The global pet food market has gained remarkable momentum, especially with the Covid 19 pandemic. It was perhaps one of the few sectors that the pandemic positively affected. According to the Pet Food Market report prepared by Fortune Business Insights and revealing the 2021-2028 projection; the global pet food market size was USD 93.94 billion in 2020. The Covid 19 pandemic had negative impact on the supply chain of the pet food industry, due to disruption in production and logistics.

However, with pet products manufacturers' continuous efforts to ensure that food supplies for pet animals don't get disrupted and high demand for dog & cat food among pet owners, have led to rise in the value of global market by 3.50% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 97.47 billion in 2021 to USD 136.82 billion by 2028, showing a CAGR of 4.96% during the forecast period (2021-2028).

Allied Market Research also supports growth expectations in its Pet Food Market report covering the 2021-2030 period. According to the Allied Market Research report, the global pet food market size was valued at $87,27 billion in 2020, and is projected to reach $133,4 billion by 2030, registering a CAGR of 4.6% from 2021 to 2030.

As people have been working from home during the lockdown, many used this as an opportunity to get a family pet. Various studies have indicated that people who have pets suffer less with problems such as loneliness and depression due to the companionship that pet ownership brings. During the first couple of months of 2020, breeders and rescue centers reported a boom in enquiries from people looking for pets. According to the report published by Mars Petcare, a leading pet (dog & cat) food manufacturer, the combined sales of cat and dog treats grew by 6.5% in the 12 weeks between February and May 2020.

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PRODUCT SALES INCREASED DURING COVID-19 PANDEMIC

During the initial phase of the pandemic outbreak, supply chain disruptions were observed in the global dog & cat food market. These disruptions in the supply chain occurred due to a shortage in raw materials, workers, and restrictions on transport. However, the operations were back to normal on the lifting of lockdown. Additionally, higher pet adoption, rising demand for premium dog & cat food, and change in strategies by pet animal food manufacturers have positively impacted the global sales of dog & cat food. Also, pet owners have stocked up on dog & cat food during lockdown which caused a short-term boom in sales.

LATEST TRENDS IN PET FOOD MARKET

According to the Fortune Business Insights report; the concept of personalized food products for pets is becoming widespread across the developed markets, and is expected to become popular across the developing markets in the forthcoming years. Personalization of food products for pet animals has a lot of potential to grow significantly as the pet owners are becoming increasingly conscious about the food they are feeding to their pets. Pet owners need transparency about the ingredients used in the preparation of pet animal food products.

This offers a huge growth opportunity to brands or companies that offer specially formulated and customized food products for pet animals. Furthermore, customized food products hold a lot of potential because some of them are efficient in addressing particular pet conditions such as obesity, dry skin, and others.

INCREASING PET OWNERSHIP SUPPORTS GROWTH

The increasing rate of pet ownership worldwide, especially across the developing regions is anticipated to be one of the primary drivers of the market. According to the Fortune Business Insights report; pet humanization is encouraging the pet owners to opt for nutritious and quality food for their pets, further boosting the market's growth. Additionally, the rising per capita income of the consumer is motivating them to spend on healthy and organic food products for pet animals to aid their health. Moreover, easy availability of products with different price ranges is a growth-promoting factor for the global market.

INCREASING INNOVATION BY PET FOOD MANUFACTURERS POSITIVELY INFLUENCING MARKET

The key global market players are focusing on the launch of a variety of food products for pets to address the needs of different types of animals belonging to different age groups. This is projected to drive the global pet food market growth. In recent years, companies such as The J.M. Smucker, Nestle, and Mars Inc. launched premium food products to grab the consumers' attention and address the growing pets' needs.

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For instance, In November 2020, Nestle Purina launched pet animal food that builds on alternative proteins to make better use of the planet's resources. The range includes insects as well as plant protein from fava beans and millet. Similarly, in 2018, Nestle Purina Petcare launched 'Supercoat', a premium range of dog food in India. These market players are tapping into the markets with higher potential in countries such as China, Argentina, and India to increase their revenue.

GROWTH RESTRAINING FACTORS

According to the Fortune Business Insights report, stringent regulations associated with pet food are one of the factors that obstruct market growth. Pet (dog & cat) food comes under the most highly regulated food products, especially across the western markets. In the developed markets, pet animal foods are examined stringently at every stage, beginning from the ingredients utilized in the food preparation to their sales, and marketing. The high stringency associated with commercialization can be a major restraining factor for the growth of the pet animal food market. Moreover, lower acceptance for premium or high-priced dog & cat food across some developing markets can also be an obstacle for the growth of the market.

DOGS TO BE LEADING REVENUE CONTRIBUTORS IN MARKET

On the basis of animal type, the global pet food market is segregated into dogs, cats, and others. According to the Fortune Business Insights report, the adoption of dogs as pets is significantly higher across the globe which is a major reason behind the dominance of this animal in the global market. The humanization of animals has led to the adoption of more dogs and cats across the globe. High expenditure associated with the maintenance and well-being of dogs is driving the market for natural and higher-quality dog food. The launch of dog treats and nutrition-rich food is another significant reason contributing to the growth of the segment.

In the forthcoming years, cat ownership is expected to increase across the globe at a crucial pace as they are low-maintenance animals and are very much human-friendly. According to the Allied Market Research report, dogs segment is expected to grow at highest CAGR of 4.7% during the 2021-2030 forecast period.

DRY PET FOOD IS THE MOST PREFERRED

By form analysis, the market is segmented into dry form, wet form, and snacks & treats. According to the report, dry form is the most preferred dog & cat food option by the owners. This can be attributed to the fact that dry form products offer higher convenience and have a higher shelf-life as compared to wet food. For dogs, dry food is the most favored option as it is cheap and hence affordable for many dog owners. Moreover, dry pet food, due to their firm texture, aids the dental health of pets along with maintaining their dental hygiene.

According to the Allied Market Research report, dry pet food segment is expected to grow at highest CAGR of 5.3% during the 2021-2030 forecast period.

Snacks & treats segment is emerging as an exotic product option for various pets due to their delicious taste and higher quality. This segment is expected to grow significantly in the forthcoming years owing to the active participation of market players in launching a variety of multipurpose and healthy snacks and treats options for dogs, cats, and other pets.

INCREASING INTEREST IN ONLINE RETAIL CHANNELS

According to the Fortune Business Insights report, supermarkets/hypermarkets and other mass merchandisers are projected to hold the dominant share in global pet food sales. The reason behind this dominance can be attributed to the high consumer preference for buying products from large retail stores, where they are offered an abundance of choices in terms of brands and prices.

Attractive shelf-arrangements in specialty dog & cat food retail shops, coupled with the higher availability of exotic, custom-designed, and premium food products for pet animals within these stores are expected to further boost the growth of the segment. According to the Allied Market Research report, specialized pet shops segment is expected to grow at highest CAGR of 5.1% during the 2021-2030 forecast period.

Also, the sale of food products of pet animals through online channels is anticipated to intensify globally in the upcoming years attributed to the increasing inclination of millennials towards online purchasing. High convenience offered by the online channels such as doorstep delivery along with the rising collaboration of industry giants with retail e-commerce players are expected to further fuel the segment's growth.

THE STATUS OF REGIONS IN PET FOOD MARKET

North America currently holds the majority of pet food market share in the global market and the region is predicted to lead the market throughout the forecast period. According to the Fortune Business Insights report, high adoption of pets in the U.S. households is one of the significant reasons for the dominance of the region. According to a survey conducted by the American Pet Products Association (APPA), about 85 million U.S. households, which constitute approximately 67% of the total households present in the U.S., own a pet. The positive attitude of North American consumers towards pet humanization and its wide adoption is encouraging the market growth of nutritious food products for pet animals.

According to the Allied Market Research report, North America dominates the market and is expected to grow at highest CAGR of 5.0% during the 2021-2030 forecast period.

High spending on sustainable and safe pet animal food due to humanization trends drives the growth rate of the European market. In addition, pet owners in Europe demand for more transparency in pet animal food product ingredients. The U.K. is the largest pet animal food market in Europe; and is followed by Germany and France. According to Mars Petcare State of the Pet Nation, 72 percent of U.K. pet owners consider themselves as pet parents. Furthermore, the tendency of U.K. pet owners to buy premium and natural pet animal food products also drives the high utilization of pet animal food.

Asia Pacific is expected to be the fastest-growing region in the global market, followed by South America. Economies such as Japan, Australia, and China are the major contributors to revenue generation across the region. Japan is one of the leading importers of prepared dog and cat food across the world, however, the pet animal food market in the country is showcasing sluggish growth. The market in China and India is expected to rise significantly during the forecast period due to the increasing consumer expenditure on food products for pet animals across these countries, coupled with the increasing investment by the global market players within these economies.

Brazil is the second largest pet (dog & cat) food market in the world after the United States. The dominance of Brazil in South America pet animal food market is due to high pet ownership, growing focus on pet health, and high spending on natural, high-quality pet animal foods. Additionally, Brazil has the most diverse pet population in the world; hence, along with dogs and cats, small families, childless couples, and singles living in apartments prefer birds and fish as pets.

The market in the Middle East & Africa is driven by rising adoption of companion animals and higher focus on quality products. The growing middle-class population in Africa also supports the growth of the region. Turkey is a key dog & cat food market in the region, and its sales are driven by high demand in local and foreign markets. Moreover, the Turkish dog & cat food market is dominated by local pet animal food manufacturers.

KEY INDUSTRY PLAYERS

According to the Fortune Business Insights report, the pet food market is consolidated with five major players holding more than 60% of the global market share. These market players, namely Nestle Purina Petcare, Colgate-Palmolive, and The J.M. Smucker Company, are making rigorous efforts to increase their market share and establish their dominance in the global market. Mars Incorporated holds the majority share in the global, as well as in several other regional markets.

The company has adopted strategies such as innovative product launch, brand strengthening, mergers & acquisitions, and online distribution of its products to increase its customer base and lead the global market. In the past years, the company has acquired a number of reputed brands such as Natura, Eukanuba, and others. Moreover, it has actively involved itself in online retail sales by collaborating with e-commerce retail giants such as Alibaba Group.

By Derya Yıldız - Feed Additive 

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