According to a new report published by Allied Market Research, titled, Pet Food Market by pet type, food type, and sales channel Global Opportunity Analysis and Industry Forecasts, 2014 - 2022, projects that the global pet food market size was valued $68,109 million in 2014, and is projected to reach $92,747 million by 2022, registering a CAGR of 4.1% during 2016 - 2022. Moreover, North America is expected to dominate the global pet food market throughout the analysis period, registering a notable CAGR of 3.8%.
The global pet food industry is driven by rise in trend of nuclear families, rapid humanization of pets, and increased awareness about pet health. In addition, increase in ownership of pets in developing nations and rise in e-commerce sales offer opportunities for the pet food market players. However, increasing concerns about pet obesity and pet food recalls by companies hamper the growth of the global pet food market.
Premium foods have garnered significant popularity among quality sensitive pet owners. The growing interest in humanized pet food has created lucrative opportunities for manufacturers to produce high quality nutritional food without additives or preservatives. Pet food products with low-fat, low caloric, and high moisture content are in high demand in the market, towing to the incidence of pet obesity. Therefore, the other pet food type segment is expected to witness the fastest rate during the forecast period.
However, transition in packaging standards has significantly impacted the overall industry. Pet guardians prefer using metal canned packaging to flexible plastic and paper packaging. For instance, stand-up pouches witnessed more than 50% growth in the U.S. during 2007-2013. In addition, demand for smaller package sizes, such as single-served packets assist pet owners to deal with their pets weight or meal portions.
The global pet food market is segmented, based on sales channel, into pet specialized shops, internet sales, hypermarkets, and others (grocery stores and non-grocery stores). The hypermarkets segment generated the highest revenue and leads in terms of pet food market share for the year 2015. Hypermarkets offer one-stop shopping experience along with a broad product range. Conversely, internet sales have witnessed the highest growth rate, as it is one of the convenient shopping methods that offers a wide variety of products to pet owners. The rising online pet food sales would propel the overall market size. In the U.S., the sales of pet food through e-commerce platforms increased by more than 50%, and is expected to outpace the overall e-commerce or retail sales by 2022.
North America was the highest revenue contributor to the global pet food market in 2015, and is expected to maintain its position throughout the period. Increase in pet ownership, innovation in specialty & premium products, and rise in awareness about pet health have fostered the North American market. For instance, treats & snacks, such as Whiskas Temptations Dentabites and Feline Greenies offered by Whiskas contain fortified and functional ingredients to serve multiple functions, such as dental and health issues, had gained popularity in North America and other parts of the world.
Key Findings of Pet food Market:
- By animal type, cat is estimated to be the fastest growing segment, in terms of revenue, registering a CAGR of 4.9% during the forecast period.
- LAMEA is Projected to be the second fastest growing region, in terms of revenue, registering a CAGR of 4.6% during the forecast period.
- Internet sales witnessed significant growth in 2014, and is anticipated to grow at the highest CAGR of 7.3%.
- The dry food segment was the highest revenue contributor to the global market, with 65.3% share in 2014, and is expected to maintain its dominance throughout the forecast period.
Market players have focused on adopting several strategies, such as product launch, acquisition, and partnership to expand their market outreach. For instance, in March 2016, Blue Buffalo partnered with Mossy Oak to launch Bayou Blend, an enticing catfish and shrimp meal, which is a no-grain, protein rich formulation. This product helped the company to increase their product portfolio and expand in the South American markets.
The key market players profiled in the report include Mars Petcare US Inc., The Procter & Gamble Company, Big Heart Pet Brands, Nestl Purina PetCare, Diamond Pet Foods, Hills Pet Nutrition, Tiernahrung Deuerer GmbH, WellPet LLC, Blue Buffalo Co., Ltd., and Heristo Aktiengesellschaft.