Pet food is a specialty food produced according to the nutritional requirements of domestic animals. It typically comprises grain, cereals, vitamins, minerals, and meat & meat byproducts. Pet food ingredients depend on the type of food, viz., dry or wet. Dry food for animals contains less than 10% moisture, whereas wet or canned food has around 70-80% moisture.
The world is witnessing a significantly rising pet ownership over the past few years, especially after the Covid-19 pandemic, and entwined with this is the pet humanization & high emphasis of consumers on feeding nutritional food to their pets. As a result, there is a mounting demand for a variety of pet foods to cater to the specific requirements of different animals. In view of these aspects, a recent research report on the Global Pet Food Ingredients Market cites around 6.43% CAGR for the industry during 2022-27.
Among all pets, dogs, the most preferred animal among people, are the largest consumers of pet food that doesn't comprise grain, dye, sugar, or other toxic contents. Moreover, the evolving trend of dog humanization has made it crucial for pet owners to maintain their overall well-being by feeding them high-quality pet food. As a result, pet food companies are actively working on bringing breed-specific food with healthy & plant-based ingredients to meet the nutritional requirements of dogs.
Which regions are witnessing an Increasing Consumption of Pet Food?
Globally, North America Pet Food Ingredients Industry is the largest, with increased spending by people to fulfill the nutritional requirements of their pets, coupled with the megatrend of pet humanization, especially across the US & Canada. A large number of pet owners are becoming aware of the importance & benefits of pet-specific foods to maintain their optimal health. Hence, as more & more pets, especially dogs, are being adopted, and consumers are increasingly spending on the well-being of their pets, it projects a continuously rising demand for pet food ingredients in North America over the coming years.
On the other hand, Asia-Pacific is emerging as the hotspot for pet food manufacturers, as pet owners are adopting premium food for their pets. With rising affordability & improving living standards, people are significantly spending on providing optimal health benefits to their pets. Moreover, the flourishing e-commerce sector, especially across India & China, is also contributing to the burgeoning sales of different types of pet food at affordable price points with top-quality ingredients. These aspects are creating directions for the Asia-Pacific Pet Food Ingredients Market to expand at a notable growth rate through 2027.
Key Areas of Growth for Pet Food Manufacturers in the Future
One of the most prominent growth prospects for pet food producers to watch & make utmost use of is the premiumization in pet care. More & more pet owners globally are becoming interested in flexitarian lifestyles & sustainable food sources for both themselves & their pets. All natural or clean-label products, including foods & treats made from organic & non-GMO ingredients without artificial preservatives, as well as natural flavors & colors, are witnessing high demand worldwide. Moreover, gourmet meals, subscription services, & homemade pet food are all generating opportunities for manufacturers, especially new brands.
Secondly, the broadening popularity of functional ingredients in all types of pet food as pet owners are looking for formulas to cater to their pets' specific requirements is another area of opportunity for pet food makers. With the advent of the Covid-19 pandemic, maintaining an adequate immune system through dietary choices (immuno-nutrition) & lifestyle changes have become crucial for many consumers, and the same trend has unfolded for pets & their foods. As a result, there's rising adoption of functional ingredients to provide optimal health benefits to pets and not just the usual nutrition.
Moreover, in order to cater to a greener future, pet owners are also adopting sustainable behaviors like reduced meat consumption, less food waste, and increased inclination toward plant-based or organic foods & packaging. With rapid climate change & declining natural resources, consumers are showing active interest in alternative sources of protein for both themselves & their pets. And to cater to this, pet food makers are introducing hybrid pet foods, i.e., a blend of plant & animal protein, just like it has been going on in the human food & beverages sector. Hence, be it meat-first or plant-based diets, 'clean-label' products are here to stay and shall continue pushing their way in the pet food ingredients market in the years ahead.
Increasing pet ownership & pet food sales, significant developments in production & packaging, and flourishing exports are all contributing to the expansion of the pet food ingredients industry. Stores, both online & offline, continue to maintain a plethora of options for meeting consumer requirements for feeding treats & snacks to their pets. Challenges like packaging & transportation are likely to ease gradually over the forthcoming years, whereas aspects like stringent norms & human resources may persist in hampering the business. Regardless, the pet food ingredients industry shall continue to flourish & advance with rapid developments in new pet foods in the years ahead.