The pet food ingredients market is a segment of the larger pet care industry that focuses on the production and sale of ingredients used in pet food manufacturing. Pet food ingredients are the raw materials that go into the formulation of various types of pet food, including dry kibble, canned food, and treats.
The global pet food ingredients market is projected to expand with an exceptional compound annual growth rate (CAGR) of 6.7% from 2022 to 2027. This growing trend is projected to increase the market value from $32.2 billion in 2022 to an impressive $44.5 billion by the end of 2027.The fast adoption of pets, as well as rising and emerging concern about their health and well-being, are predicted to fuel the increasing need for pet food ingredients.
Market Drivers: Switch from mass products to organic pet food ingredients
According to APPA, in the pet industry, the spending on pet food is around one-third of the total spending. In 2016, around USD 8.2 billion was spent in the US on organic food products. According to an article published in the UK on dog food, the volume of pet food sold has declined by 3%, whereas the value has increased by 2%, stressing on the fact that pet owners are moving toward organic and premium products. Also, there is a rising interest among US pet owners for natural, locally-sourced treats, and chews, which has also led to the increased sales of organic pet food ingredients. Additionally, an increase in obesity among pets has encouraged pet owners to demand organic, clean, and protein-rich food products.
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Opportunities: Shift in focus toward natural and grain-free products
The rising trend of pet humanization has led to an increase in spending on premium pet food products by pet owners. They are consistently demanding pet food that adds value to the diets of pets and enhances their growth and development. Therefore, the demand for natural and grain-free extruded pet food products has been growing remarkably over the last few years, as they provide various health benefits and aid in the healthier growth of animals. For instance, according to the Pet Industry Distributors Association, natural pet food sales grew from USD 3.6 billion in 2011 to USD 5.4 billion in 2015. Growth in demand for natural and grain-free pet food products has created new opportunities for pet food ingredient manufacturers. Focusing on product innovation and the introduction of natural and grain-free pet food ingredients will enable companies operating in the pet food ingredients market to improve their profits.
The dog segment is projected to account for the largest market share in the pet food ingredients market
Based on pet, the dogs segment is projected to account for the largest market share in the pet food ingredients market. Dogs are the most popular pets, with a healthy adoption rate globally. A wide variety of pet food ingredients composed of plant derivatives and animal-based ingredients are needed to meet the nutritional requirements of dogs. Pet food ingredients such as colors and flavors are also used extensively in dog food products to enhance their palatability and feed intake. The high applicability of pet food ingredients in dog food is expected to drive the growth of this segment.
Asia Pacific accounted for the fastest-growing region for the pet food ingredients market. The Asia Pacific pet food ingredients market is driven by the rising pet population and rising demand for pet food. Developing countries such as China and India have a significant population of pets. Factors such as emerging economies, a rising middle-class population, and a rise in awareness regarding the health and well-being of animals, have further contributed to the adoption of pet animals in the region.
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Pet Food Ingredients Market Key Players:
Key players in this market include BASF SE (Germany), Darling Ingredients Inc. (US), Cargill (US), Ingredion (US), DSM (Netherlands), Omega Protein Corporation (US), ADM (US), Kemin Industries, Inc. (US), Chr. Hansen Holding A/S (Denmark) and Roquette Frères (France).
