Demand

Volume of Pet Food Products Revenue of Pet Food Products

(in millions of kilograms) (in millions)

YEAR AMOUNT GROWTH YEAR AMOUNT GROWTH

2010 21.15 2010 PHP 1,170
2011 23.09 9.17% 2011 PHP 1,330 13.68%
2012 25.50 10.44% 2012 PHP 1,510 13.53%
2013 27.85 9.22% 2013 PHP 1,720 13.91%
2014 30.84 10.74% 2014 PHP 1,955 13.66%
2015 34.55 12.03% 2015 PHP 2,225 13.81%
2016 38.29 10.82% 2016 PHP 2,530 13.71%
2017 42.66 11.41% 2017 PHP 2,915 15.22%
CAGR 10.55% CAGR 13.93%

Patronage of pet food improved in 2017 as its volume growth was slightly faster than in
2016. While a greater majority remain price-conscious, pet owners with higher purchasing power
are making brand upgrades as the availability of premium options grows resulting to a drastic
increase of growth in 2017 compared to the prior years. Health and wellness pet care products,
which are sold at a premium, are growing in number as companies take advantage of the
improving mindfulness of pet owners as to the ingredients that make up the products they buy.
Pet care is expected to record a faster value CAGR over the forecast period than in the review
period as both pet food and pet products are predicted to register improvements in performance.
Economy dry dog food, in particular, will be a key source of growth in both value and volume terms.
Supply:
Exports of Pet Foods to the Philippines
(in millions)

YEAR AMOUNT GROWTH

2010 PHP 1,471

2011 PHP 1,863 21%

2012 PHP 2,186 15%

2013 PHP 2,510 13%

2014 PHP 2,549 2%

2015 PHP 2,255 -13%

2016 PHP 2,569 12%

2017 PHP 2,794 8%

CAGR 9.60%

The Philippines is the largest export market in Southeast Asia and the 10th largest in the world for U.S.
dog and cat food. Exports of U.S. dog and cat food to the Philippines more than tripled over the past ten
years and reached PHP 2.794 billion in 2017, up 8 percent over the previous year. The booming
economy and higher disposable income contributed to the healthy export performance.

The United States is the leading supplier of dog & cat food to the Philippines with a 51 percent market
share. Other major exporters of dog and cat food to the Philippines include Thailand, Australia, France
and Italy. Thai exports consist largely of processed fish-based cat food.

Traders report tremendous room for sales growth since only five percent of households own a cat, and
only 30 percent own a dog. Furthermore, among most pet owners, feeding table scraps is still prevalent.
Stepped-up promotions by the pet food industry are showing good results as more owners switch to
prepared pet food. While demand for high-value dog and cat food is expected to grow, most pet owners
are price conscious and will opt for standard, low-priced dog and cat food.

Although the Customs does not track other pet foods as a separate category, pet stores have been
increasing shelf-space to accommodate the growing number of new-to-market pet foods for birds, fish,
small mammals, reptiles, etc.

In February 2015, the Implementing Rules and Regulations of the Food Safety Act were signed by the
Secretaries of Health and Agriculture formally implementing the law. Which suspended some import
food products in the Philippines.