Pet Food Market Size & Share Analysis – Growth Trends & Forecasts Up To 2029

Pet Food Market Size & Trends

The global pet food market size was estimated at USD 103.3 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2030. The demand for products is anticipated to be driven by growing consumer inclination toward the adoption of pets along with rising concerns regarding their health. Improvement in overall digestion and performance of pet animals owing to consumption of nutritious food is also likely to boost market growth in the forecast period. The pet food products that are available in the global market rarely vary. This, in turn, has prompted manufacturers to include multi-functional and innovative ingredients in their products to curb such similarity bias. Convenience is likely to play a vital role in driving this industry, given the increased popularity of prepared pet food. The other segment is organic pet food, a recent and growing trend in the market.

Increasing availability of organic products in a variety of flavors and the inclusion of essential ingredients such as probiotics and antioxidants are factors that are likely to induce a positive impact on global market growth. On the other hand, low product penetration owing to its slightly high price may restrain organic segment growth in the coming years as every household would not be able to purchase high-priced products.

The market value chain is characterized by the presence of raw material suppliers, manufacturers, distributors, and end-users. The raw materials which are used for production include meat, meat byproducts, cereals, grains, and specialty proteins derived from animals, palatants, flavors & sweeteners, vitamins, minerals, and enzymes among others.

Manufacturers formulate these products in accordance with the standard nutritional requirements of domesticated animals. Meat-based raw materials are processed/rendered to separate protein components, water, and fat. The manufacturing process also entails grinding, cooking, and mixing the aforementioned raw materials with other ingredients.

The raw materials utilized in each pet food product segment are primarily commodities and agricultural-based products. Grains, fruits, and animal protein meals, among other ingredients, are procured from various suppliers. The cost, quality, and availability of these key ingredients have fluctuated in the past and are expected to fluctuate in the future as well. For instance, in March 2023, pet food prices in America rose by 15.1% YoY. Due to this, residents are considering giving away their pets. Such sudden and sharp increases in the prices of pet food can adversely affect market growth.

The outbreak of COVID-19 in the region has affected the supply of raw materials and ingredients and disrupted supply chains, especially in the U.S. Key factors, such as the affected supply chain and logistics in the region and economic crisis, have hampered product demand in North America in the first half of 2020. However, the strong position held by North American manufacturers and availability of pet food and treat options domestically are estimated to trigger market growth in the near future.

Europe held the second-largest revenue share globally. This is because of the humanization of pets and increasing demand for premium food products, mainly organic, raw, and natural, depending upon the choice of the customer. According to the European Pet Food Industry Federation (FEDIAF), Europe is one of the largest markets for the pet food industry, accounting for approximately 30% of total pet care and pet food sales across the globe.

KEY MARKET INSIGHTS

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