Global Pet Food Ingredients Market - 2023-2030

Market Overview

Global Pet Food Ingredients Market reached US$ 54.2 billion in 2022 and is expected to reach US$ 85.1 billion by 2030 growing with a CAGR of 5.8% during the forecast period 2023-2030. The rising focus on the health and nutrition of pet animals and increased spending on health-focused pet food ingredients is driving the global pet food ingredients market.

The trend of natural & grain-free ingredients and novel protein sources in pet food markets has been growing in popularity, which is gaining pet owner's interest. This is attributed to several factors, including the increasing pet population, the pet humanization trend, and growing consumer demand for high-quality pet food that provides good health to pets.

Most key players launch innovative products and declare acquisitions to increase market growth. For instance, in July 2022, Symrise, an ingredient supplier company, announced the acquisition of Wing Pet Food, one of the leading companies in China in Pet Food palatability enhancers and suppliers of pet food ingredients. With this acquisition, the company's market position is expected to strengthen pet food palatability and extend Symrise's presence in APAC.

Market Dynamics

The Growing Pet Adoption and Pet Premiumization is Estimated to Drive Pet Food Ingredients Market.

The pet adoption is increasing in all developing and developed regions. For instance, the Pet Food Manufacturers Association estimates that since the epidemic commenced, 3.2 million families in the United Kingdom have added a pet, bringing the country's overall pet population to 34 million. Also, according to the Industrial Association of Pet Care Producers, in 2021, Germany had 34.7 million pets. Also, around 47% of German households own pets, and 15% have more than one pet.

The growing number of pet adoption also increased the annual money spent on pet care. For instance, according to Pet Ownership Statistics, Americans spent $136.8 billion on their pets in 2022, up 10.68% from 2021. This includes $58.1 billion spent on pet food and treats. Between 2018 and 2022, the amount spent on pets in the U.S. increased by 51.16% from $90.5 billion to $136.8 billion. These factors are driving the pet food ingredients market growth.

The Increasing Environmental Concerns and Product Launches Driving the Market Growth.

The increasing environmental concerns also increased the need for functional, plant-based pet food ingredients. The pet food manufacturers also focus on introducing plant-based pet foods with low environmental impact. For instance, in May 2023, French bug producer Ynsect unveiled its new brand Spryng for the pet food market. It features premium ingredients with a low environmental impact.

There is also an emerging trend of plant-based pet foods. For instance, in October 2021, Global Food and Ingredients Inc., a fast-growing Canadian ingredients company, acquired a cutting-edge plant-based pet food ingredient production facility. Furthermore, technological advancements, that have significantly contributed towards enhancing the quality and shelf life of pet food ingredients in recent years are likely to present significant business opportunities for the pet food ingredients market.

High Cost and Inconsistent Guidelines Restrain the Pet Food Ingredients Market Growth.

Pet owners are looking for premium quality pet food products. High-priced pet food widely uses chicken meal, and fish meals, a single source of meat meal protein that is significantly more expensive than poultry meal by-products. Compared to plant protein, animal protein is expensive. The use of functional, organic & plant-based ingredients in pet food products is increasing. In addition, the high cost of raw materials, production, and promotional costs add to the final pet food products making to costlier.

Various pet food ingredients are certified by certifying authorities which adds to the cost of procuring the certification for the pet food ingredient. These certifications require the entire supply chain to comply with the standards laid out in the certificate, which results in additional expenses for the grower, the farmer, and the producer. Finally, obtaining the certification requires the services of third-party auditors who perform audits to ensure compliance which further increases the cost of the pet food ingredient.

COVID-19 Impact Analysis

The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it with pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown, and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

Segment Analysis

The global pet food ingredients market is segmented based on ingredients type, source type, pet, and region.

In the Global Pet Food Ingredients Market, the Meat & Meat Products Segment Holds the Largest Market Share.

The global pet food ingredients market has been segmented by ingredient type into meat & meat products, vegetables, fruits, cereals, fats & oils, additives, and others. The meat & meat products segment held the largest pet food ingredients market share of 30.8% in 2022 in the pet food ingredient market analysis report. The excellent nutrition and palatability of the meat & meat products increase the segment's growth.

Meat & meat products in pet food are the ingredients left over from human food production after the meat is removed. The muscle and organ meat of poultry, fish, beef, and others are used in pet food production. These are excellent sources of essential nutrients like carbohydrates, vitamins, minerals, and proteins. They are used to maintain a pet's proper growth and metabolic processes and improve its immunity system.

Geographical Analysis

The North America Region Held the Largest Pet Food Ingredients Market Share.

The global pet food ingredient market is segmented into five parts based on geography: North America, South America, Europe, Asia-Pacific, the Middle East, and Africa. The North American pet food ingredient market held the largest market share of 38.6% in 2022 in the pet food ingredient market analysis. The increasing pet adoption is estimated to increase global pet food ingredient market demand in this region.

According to pet ownership statistics, 66% of U.S. households own a pet. Dogs are the most popular pet, followed by cats. In the U.S., 65.1 million U.S. households own a dog, while 11.1 million households own cats. The increased pet care, rising disposable incomes, and growing demand for premium quality pet foods are increasing this region's pet food ingredients market.

Competitive Landscape

The major global players in the market include Archer Daniels Midland Company, Koninklijke DSM N.V., J.M Smucker, BASF SE, Ingredion Incorporated, Roquette Freres, SunOpta, Darling Ingredients Inc., Cargill Inc., and DowDuPont Inc.

Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis:

COVID-19 Impact:

The unprecedented COVID-19 pandemic in 2020 profoundly affected the pet food industry. COVID-19 has considerably impacted the global pet food supply chain phases involving pet food ingredients production, processing, distribution, and consumption due to lockdowns and restrictions imposed by various governments.

Everything has changed due to the COVID-19 epidemic. It has influenced practically every industry, whether positively or negatively. The COVID-19 pandemic's effects on world economic conditions have had an influence. They could impact interest rates, foreign exchange rates, commodities and energy prices, and the efficient operation of financial and capital markets.

The COVID-19 pandemic issue has had an impact on the pet food industries as well. The is upending life, and the pet food sector is seeing increased trends like organic pet food ingredients. The food businesses are launching innovative programs, including organic pet food ingredients, which are readily available and straightforward to consume.

Why Purchase the Report?

• To visualize the global pet food ingredients market segmentation based on ingredient type, source type, pet, and region and understand vital commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development.
• Excel data sheet with numerous data points of pet food ingredients market-level with all segments.
• The PDF report includes a comprehensive market analysis after exhaustive qualitative interviews and an in-depth market study.
• Product mapping is available as Excel consists of critical products of all the major market players.

The Global Pet Food Ingredients Market report would provide approximately 61 tables, 60 figures and 165 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies