Premiumization, pet ownership drive pet food ingredient market growth

A new report on the pet food ingredients market from MarketsandMarkets noted this global segment is on track for substantial growth, projected to rise from US$34.2 billion in 2023 to US$47.4 billion by 2028, with a compound annual growth rate (CAGR) of 6.8%. This surge is driven by increasing demand for premium and specialty pet foods, alongside a rise in pet ownership, particularly in urban areas. As pets become more integrated into households, the demand for high-quality, innovative pet food ingredients continues to expand.

Urban pet owners are spending more on premium, health-focused pet foods, driving the growth of the market and encouraging manufacturers to develop diverse and high-nutritional ingredients, noted the report.MarketsandMarkets

5 market factors to keep an eye on

1. Premium pet food expenditures on the rise

Rising premium pet food spending is fueling growth in the pet food ingredients market. Pet owners, increasingly focused on health and nutrition, are driving demand for high-quality, novel ingredients. This trend, known as premiumization, compels manufacturers to innovate and improve formulations, addressing the growing need for products that boost pet well-being, taste and nutritional value. As pets are seen more as family members, this shift in consumer behavior further strengthens the connection between increased expenditure and demand for premium pet food ingredients.

2. Limited availability of ingredients, price sensitivity

The pet food ingredients market is facing challenges with limited ingredient availability and price sensitivity among consumers. The growing demand for premium and diverse ingredients is putting pressure on supply chains, with weather, geopolitical issues, and fluctuations in animal-derived components impacting availability. These factors are creating hurdles in meeting the increasing market demand.

3. Dogs will continue to dominate the largest market share in pet food

The global demand for dog food continues to grow, driven by the widespread popularity of dogs as cherished pets. The varied dietary needs of dogs, influenced by breed, size, age, and health conditions, are pushing pet food ingredient manufacturers to develop specialized formulations. This focus on customization helps maintain the dominance of dog-specific products in the pet food market.

In the Asia-Pacific region, pet dogs hold a significant market share, with rising adoption rates in developing countries like India, China, and Brazil. This growth is fueled by increasing awareness of pet health and the growing trend of pet humanization. India, in particular, has one of the fastest-growing dog populations globally, contributing to the demand for diverse and high-quality dog food ingredients.

4. Cats lead the growth in pet food ingredients

While dogs have long been the dominant pet category, cats are now growing at the highest rate in the pet food ingredients market. Rising cat ownership, particularly in urban areas, is driving demand for specialized and high-quality cat food components. As more families adopt cats, there is a more desire for optimal nutrition to ensure their well-being.

According to the report, cat owners are looking for natural, nutrient-rich ingredients that cater to their pets’ dietary needs. This growing awareness of feline health is spurring manufacturers to develop premium cat food options, often mirroring human dietary trends. Ingredients rich in critical nutrients, such as proteins, vitamins, and minerals, are becoming the norm in the rapidly expanding cat food segment.

5. North America dominates the market

The North American pet food ingredients market is expected to dominate the industry. According to the report, the region’s well-established pet food industry, supported by numerous manufacturers and distributors, ensures efficient production and sourcing of a diverse range of ingredients. The advent of e-commerce platforms has further boosted the accessibility of pet food, allowing pet owners to easily purchase high-quality and specialized products.

MarketsandMarkets is a market research and competitive intelligence company that provides B2B research to clients around the world. To download the full report, click here.