Pet Food Ingredient Market

Global Pet Food Ingredient Market Size (2024 to 2032)

The global pet food ingredient market share was valued at USD 36.81 billion in 2024 and is expected to reach USD 61.84 billion by the end of 2032, registering a CAGR of 6.70% during the forecast period 2024 to 2032.

The launch of pet foods with a transparent supply chain by following ethical guidelines received from the higher authorities for the safety of the pets is creating potential growth opportunities for the market. Labeling the ingredients used on the packaging has become one of the important things these days. Customers are seeking effective products by verifying the quality of ingredients through labels due to the growing concern over preservatives and color usage that are harmful to pets. Companies are focusing on labeling the ingredients, especially on the customer's choice. Some companies even provide customized food for pets based on the pet's specific needs and preferences, which can also reduce the risk of allergies. Tailoring pet food according to choice greatly promotes the growth rate of the pet food ingredient market.

Global Pet Food Ingredient Market Drivers:

Pet owners' preference for providing high-quality food for their pets is certainly a major factor in the market's growth. Premiumization is a new trend where pet owners are showing interest in high-quality food that is manufactured with novel ingredients that enhance the overall wellbeing of pets. Premium food with more nutrients reduces the risk of various illnesses. This food will allow the pets to live healthy and quality lives as the food we give to the pets plays an important role in their wellbeing. Premium quality food for pets provides sustainable growth by adding nutritional values like omega-3, three fatty acids, minerals, and dietary fiber that support the pet in gaining weight and enhance the immune system that helps them fight various infectious diseases. Therefore, the growing awareness of the use of premium food products is enhancing the growth rate of the pet food ingredients market.

Growing pet ownership across the world is also boosting the market value. According to a recent study, at least one pet was owned by 66% of American households, whereas 33% of the world owns pets. Half of the younger generations in the U.S. have owned pets in recent times, which is adding fuel to promote the market share in coming years.

The U.S. is the largest country in spending the most on pets. In 2022, Americans spent nearly USD 136 billion on pet food, veterinary bills, and others. Thus, rising expenditure on pet wellbeing by owners in emerging countries like the U.S., U.K., China, India, and others is ascribed to boost the market growth rate.

The launch of a variety of pet foods with whole wheat grain, sweet potatoes, and other organic-based food products will certainly propel the growth rate of the market. Also, some companies have already launched premium pet food products, which are made up of animal-based ingredients such as chicken, duck, fish, and lamb.

The demand from pet owners to look after modern food sources rather than traditional food varieties is emphasizing the demand for premium pet food, which is straightly accelerating the market share.

Global Pet Food Ingredient Market Restraints:

However, the high cost associated with high-quality food manufactured with novel ingredients is hampering the growth rate of the pet food ingredient market. Government norms to accept innovative food products are slowly degrading the market value. The pet food production process is raising environmental concerns due to the presence of the meat industry. This is increasing the demand to launch food products that are economically sustainable and pose fewer concerns over the environment. The lack of skilled persons in manufacturing food products with the latest technological equipment is also one of the restraining factors impeding market growth.

Growing competition between the key players might show the effect on the price range of the food products, which is acting as a barrier to the growth rate of the market. Disruptions in the supply chain of raw materials may also hamper the growth rate of the pet food ingredient market. There is a huge delay in the supply of raw materials due to shortage issues across the world. Also, stringent norms in trading are one of the factors that stifle the growth rate of the market.

Impact of COVID-19 on the Pet Food Ingredient Market:

The COVID-19 pandemic hit the world in China in 2019. All the nations imposed stringent regulations such as restrictions on transportation, public gatherings, canceled flights, and closure of restaurants, hotels, and all educational institutions to curb the spread of the disease. Few countries like China, India, the U.S., Italy, Spain, and others are hardly hit by COVID-19, irrespective of the regulations imposed. With this, the economic crisis started to rise, which is surging the prices of all the goods, which is a major drawback for all the countries. However, the world is getting into pre-COVID terms with the widespread vaccination campaign. World Health Organization (WHO) declared COVID-19 as endemic in 2022, but the variants can still impose a threat in coming years. On the other hand, during COVID times, the adoption of pets like dogs and cats has increased as the work-from-home choice among employees has leveraged. With this, the demand to take care of pets with more attention has led to the growth rate of the pet food ingredients market.

REPORT COVERAGE:

This research report on the global pet food ingredient market has been segmented and sub-segmented based on source, ingredient, animal, form, and region.

Global Pet Food Ingredient Market By Source

• Animal Derivatives
• Plant Derivatives
• Synthetic Derivatives

The animal derivatives segment holds the dominant share of the market due to the increasing prevalence of providing food according to the pet's diet. Animal derivative food often has high demand as it consists of high protein levels that are crucial for the pet's well-being. The plant derivatives segment is also rising at a random rate with the growing investments by consumers to provide nutritional food for their pets that is cost-effective. 

Global Pet Food Ingredient Market By Ingredient

• Meat and Meat Products
• Cereals
• Vegetables
• Fats
• Additives

The meat and meat products segment is greatly influencing the market share with owners' increasing concentration on pets' health and diet factors. The growing popularity of providing good dietary options for pets with the most preferable options is gaining more traction over the growth rate of this segment. Also, the cereals segment is set to hit the highest CAGR by the end of 2032.

Global Pet Food Ingredient Market By Animal

• Dog
• Cat
• Bird
• Fish
• Others

The dog segment is leading with the prominent growth rate of the market, whereas the cat segment is gaining traction over the growth rate during the forecast period 2024-2032. According to pet ownership statistics, roughly 62 million and 37 million households own dogs and cats, respectively, across the world. The number is expected to grow at a higher rate with the growing trend towards humanization among younger generation kids.

Global Pet Food Ingredient Market By Form

• Dry Pet Food
• Wet Pet Food
• Mixture

The dry pet food segment is gaining the highest share of the market. Dry pet food has a long shelf life, is high in nutritional value, and is made up of meat products. Wet pet food is esteemed to have steady growth opportunities in the coming years.

Global Pet Food Ingredient Market By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

North America's pet food ingredient market is holding the top position in leading the largest share with the growing number of pet owners. The U.S. stands first in owning a large number of pets. Growing urbanization and increasing disposable income are two major factors for the growth of the market in this region. The U.S. and Canada hold prominent shares of the market. Pet owners are closely paying attention to the health of their pets and increased their expenditure on the pet's wellbeing. Their interest in pets is likely to bolster the growth rate of the market to the extent of the foreseen period in the U.S.

Asia Pacific is gaining more traction over the share of the pet food ingredient market with the rising pet humanization in emerging countries like China and India. Pets are becoming an integral part of families nowadays, which is enhancing the demand to provide high-quality food for pets. In urban China, 51m dogs and 65m Cats are owned by pet lovers. This means that one in eight Chinese people own either a dog or a cat in urban areas. Therefore, the growth rate of the market in China is growing at a higher rate.

Europe is deemed to be positioned second in leading the dominant market share during the forecast period. Growing per capita income and people's prevalence of adopting pet animals are prompting the share of the market.

Middle East & Africa and Latin America are expected to continue the steady growth rate throughout the forecast period.

KEY MARKET PLAYERS

Major Key Market players in the Pet Food Ingredient Market are Cargill, Incorporated (U.S., ADM (U.S.), BASF SE (Germany), Bluestar Adisseo Co., Ltd. (China), Darling Ingredients Inc. (U.S.), Omega Protein Corporation (U.S.), DuPont (U.S.), Chr. Hansen Holding A/S (Denmark), Roquette Frères (France), SunOpta (Canada)

RECENT HAPPENINGS IN THE MARKET

In 2023, ADM announced that the company is going to invest USD 33 million in pet food production to expand its product portfolio in Mexico. The Chicago-based Archer Daniels Midland (ADM) is set to accomplish its animal food production with advanced technologies.