MARKET OVERVIEW- GLOBAL PET FOOD MARKET
Pet food is a specialized food or diet for pets that is formulated to meet their nutritional needs. A diet that meets these basic nutritional needs (protein, amino acids, fatty acids, vitamins, minerals) is said to be "complete and balanced", which should be stated on the label as Association's Nutritional Adequacy of American Feed Control Officers. Statement (AAFCO). Pet owners purchase quality food products for their pets to provide them with nutrition and variety in their diet. The growing consumption of pet food products has led to a high demand for pet food ingredients. The Global Pet Food Market is expected to grow during the forecast period due to growing awareness about pets and the benefits of feeding pets with premium and packaged pet foods. In the longer term, premiumization and humanization trends are expected to remain the main growth drivers of the market during the forecast period. The Pet Food Market is likely to be in the spotlight during the forecast period as it is capable of gradually shifting the target audience's reliance on the dairy industry. Pet food provides the same nutrients as dairy products consumed by humans, and maintaining a reliable level of environmental sustainability while meeting the dynamic needs of the target audience.
MARKET DRIVERS
Humanization of pets is becoming a globally accepted term in the pet industry as more and more pet owners want to provide their pets with human-like products or experiences. For example, in China, according to Pet data, the adoption rate in 2018 was 11.8% for dogs and 19.9% for cats. Pet owners consider their pets to be members of the family and therefore require pet foods that guarantee nutritional value, ingredient quality, better digestibility and animal safety. This trend is positively impacting the demand for high-quality animal feed products with a high nutritional value. The humanization of pets has led to an increase in awareness about healthy food. It has enabled pet owners to spend more on high-quality food products for pets, as evidenced by the increased expenditure for pet-related products in the US in recent years. That is why it is expected to stimulate an increase in the humanization of pets in the food industry, which is expected to in turn strengthen the growth of the market. Today, pet owners are looking for not only staple food products, but also locally sourced pet supplies that are natural or have specific health benefits.
Additionally, the humanization trend of pets has led to increased health awareness and demand for pet foods free of sugar, grains, dyes and other chemical additives. With the emerging trends in pet humanization and premiumization, the demand for pet food is expected to grow further in the coming years.
MARKET OPPORTUNITIES
Governments in several countries have taken steps to promote the use of safe and healthy ingredients to improve the overall well-being of pets. For example, the Japanese government has implemented the Pet Food Safety Guarantee Act for pet food manufacturers, importers and wholesalers to protect pet health and regulate the production process. Such initiatives are expected to continue to boost the growth of the market.
The use of cannabis in pet food has become popular with the easing of regulations. Cannabis-based pet foods are available in concentrates, isolates, and synthetic forms. In cannabis-based food products, products that treat anxiety are most helpful in reducing anxiety. Additionally, pet owners are looking for cannabidiol (CBD) as an alternative to relieve pain and allergies and this factor is expected to create new growth opportunities for the market over the forecast period.
MARKET RESTRAINTS
The market has major restrains, like stringent regulations imposed on pet foods and ingredients. Under the Federal Food, Drug, and Cosmetic Act of 1938 (FFDCA), pet foods, including pet foods, be safe for consumption and produced in hygienic conditions. Foods must not contain harmful substances and must be roughly labelled. The Food Safety Modernization Act of 2010 (FSMA) introduced guidelines on certification, sterilization, hygiene and ingredient labelling for pet food manufacturers in the United States. The General Administration of Quality Control Inspection and Quarantine of the People's Republic of China (AQSIQ) ensures uniform inspection and quarantine of imported food. Local Entry and Exit Inspectorates and Quarantine Offices are responsible for inspecting imported food. Under Canadian pet food regulations, it is illegal to feed any specified risk materials (cow parts that can transmit mad cow disease) to any animal, including pets.
MARKET GROWTH CHALLENGES
In recent years, there has been tremendous growth in the pet food market; however, counterfeit products have emerged as a problem for the industry. Counterfeit products are dangerous for the health of pets. This counterfeit practice negatively affects the market and pet health; furthermore, the income generated by these products is unknown. The industry has to deal with these products, as they pose a challenge to the growth of the pet food industry.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the global Pet Food market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2021 as the base year. With increasing demand for various pet food products in various applications has led the increasing demand for market and is expected to witness the growth at a specific CAGR from 2023-2029.
PET FOOD MARKET SEGMENTAL OVERVIEW
The global Pet Food market comprises of different market segments like type, pet type, ingredient, distribution channel and geography.
PET FOOD MARKET BY TYPE
By type, the Pet Food market includes the key segments of
- Dry Food
- Wet Food
- Treats and Snacks
- Veterinary Diets
- Organic Products
- Others
The dry food segment is expected to have the largest share of the market over the forecast period. Dry food is beneficial as it offers good dental care in dogs with minimal tartar formation and plaque reduction. Additionally, this type of product provides the crunch and chewiness needed to maintain overall animal health. Dry foods eliminate the need for freezing like canned foods. The high moisture content of this type of product helps keep animals hydrated and also has a positive effect on the urinary tract.
The treats and snacks segment is expected to grow at a high rate over the forecast period. Pet snacks are generally preferred for improving the intake of quality nutrients and ingredients, while treats are used as the main product for inducing positive behaviour in pets. Snacks usually consist of baked foods such as toasted cereals and biscuits or dried fruits and vegetables.
PET FOOD MARKET BY PET TYPE
By pet type, the Pet Food market is segmented into
The dogs segment is expected to dominate the market over the forecast period. Increasing consumer awareness of pet health has led to an increased focus on increasing dogs' weight and maintaining their overall health. Customers choose between several available groceries and rely heavily on product brands. Manufacturers are constantly focusing on entering the premium food segment and thereby improving their overall profit margin. The trend of owning more than one cat is growing steadily, particularly in Europe and North America, driving product demand. Cats need less exercise than dogs and can spend more time alone. In addition, the cost of keeping cats is relatively low compared to that of dogs.
The other application segment includes pet food for birds, fish and reptiles. The demand for products for these categories of animals is expected to remain low compared to dogs and cats. Short lifespan and low food consumption will likely prove to be the main factors behind the low demand for products in this segment compared to dogs and cats.
PET FOOD MARKET BY INGREDIENT
By ingredient, the Pet Food market is segmented into
- Cereals
- Vegetables and Fruits
- Fats
- Meat and meat products
- Additives
Cereals includes corn and cornmeal, wheat and wheat meal, barley and rice. Vegetables and fruits include potatoes, soy and soy meal, carrots and fruits. Fats include fish oil, tallow, lard, poultry fat and vegetable oil. Meat and meat products include deboned meat, meat meal, by-product meal and animal digest. Additives include vitamins and minerals, enzymes and others (flavours and colours).
The cereals segment is expected to have the highest growth over the forecast period. Cereals provide an important source of energy, a percentage of protein and other nutrients, including thiamine and niacin. Although cats do not have an absolute need for carbohydrates, they provide an excellent source of energy in an easily digestible form. Good sources of carbohydrates in pet foods are usually grain-based such as corn. , rice, wheat, barley or sorghum.
PET FOOD MARKET BY DISTRIBUTION CHANNEL
The Pet Food market has distribution channels like
- Supermarkets and Hypermarkets
- Specialized Pet Shops
- Online Sales Channel
- Others
The easy availability of pet foods on diversified platforms ranging from modern commerce to online sales channels has led to the expansion of the global market. In addition, the growing penetration of retail sales has boosted the growth of the pet food market. The hypermarkets and supermarkets segment is anticipated to lead in the market over the projected time period. The growth of the segment is driven by various factors like accessibility and affordability along with presence of supermarkets stores in close proximity.
At the same time, the availability of pet food on e-commerce platforms has led to the convenience of purchasing goods without physical restrictions for consumers. Not just convenience and comfort, e-commerce allows customers to compare product information, prices and benefits, and make full value assessments before making a purchase. This is expected to propel the growth of the online sales channel segment.
PET FOOD MARKET BY GEOGRAPHY
The global Pet Food market is studied for the following region
- North America
- Europe
- Asia-Pacific
- Rest of the world (RoW)
North America is expected to dominate the market over the forecast period. The growing humanization of pets and pet ownership, the rise of private label retail brands, and the growing urbanization that comes with increased disposable income are some of the key forces driving the market in North America. The market growth in region is also driven by the strong influences of human nutrition, driving research into better and safer pet foods with high nutritional and dietary benefits.
COVID-19 IMPACT ANALYSIS ON GLOBAL PET FOOD MARKET
The exclusive COVID-19 impact analysis report by Axiom MRC provides a 360 degree analysis of micro and macro-economic factors on the global Pet Food market. In addition, complete analysis of changes on the global Pet Food market expenditure, economic and international policies on supply and demand side. The report also studies the impact of the pandemic on global economies, international trade, business investments, GDP and marketing strategies of key players present in the market.
The COVID-19 pandemic has negatively impacted supply chains around the world. The pet food industry initially suffered from supply and cash flow due to lockdown restrictions. On the other hand, the demand for the pet food segment has steadily increased in many parts of the world as people have adopted more pets in line with the growing desire for companionship during the block. To meet this demand, market players have shifted their focus from stores to e-commerce platforms, investing more in the development of their websites.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of Pet Food market is primarily focused on expanding the global growth of pet foods through new product innovation, business expansion, increasing presence of a range of manufacturers operating in the pet food industry has led to growing demand for the market. Besides, the market offers a range of products in different applications to fulfil the required demand of consumers, which is further contributing to healthy growth in the market.
The key players studied in market are
- Cargill, Incorporated
- BASF SE
- Archer Daniels Midland Company
- Ingredion Incorporated
- Mars Incorporated
- Bluestar Adisseo Company
- Hill’s Pet Nutrition, Inc
- Nestlé Purina
- The J.M. Smucker Company
- The Hartz Mountain Corporation
- Lupus Alimentos
- Total Alimentos SA
- Blue Buffalo Pet Products, Inc.
- WellPet LLC
- Diamond Pet Foods
- Colgate Palmolive
RECENT DEVELOPMENT:
June 2021: Mars Inc. had launched wet cat food under its Whiskas brand, expanding its product range in India. The new product range is available across pet shops, grocery stores, and e-commerce sites.
June 2021: Hill's Pet Nutrition had opened a 25,000 square foot nutrition innovation center in the US. This center would enable the company to develop innovative products specially designed for small and mini dogs.
