The pet food ingredients market is projected to grow at a CAGR of 5.97 % to reach US$17.281 billion by 2025, from US$12.204 billion in 2019. There are quite a few aspects that have led to the comprehension of the importance of pet food which in turn has steered the pet owners to carefully select the same. This cognizance is indirectly leading to a growing demand for the pet food ingredients by pet food manufacturers. Being one of those few categories of products that are not intended for human consumption, however, paradoxically the concerns of pet owners about the health of their pets are address by the quality of pet food to the same degree of attentiveness that they hold towards their 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 the consumers when they purchase pet food. Thus, the humanization of pets has gathered momentum across the globe, which will consequently lead to the 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 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 of 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]. Moreover, dogs are being increasingly used to assist in therapy, serving various kinds of needs. Moreover, 2/3rd of the household in the USA own a pet in 2018 which is a contributing factor toward spending on pet food, one of the major components of pet spending, that has increased over the recent years in the USA [Source: U.S. BUREAU OF LABOR 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 has increased the pet population. 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 landscape from the human, thus their need for pet food with the desired attributes. To cater to this and supported by government policy the pet food ingredients market is anticipated to witness growth during the 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 adoption of pets as millions adapt to working from home. Albeit the concerns of consumers about the origin of pet food ingredients and the business concerns of supply chain disruption among such a global pandemic, in March Nutri-Science America announced that it is 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 has 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 produce Green Plains Inc. and Danish company, Novozymes have announced a technology partnership aimed at extracting value from corn protein, generating high-quality protein for pet food among others. Further, Austria based leading feed manufacture’s Ridley Corporation officially opened its extrusion plant in Westbury Tasmania In July 2019 that has an initial capacity of 50,000 tons to cater to pet food producers among others. Moreover, Veramaris’ new omega-3 fatty acid algal oil production plant in Blair Nebraska became operation in July 2019 that brings industrial-scale volumes of algal oil for pet food among others. Thus, form 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.
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