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Pet Food Market – Trends, Industry Competitiveness and Future Outlook

Pet Food Market: Was valued at $ 74.9 billion in 2016. North America accounted for the largest share of over 35% of the world market in 2016. The second-largest market is Europe, followed by Asia-Pacific with around 20% of the market. share, thereby accelerating the trend of pet owners around the world. In North America, the United States has the largest share of the pet and pet owner market, which is expected to experience a high CAGR during the 2017-2022 period (the forecast period).

Pet Food Market
Pet Food Market


Flavors and textures become bolder, more complex, authentic and specific. The correlation of pet food and modern formats mixing freeze-dried pieces with kibble or treats, for texture variations, prompts pet owners to choose from a variety of shapes, textures and flavors. In addition, clean labeling continues to develop. Health-conscious consumers are looking for authorized indulgences, such as small portions of treats or candies with healthier ingredients like chia seeds or yogurt. Pet treats are growing, in terms of ingredients with functional or nutritional benefits, which allow pet owners to indulge their animals without guilt. New dog food, which accounted for 80% of global launches in 2015. Launches from September 2015 to September 2016 keep the health trend of new products intact by category. The share of cat food was around 68% worldwide. This health and wellness trend has made good sales for manufacturers. In this context, Hill’s Ideal Balance, a new range of dog and cat food combining natural ingredients and perfectly balanced nutrition from Hill, is now available in South Africa. CORE® RawRev, a new grain-free high protein product, is launched by Wellness CORE®, a family of grain-free natural animal nutrition companies.


The high Internet connectivity available in the main countries is stimulating use on e-commerce sites as an efficient distribution channel. Concepts of convenience, wealth or exclusivity, security and market knowledge play a very crucial role in developing countries. The unreliability of local products, as recent scandals indicate, also forces people to depend on foreign products. These are easily accessible via e-commerce, which further increases sales. Thanks to the industry’s two large pet stores, PetSmart and Petco, the e-commerce channel explodes with sales of pet products. The late adoption of market connectivity in small markets of small economies, such as Vietnam, Thailand, etc., is an almost negligible cause of infrastructure delay and product awareness. These stores offer the advantages of the emerging market of weak regulation and competition. Businesses, as e-commerce grows, negotiate the ever-changing Internet landscape with factors such as relationships with giants like Amazon who decide to sell via similar e-commerce websites and mergers and acquisitions. For example, in April 2017, PetSmart announced that it would acquire Chewy.com, which increased dismay at independent pet retailers. In response, Tuffy’s Pet Food, a manufacturer of independent and family businesses, announced the withdrawal of its products from Chewy, as it would belong to the largest American chain of pet stores. Although Tuffy reports a very positive response, not all companies easily detach themselves from large e-commerce sites.


Although today’s consumers are part-time vegetarians, they seem to do the opposite when it comes to pet food. Pet owners are looking for diet options, which focus on the carnivorous nature of dogs and cats, resulting in the number of products with high and fresh meat claims. Despite the demand for carnivorous diets, vegetables continue to spread and producers innovate their existing products. Free from “for all-the free from trend has increased in recent years and has now reached the mainstream. Pet food is formulated with human concerns in mind, which includes organic and non-GMO ingredients. are used in low-carbohydrate recipes and gluten-free claims on new grain products have gone from one in 15 in 2011 to one in five in 2016. New product launches, with organic or GMO-free ingredients, are known growth in the market. Sales of organic and natural foods are expected to grow 14.6% annually over the next two years. For Petco and PetSmart, organic pet food is purchased at a rate of 7, 1% and 5.6%, respectively, and purchases of biological products in veterinary clinics at 5.3%. Brands communicate more about production processes, in because of the growing interest of consumers for naturalness, authenticity and transparency. This also applies to buyers, especially those looking for products in non-traditional formats such as raw, freeze-dried, frozen and cooked products. Balchem ​​Corp., a global health and nutrition company, introduced a new line of specialty nutrients and unique processing additives. The Omega Plus range was launched in the South Island in September 2016, after two years of continuous R&D. In addition, Bob Martin launched Simply +, a range of products marketed as “nutritionally advanced foods that provide dogs with all the essentials of a healthy diet.”


The domestic market is growing at an annual rate of over 30% in China and is expected to accelerate at the same rate by 2022, reaching CNY 150 billion and more, making it the third-largest market in the world. In addition, Hangzhou, in Zhejiang Province, inaugurated the first cross-border experimental area of ​​the pet industry in Jianggan District. The experimental zone will pilot reforms on the regulation and approval of cross-border imports. It will explore the introduction of national standards in the industry and encourage the export of domestically produced products. In addition, more than 35 companies, including cross-border e-commerce sites such as Tmall, Kaola Beibei, and related logistics and warehousing companies, have been established in the experimental area. The area, essentially, provides one-stop service and aims to register open, transparent and intelligent import channels and regulatory policies for pet food. Similar efforts are being made by countries to focus on the growing population and trends in pets. Market players are taking full advantage of this situation and are investing in R&D for the launch of innovative products.


1. Nestlé Purina inaugurated a new production hall at its factory in Bük, in north-west Hungary, making the plant the largest production center in Europe and opened USD 86 million in factories Brazil. This step should stimulate Nestlé Purina for more growth than the domestic market.

2. Carna4: formulas inspired by health food trends. This manufacturer is inspired by the human health food sector to formulate innovative and complete recipes for dogs and cats.

3. PetLife exceeds expectations for the acquisition of Dr. Geoff’s real pet food. PetLife Pharmaceuticals, Inc., developer of a new generation of high-potency veterinary cancer drugs and nutraceuticals for pets, has announced that it is acquiring Real Food for Pets ™ from Dr. Geoff and plans to expand. for a national deployment.

4. A German company entering Thailand. Interquell, a German dog and cat food company, entered the Thai industry by forming a joint venture, Happy Pet (Thailand) Co Ltd, with its partner Technic Pet Holding, Pets International reported. Interquell owns 49% of the joint venture. Interquell owns the premium brands Happy Dog and Happy Cat.


How will face-to-face interaction stimulate the pet food market in the digital age?

Is low thiamine cat food the cause of Australian cat deaths?

Gluten-free foods, GMO foods that make their mark in the pet food industry.

Edible insects are creeping into the popularity of pet food.

Humanization and premiumisation on the peaks of the animal industry.

Will the United States and China continue to dominate the pet food market? What are the emerging markets?

The growing market connectivity in the Asian countries of Vietnam, Thailand, etc. Will it stimulate the pet food market in Asia-Pacific?

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