Summary

The global pet food market has experienced robust growth since 2020, with the U.S. leading as the largest market. The industry exhibits a high degree of consolidation, with top players like Mars, Nestlé, and JM Smucker holding substantial market shares. Premiumization drives the sector, with a noticeable shift towards healthier and high-quality alternatives due to increasing pet obesity. The U.S. pet population rose to 154.3 million by 2022, with a remarkable 70% of households owning a pet, reflecting Americans' growing passion for pets. The average annual growth rate of the U.S. pet industry from 2018 to 2022 was 8.6%. Online shopping for pet food has surged, with 42% of consumers increasing their online purchases in 2022. Regulatory bodies like the FDA oversee the industry to ensure product safety and quality. Foreign trade has been dynamic, with U.S. imports of dog and cat food tripling from 2016 to 2022, resulting in a trade surplus despite a faster increase in imports than exports. Premium segments like 'health & wellness' are seeing the most growth, overshadowing volume sales with a notable rise in unit prices..Rising Passion for Pets and Premium Products Fuel Market Trends in the U.S. Pet Food Industry The U.S. pet food market has witnessed significant growth, catalyzed by an increasing affinity for pet ownership and a surge in premium product demand. From 2011 to 2022, the dog and cat population showed remarkable increases, with the number of dogs ascending by nearly 50% and cats by approximately 20%. In tandem with this growth, the percentage of American households owning a pet also soared, reaching roughly 70% in 2022 compared to about 56% in 1988. The figures suggest that pets are more than just animals; they are cherished companions, as indicated by a strong trend towards pet humanization. Statistics reflect the immense love pet owners harbor for their furry friends, with a striking 40% of New Yorkers admitting to spending more on pampering their dogs than their partners. This lavish treatment isn't limited to New York, as the trend spreads across various states, with many Americans going to lengths to ensure their pets' comfort and happiness. This affection translates to financial terms as well. The average annual expenditure on pet care sits between $200 and almost $2000, with those earning over $200,000 per year allocating on average closer to $1500 towards their pets. Food remains the most significant expense, accounting for nearly half of total costs according to respondents. As pet parents prioritize the health and nutrition of their furry companions, the demand for premium, healthier food alternatives has intensified, partly due to the prevalence of pet obesity. This shift towards premiumization is evident in the pet food prices, which outpaced average U.S. inflation rates between December 2021 and May 2023. In response to this trend, industry giants are consolidating their positions by expanding assortments with health and well-being focused offerings. The U.S. market itself is highly consolidated, with leading companies holding significant shares. The market reflects a powerful oligopoly where a handful of players exert substantial influence over trends and market dynamics. Regarding purchasing habits, there is a clear tilt towards online shopping, with nearly half of pet owners increasing their frequency of online purchases in 2022. This is complemented by a preference for in-store pickups, indicating an inclination to blend online convenience with in-store benefits. Notably, dry pet food claims the lion's share of the market, resonating with consumers for its convenience and perceived benefits to pet health. However, the rising prices have not deterred consumers, suggesting a relatively inelastic.### Leading Titans of the Pet Food Industry In an industry teeming with competition and variety, a few giants stand tall, shaping the market dynamics with their expansive product offerings and marketing strategies. The pet food sector, already a robust and growing market, is dominated by companies that have become household names due to their longstanding reputations and extensive research in pet nutrition and health. Here we unveil the prominent players steering the global pet food market, shaping the trends, and setting the standards for quality and innovation. #### Mars Petcare Inc. A perennial powerhouse in the pet food industry, Mars Petcare Inc. doesn't rest on its laurels. With a plethora of brands under its umbrella, including well-known names such as Eukanuba and Iams, Mars has managed to secure a substantial portion of the market share. The company's approach to pet care revolves around comprehensive research and development, focusing on both nutritional value and taste to cater to the diverse needs of pets worldwide. #### Nestlé Purina Petcare Nestlé Purina Petcare is another major contender with a competitive edge in nutrition and science. Their brands, such as Purina One and Purina Pro Plan, are frequently found on the shelves of pet owners eager to provide their companions with meals that are not just satiating but also tailored to support overall health and well-being. Nestlé Purina's dedication to quality, backed by rigorous testing and quality control, assures customers of the safety and efficacy of their pet food products. #### Hill's Pet Nutrition A subsidiary of Colgate-Palmolive, Hill's Pet Nutrition is synonymous with clinically researched food products designed for pets with specific dietary needs. Their prescription diet and science diet lines are extensively recommended by veterinarians, emphasizing Hill's commitment to creating pet food that aids in managing health conditions and enhancing the lives of pets through nutrition. #### J.M. Smucker Best known for its human food products, J.M. Smucker has a significant presence in the pet food market as well. The company's acquisition of brands that cater to pets has allowed it to flourish in this niche, offering an assortment of food options that promise both quality and variety for pet owners. #### General Mills General Mills, another company with a legacy in the human food industry, has made a strong foray into pet food with the acquisition of Blue Buffalo. They have successfully leveraged their experience to establish a foothold in the premium pet food market, attracting pet owners who are willing to invest in higher-end nutrition for their furry family members. #### Diamond Pet
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  • Number of pages : 30 pages
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  • Last update : 21/09/2023
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Summary and extracts

1 Market overview

1.1 Definition and scope of study

Pet foods include foods for dogs, cats, birds, fish, small reptiles and mammals. The market is part of the broader pet food category, which includes both pet food and livestock feed.

The main segments of the pet food market can be identified by feed type, distinguishing between;

  • Wet or moist foods ;
  • Dry foods;
  • Treats;

The global pet food market is flourishing, and forecasts for its development and evolution are equally promising, due to the growing importance attached to health and nutrition, and the increasing number of animals kept. In addition, more and more pets (especially dogs and cats) are overweight, increasing the demand for healthier food alternatives.

Major players in the global pet food industry include The JM Smucker Co, Nestlé, Mars and Wagg Foods. It's worth noting that these companies operate in a highly concentrated market, where the six largest companies hold a dominant share, accounting for up to 75% of the industry's total sales. This concentration reflects the importance of these key players in the global supply of pet care products, and their influence on market trends and developments. These companies strive to maintain their dominant position by offering a diverse range of high-quality products to meet the varied needs of pet owners around the world.

The United States is the world's largest pet food market, accounting for around 40% of sales in 2018. The average annual growth rate between 2018 and 2022 is 8.6%, driven by the growing number of pets and rising prices due to inflation and increasing demand for premium products

The US pet food (dog and cat) and other pet food (all other) markets are both being hit by the same trend towards product premiumization. In particular, demand for natural foods for small mammals is on the rise. Overall, dog food generates the highest volume of sales, followed by cats and small mammals.

The pet food market is one of the few markets to have benefited strongly from the COVID-19 epidemic; consumers bought many more pets, which mechanically increased sales of related products.

1.2 A steadily growing global market

The global pet food market is valued at $**.* billion byGrand View Research. It is expected to grow at a CAGR of +*.*% over the period ****-****.

Worldwide dog and cat populations in **** World, **** , million Source: ****

1.3 Domestic market: Very strong growth

Total pet industry spending in the U.S united States, ****-****, $ billion Source: ****

total spending in the pet industry has increased by **.*% in * years, from $**.* billion in **** to nearly $*** billion in ****. The average annual growth rate between **** and **** is *.*%.

Actual sales on the US market in **** united States, ****, $ Source: ****

Analyzing the ...

1.4 Very dynamic foreign trade

Dog and cat food imports in the USA united States, ****-****, Million $ Source: ****

between **** and ****, the global amount of dog and cat food imports into the United States almost tripled (***), increasing by $*.** billion. The average annual growth rate of imports is therefore **.**% .

Between **** and ****, imports rose by almost **% to reach $*.* ...

2 Demand analysis

2.1 Americans' growing passion for pets

the dog and cat population in the United States increased significantly between **** and ****, rising by **% and **.*% respectively. This increase was reinforced in the wake of the COVID-** pandemic, with the obligation to stay at home. Americans sought comfort in the massive adoption of pets to cope with isolation and stress.

Unlike ...

2.2 Demand analysis

Share of current pet owners by generation u.S., ****, % (***) Source: ****

Here's the percentage breakdown of pets in the U.S. by generation: Millennials (***) own **% of U.S. pets, followed closely by Generation X, at **%, and the Baby Boomer generation, at **%. Pet-related expenditure in $ united States, ****, $ Source: ****

pet spending data reveals that ...

2.3 Increasingly spoiled pets

Source: ****

New York scored **.** out of ***, indicating a high level of dog pampering in the state (***) **% of New Yorkers admit to spending more money on pampering their dogs than on their partners. More than half, **%, of New York respondents said they spend more on their dog's health and grooming than on ...

3 Market structure

3.1 A highly consolidated market

The US pet food market is characterized by a high degree of consolidation, with major players such as Mars Inc, Nestlé SA (***) exerting a dominant influence. Mars, in particular, occupies a significant position as a pet food manufacturer in the country.

To counter this consolidation, markets are striving to develop local ...

3.2 Value chain

In ****, the "Pet food" industry will employ around **,*** people, whereas in ****, according to IBIS, there were only around **,*** employees, equivalent to an average annual increase of around *%.

3.3 Distribution

How have your pet food purchasing habits changed in ****? u.S., ****, % (***) Source: APPA According to the panel used by APPA, **% of pet owners say they have increased their online shopping habits during ****, while only *% say they have decreased their online shopping habits. The remaining **% report no change in their habits in ...

4 Offer analysis

4.1 The dry food segment dominates the market

Advantages of dry dog food: Dry dog food is popular for its ease of storage and consumption. They are also formulated to take care of dogs' hygiene, including cleaning their teeth while they eat. What's more, they can be left out in the open for long hours without spoiling, making them ...

4.2 Purchasing and using different types of products

trends in dry food usage rates mRI-Simmons data show that purchase rates for dry pet food, whether for dogs or cats, remain stable due to their almost universal use: Dry dog food usage rates, at **% of dog food buyers in ****, have remained stable in the **%-**% range since ****. Similarly, the use ...

4.3 "Petflation": Significantly higher than the US inflation rate.

Monthly change united States, Dec-**-May-**, % Base *** : **** Source: ****

Between December **** and May ****, the U.S. consumer price index rose by **.*%. At the same time, pet food prices rose by **.*% over the same period.

This discrepancy is mainly due to the period from June **** to May ****, during which consumer prices climbed by ...

4.4 Growth driven by rising prices: the premium segment takes off

Growth has been driven mainly by price rises, partly due to inflation, but also influenced by the industry's move upmarket (***).

Industry players are also underlining the trend, since according to Simon Lesage (***)"**% of the category'sgrowth is in valued segments: health & well-being and moments of pleasure and connection with one's pet".

We ...

5 Regulations

5.1 Regulations

In the United States, regulations governing the pet food industry are mainly overseen bythe Food and Drug Administration (***). Here are some of the key laws and regulations that apply to the pet food industry:

Food, Drug, and Cosmetic Act (***) : This law gives the FDA the authority to regulate the manufacture, sale ...

6 Positioning the players

6.1 Player segmentation

Source: ****

  • Mars Petcare Inc
  • Nestlé Purina Petcare
  • Hill's Pet Nutrition
  • J.M. Smucker
  • General Mills
  • Diamond Pet Foods
  • Simmons Pet Food
  • Aphia
  • United Petfood
  • Spectrum Brands/ United Group

List of charts

  • World dog and cat populations in 2022
  • How much does it cost to own a dog every year?
  • What do you spend most on your dog?
  • Evolution of the number of dogs and cats in the United States
  • Growth in the number of pets in the United States
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Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Mars Petcare Inc
Nestlé Purina Petcare
Hill's Pet Nutrition
J.M. Smucker
General Mills
Diamond Pet Foods
Simmons Pet Food
Aphia
United Petfood
Spectrum Brands/ United Group

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