Pet Food Ingredients Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Source (Animal-Based, Plant-Based, Synthetic), By Ingredient-Types (Additives, Cereals, Fats, Meat & Animal Derivatives, Vegetables), By Form (Liquid, Dry), By Pet (Dog, Cat, Fish, Others), And By Geography - Forecasts From 2022 To 2027

The pet food ingredients market is projected to grow at a CAGR of 4.19% to reach US$15.490 billion by 2027, from US$11.620 billion in 2020.  

There are quite a few aspects that have led to the understanding of the importance of pet food, which in turn has steered pet owners to carefully select the same. This cognizance is indirectly leading to a growing demand for pet food ingredients by pet food manufacturers. However, being one of those few categories of products that are not intended for human consumption, paradoxically, the concerns of pet owners about the health of their pets are addressed by the quality of pet food with the same degree of attentiveness that they hold towards their own health and wellbeing. Therefore, in addition to the growing awareness of the importance of the quality of pet food mentioned earlier, the finer product qualities and, most importantly, the ingredients have emerged as the prime determinants for consumers when they purchase pet food. Thus, the humanization of pets has gathered momentum across the globe, which will consequently lead to an increase in pet food consumption, driving the pet food ingredients market to a new zenith during and beyond the forecast period.

Further, the propensity of humans to own a pet is increasing because consumers are increasingly realizing that the bond between people and their pets can increase fitness, lower stress, and bring happiness to their owners. The aforementioned is inclusive of but not limited to certain health benefits like decreased blood pressure, decreased cholesterol levels, decreased feelings of loneliness, decreased triglyceride levels, increased opportunities for exercise and outdoor activities, increased opportunities for socialization, among others [Source: Centers for Disease Control and Prevention, U.S. Department of Health & Human Services].  Furthermore, in 2018, two-thirds of US households owned a pet, which contributes to increased spending on pet food, one of the major components of pet spending in the US [Source: US Bureau of Labour Statistics]. Further, in Europe, an estimated 80 million European households own at least one pet animal, among which at least 24% own one dog and at least 25% own one cat. Due to the increased pet ownership, at least 1,000,000 direct and indirect jobs are generated by pet ownership, Viz. veterinarians or breeders or connected supply industries.  Across Europe, as of 2018, there are approximately 132 pet food-producing companies and 200 production plants. The pet food industry and related supply and services represent a combined annual turnover of over € 38.5 billion [Source: FEDIAF].

Thus, due to the perceived symbiotic relationship between humans and pets, the pet population has increased. Consequently, the aforesaid is set to drive the pet food ingredient market growth during the forecast period and beyond.

There are a few other factors that are going to change the narrative of pet ownership and further reinforce the need for careful pet food selection thus driving the pet food ingredients market growth during the forecast period and beyond. In the USA, pet food and feed processors have been listed as part of the United States “Critical Infrastructure Segment” and are advised to continue business operations during the outbreak of COVID-19 under the Presidential Policy and the Department of Homeland Security- This reinforces the inseparability of companion animal health and wellbeing from the human, thus their need for pet food with the desired attributes. To cater to this and be supported by government policy the pet food ingredients market is anticipated to witness growth during times of such emergency. Further, the fortunes of the pet food industry and thus the growth of the pet food ingredients market will ensure by the sudden increase in the adoption of pets as millions adapt to working from home. Despite concerns of consumers about the origin of pet food ingredients and the business concerns of supply chain disruption in such a global pandemic, in March, Nutri-Science America announced that it was expanding production of its VeriGEN vitamin premix as a response. VeriGEN was introduced as one of the only vitamin premixes sourced entirely outside of China.

Further, it also announced the increment of its procurement, lab analysis, and processing operations in light of the COVID-19 outbreak to continue providing the VeriGEN to processors. Besides, in January 2020, an Edinburgh-based biotech start-up, MiAlgae, received investments of over a million USD to focus on commercializing its microalgae products that target the pet food sectors among others.  The company uses co-products from the whiskey distillation process to produce microalgae which are high in omega 3 and other nutrients. Moreover, in December 2019, US ethanol and DDGS producer Green Plains Inc. and Danish company, Novozymes announced a technology partnership aimed at extracting value from corn protein, generating high-quality protein for pet food among others. Furthermore, Austria-based leading feed manufacturer Ridley Corporation officially opened its extrusion plant in Westbury, Tasmania. In July 2019 that has an initial capacity of 50,000 tonnes to cater to pet food producers among others. Moreover, Veramaris’ new omega-3 fatty acid algal oil production plant in Blair Nebraska became an operation in July 2019 that brought industrial-scale volumes of algal oil for pet food among others. Thus, from the trend of humanization of pets through increasing pet adoption to government policies, the pet food ingredient market is poised to perform exceptionally well to the extent that it is going to witness healthy growth during the forecast period.

COVID-19 Impact on the Pet Food Ingredients Market

Supply networks are adversely affected by COVID-19. Due to constraints in the movement of raw materials, the pet food industry first had supply and cash flow problems. On the other side, as people adopted more pets in response to a growing need for companionship during the lockdown, pet food consumption increased steadily in many regions worldwide. Market participants have shifted their attention away from physical businesses and onto e-commerce platforms to meet this need, increasing their investments in creating their websites. For instance, the Pet Food Manufacturers Association (PFMA) estimates that since the epidemic began, 3.2 million families in the UK have added a pet, bringing the country's overall pet population to 34 million. The country's pet food ingredients market is expanding due to the increase in pet adoption. During the lockdown in 2020, pet owners also stocked up on pet food, which resulted in a temporary increase in sales. In some of the hardest-hit regions, sales in the United States rose by 9.7% in 2020. General Mills, Inc.'s Blue Buffalo pet food brand especially observed a jump in sales in mid-March. The company anticipated that demand for pet food would remain strong during the timeframe.

KEY DEVELOPMENT

• October 2021- The cutting-edge plant-based pet food ingredient production facility in Bowden, Alberta, was purchased by Global Food and Ingredients Inc.
• March 2021- Leading pet food producer Mars, Inc., with headquarters in the United States, invested USD 200 million to expand its Rohal Canin facility in Lebanon. The company will install five new corporate lines to increase its production capacity.
• ORIJEN introduced ORIJEN Premium Wet Dog Food in 2021, prepared with high-quality animal ingredients (protein).

Pet Food Ingredients Market Scope:

Report Metric	Details
Market Size Value in 2020	US$11.620 billion
Market Size Value in 2027	US$15.490 billion
Growth Rate	CAGR of 4.19% from 2020 to 2027
Base Year	2020
Forecast Period	2022–2027
Forecast Unit (Value)	USD Billion
Segments Covered	Source, Ingredient-Types, Form, Pet, And Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	3D Corporate Solutions, AFB International, Alltech, Balchem Inc., Biorigin, BTSA, Cargill, DSM Nutritional Products LLC, DuPont de Nemours, Inc., Kemin Industries, Inc.
Customization Scope	Free report customization with purchase

 

Key Market Segmentation

• By Source
  • Animal-based
  • Plant-based
  • Synthetic
• By Ingredient-Types
  • Additives
  • Cereals
  • Fats
  • Meat & Animal Derivatives
  • Vegetables
• By Form
  • Liquid
  • Dry
• By Pet
  • Dog
  • Cat
  • Fish
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Thailand
    • Indonesia
    • Taiwan
    • Others

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3D Corporate Solutions

AFB International

Alltech

Balchem Inc.

Biorigin

BTSA

Cargill

DSM Nutritional Products LLC

DuPont de Nemours, Inc.

Kemin Industries, Inc.