The Pet Food Ingredients Market is expected to grow from USD 51.263 billion in 2025 to USD 66.573 billion in 2030, at a CAGR of 5.37%.
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 well-being.
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].
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. 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.
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 an emergency.
Further, the fortunes of the pet food industry and thus the growth of the pet food ingredients market will be ensured 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.
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 sector, 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, 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, the Austria-based leading feed manufacturer, Ridley Corporation, officially opened its extrusion plant in Westbury, Tasmania. Moreover, Veramaris’ new omega-3 fatty acid algal oil production plant in Blair, Nebraska, became an operation 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.
Pet Food Ingredients Market Segmentation: