Pet Products in the Philippines

Euromonitor International
June 2019
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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Pet Humanisation Contributes To Discretionary Spending on Accessories .............................. 1
New Pet Healthcare Product Launches Have Natural Positioning ............................................ 1
Pet Dietary Supplements Seen As Non Essential, But Cat Litter Enjoys Recovery in 2019 ..... 2
Competitive Landscape ................................................................................................................ 2
Bayer Strengthens Leadership of Pet Products Through Strong Distribution and Attractive
Prices ........................................................................................................................................ 2
Low Barrier To Entry Allows for Emergence of Smaller Brands, Although Failing Brands Are
Phased Out ............................................................................................................................... 2
New Concept in Online Subscription Service ........................................................................... 3
Category Data .............................................................................................................................. 3
Table 1 Sales of Pet Products by Category: Value 2014-2019 ................................. 3
Table 2 Sales of Pet Products by Category: % Value Growth 2014-2019................. 3
Table 3 Sales of Pet Healthcare by Type: % Value 2014-2019................................. 3
Table 4 Sales of Other Pet Products by Type: % Value 2014-2019 .......................... 3
Table 5 NBO Company Shares of Pet Products: % Value 2014-2018 ...................... 4
Table 6 LBN Brand Shares of Pet Products: % Value 2015-2018............................. 4
Table 7 Distribution of Pet Products by Format: % Value 2014-2019 ....................... 5
Table 8 Forecast Sales of Pet Products by Category: Value 2019-2024 .................. 6
Table 9 Forecast Sales of Pet Products by Category: % Value Growth 2019-
2024 ............................................................................................................. 6

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PET PRODUCTS IN THE PHILIPPINES

HEADLINES
▪ Pet products records 10% current value growth to reach PHP1.4 billion in 2019
▪ Ongoing humanisation trend supports consumers’ discretionary spending on items for their
pets in 2019
▪ Pet healthcare records highest current value growth of 12% in 2019 to reach PHP472 million
▪ Bayer Philippines Inc retains lead of pet products in 2018 with an 11% value share
▪ Over the forecast period, pet products is predicted to record an 11% current value CAGR (a
7% value CAGR at constant 2019 prices)

PROSPECTS

Pet Humanisation Contributes To Discretionary Spending on

Accessories
The ongoing trend of pet humanisation in the Philippines contributed to the largest value
share being held by other pet products in 2019. More affluent pet owners are becoming
increasingly willing to purchase discretionary items such as pet bed, clothing and beauty
products, with the latter holding the highest value share, as they seek to pamper their pets and
treat them as one of the family. An increasing number of shopping centres are permitting
owners to bring their pets with them while they shop, including those under the group Araneta
Center (Gateway Mall, Ali Mall, Farmers Plaza). This is contributing to the increasing sales of
associated products such as leads and pet strollers.
As the trend for the humanisation of pets is expected to persist over the forecast period, more
affluent pet owners are likely to be increasingly open to purchasing discretionary pet products to
pamper their pets. This will especially be the case if they are able to take their dogs, for
instance, out with them to visit shopping centres, as it may encourage them to purchase high-
quality pet accessories to flaunt their status.

New Pet Healthcare Product Launches Have Natural Positioning

Pet healthcare recorded the strongest performance in current value terms in 2019, which is
mainly comprised of flea/tick treatments. As the ownership of dogs becomes increasingly
popular and there is a gradual rise in cat ownership, Filipino consumers are becoming more
aware of the need to look after their pets’ wellbeing, especially if they are frequently out of the
house where they are more likely to come into contact with fleas and ticks. Neem and the
popular local ingredient, madre de cacao, are used as natural ingredients in the form of
shampoos by new local brand launches of flea/tick treatments, including ShamPooch, Doggies’
Choice Kawati Naturale, Fetch! Neem Shampoo Bar (with Neem extract, madre de cacao, aloe
vera, coconut oil and tea tree oil) and Vitality Dog Shampoo & Conditioner.
Other new launches address different pet healthcare issues and include Fetch! Indulge and
Jicama Brightening Wash, which claims to help lighten stains and discoloration on dogs caused
by tears and saliva. The latter contains Jicama extracts, aloe vera and green tea seed oil. On
the other hand, Bayer Philippines has introduced two new products to its portfolio, with Remend
Corneal Repair Gel for rapid healing of scratched eyes, while Remend Wound Spray Gel
hastens the healing of wounds.

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Pet Dietary Supplements Seen As Non Essential, But Cat Litter Enjoys
Recovery in 2019
While pet dietary supplements continues to hold a fairly high value share, there appears to be
limited interest in known players entering the category, with LC-Vit the only named brand
amongst a high number of small players. Despite the pet humanisation trend and owners caring
more about their pets’ welfare, pet dietary supplements tend to only be administered when a
dog is ill, pregnant or a puppy, rather than for regular consumption purposes.
On the other hand, in 2019, the smallest category, cat litter, recovered from a poor
performance in 2018, but demand remains low for this product as the percentage of households
that own a cat remains marginal. However, cat litter is expected to record a much higher current
value CAGR over the forecast period compared with the review period, as interest in owning a
cat continues to gradually increase. Sales will also be boosted by more people living in
condominiums, with many appreciating keeping a cat as a companion as they are quiet and do
not need as much attention as dogs. Therefore, apartment-dwelling cats will help to increase
demand for cat litter as their ability to go outside will be restricted.

COMPETITIVE LANDSCAPE

Bayer Strengthens Leadership of Pet Products Through Strong

Distribution and Attractive Prices
Bayer Philippines Inc strengthened its leadership of pet products in 2018, gaining further
value share due to the performance of its brand Bay-O-Pet, which also leads pet healthcare
through its flea/tick treatments. Bay-O-Pet benefits from strong availability through grocery
retailers, which is the dominant distribution channel for pet products and is therefore accessible
to a wide range of consumers. It also has a mid-priced positioning and is offered in various
formats including soap, shampoo, powder and collars. In addition, the brand has expanded its
offer with the launch of grooming products such as shampoos with a natural positioning,
including Bay-O-Pet Moisturizing And Antiseptic With Coconut Milk & Tea Tree Shampoo.
Bayer is likely to retain its leadership of pet products over the forecast period, despite the high
number of entries from local players in pet healthcare as it manages to expand its product line
and remain relevant in its launches that address prevailing trends.

Low Barrier To Entry Allows for Emergence of Smaller Brands, Although

Failing Brands Are Phased Out
As pet products is a highly fragmented category, the low barrier to entry makes it easier for
small-scale entrepreneurs to enter with new interesting products. The popular local ingredient,
madre de cacao, is commonly used in flea-tick treatments, with the category witnessing the
2018-2019 launch of Madrecure Madre de Cacao, Haus of Big Paws, and Pawsitive Madre de
Cacao Products, which are available online.
On the other hand, the high competition offered by these small players has had an effect on
brands that have been unable to gain a strong foothold in the category, with the exit of a number
of brands, including Purina Tidy Cats cat litter, with Nestlé Philippines stating that the brand was
being phased out, while pet healthcare brands Magic Coat Flea & Tick Shampoo and Perfect
Coat Shampoo are being phased out as stocks become depleted.

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New Concept in Online Subscription Service

Although pet products continued to be mainly distributed through grocery retailers, veterinary
clinics and pet shops at the end of the review period, the emergence of internet retailing is
opening up opportunities for smaller players to attract consumers. Local company, Drogo Pet
Supplies, Inc started to distribute its flea/tick treatments through an online subscription service,
QRated Crates, in 2018. This is a new type of service in this market, and one that allows Drogo
to stay ahead of the competition since this distribution channel remains a novel concept in the
country.

CATEGORY DATA
Table 1 Sales of Pet Products by Category: Value 2014-2019

PHP million
2014 2015 2016 2017 2018 2019

Cat Litter 14.6 15.6 16.8 17.3 13.9 14.7

Pet Healthcare 272.2 306.2 339.9 380.7 423.3 472.0
Pet Dietary Supplements 282.4 300.8 314.3 330.0 348.2 369.0
Other Pet Products 367.8 402.7 442.2 486.4 535.5 590.1
Pet Products 936.9 1,025.2 1,113.1 1,214.4 1,320.8 1,445.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Pet Products by Category: % Value Growth 2014-2019

% current value growth

2018/19 2014-19 CAGR 2014/19 Total

Cat Litter 6.0 0.2 1.0

Pet Healthcare 11.5 11.6 73.4
Pet Dietary Supplements 6.0 5.5 30.7
Other Pet Products 10.2 9.9 60.5
Pet Products 9.5 9.1 54.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Sales of Pet Healthcare by Type: % Value 2014-2019

% retail value rsp

2014 2015 2016 2017 2018 2019

Flea/Tick Treatments 92.0 92.1 92.2 92.4 92.4 92.6

Worming Treatments 1.7 1.8 1.8 1.9 1.9 1.9
Other Products 6.3 6.2 6.0 5.8 5.7 5.5
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Sales of Other Pet Products by Type: % Value 2014-2019

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% retail value rsp

2014 2015 2016 2017 2018 2019

Accessories 15.0 14.9 14.8 14.8 14.7 14.7

Beauty Products 51.4 51.6 51.8 52.0 52.1 52.2
Other 33.7 33.5 33.3 33.2 33.2 33.1
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 NBO Company Shares of Pet Products: % Value 2014-2018

% retail value rsp

Company 2014 2015 2016 2017 2018

Bayer Philippines Inc 9.6 9.9 10.4 10.8 11.3

Gilbert Emerson 5.2 5.2 5.2 5.2 5.2
Marketing Corp
Biochemica Inc 3.9 4.1 4.3 4.4 4.4
Mikolas Trading Corp 3.7 3.9 4.0 4.2 4.4
AMN Shield Inc 3.8 3.9 4.1 4.2 4.3
HerbalMed Asia Corp 3.2 3.3 3.3 3.5 3.7
Leomie Jhoy Enterprises - - - 3.3 3.2
Nutra Tech Biopharma Inc 3.1 3.1 3.2 3.2 3.2
Aspen Commercial Corp 0.3 0.3 0.3 0.3 0.4
Mars Philippines Inc 0.2 0.2 0.2 0.2 0.2
Nestlé Philippines Inc 0.5 0.5 0.6 0.5 0.1
Four Paws Products Ltd 0.2 0.2 0.2 0.2 0.1
8 in 1 Pet Products Inc 7.4 5.7 2.6 0.1 0.1
PVD Marketing Services 3.4 3.4 3.4 - -
Hudson Resources Ltd 0.2 0.2 0.1 - -
APT Vet Link Inc - - - - -
Others 55.2 56.0 58.1 59.8 59.4
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 LBN Brand Shares of Pet Products: % Value 2015-2018

% retail value rsp

Brand (GBO) Company (NBO) 2015 2016 2017 2018

Bay-O-Pet (Bayer AG) Bayer Philippines Inc 9.9 10.4 10.8 11.3
Our Dog Gilbert Emerson 5.2 5.2 5.2 5.2
Marketing Corp
Petgard Biochemica Inc 4.1 4.3 4.4 4.4
Play Pets Mikolas Trading Corp 3.9 4.0 4.2 4.4
Shieldgard AMN Shield Inc 3.9 4.1 4.2 4.3
Doggies' Choice HerbalMed Asia Corp 3.3 3.3 3.5 3.7
Vanguard Leomie Jhoy Enterprises - - 3.3 3.2
LC-Vit Nutra Tech Biopharma Inc 3.1 3.2 3.2 3.2
Happy Cat Aspen Commercial Corp 0.3 0.3 0.3 0.4
Catsan (Mars Inc) Mars Philippines Inc 0.2 0.2 0.2 0.2
Purina Tidy Cats Nestlé Philippines Inc 0.5 0.6 0.5 0.1
(Nestlé SA)
Magic Coat Four Paws Products Ltd 0.2 0.2 0.2 0.1
Perfect Coat 8 in 1 Pet Products Inc 0.2 0.2 0.1 0.1

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(Spectrum Brands
Holdings Inc)
Vanguard PVD Marketing Services 3.4 3.4 - -
Excel (Spectrum 8 in 1 Pet Products Inc 5.6 2.5 - -
Brands Holdings Inc)
Cat's Choice Hudson Resources Ltd 0.2 0.1 - -
LC-Vit APT Vet Link Inc - - - -
Others Others 56.0 58.1 59.8 59.4
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 Distribution of Pet Products by Format: % Value 2014-2019

% retail value rsp

2014 2015 2016 2017 2018 2019

Store-Based Retailing 74.3 74.8 75.2 75.3 75.4 75.5

- Grocery Retailers 53.1 53.0 52.9 52.9 52.8 52.8
-- Modern Grocery 43.6 43.9 44.1 44.3 44.4 44.5
Retailers
--- Convenience Stores - - - - - -
--- Discounters - - - - - -
--- Forecourt Retailers - - - - - -
--- Hypermarkets 5.6 5.6 5.7 5.8 5.8 5.9
--- Supermarkets 38.0 38.2 38.4 38.5 38.6 38.7
-- Traditional Grocery 9.5 9.1 8.8 8.6 8.4 8.2
Retailers
- Mixed Retailers - - - - - -
-- Department Stores - - - - - -
-- Mass Merchandisers - - - - - -
-- Variety Stores - - - - - -
-- Warehouse Clubs - - - - - -
- Non-Grocery Specialists 21.2 21.8 22.3 22.4 22.6 22.8
-- Pet superstores - - - - - -
-- Pet shops 19.5 20.0 20.5 20.7 21.0 21.2
-- Health and Beauty - - - - - -
Specialist Retailers
--- Beauty Specialist - - - - - -
Retailers
--- Chemists/Pharmacies - - - - - -
--- Drugstores/ - - - - - -
parapharmacies
--- Other Health and - - - - - -
Beauty Retailers
-- Home and Garden - - - - - -
Specialist Retailers
--- Home Improvement - - - - - -
and Gardening Stores
--- Homewares and Home - - - - - -
Furnishing Stores
-- Other Non-Grocery 1.7 1.8 1.8 1.7 1.6 1.5
Specialists
Non-Store Retailing 2.7 2.4 2.2 2.3 2.4 2.5
- Direct Selling - - - - - -
- Homeshopping - - - - - -
- Internet Retailing 2.7 2.4 2.2 2.3 2.4 2.5
Non-retail channels 23.0 22.8 22.6 22.4 22.2 22.0
- Veterinary clinics 23.0 22.8 22.6 22.4 22.2 22.0

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Total 100.0 100.0 100.0 100.0 100.0 100.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 Forecast Sales of Pet Products by Category: Value 2019-2024

PHP million
2019 2020 2021 2022 2023 2024

Cat Litter 14.7 15.3 15.9 16.6 17.4 18.2

Pet Healthcare 472.0 488.5 503.1 515.7 526.0 533.9
Pet Dietary Supplements 369.0 394.9 423.3 454.6 489.2 527.3
Other Pet Products 590.1 649.1 716.0 791.9 878.2 976.6
Pet Products 1,445.8 1,547.8 1,658.4 1,778.9 1,910.8 2,056.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 9 Forecast Sales of Pet Products by Category: % Value Growth 2019-2024

% constant value growth

2019/2020 2019-24 CAGR 2019/24 Total

Cat Litter 4.0 4.4 24.0

Pet Healthcare 3.5 2.5 13.1
Pet Dietary Supplements 7.0 7.4 42.9
Other Pet Products 10.0 10.6 65.5
Pet Products 7.1 7.3 42.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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