Animal Food Market

The global market value of the animal food market was estimated to be USD 105.4 billion in 2024 and is projected to grow at a CAGR of 5.4% during the forecast period. Increasing disposable income all over the world is driving the growth in the pet adoption market. Increasing concern about pet health is driving the market growth significantly. Convenience is likely to play a vital role in the growth of this industry. Increasing popularity of organic pet food is driving the demand for animal food in the market. Pet food products are found in different forms in the global market, such as dry, wet, and snack treats. These products can be animal-based or plant-based.

The sales of these products are carried out through several distribution channels, such as hypermarkets/supermarkets, specialty stores, online channels, and others. With the rising pet population globally, the market has displayed significant growth in recent years.

In addition to increasing pet humanization, the market is expected to show rapid growth during the forecast period. Demand for meat is increasing drastically all over the world. Emerging markets like China, India, and Brazil are witnessing significant growth in meat production.

Growth Drivers

The rise in demand for the feed, which supports natural growth and immunity, is driving the market growth significantly. Rapid expansion of the aquaculture industry, for example, shrimp and salmon farming, are key segments. Sustainable sourcing and production of feed ingredients are gaining traction in the market. Digital transformation in agriculture supports market growth.

People who have started treating pets as family members are boosting demand for premium and specialized food products. Surge in pet ownership, especially post-pandemic, contributes to market growth. Increasing growth in pet humanization is driving the demand in the market.

Segmentation

Pet Type

·         Dog

o   Wet Food

o   Dry Food

o   Snacks/Treats

·         Cat

o   Wet Food

o   Dry Food

o   Snacks/Treats

·         Others

By Source

·         Animal

·         Plants

By Distribution Channel

·         Hyper Markets/ Super Markets

·         Specialty Store

·         Online Channels

·         Others

By Region

·         Asia-Pacific

·         North America

·         Latin America

·         Middle East and Africa

·         Europe

Animal Food Market by Distribution channel

On the basis of distribution channel, the animal food market is segmented into hypermarkets/supermarkets, specialty stores, online channels, and others. Specialty stores are the dominating market segment and are expected to dominate the market during the forecast period due to being a one-stop destination for pet owners.

Hypermarket/supermarket is leading the market due to the fact that consumers do buy their regular household goods along with pet food items. Improvement in overall digestion and performance of pet animals owing to consumption of nutritious food is also likely to boost market growth in the forecast period.

Online channels currently are not among the leading segments, but in the future this segment is expected to dominate the market. Convenience is likely to play a vital role in the growth of this market. Increasing urbanization, along with rising disposable income, is driving growth in the market significantly. Increasing availability of organic products in a variety of flavors and the inclusion of essential ingredients such as probiotics and antioxidants are factors that are likely to induce a positive impact on global market growth.

The online channel is expected to show significant growth in the forecast period, attributed to the increasing inclination of millennials toward online purchasing. The high convenience offered by online channels, such as doorstep delivery, along with the rising collaboration of industry giants with retail e-commerce players, is expected to fuel the segment’s growth. 

Regional Outlook

On the basis of the regions, the animal food market is segmented into 5 regions: Asia-Pacific, North America, Latin America, the Middle East and Africa, and Europe. The North America region is the leading segment in the animal food market and is expected to dominate the market during the forecast period. High pet ownership and consumers increasingly buying healthy and organic food for their pets are the key factors behind the significant growth in the market. Asia-Pacific is another leading region due to rising disposable incomes and growing pet adoption. The presence of key market players in the region is the key factor behind the significant growth in the market.

Expanding livestock farming in countries like China, India, and Southeast Asia is driving the demand in the market significantly. Countries like China, India, and Vietnam are blessed with massive livestock sectors. Demand for commercial animal feed is growing to improve productivity and meet rising meat consumption. Increasing disposable income in the region is the key factor behind the significant growth in the animal food market.

Urbanization and changing lifestyles have led to a surge in pet adoption, which boosts the demand for nutritious premium pet foods. A growing middle class is spending more on quality food products for both pets and livestock. Urban dwellers tend to prefer packaged and branded pet foods. Asia-Pacific has the largest part of the world population and has a huge base of both pet owners and livestock consumers. Policies promoting feed safety, efficiency, and sustainability support the growth of industrial-scale animal food production. Rapid modernization of farms increases demand for formulated feeds.

The European market is witnessing significant growth during the forecast period due to increasing disposable income and a steady increase in pet ownership across Europe, especially after the Covid-19 pandemic. Households are treating pets more like family members, boosting demand for premium, organic, and functional pet food. Increasing demand for nutritious and sustainable pet food is initiating growth in the market significantly. Countries like Germany, France, the UK, Italy, and Spain are the leading countries.

The Middle East and Africa and Latin America markets are witnessing moderate growth due to the rapid expansion of the middle-class population. The market is observing slow growth in comparison to North America and Asia-Pacific. Stringent regulations implemented by the government are hindering the market growth in countries like South Africa, Saudi Arabia, the United Arab Emirates, and Egypt. Brazil and Argentina are witnessing growth in pet ownership and thus the animal food market due to increasing disposable income and rising urbanization in the region significantly.

Key Players

·         He J.M. Smucker Company

·         Nestle Purina

·         Mars, Incorporated

·         LUPUS Alimentos

·         Total Alimentos

·         Hill’s Pet Nutrition, Inc.

·         General Mills Inc.

·         WellPet LLC

·         The Hartz Mountain Corporation

·         Other Players