Pet Food Ingredients Market To Hit Value $83.60 Billion By 2030 |Grand View Research, Inc.

Author : Mrudula Karmarkar | Published On : 23 Jan 2024

San Francisco, 23 January 2024: The Report Pet Food Ingredients Market Size, Share & Trends Analysis Report By Ingredients (Specialty Protein, Amino Acid, Phosphates, Vitamins, Acidifiers, Antioxidants, Mold Inhibitors), By Pet, By Region, And Segment Forecasts, 2024 - 2030

The global pet food ingredients market size is expected to reach USD 83.60 billion by 2030, registering a CAGR of 4.9% from 2024 to 2030, according to a new report by Grand View Research, Inc.., An increase in pet ownership across the globe, along with the pet premiumization trend, is propelling the pet food ingredients market growth.

The COVID-19 pandemic had a positive impact on the pet food ingredient market, as, during the first lockdown phase, consumers were stocking up on pet food as they assumed a shortfall of products in the future. Additionally, a lot of people who were lonely adopted a pet when looking for a companion during this period. As people are spending more time at home, it has affected how they perceive the health of their pets which has given rise to the pet premiumization trend.

The increasing adoption of pets globally and pet humanization due to the work-from-home trend, which affected consumer perception regarding the pet’s nutritional needs, are driving the demand for the pet food ingredient market. The COVID-19 pandemic had a positive impact on the growth of the pet food ingredients market. During the pandemic, most consumers adopted pets, resulting in a spike in sales of pet food ingredients. This sales spike was witnessed during the first lockdown, as consumers stocked up on food in anticipation of future shortages. The growing trend of pet humanization was witnessed during the pandemic as consumers could spend more time bonding with their pets.

The increasing consumer awareness of pets' health-specific needs and the work-from-home trend resulted in an increase in the adoption of pets across the globe. Due to the work-from-home trend, pet parents have been able to bond with their pets and see them as a member of their family. This results in taking care of the specific needs of pets and becoming more aware of their nutritional needs, as different nourishment is required for pets that are sedentary, spayed, ill, or very active. These factors drive the demand for quality pet food in the pet market.

Manufacturers of all sizes, from start-ups to the most extensive pet retailers in the U.S., are introducing new goods and services such as human-grade fresh meals, activity monitors, and medical diagnostic tools. Many brands that market human-grade food for dogs and cats have emerged due to the rising pet humanization trend. Some of those meals include a whole wheat food diet, squash, and sweet potatoes. Animal-based pet food ingredients are associated with various health advantages, including improved skin and coat condition, improved cognitive benefits for older pets, and efficient support for digestive and intestinal health. For instance, Farmina, a global pet food manufacturer, manufactures various animal-based pet food items such as chicken, lamb, duck, and fish.

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The market is relatively fragmented and competitive in nature. The market participants are focusing on increasing their market share. The market is at a promising stage characterized by various new product launches, expansion, mergers and acquisitions.

Key manufacturers are also inclined toward the establishment of production facilities at strategic locations to reduce transportation cost, benefit from local incentives, and make the product readily available to the end users.

Pet Food Ingredient Market Report Highlights

• Based on ingredient type, the amino acids segment accounted for the largest share of 30.9% in 2022 in terms of revenue, owing to the wide application of tryptophan and lysine amino acids in aquaculture feed. It is expected to expand at a CAGR of 6.3% over the forecast period owing to increased awareness among pet parents regarding the nutritional needs required by their pets. The demand for lysine and leucine is more for cats and dogs
• The gut health ingredient segment is expected to expand at the fastest CAGR of 10.9% over the forecast period of 2024-2030. This is attributed to the premiumization trend as consumers are looking for gut-health-specific products that provide benefits like improving the immune system and digestion
• Asia Pacific accounted for the largest revenue share of 35.0% in 2023. China is expected to progress at the fastest CAGR of 5.8% during the forecast period. This is attributed to an increase in consumer spending on premium pet food with specific health requirements, giving Chinese retailers and manufacturers a great opportunity to grow
• Europe accounted for a significant market share of in 2023 and is anticipated to expand at a CAGR of 4.5% over the forecast period. The rise in pet ownership and humanization has boosted the market in this region
• Mergers & acquisitions, agreements, R&D activities, and expansions are the key strategies being adopted by companies over the past few years. For instance, in November 2022, Mars announced that its division Mars Petcare had acquired Champion Petfoods, a global pet food ingredient manufacturer. In more than 90 countries, its two brands, ORIJEN and ACANA, have established a solid and reliable reputation while expanding quickly. With a greater regional presence as a result of this partnership, Mars is anticipated to reach an even better position in the market

Key companies are fully integrated across the value chain, from growing agricultural crops to developing supplements for industrial and commercial use.Companies are anticipated to adopt backward as well as forward integration in order to ensure a consistent supply of raw materials and reduce costs involved in logistics & operations.

Companies enter into long term contracts with agricultural firms, meat processors and slaughter houses for sourcing raw materials. They employ highly qualified scientist who evaluate the  product  in terms of availability, quantity, and quality.

Based on ingredient type, the market has been segmented into amino acids, acidifiers, vitamins, specialty proteins, minerals, flavors and sweeteners, gut health ingredients, mold inhibitors, phosphates, and carotenoids. The amino acids segment accounted for the largest market share of 30.9% in 2022 in terms of revenue and is expected to expand at a CAGR of 6.3% in the forecast period. This is owing to the efficiencies offered by the ingredient, including supporting good vision, cardiac and immune system function, heart health, preventing infections, and slowing the growth of bacteria and pathogens among pets.

Pet Food Ingredients Market Report Scope

The gut health ingredient segment is expected to advance at the fastest CAGR of 10.9% during the forecast period of 2024-2030. As consumers today are looking for products having ingredients that support the gut health of pets and farm animals, the segment is expected to proliferate in the coming years. The increased awareness about pet health-specific ingredients and their availability in the market has given rise to this segment.

The pet food ingredient market features various global and regional players, which makes it a competitive market. The world’s leading companies are using partnerships, collaborations, acquisitions, mergers, and agreements as strategies to withstand the intense competition and increase their market share.

• In September 2023, Symrise inaugurated its dry pet food pilot plant in Elven, France. The facility is equipped with an R&D unit with an aim of understanding the dry pet food production process, measurement of palatability performance, and laboratory studies.
• In July 2023, Symrise transformed its pet nutrition ingredients brand into “Nuvin”. This was aimed at strengthening company’s offerings in egg, chicken, hydrolyzed protein, and other pet health solutions.

List of Key Players in the Pet Food Ingredients Market

• FoodSafe Technologies
• Symrise
• AFB International
• DuPont Nutrition & Health
• Biorigin
• Lallemand, Inc.
• Eurotec Nutrition
• Impextraco Ltda Brazil
• Pancosma
• Alltech
• Vitablend Nederland B.V.
• Elanco