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Pet Food Market – Trends, Industry Competitiveness and Future Outlook


The pet food market was valued at USD 74.9 billion in 2016. North America held the largest share of over 35% of the global market in 2016. The second largest market is Europe, followed by Asia Pacific with about 20 % of the market share, thus accelerating the trend of pet owners around the world. In North America, the United States holds the largest market share of pets and pet owners, which is expected to register a high CAGR, during the period 2017-2022 (the forecast period).


Flavors and textures become bolder, more complex, authentic and specific. The combination of pet food and modern formats that combine freeze-dried chunks, with kibbles or treats for textural variations, means pet owners have a variety of shapes, textures and flavors to choose from. In addition, net labeling continues to grow. Health-conscious consumers are looking for indulgences like smaller portions of treats or candies with healthier ingredients like chia seeds or yogurt. Pet treats are being developed in terms of ingredients with functional or other nutritional benefits, allowing pet owners to enjoy their pets guilt-free. New dog food products accounted for 80% of global launches in 2015. Launches from September 2015 to September 2016 continue the health-related trend in new products by category. The share of cat food was about 68% worldwide. This health and wellness trend has been selling well for manufacturers. A few cases in point are Hill’s Ideal Balance, a new line of dog and cat food that combines natural ingredients with Hill’s perfectly balanced nutrition, now available in South Africa. CORE® RawRev, a new high-protein grain-free product, is being launched by Wellness CORE®, a family of grain-free natural animal nutrition companies.


The high internet connectivity available in major countries boosts the use of e-commerce sites as an effective distribution channel. Concepts of convenience, affluence or exclusivity, security and market awareness play a very critical role in developing nations. The unreliability of local goods, as shown by recent scandals, also makes people rely on foreign goods. These are easily available through e-commerce, further making sales high. Because of the industry’s two pet superstores, PetSmart and Petco, the e-commerce channel is exploding with sales of pet products. Late adoption of market connectivity in the small markets of small economies like Vietnam, Thailand etc. is a cause of lagging infrastructure and almost negligible product awareness. These stores offer the nascent market advantages of low regulations and competition. Companies, as e-commerce takes off, are negotiating the ever-changing Internet landscape with factors such as dealing with giants like Amazon deciding to sell through similar e-commerce sites and mergers and acquisitions. For example, in April 2017, PetSmart announced that it would acquire, which raised concerns among independent pet retailers. In response, Tuffy’s Pet Food, an independent and family-owned manufacturer, announced it would pull its products from Chewy as it will be part of the largest pet store chain in the US. Although Tuffy’s reports a very positive response, not every company is easily snapped up by any major e-commerce sites.


Although consumers today are part-time vegetarians, they seem to do the opposite when it comes to pet food. Pet owners are looking for food options that focus on the carnivorous nature of dogs and cats, thus increasing the number of products with high and fresh meat claims. Despite the demand for carnivorous diets, vegetables are still becoming mainstream and producers are innovating their existing products. Free from” for all-the free from trend has been growing since recent years and has now reached the mainstream. Pet foods are formulated with respect to people’s concerns that include organic and non-GMO ingredients. These ingredients are used in recipes with low carb and has gluten-free claims on new cereal products increased from one in 15 in 2011 to one in five in 2016. The launch of new products, with organic or non-GMO ingredients, is growing in the market.Sales of organic and natural foods are expected to grow by 14.6% annually over the next two years, while for Petco and PetSmart, organic pet food purchases are at 7.1% and 5.6% respectively, while organic purchases at veterinary clinics at 5.3%. Brands are communicating more about production processes due to consumers’ growing interest in natural plus a authority and transparency. This also applies to shoppers, especially those looking for products in non-traditional forms such as raw, freeze-dried, frozen and baked. Balchem ​​Corp., a global health and nutrition company, has introduced a new line of specialty nutrients and unique processing additives. The Omega Plus range was launched in the South Island in September 2016, following two years of continuous research and development. In addition, Bob Martin launched Simply+, a line of products marketed as “nutritionally advanced food that provides dogs with everything they need for a healthy diet.”


The domestic market is growing at an annual rate of more than 30% in China and is poised to accelerate at the same rate by 2022, reaching CNY 150 billion and beyond, making it the third largest market, globally. In addition, Hangzhou in Zhejiang Province launched the first cross-border pet industry pilot zone in the city’s Jianggan District. The pilot zone will pilot reforms to regulate and approve cross-border imports. It will explore the introduction of national standards in the industry and promote the export of domestic products. In addition, more than 35 enterprises, including cross-border e-commerce websites such as Tmall, Kaola Beibei, and related logistics and warehousing companies, have set up in the pilot zone. The zone basically enables one-stop services and aims to register open, transparent and smart pet food import channels and regulatory policies. Similar efforts are being made by countries to focus on growing pet populations and trends. Market players are taking full advantage of this situation and investing in R&D to launch innovative products.


1. Nestlé Purina opened a new production hall at its facility in Bük, northwest Hungary, making the plant the largest production center in Europe and opened its US$86 million factories in Brazil. This step is expected to give Nestlé Purina an impetus for greater growth from the domestic market.

2. Carna4: Formulas inspired by healthy eating trends. This manufacturer draws inspiration from the human health food sector to formulate innovative recipes and whole food recipes for dogs and cats.

3. PetLife replaces the expectations of getting Dr. True Pet Food. Geoff. PetLife Pharmaceuticals, Inc., developer of a new generation of veterinary anticancer drugs and pet nutrients, announced that it is acquiring Dr. Real Food for Pets™. Geoff and expansion plans for a national rollout.

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


How will face-to-face interaction drive the pet food market in the Digital Age?

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

Gluten-free, GMO foods making their mark on the pet food industry.

Edible insects are making inroads into pet food popularity.

Humanization and premium at the top in the pet industry.

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

The increasing connectivity of the market in the Asian countries of Vietnam, Thailand, etc. will boost the Asia-Pacific pet food market?

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