Lion Corporation Thailand (Lion), a major manufacturer of consumer goods like Pao detergent, Kodomo baby powder and Shokubutsu oral care, is expanding into the country’s thriving Bt 40 billion (US$1.18 billion) Pet Care market.
The company has not finalised the brand name for its new pet food product, however it will initially import dog food from Japan for the next 6 months. Lion is considering OEM or invest in its own production facility.
Lion President Boonyarit Mahamontri said, “Lion has been in the Japanese pet food business for decades, and we believe it is the right time to enter the Thai pet market, which is substantial and continues to grow each year. People are willing to spend on pet products in Thailand, even with relatively high prices.”
Interestingly, unlike other household products, pet food is not subject to price controls and producers and sellers can decide entirely on the pricing of their products.
Lion projects that pet food will contribute significantly to its revenue and will reach Bt 100 million (US$3 million) in annual sales within 3 years.
Thailand Pet Care market has been recording consistent growth in the past 5 years from Bt 32.2 billion (US$950 million) in 2018 to Bt 39 billion (US$1.15 billion) in 2020. The mass market category accounted for 60% while standard and premium categories contribute 30% and 10% respectively.
