Pet Food Market Size, Share & COVID-19 Impact Analysis, By Animal Type (Dogs, Cats, and Others), By Form (Dry, Wet, and Snacks & Treats), By Distribution Channel (Supermarkets/ Hypermarkets, Specialty Pet Food Stores, Online Channels, and Others), and Regional Forecast, 2021 – 2028

The global pet food market size was valued at USD 110.53 billion in 2021 and is projected to grow from USD 115.50 billion in 2022 to USD 163.70 billion by 2029, exhibiting a CAGR of 5.11% during the forecast period. The global impact of COVID-19 has been unprecedented and staggering, with pet foods witnessing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a rise of 4.75% in 2020 as compared to 2019.  

As people have been working from home during the lockdown, many used this as an opportunity to get a family pet. Various studies have indicated that people who have pets suffer less from problems, such as loneliness and depression, due to the companionship that pet ownership brings. During the first few months of 2020, breeders and rescue centers reported a boom in inquiries from people looking for pets. According to the report published by Mars Petcare, a leading pet food manufacturer, the combined sales of cat and dog treats grew by 6.5% in the 12 weeks between February and May 2020. This signifies the pet food market growth, which is expected to continue post-pandemic.

COVID-19 IMPACT

Rising pet adoption and Increasing Empathy towards Pet Boosted Pet Food Sales during the Pandemic

During the initial phase of the pandemic, supply chain disruptions were observed in the global market. These disruptions occurred due to a shortage of raw materials, workers, and restrictions on transport. However, the operations were back to normal due to the ease of the lockdown. Additionally, higher pet adoption, rising demand for premium pet food, and change in strategies by pet food manufacturers have positively impacted the global sales of pet food.

Pet owners have also stocked up pet food during the lockdown in 2020, which caused a short-term boom in sales. In some of the hardest-hit areas, sales were significantly higher. According to the American Pet Products Associations (APPA), pet food and treat sales in the United States increased by 9.7% in 2020. Blue Buffalo, a pet food brand owned by General Mills, Inc., specifically noted a spike in its sales in mid-March. The company expects pet food demand to remain strong during the forecasted period.

LATEST TRENDS

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Personalized Pet Food is Gaining Rapid Traction in the Global Market

The concept of personalized food products for pets is becoming widespread across developed markets and is expected to become popular across developing markets in the forthcoming years. Personalization of food products for pet animals has a lot of potential to grow significantly as pet owners are becoming increasingly conscious about the food they are feeding to their pets. Pet owners are inclined towards having better control over the ingredients that are used in the preparation of pet food products, which gives a huge growth opportunity to brands or companies that offer specially formulated and customized food products for pet animals. Furthermore, customized food products hold a lot of potential because some of them are efficient in addressing particular pet conditions, such as obesity, dry skin, and others.

DRIVING FACTORS

Rising Pet Ownership across Developing Economies to Aid Growth

The increasing rate of pet ownership worldwide, especially across the developing regions, is anticipated to be one of the primary drivers of the market. The rising urbanization and pet humanization are encouraging pet owners to opt for nutritious and quality food for their pets, which is further boosting the growth rate of the market.

The rising per capita income of the consumers is motivating them to spend on healthy and organic food products for pet animals to aid their health. Moreover, the easy availability of products with different price ranges is acting as a growth-promoting factor for the global market. They offer consumers variable financial status and a range of options.

Increasing Innovation by Pet Food Manufacturers to Positively Influence the Market

The key global market players are focusing on launching a variety of food products for pets to address the needs of different types of animals belonging to various age groups. This is projected to drive the global market. In recent years, companies such as General Mills, Nestle, and Mars Inc. have come up with the launch of premium food products to grab the consumers’ attention and address the needs of the growing pets. For instance, in November 2020, Nestle Purina launched pet food that builds on alternative proteins to make better use of the planet's resources. The range includes insects as well as plant protein from fava beans and millet. Similarly, in March 2021, General Mills, Inc. announced the launch of its new cat food range, Tastefuls. The product is specially designed to support cognitive development.

RESTRAINING FACTORS

Stringent Regulations Associated with Pet Food to Obstruct the Market Growth

Pet food comes under the most highly regulated food products, especially across the western markets. In the developed markets, pet animal foods are examined stringently at every stage, from the ingredients utilized in the food preparation to their sales and marketing. The high stringency associated with commercialization can be a major restraining factor for the growth of the market. Moreover, lower acceptance for a premium or high-priced pet food across some developing markets can also be an obstacle to the growth of the market.

SEGMENTATION

By Animal Type Analysis

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Dogs are projected to be the Leading Revenue Contributors

The adoption of dogs as pets is significantly higher across the globe which is a major reason behind the dominance of this animal in the global market. Moreover, high expenditure associated with the maintenance and well-being of dogs is driving the market for natural and higher-quality dog food. The launch of dog treats and nutrition-rich food is another significant reason contributing to the growth of the segment.

In the forthcoming years, cat ownership is expected to increase across the globe at a crucial pace as they are low-maintenance animals and are very much human-friendly.

By Form Analysis

Dry Pet Food to Observe Increasing Demand

The dry form is the most preferred pet food option by the owners. This can be attributed to the fact that dry form products offer higher convenience and have a higher shelf-life as compared to wet food. Dry food is the most favored option for dogs as it is cheap and affordable for many dog owners. Moreover, due to their firm texture, dry food for pets aids the dental health of pets along with maintaining their dental hygiene.

The snacks & treats segment is emerging as an exotic option for various pets due to their delicious taste and higher quality. This segment is expected to grow significantly in the forthcoming years owing to the active participation of market players in launching a variety of multipurpose and healthy snacks and treats options for dogs, cats, and other pets

By Source Analysis

Plant Source to Witness Promising Growth in Upcoming Years

On the basis of source, the market is sub-segmented into pet foods from animal and plant sources. Traditionally, an animal source has been extensively used to manufacture pet foods. Fish meal, poultry meal, and animal meal are widely used to manufacture cat and dog foods across the globe. The popularity of animal-sourced pet food is also high because of its strong nutrient profile. The easy availability of animal sources further fuels market growth.

The growing popularity of plant-based products and vegetarianism among pet owners is expected to propel the growth of plant-sourced pet food in the forthcoming years.

By Distribution Channel Analysis

Supermarkets/Hypermarkets Segment to Remain Dominant

Supermarkets/hypermarkets and other mass merchandisers are projected to hold the dominant share in sales globally. The reason behind this dominance can be attributed to the high consumer preference for buying products from large retail stores, where they are offered an abundance of choices in terms of brands and prices.

The attractive shelf-arrangements in specialty pet food retail shops, coupled with the higher availability of exotic, custom-designed, and premium food products for pet animals within these stores, are expected to further boost the growth of the segment.

The sale of pet food products through online channels is anticipated to intensify globally in the upcoming years, attributed to the increasing inclination of millennials towards online purchasing. High convenience offered by the online channels, such as doorstep delivery, along with the rising collaboration of industry giants with retail e-commerce players, are expected to further fuel the segment’s growth.

REGIONAL INSIGHTS

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North America currently holds the majority share in the global market and the region is predicted to lead the market throughout the forecast period. The high adoption of pets in U.S. households is one of the significant reasons for the dominance of the region. According to a survey conducted by the American Pet Products Association (APPA), about 85 million U.S. households, which constitute approximately 67% of the total households present in the U.S., own a pet. The positive attitude of North American consumers towards pet humanization and its wide adoption are encouraging the market growth of nutritious food products for pet animals.

High spending on sustainable and safe pet food due to the pet humanization trend drives the growth of the European market. In addition, pet owners in Europe demand more transparency in pet food product ingredients. The U.K. is the largest market in Europe, and is followed by Germany and France. According to Mars Petcare State of the Pet Nation, 72 percent of U.K pet owners consider themselves as pet parents. Furthermore, the tendency of U.K. pet owners to buy premium and natural pet food products also drives the high utilization of pet food.

Asia Pacific is expected to be the fastest-growing region in the global market, followed by South America. Economies such as Japan, Australia, and China are the major contributors to revenue generation across the region. Japan is one of the leading importers of prepared dog and cat food across the world; however, the pet animal food market in the country is showcasing sluggish growth. The market in China and India is expected to rise at a significant pace during the forecast period owing to the increasing consumer expenditure on food products for pet animals across these countries, coupled with the growing investment by the global market players within these economies. 

Brazil is the second-largest market in the world after the U.S. The dominance of Brazil in South America market is due to high pet ownership, growing focus on pet health, and increased spending on natural, high-quality pet foods. Additionally, Brazil has the most diverse pet population in the world; hence, along with dogs and cats, small families, childless couples, and singles living in apartments prefer birds and fish as a pet.

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The Middle East & Africa market is driven by the rising adoption of companion animals and a higher focus on quality products. The growing middle-class population in Africa also supports the growth of the region. Turkey is a key market in the region, and its sales are driven by high demand in local and foreign markets. Moreover, Turkish market is dominated by local pet food manufacturers.

KEY INDUSTRY PLAYERS

Key Players Focusing on Novel Product Launches to Gain Prominent Market Share

The market is consolidated with five major players holding more than 60% of the global market share. These market players, such as Nestle Purina Petcare, Colgate-Palmolive, and The J.M. Smucker Company, are making rigorous efforts to increase their market share and establish their dominance in the global market. Mars Incorporated holds the majority share in the global, as well as in several other regional markets. The company has been adopting strategies, such as innovative product launches, brand strengthening, mergers & acquisitions, and online distribution of its products to increase its customer base and lead the global market. In the past years, the company has acquired several reputed brands, such as Natura, Eukanuba, and others. Moreover, it has actively involved itself in online retail sales by collaborating with e-commerce retail giants such as Alibaba Group.

LIST OF KEY COMPANIES PROFILED:

• Mars Incorporated (Virginia, U.S.)


• Nestle S.A. (Vevey, Switzerland)


• The J.M. Smucker Company (Ohio, U.S.)


• Colgate-Palmolive Company (New York, U.S.)


• General Mills, Inc. (Minnesota, U.S.)


• Diamond Pet Foods (Missouri, U.S.)


• Heristo AG (Osnabruck, Germany)


• Tiernahrung Deuerer GmbH (Bretten, Germany)


• Merrick Pet Care, Inc. (Texas, U.S.)


• WellPet LLC (Massachusetts, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2021: Mars, Inc, a leading pet food manufacturer based in the U.S., invested USD 200 million to expand its Royal Canin plant in Lebanon. The company will add five new corporation lines to double the production capacity.


• December 2020: Nestle Purina Petcare announced to invest USD 550 million to expand its pet food manufacturing facility in Georgia.

REPORT COVERAGE

An Infographic Representation of Pet Food Market

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The global market research report provides a detailed pet food industry analysis and focuses on key aspects, such as competitive landscape, animal type, form, source of pet food, and distribution channel. Besides this, it offers insights into the pet food market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the market's growth in recent years.

Report Scope & Segmentation