Pet Food Industry Overview

The global pet food market was valued at USD 103.3 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2030. This anticipated growth is largely driven by an increasing consumer interest in pet adoption and a rising awareness of pet health and wellness. Pet owners are increasingly aware of the health benefits provided by nutritious pet food, which can improve digestion, energy, and overall health in pets. However, the pet food products available in the global market often show limited variation, prompting manufacturers to innovate with multi-functional and unique ingredients to stand out in a crowded market. Additionally, convenience is expected to play a central role in the market’s growth, as pre-packaged, prepared pet foods become more popular among consumers seeking quick and easy feeding options for their pets. Another trend gaining momentum is organic pet food, which is attracting interest from health-conscious pet owners.

The organic segment of the pet food market is being driven by the growing availability of organic products in diverse flavors and the inclusion of essential ingredients like probiotics and antioxidants, which are believed to benefit pet health. Despite this growth, the higher prices associated with organic pet food may limit its reach, as not all households are able or willing to pay premium prices, which could slow the segment’s expansion in the coming years.

The pet food market value chain consists of various players, including raw material suppliers, manufacturers, distributors, and end-users. Key raw materials used in pet food production include meat and meat byproducts, cereals, grains, animal-derived specialty proteins, palatants, flavors, vitamins, minerals, and enzymes. Manufacturers use these materials to meet the standard nutritional requirements of domesticated animals. Processing of meat-based raw materials involves rendering to separate proteins, water, and fats, and other production steps such as grinding, cooking, and mixing these base materials with additional ingredients.

The raw materials in each pet food segment are largely commodity-based and sourced from agriculture, including grains, fruits, and animal protein meals obtained from various suppliers. The cost, quality, and availability of these ingredients have shown volatility in the past and are expected to continue fluctuating. For instance, in March 2023, pet food prices in the U.S. increased by 15.1% year-over-year, prompting some pet owners to consider rehoming their pets due to the higher costs. Such rapid price increases may pose a challenge to the market’s growth by reducing affordability and accessibility for some consumers.

Gather more insights about the market drivers, restrains and growth of the Pet Food Market

Regional Insights:

North America Market Dominance (2023):

• North America led the global pet food market in 2023, holding a significant 42.87% revenue share.
• This strong market position is driven by:
  • Increased consumer awareness of pet food’s health benefits, as pet owners increasingly seek products that enhance their pets' wellness.
  • The rising trend of pet humanization, where pets are treated more as family members, encouraging owners to invest in high-quality food and treats.
• The U.S. led the North American market in 2023 due to:
  • A high pet ownership rate, reflecting a large pet population that fuels demand for pet food products.
  • The presence of a well-established pet food industry, offering a wide range of products that meet evolving consumer preferences.

Impact of COVID-19 on North America Market:

• The COVID-19 pandemic disrupted the pet food market in North America, particularly affecting:
  • The supply of raw materials and ingredients due to import restrictions and logistical challenges, especially within the U.S.
  • The overall supply chain and logistics networks, which were hindered by economic instability and restrictions, leading to reduced product availability and impacting demand in the first half of 2020.
• Despite these disruptions, North American manufacturers are expected to drive market growth in the near future due to:
  • Strong local manufacturing capabilities that provide stability and ensure product availability within the region.
  • A diverse range of pet food and treat options produced domestically, which appeal to the region's health-conscious pet owners.

Europe Market Share and Consumer Preferences:

• Europe held the second-largest revenue share globally in the pet food market, supported by:
  • The continued humanization of pets, where pets are viewed as family members, increasing consumer interest in premium and health-focused pet food products.
  • Growing demand for premium pet foods such as organic, raw, and natural products, which cater to a diverse range of preferences among pet owners seeking high-quality options.
• According to the European Pet Food Industry Federation (FEDIAF):
  • Europe ranks as one of the world’s largest pet food markets, accounting for around 30% of global pet care and pet food sales, demonstrating its substantial contribution to the industry and high consumer demand for innovative pet food products.

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• The global concentrated milk fat market size was valued at USD 5.37 billion in 2024 and is expected to grow at a CAGR of 6.4% from 2025 to 2030.

Key Pet Food Company Insights

The competitive landscape of this market is moderately consolidated with the presence of multinationals striving to fulfill high demand from large customers and end-user base. Key industry participants are inclined toward adopting new marketing strategies and using advanced technologies to strengthen their customer base and generate more revenue in near future. In addition, companies are undertaking expansion, mergers, and acquisitions as a part of their strategic initiatives. For example, in January 2022, Manna Pro acquired Oxbow Animal Health, a small animal pet brand that offers premium food, and supplements for rabbits, pigs, hamsters, and other pets. In addition, in September 2023, Superlatus, Inc., a key food distribution and technology firm, merged with TRxADE HEALTH, Inc., and announced its expansion in the pet food industry with plant-based or vegan pet food treats.

Industry participants are inclined toward investing heavily in research and technology to advance processes and create new recipes, which are manufactured with varied and special ingredients. Key manufacturers are also focused on developing innovative formulas to offer diverse and high-quality food for pets and farm animals. Industry players also utilize raw materials with criteria to meet demands, as well as regulations, in both domestic and international markets.

Key Pet Food Companies:

• The J.M. Smucker Company
• Nestle Purina
• Mars, Incorporated
• LUPUS Alimentos
• Total Alimentos
• Hill’s Pet Nutrition, Inc.
• General Mills Inc.
• WellPet LLC
• The Hartz Mountain Corporation

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