Your furry and warm companion: pet food industry overview and emerging trends
W&W Insights
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The pet food market is a bustling industry focused on producing and providing food for domesticated animals, especially dogs and cats. It's currently seeing growth, fueled by an increase in pet ownership, a heightened focus on pet well-being, and a rising demand for high-quality and specialized pet food options. In short, the pet food industry is evolving to match changing consumer preferences and the increasing importance of pets in our everyday lives. Today’s newsletter will help you discover potential opportunities in this up-and-coming market.
Global Pet Food Market States
Global pet food market size
The pet food sales achieved a value of USD 133.9 billion in 2023, after a significant growth trajectory over the past few years, with a compound annual growth rate (CAGR) of 5.6%. The outlook for the coming years is positive, with projections indicating that the pet food market is expected to reach USD 149.90 billion in 2024, USD 158.60 billion in 2025, and an encouraging USD 167.70 billion in 2026. These figures demonstrate the industry's resilience and the growing emphasis on pet nutrition and well-being in households around the globe.
Pet Food Market Share – By Distribution Channel Statistics
The distribution channel dynamics of the global pet food market have experienced a gradual shift in recent years. Traditionally, the market has been dominated by offline distribution channels; however, this trend began to change in 2020 due to the COVID-19 pandemic, which led an increasing number of pet owners to purchase pet food online. As a result, offline channels saw a slight decrease to 98.2%, while online channels experienced a gradual increase to 1.8%. Furthermore, online channels demonstrated steady growth, capturing 2.4% of the market share in 2022 and a significant 3.1% in 2023. This transition accelerated in 2024 when offline channels declined to 95.9%, and online channels gained considerable ground, reaching 4.1%.
Looking ahead, the trend of online market expansion is expected to persist. Market Us projects that by 2025, offline channels will retain approximately 94.6% of the market share, while online channels are anticipated to capture 5.4%.
Regional Analysis of the Pet Food Market Revenue
North America
Leading the way, the United States reports a significant revenue of USD 58,420 million, underscoring its position as a prominent pet-loving nation. In North America, Canada and Mexico contribute USD 3,885 million and USD 2,599 million, respectively, showcasing the expansion of their pet food markets.
Europe
The United Kingdom demonstrates a robust market presence with USD 7,465 million. This is followed by France at USD 5,124 million, Germany at USD 5,863 million, and Italy at USD 3,921 million. Although Spain's contribution is smaller, it remains significant at USD 2,126 million within the regional market.
Asia Pacific
In the Asia-Pacific region, China stands out as a significant player, generating USD 8,203 million in pet food revenue, highlighting the growing trend of pet ownership. India, Japan, South Korea, and Indonesia demonstrate diverse market sizes, with India at USD 638 million, Japan at USD 4,762 million, South Korea at USD 1,183 million, and Indonesia at USD 2,002 million. Australia also contributes notably to the region, reporting USD 3,062 million in pet food revenue, which underscores its considerable presence in the market.
Middle East and Africa
In the context of the pet food market, several countries in the Middle East and Africa region are establishing their presence, although with varying levels of market revenue. South Africa stands out with a revenue of USD 521 million, demonstrating a growing pet food industry within the country. Egypt, with a revenue of USD 131 million, reflects a developing market with significant potential for expansion. Similarly, Saudi Arabia reports a notable USD 243 million, indicating a substantial presence in the region’s pet food sector. Meanwhile, the United Arab Emirates (UAE) contributes USD 149 million to the market, underscoring its importance in the growing pet food industry in the Middle East.
Here is the bar chart that illustrates the revenue share of major countries in the pet food market.
Consumers' preferences and new trends
Based on the market statistics presented in the previous section, we can infer that pet owners are inclined to invest more in their pets and are increasingly exploring flexible shopping channels such as direct-to-consumer (DTC) and eCommerce for a range of products, from supplements to premium foods and humanization items.
Pet supplements are gaining popularity
In 2024, pet owners are increasingly informed and are prioritizing the health and well-being of their furry companions. Let's examine the trends in this dynamic market, where established leaders and innovative newcomers are competing for their share of the expanding market.
The incorporation of ingredients that provide specific health benefits beyond basic nutrition, such as prebiotics and probiotics for gut health, is expected to become more prevalent. According to an analysis by Grand View Research, the pet supplement industry is projected to reach $1.05 billion by 2027. Notable examples of trending pet supplements include dog vitamins, cat fish oil, and dog probiotics. One area experiencing rapid growth is pet probiotics, a trend largely driven by the "humanization of pets." Many individuals are increasingly focusing on their own gut health, with approximately 33% reporting that they strive to consume gut-friendly probiotics daily. This awareness is extending to their pets, as owners begin to incorporate gut-supporting products into their animals' diets.
Notably, 93% of pet owners place a high priority on ensuring that a product is one their dog or cat will enjoy, underscoring the importance of palatability and the timely introduction of pet snacks.
Our pets deserve better food and products
The premium pet food segment is anticipated to grow at an annual rate exceeding 5%, reflecting a growing consumer preference for higher-quality ingredients and specialized formulas.
As previously noted, the U.S. market is the largest pet food market globally in terms of revenue. A significant 81% of pet owners prioritize the quality of the food, while 74% consider price an important factor. Other key drivers influencing pet food purchasing decisions include the composition of ingredients (noted by 52% of pet owners), addressing specific health needs and concerns (49%), commitment to sustainability (14%), and country of production (13%).
Pet owners are increasingly focusing on their pets’ health, leading to a rising demand for pet food made with natural ingredients. These functional benefits cater to specific health concerns (such as joint health or weight management) and formulas designed for various life stages (puppy, adult, senior). Consequently, the market share for premium and super-premium pet food is expected to continue its upward trajectory.
Pretty Litter serves as an exemplary high-end pet product. This brand of kitty litter changes color based on a cat’s urine pH levels. The company, which largely targets millennial and Gen Z consumers through its branding, asserts that the product assists cat owners in detecting potential health issues in their cats, including worms, metabolic acidosis, or urinary tract infections.
Pet Owners Increasingly prefer DTC & eCommerce
Like e-commerce as a whole, pet owners are increasingly turning to online retailers for their selection, convenience, and pricing. A prominent player in the pet direct-to-consumer (DTC) space is the e-commerce brand Chewy.com, which reported revenue of $10 billion in 2021, reflecting a 12% increase compared to the previous year. Additionally, Amazon is actively seeking to enter the pet product DTC market.
The emergence of DTC brands has led to a rise in online pet food delivery services and subscription models, providing pet owners with enhanced convenience and customization options. These DTC brands frequently emphasize fresh, human-grade ingredients and address specific dietary requirements.
Moreover, millennials and Gen Z pet owners show a strong preference for purchasing pet food online, while Generation X and baby boomers have a more balanced preference for in-store shopping.
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New Products Emerge
As research on pet health advances, brands are moving beyond merely launching variations of existing products to developing entirely new categories of pet care products.
Certain nutritional mobile applications assist pet owners in creating personalized meal plans, tracking their pet’s weight and health, and receiving tailored recommendations based on their pet’s specific needs.
Additionally, there are smart feeders. These connected devices enable portion control, remote feeding, and monitoring of a pet’s food intake.
Another emerging category of pet products is pet toothpaste. These products are designed to promote gum and oral health in pets while helping to combat bad breath. They can also aid in reducing plaque and tartar buildup and enhancing overall oral health.
Brands' opportunities: for our pet families' wellbeing
Develop nutritionally balanced foods
Approximately 77% of pet owners understand that cats and dogs have distinct dietary needs. The most preferred types of pet food among them include chicken, meat and bone meal, corn gluten meal, and soybean meal.
According to Euromonitor International, the prominent claims found in pet food align closely with those in human food, such as high protein content, natural ingredients, and being a good source of vitamins. A survey of 2,181 pet owners revealed that 43.6% prioritize the health of their pets' food over their own diets.
According to Euromonitor International, the proportion of pet products featuring these nutrition claims shown in the picture below continues to increase.
Traceability, sustainability, and environmental impact
Consumers are increasingly seeking transparency from manufacturers regarding sourcing, ingredients, and manufacturing processes. In 2023, there was a 45% increase in searches for vegan diets by pet owners compared to 2022. A report from NIQ corroborates this finding, highlighting the growing interest in plant-based options.
Environmental awareness is significantly influencing pet food purchasing decisions. Manufacturers should consider exploring sustainable sourcing practices, eco-friendly packaging solutions, and the incorporation of insect-based proteins as a more sustainable alternative to traditional meat sources. Research conducted by Mars Petcare indicates that 57% of pet owners are willing to modify their pet food choices to reduce their environmental impact.
Target deals and discounts
In response to high inflation and escalating costs, consumers are resorting to cost-cutting behaviour, striving to "outsmart the system" by adopting more creative approaches to stretch their money further. They search for alternatives, utilise rewards points for payment and switch to private label and discounters. 47% of global pet owners plan to increase their savings next year. Approximately 37% of pet owners are in search of discounts on pet items. While 28% are making use of loyalty programs to accumulate savings.
According to Euromonitor Voice of the Industry 2023, 68% of professionals said their company explored consumer loyalty programmes, while 55% considered bundled discounts and 49% contemplated discounts for new customers. The Pet Owners’ Spending and Saving Plans in 2023-2024 shown in the bar chart below explain it as well.
If you have any plans for increasing our pet friends wellbeing, please feel free to connect!
References
Pet Food – Worldwide, Statista
Pet food trends and the 'humanisation of animals', 10-Nov-2023 By William Dodds
Food Manufacture investigates the current pet food manufacturing landscape in the UK, examining the driving forces behind the sector's growth and the latest trends, with the insight from BENEO, SARVAL and Mars Petcare.
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5 key pet food and animal feed trends in 2024, 20-Feb-2024 By William Dodds
Ingredients provider Ohly has released its five key trends to watch during 2024 from across the pet food and animal feed production sector.
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Three Key Global Consumer Trends in Pet Care for 2024, Euromonitor International
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2024 Pet Food Industry Trends, Clarkston's Consulting
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7 Top Pet Industry Trends (2024 & 2025), Exploding Topics
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Pet Food Statistics 2024 By Ingredients, Nutrients, Health, 2024 Market.us Media