the upper-middle income class. That alone is a sign that a particular industry will definitely grow,” said Mapanao.

Pets for mental health

Aside from rising purchasing power, Filipinos have turned to pets to improve their well-being, especially their mental health, Mapanao said.

“Nowadays, you’ve seen there is so much noise on social media, so much stress and the biggest challenge is mental health problems. When you are talking about mental health, you are talking about pet therapy,” he explained.

Citing industry data, Mapanao emphasizes that there are about 23.29 million dogs and 2.74 million cats in the country today, with at least 68 percent of Filipino households owning a pet. That translates to about seven in 10 households owning either a dog or a cat.

A recent study commissioned by multinational Mars Inc. showed that Generation Z (45 ercent) and millennials (40 percent) are the “most pet-centric” of all generations.

The study involved an online survey in 20 markets, including the Philippines, with more than 20,000 dog or cat owners and non-owners.

The study also showed that more than a third of dog and cat owners surveyed consider their pets as “the most important thing in their lives.”

“We’re becoming a pet-obsessed world, with pets fast becoming one of the most important things in our lives,” the study noted.

Mapanao says there are four types of pet owners in the country. First, utilitarians, who see pets as adding value to their lives, such as securing their homes and valuables like guard dogs. Second, pragmatic spoilers, who flaunt their dogs through dress-ups and luxurious grooming.

Third, companions, who take care of pets to have a companion in life. Lastly, humanizers, who consider their pets part of their families and even provide them with insurance and healthcare protection.

“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,” Agriculture and Agri-Food Canada (AAFC) said.

More educated owners

Pet owners have become more educated and informed when it comes to pet care, resulting in higher demand for quality pet food items.

From feeding their pets leftover meals, pet owners have now become more selective about the food they give their pets, Mapanao explains.

The likes of Lopez, who works during the day, prefer ready-made dog food since it is the “easiest” and most flexible way of providing nourishment for their pets.

What’s more surprising, Lopez says, is that pet food, particularly dry pellets for dogs, sold at their local poultry feed store is cheaper compared to those retailed at supermarkets and groceries.

For example, the ones she buys at the poultry outlet cost about P120 per kilo, more than twice as cheap as the P320 per kilo of branded dog food sold in supermarkets. Lopez spends about P5,000 per week on dog food.

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