Pet Food Market Report 2025 (Global Edition)

Current Scenario of the Pet Food Market

Key Drivers of the Pet Food Market

• Increasing pet ownership rates have led to a greater demand for pet food-

The global demographic shift has led to an increasing trend in pet ownership. GenZ and Millenials majorly constitute the total number of pet owners. Moreover, the advent of the COVID-19 pandemic has led to a surge in the number of pet owners leading to an increased demand for pet food. According to the data published by the American Veterinary Medical Association, from 2016 and 2020, the proportion of American homes with dogs rose from 38% to 45%, but by 2022, it had bottomed off. In recent times, however, cats have gained popularity. From 25% to 26% in 2020 and then to 29% in 2022, the proportion of households with at least one cat grew marginally. Consumer spending on dogs and cats between 2020 and 2022 increased across the board. Source- https://www.avma.org/news/pet-ownership-rate-stabilizes-spending-increases

The pet food market is driven primarily by the significant increase in pet expenditure, particularly on premium pet food. Because pet owners are becoming more conscious of their pets' health and nutrition, they are becoming more willing to spend money on unique and high-quality ingredients—a trend known as premiumization. This change in customer behavior directly affects the need for a wide range of high-quality pet food ingredients. As pet owners' preferences change, manufacturers are forced to develop and improve their formulas, which drives up demand for additives that improve nutritional value, taste, and general well-being. The idea that pets are essential members of the family fuels the relationship between increased pet spending and the desire for high-quality ingredients in pet food, which leads to steady growth.In a prerecorded presentation on October 24 during the two-day AVMA Veterinary Economic and Business Forum, which was virtually held this year, Rosemary Radich, the former principal data scientist for the AVMA Veterinary Economics Division, stated, "The increase in the number of households with dogs looks large, but it occurred over a six-year period, which is pretty conservative growth."  Source- (https://www.avma.org/news/pet-ownership-rate-stabilizes-spending-increases)

• Awareness regarding pet health has caused a demand for organic and healthy pet food-

Owners are increasingly becoming more cognizant of their pet’s health. This has led to better diets, opting for organic pet food and customizing the pet food based on their pet’s age, health restrictions, etc. Thus, the tendency of pet owners to opt for nutritious pet food drives the demand. Owners gaining a greater understanding and awareness of pet health needs. The market for pet food ingredients is driven mostly by the significant rise in pet expenses, particularly for high-end pet food. Due to increased understanding of canine nutrition and health, pet owners are becoming more prepared to spend more on unique and high-quality ingredients—a trend known as premiumization.  In a newly launched product by Hill's Pet Nutrition Pets with sensitive stomachs and skin lines can now enjoy the new MSC (Marine Stewardship Council) certified pollock and insect protein products from Hill's Pet Nutrition. They are rich in vitamins, antioxidants, and omega-3 fatty acids. Source-( https://www.hillspet.com/about-us/press-releases/proteins-with-purpose?lightboxfired=true#)

The need for a wide variety of high-quality pet food ingredients is directly impacted by this change in customer behavior. There is a growing market need for ingredients that improve overall well-being, flavor, and nutritional value as a result of manufacturers' pressure to innovate and improve formulas to match changing pet owner preferences.  For instance, Under the Friskies "Friskies Playfuls - treats" brand, Nestle Purina introduced new cat snacks. These rounded treats come in tastes for adult cats that include chicken and liver as well as salmon and shrimp. Pets are seen as essential family members, which reinforces the relationship between higher pet spending and the demand for high-quality pet food ingredients and encourages continued growth. 

• Increased R&D and revolution in the pet food industry helps meet the dietary needs of diverse animals -

To meet the needs of diverse animal species across a range of age groups, the major players in the global pet food market are concentrating on introducing a range of pet food products that would drive the global pet food market. Companies such as Nestle, General Mills, and Mars Inc. have introduced high-end food items in recent years to draw in customers and meet the requirements of expanding demand for pet food.  For instance, With the SHEBA BISTRO range, Mars Incorporated introduced its high-end cat brand SHEBA to the Canadian market, providing cat parents with wet formulas. Source- https://www.sheba.com/. General Mills, Inc. (NYSE: GIS) discussed its Accelerate strategy and approach to driving long-term sustainable growth and top-tier shareholder returns at the Consumer Analyst Group of New York (CAGNY) 2024 Conference. Source- https://investors.generalmills.com/press-releases/press-release-details/2024/General-Mills-Shares-Progress-Against-Accelerate-Strategy/default.aspx

• E-commerce has simplified the shopping process and accelerated demand for pet food -

Direct-to-consumer (D2C) pet food has held up well during the pandemic while other e-commerce categories have faltered. This is because there is little reason for consumers to switch brands, and online ordering—especially with subscriptions—is convenient and convenient. Pet food is expected to be quite resilient despite the general trend of e-commerce transactions slowing down because the advantages of purchasing it online are substantial. The benefits of ordering pet food online are abundant: the product is heavy and large, and customers don't gain from in-store shopping (unless, maybe, there's anything to taste).

Pet owners are increasingly resorting to the Internet for their pet-related requirements as a result of the growth of online purchasing, especially since the COVID-19 outbreak. Numerous causes, such as the growing number of pet owners, increasing demand for pet food, and the expanding availability of pet supplies and products online can contribute to this growth.  E-commerce has made it exceptionally simple and hassle-free for pet owners to purchase pet food in a few clicks and contributed to the growth of the market. 

Restraints of the Pet Food Market-

• Numerous restrictions in the pet food industry lead to less number of manufacturers willing to enter the market- 

Pet food is closely inspected in developed markets at every turn, right from the components used in the preparation process to sales and marketing. The intense scrutiny that comes with becoming public can be a significant barrier to market expansion. Moreover, some not be accepting of high-end and expensive pet food products. 

• Animal/Pet Allergies among people prevent families from adopting pets causing less demand for pet food- 

Many people prefer not to keep pets due to several pet-related allergies. The presence of indoor allergens such as animal dander, mold, animal hair, and, dust mite droppings leads to various allergies and infections. People may suffer from asthma on account of these animal allergies. Campylobacter, a bacterium, transmitted from contact with animals may lead to various health issues in humans such as diarrhea and food poisoning. Newborn babies are at a higher risk of infection from pets. 
Asthma symptoms including wheezing and breathing difficulties might also affect certain persons. The dead skin flakes (dander) that pets shed are typically what cause pet allergies. Pet allergies can affect any animal with fur, although they are most frequently linked to cats and dogs. According to Oxford University Press, Animal-source protein that is uncooked or undercooked may contain harmful microorganisms such as Campylobacter and Salmonella spp. Source- https://academic.oup.com/jas/article/92/9/3781/4702209

Opportunities of the Pet Food Market-

• Developing functional and medicinal treats in partnership with veterinarians and other pet health specialists will help in market expansion.
• Using ecologically sustainable procedures and sustainable packaging materials to appeal to customers who are concerned about the environment will drive the market. 

Impact of COVID-19 on the Pet Food Market

Due to the pandemic’s effects on the global economy, pet food users may have adjusted their purchase habits as their income fluctuated. However, the “humanization’ of pets- a trend that began after the onset of COVID-19- increased due to a greater sense of “company” which led to little effect from apparent decreases in expenditure.
The speeding up of procedures that can occasionally be challenging to implement in particular businesses is, without question, the pandemic’s greatest positive effect. 

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Pet Food Market is witnessing significant growth in the near future.

In 2023, the Dogs segment accounted for noticeable share of global Pet Food Market and is projected to experience significant growth in the near future.

The Animal-derived segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Mars Inc. , J. M. Smucker Co. and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

Frequently Asked Questions (FAQs)