According to MarketsandMarkets’ new report on the pet food ingredients market, this global segment is on a significant growth trajectory, increasing from USD 34.2 billion in 2023 to USD 47.4 billion by 2028, at a compound annual growth rate (CAGR) of 6.8 It is predicted that it will be %. . This surge is driven by an increase in the number of pet owners, especially in urban areas, as well as an increase in demand for premium and specialty pet foods. As pets become more integrated into households, the demand for high-quality, innovative pet food ingredients continues to grow.
Urban pet owners are increasing their spending on premium, health-focused pet foods, driving market growth and encouraging manufacturers to develop diverse and nutritious ingredients, the report says. I’m pointing it out.
5 market factors to watch
1. Premium pet food spending increases
Increasing spending on premium pet foods is accelerating the growth of the pet food ingredients market. Pet owners are becoming increasingly concerned about health and nutrition, increasing the demand for high quality and innovative ingredients. This trend, known as premiumization, is forcing manufacturers to innovate and improve formulations to meet the growing need for products that enhance the health, taste, and nutritional value of pets. This shift in consumer behavior further strengthens the relationship between increased spending and demand for premium pet food ingredients, as pets are increasingly viewed as part of the family.
2. Limited availability of raw materials and price sensitive
The pet food ingredient market faces challenges from limited ingredient availability and consumer price sensitivity. Increasing demand for premium and diverse raw materials is putting pressure on supply chains, with weather, geopolitical issues and fluctuations in animal-derived ingredients impacting availability. These factors are obstacles in meeting the growing market demands.
3. Dogs will continue to dominate the largest market share of pet food
The global demand for dog food continues to increase due to the growing popularity of dogs as cherished pets. The diverse dietary needs of dogs, influenced by breed, size, age, and health status, are forcing pet food ingredient manufacturers to develop specialized formulations. A focus on customization allows dog-specific products to maintain their dominance in the pet food market.
Pet dogs account for a large market share in the Asia-Pacific region, with dog ownership increasing in developing countries such as India, China, and Brazil. This growth is being driven by increased awareness of pet health and a growing trend towards pet humanization. India in particular has one of the fastest growing dog populations in the world, contributing to the demand for diverse and high quality dog food ingredients.
4. Cats are leading the growth of pet food ingredients
Although dogs have long been the dominant pet category, cats are currently experiencing the highest growth rate in the pet food ingredients market. The increase in cat ownership, especially in urban areas, has increased the demand for specialized, high-quality cat food ingredients. As more families adopt cats, the demand for optimal nutrition to ensure their cats’ health increases.
According to the report, cat owners are looking for natural, nutrient-dense ingredients to meet their pets’ dietary needs. Increasing awareness of cat health is spurring manufacturers to develop premium cat foods that reflect human dietary trends. In the rapidly expanding cat food sector, ingredients rich in important nutrients such as protein, vitamins and minerals are becoming the norm.
5. North America dominates the market
The North American pet food ingredients market is expected to dominate the industry. The region’s well-established pet food industry, supported by a large number of manufacturers and distributors, ensures efficient production and sourcing of diverse raw materials, the report said. The advent of e-commerce platforms has further increased the accessibility of pet food, making it easier for pet owners to purchase high-quality, specialized products.
MarketsandMarkets is a market research and competitive intelligence company providing B2B research to clients around the world. Click here to download the full report.
