How a small pet food company is helping to strengthen the local market in Pakistan

Considered Pakistan’s first premium natural pet food brand, Waggles started in 2020, launching two pet food recipes for dogs in a small-scale venture.

The company now has 12 references in its portfolio. These are sold through 1,200 quick-commerce platforms and stores and on Pakistan’s leading e-commerce platform Daraz.

“We are a startup with a vision to position Pakistan as a global manufacturing hub for pet food production. We aren’t just building a brand, but an entire category in Pakistan since there aren’t any other major local pet food manufacturers,” Rafae Dossal, CEO of Waggles, told GlobalPETS.

The company has a “steady team” of 32 workers and an annual production capacity of 1,200 tons of wet pet food. Operations for dry food products are still under development.

The pet food manufacturing startup was recently selected as one of the most impactful startups in the country by SEE Pakistan, the first entrepreneurship expo in the South Asian country.

Over 1000 startups from all over Pakistan applied for this event. It evaluated all companies based on their innovative ideas and their execution. It also considered their value creation towards the Pakistani economy and the viability of business models.

A potential and challenging category

According to Dossal, pet food production is currently a niche in Pakistan but “can potentially earn the economy revenue by competing globally. While it’s challenging, it sets benchmarks for manufacturers to follow international standards of production locally,” he said.

Waggles CEO estimates that the Pakistani pet market is growing at a steady 20% annually, boosted primarily because of the “large youth bulge in the population, Pakistan’s increased urbanization, and social media users at a rise.”

“The prospects for pet food manufacturing are bright in Pakistan. I see Waggles thriving in the local market with the promise of high-quality animal nutrition. Recessions and booms are a part of the economic cycles,” he said.

Headwinds, an opportunity for the local market?

The reality nowadays is that the market is facing a heavy economic crisis, mainly due to the depreciation of the rupee. The country has been facing a major crop and livestock shortage, meaning higher raw materials costs due to the recent heavy floods.

Besides that, the low dollar reserves obliged the government to place a temporary ban on importing luxury products, including pet food, which is opening up room for local manufacturers to leverage production.

Rafae Dossal explains that when Waggles launched in 2020, 400g of Pedigree dog food was priced at Rs220 (€-$ 0.94), whereas now the price is Rs600 (€-$ 2.55). His products are currently priced at Rs300 (€-$ 1.28).

“There’s a stark difference in pricing, making local alternatives preferable for the consumers,” he says.

Future outlook

Waggles posted revenue of Rs60 million (€-$ 738,400) in 2021, 200% more than the previous year.

“This jump in revenue is a testament to the growing consumer base that understands and appreciates a high-quality product being made locally. We’re very proud to market ourselves as a ’Made in Pakistan‘ brand,” said Rafae.

With the country’s unprecedented inflationary pressure and recent floods, Waggles has narrowed down its targets for the 2023 fiscal year. “We aim on locking a healthy double-digit growth number as compared to last year and are extremely optimistic on achieving these goals.”

Waggles plans to start export operations by the third quarter of 2023 in markets like UAE, Oman, Qatar, Tanzania, and Mozambique. “We are working aggressively to tap into these markets,” concludes Rafae.

The company has recently been approached by private equity investors from Pakistan and the Middle Eastern region.