No matter how bad the economy is or how expensive noodles become, entering a pet food store reveals that Thais still "spend" on their four-legged friends without hesitation. This is not just a feeling but backed by economic data.
The ttb analytics economic analysis center estimates that in 2026, Thailand's pet market will reach 100 billion baht. Notably, owners who treat their pets like "children" are willing to spend an average of 41,100 baht per pet per year, which is five times more than owners who let pets roam freely, who spend only about 7,745 baht annually.
Meanwhile, Siam Commercial Bank, citing CMMU data, presents a similar picture: this market grows by an average of 13.2% annually, from 33 billion baht in 2019 to 92 billion baht in 2025, and is expected to exceed 101 billion baht this year. On average, Thais spend as much as 50,500 baht per pet each year.
Why is this happening? The answer is that many Thais no longer keep pets just for fun but as a "substitute" for what modern life cannot provide. This aligns with data from The 1 Insight showing that 65% of pet owners view pets as children or family members, while 33% keep them to ease loneliness. This contrasts with Thailand's declining birth rate, especially in Bangkok, where more people live alone. The rising costs of raising children are shifting toward expenses for caring for dogs and cats instead.
The clearest figure confirming this trend is that in 2025, Thailand had only 410,000 newborns, the lowest in 76 years, while the number of owned pets grew by 6%, reaching 5.38 million in the same year.
This phenomenon is what economists worldwide call "Treatonomics": willingly spending small amounts to buy happiness and emotional healing when major life goals like owning a home, having a family, or career advancement seem out of reach. Analysts from Kantar liken this to an amplified version of the Lipstick Effect. People cut back on essential daily expenses but never reduce budgets for their pets' birthdays because, no matter how tough the day is at work, returning home means always having a four-legged friend ready to heal their spirit.
Notably, "cats" are overtaking "dogs" in this arena. Cat product sales account for 63% of all pet product sales, and the cat owner market grew 32.1% annually in 2025, surpassing the dog owner market. This has created a new ecosystem around cats, including professional cat sitters, open-style cat hotels without cages, automatic litter boxes, and smart water fountains. The veterinary hospital business is also growing strongly, expected to reach 8.45 billion baht in 2025, up 17% from the previous year.
For Generation Z, this trend is even more pronounced, as they are the fastest-growing spenders on pets among all generations, increasing by 46%. This reflects that without traditional family obligations, more money flows into pet care.
From an investor's perspective, a Bangkok Bank Bnomics analysis states this trend "withstands economic recessions" because pet expenses are the last to be cut. Looking deeper into actual spending reveals where Pet Parents' money goes.
Food is the first area where people willingly pay more without hesitation, moving from regular dry food to fresh and raw food cooked specifically for pets, growing at an average of 40% annually. Some brands charge as much as 1,500-3,500 baht per kilogram or offer custom veterinary-formulated diets costing 2,000-5,000 baht per month per pet.
Medical care has shifted from "general clinics" toward "specialized treatments." Thailand's veterinary clinic market is worth about 9 billion baht, with trending services including pet dentistry, cat-only clinics, and physiotherapy centers for elderly pets. Cancer and skin disease treatment segments are growing 20% annually. Large veterinary hospitals like Thonglor reported total revenues exceeding 1.313 billion baht in 2024.
The business most watched by investors may not be the fastest-growing but the one that still "lags behind" demand: pet insurance. Currently, this market in Thailand is valued below 200 million baht, only about 0.2% of the total pet market—very small compared to overseas. Demand exists because pets can get sick or injured just like humans but lack basic healthcare rights, resulting in very high treatment costs at private hospitals or clinics.
Most existing policies cover treatment costs from accidents and illnesses, third-party liability if pets cause damage to others, and cremation costs. ttb analytics expects this market to grow 15-20% annually despite its current small size, as coverage plans do not yet fully meet needs and pet data systems are incomplete, making precise premium setting difficult for insurers. This gap presents an opportunity for new entrants to unlock growth.
Additionally, premium pet food, in which Thailand is becoming a global exporter, and real estate developments like condominiums specifically designed with pet-friendly spaces, are two other sectors benefiting fully from this wave of Pet Parents.
In summary, as Thais become lonelier and have fewer children but still want someone (or some creature) waiting at home, this pool of spending is not disappearing but only growing.
Sources: ttb analytics, Siam Commercial Bank, CMMU, The 1 Insight x CRC VoiceShare, Kasikorn Research, Kantar, Bnomics Bangkok Bank