Pet Food Market Report

Specialization of pet food items as people become more conscious of the food they feed their pets has the tendency of going up very highly. These values indicate that pet owners would prefer to have substantial control over the sort of ingredients to be used in the pet foods’ production, a factor that could prove to be a valuable opportunity for brands or firms who offer specialty manufactured as well as custom made food items that are meant for pet animals. Also customized pet foods are so promising because some of them serve to enhance some health conditions for the pets such as dry skin and obesity. Scientific diets for pets are on the rise globally, this is due to the rise in pet parents seeking personalized rations for their pets. The tendency is rising due to the growing amount of knowledge about pets’ health and development, and the number of technological improvements of an individual feeding plan for every pet. AVMA has reported in its study on pet ownership and expenditure in U.S., in October 2022 that the share of homes having at least one cat has increased from 28% to 30% from 2022 to 2024.

Pet food is one of the most strictly regulated food products, particularly in western markets. Pet animal foods are rigorously tested in developed markets at every level, from the ingredients used in food preparation through sales and marketing. The high stringency involved with commercialization might be a significant barrier to market expansion. Furthermore, in some developing markets, lower adoption of premium or costly pet food may be a barrier to market growth. For instance, Stringent rules in the pet food sector are forcing strict standards on the creation, manufacturing, and labelling processes. While guaranteeing safety and quality, these rules may result in higher compliance expenses and delayed product launch times. Consequently, the pet food industry encounters restrictions in expansion and creativity, as businesses are required to manoeuvre through intricate regulatory environments and adjust to changing regulations. This set of regulations can hinder new players from entering the market and compel existing manufacturers to regularly update their processes and products in order to comply.

In June 2024, Partner in Pet Food, a top pet food manufacturer in Europe, is happy to have CVC Capital Partners IX as its new majority shareholder, along with its current investor. This new partnership will focus on speeding up the company's European growth plan and goal to enhance the health advantages of its products. PPF manufactures a variety of pet food items at 12 factories throughout Europe, catering to over 280 clients across 35 countries such as specialty pet stores, grocery stores, discount stores, and online retailers. Additionally, in order to rising production of its pet care products in King William County, Virginia, the US, Nestlé Purina PetCare Co. invested 184 million US$ in July 2022. The plant extension, which is expected to be finished in late 2024, will comprise a 138,000 square foot buildout to expand manufacturing capacity for the company's Tidy Cat litter products line.

Rising pet humanization and pet ownership, the introduction of private label store brands and rising urbanisation coupled with higher disposable incomes are some of the primary reasons driving the expansion of the North American pet food market. Furthermore, locally sourced and ethically sourced products are accelerating the market, as domestic manufacturers expand their footprint in the domestic market. According to the APPA National Pet Owners Survey 2023-2024, 66% of US households (86.9 million) own a pet. Furthermore, pet ownership has increased in neighbouring countries such as Canada and Mexico. According to Pet Keen, which was issued in May 2022, 38% of Canadian homes have a cat and 35% have a dog. According to the American Pet Products Association, in 2022, US$ 136.8 billion had been spent on our pets in the United States. According to the same source, a total of US$ 143.6 billion in revenue is anticipated in the United States in 2023. This, coupled with pet owners' increasing focus on offering high-quality and nutritious food for their pets, is driving revenue of a variety of pet foods in the United States.