Pet Food Ingredients Market

The pet food ingredients market is expected to grow from USD 34.2 billion in 2023 to USD 47.4 billion by 2028, with a compound annual growth rate (CAGR) of 6.8% in terms of value during the forecast period. There is a willingness among pet owners to invest more in premium and specialty pet foods that incorporate high-quality and innovative ingredients. This inclination towards premiumization is driving manufacturers to explore new avenues in their ingredient formulations. The increasing global trend of pet ownership, particularly in urban settings, plays a pivotal role as more individuals embrace pets in their households. This surge in pet ownership is directly contributing to the heightened demand for pet food, consequently fueling the increased need for diverse and quality pet food ingredients.

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Market Dynamics

Driver: Increase in pet expenditure with a substantial rise in pet food expenditure

The substantial increase in pet expenditure, especially on premium pet food, is a driving force behind the pet food ingredients market. Pet owners are increasingly willing to invest more in high-quality and novel ingredients, a trend known as premiumization, driven by growing awareness of pet health and nutrition. This shift in consumer behavior contributes directly to the demand for diverse and superior pet food ingredients. Manufacturers are compelled to innovate and enhance formulations to meet evolving pet owner preferences, leading to an increased market demand for ingredients that enhance overall well-being, taste, and nutritional value. The connection between heightened pet expenditure and the demand for premium pet food ingredients is further strengthened by the perception of pets as integral family members, prompting sustained growth in this market segment.

Restraint: Limited availability of ingredients and price sensitivity

The pet food ingredients market faces a notable challenge due to the constrained availability of ingredients coupled with consumer price sensitivity. With the escalating demand for premium and varied ingredients, certain key components may encounter limitations in supply, presenting hurdles in meeting the expanding market requirements. Factors such as weather conditions affecting crop yields, geopolitical issues impacting supply chains, and fluctuations in the availability of specific animal-derived ingredients contribute to this restricted availability.

Additionally, the sensitivity of consumers to prices poses challenges for both pet food manufacturers and owners. Elevated costs associated with sourcing and processing premium ingredients may lead to increased prices for pet food products. Consequently, price-conscious consumers might opt for more budget-friendly alternatives or reduce their overall spending on pet food, potentially impacting market growth.

Opportunity: Use of cannabis in pet food

The incorporation of cannabis in pet food presents a notable opportunity for the pet food ingredients market. Cannabis, specifically cannabidiol (CBD) derived from hemp, has gained attention for its potential therapeutic benefits for pets. As more pet owners seek natural and holistic approaches to pet health, the inclusion of CBD in pet food aligns with the growing trend toward wellness-focused products. CBD is believed to have calming and anti-inflammatory properties, which can be beneficial for pets dealing with anxiety, stress, or certain health conditions. The increasing acceptance of CBD in various regions, along with changing regulatory landscapes, opens up avenues for the development of innovative pet food formulations.

This opportunity allows manufacturers to cater to a growing market segment seeking alternative and natural solutions for their pets' well-being. As consumers become more educated about the potential benefits of CBD, the demand for pet food containing cannabis-derived ingredients is likely to rise. This trend not only aligns with the preferences of pet owners but also reflects the broader shift toward health-conscious and natural pet products.

Challenge: Threat from counterfeit products

The challenge presented by counterfeit products is a notable concern within the pet food ingredients market. Counterfeit ingredients often deviate from established quality standards and safety regulations, potentially comprising substandard or adulterated elements that lack essential nutrients or, more severely, contain harmful substances that can negatively impact the health of pets. The existence of such counterfeit products in the market poses a threat to the reputation of pet food manufacturers, as instances of subpar or unsafe ingredients have the potential to erode consumer trust and loyalty, adversely affecting the brand's standing within the market.

Pet Food Ingredients Market Ecosystem

Key players within this market consist of reputable and financially robust pet food ingredients manufacturers. These entities boast extensive industry tenure, offering diversified product portfolios, cutting-edge technologies, and robust global sales and marketing networks. Prominent companies in this market BASF SE (Germany), Darling Ingredients Inc (US), Cargill, Incorporated (US), Ingredion (US), DSM (Netherlands), Omega Protein Corporation (US), ADM (US), Kemin Industries, Inc (US), Chr. Hansen Holding A/S (Denmark), Roquette Frères (France), The Scoular Company (US), Symrise (Germany), Mowi (Norway), Lallemand Inc (Canada), and Phileo by Lesaffre (France). Other noticeable players also include 3D Corporate Solutions (US), Hydrite Chemical (US), AFB International (US), Gillco Ingredients (US), SARIA International GmbH (Germany), Green Source Organics (US), Biorigin (Brazil), Zinpro (US), APS Phoenix LLC (US), LaBudde Group Inc (US), FoodSafe Technologies (US), DuPont Nutrition & Health (US), and Eurotec Nutrition Group (Thailand).

Cereals to hold the second-largest share in the ingredients segment.

Cereals are projected to hold the second-largest share in the by-ingredient segment of the pet food ingredients market. This prominence can be attributed to the significant role cereals play in providing essential nutrients, particularly carbohydrates, in pet food formulations. Common cereal ingredients like rice, wheat, corn, and barley are rich sources of energy, fiber, and other vital nutrients. Pet food manufacturers often incorporate cereals to create well-balanced and cost-effective formulations. Additionally, cereals can contribute to the texture and palatability of pet food products. The popularity of cereals in pet food aligns with the nutritional requirements of pets and offers a versatile ingredient option for formulating various types of pet foods, from kibble to treats. As a result, cereals secure a substantial position in the pet food ingredient market, holding the second-largest share.

The Dogs segment is expected to hold the largest market share in the pet segment of pet food ingredients market.

The dogs segment is poised to claim the largest market share in the pet food ingredients market for several compelling reasons. Primarily, dogs stand out as one of the most popular and extensively kept pets globally, resulting in a substantial demand for pet food. The sheer magnitude of dog ownership, coupled with the cultural inclination to regard dogs as cherished companions, significantly amplifies the market share of pet food ingredients tailored specifically for dogs. Additionally, dogs manifest diverse dietary needs influenced by factors like breed, size, age, and health conditions. This diversity necessitates a broad spectrum of specialized pet food formulations, prompting pet food ingredient manufacturers to concentrate on creating a variety of formulations tailored expressly for dogs. This strategic focus contributes to the overarching dominance of the dogs segment in the pet food ingredients market.

Pet dogs have a significant dominance in the Asia Pacific market. Developing countries are also presenting a significant market for dog food ingredients because the number of adoptions in these countries has also risen steadily, owing to the growing awareness regarding the health of dogs and the rising humanization of pets. Countries like India, China, and Brazil, which present an attractive market for dog food ingredients, have a large population of stray dogs that are also adopted by several people. According to the data published by Petsecure (Australia), a pet insurance company based in Australia, the developing economies of China, Japan, the Philippines, and India account for the countries with the highest pet dog population, while India accounts for one of the fastest-growing dog population in the world.

North America to dominate the pet food ingredients market during the forecast period.

North America boasts a mature pet food industry characterized by a multitude of well-established manufacturers and distributors. This robust infrastructure streamlines the sourcing and production of a wide array of pet food ingredients. The proliferation of e-commerce has significantly enhanced accessibility for pet owners in North America, providing them with convenient access to a diverse selection of pet food options, including those featuring unique or specialized ingredients. This enhanced convenience contributes to a growing demand for a broad range of pet food ingredients. Additionally, the region's large and efficient manufacturing facilities enable economies of scale in ingredient production, enhancing cost-effectiveness and further solidifying North America's dominance in the pet food ingredients market.

The meat & meat products segment dominated the market in North America owing to their demand in the region. Meat sources serve as an excellent source of amino acids and fatty acids, along with being a rich source of vitamins and minerals. They boost the immune system of the pet animals, along with supporting their overall growth and development. Meat & meat products also enhance the palatability of pet foods, due to which they have a higher acceptance than other pet food ingredients. Since people in North America are well aware of the benefits of meat and meat products for pet health, their demand for them is high in the region.

Key Market Players

The key players in this market include BASF SE (Germany), Darling Ingredients Inc (US), Cargill, Incorporated (US), Ingredion (US), DSM (Netherlands), Omega Protein Corporation (US), ADM (US), Kemin Industries, Inc (US), Chr. Hansen Holding A/S (Denmark), Roquette Frères (France), The Scoular Company (US), Symrise (Germany), Mowi (Norway), Lallemand Inc (Canada), and Phileo by Lesaffre (France). These market participants are emphasizing the expansion of their footprint via agreements and partnerships. They maintain a robust presence in North America, Asia Pacific, South America, RoW, and Europe, supported by manufacturing facilities and well-established distribution networks spanning across these regions.

Other noticeable players also include 3D Corporate Solutions (US), Hydrite Chemical (US), AFB International (US), Gillco Ingredients (US), SARIA International GmbH (Germany), Green Source Organics (US), Biorigin (Brazil), Zinpro (US), APS Phoenix LLC (US), LaBudde Group Inc (US), FoodSafe Technologies (US), DuPont Nutrition & Health (US), and Eurotec Nutrition Group (Thailand).

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Scope of the Report

This research report categorizes the pet food ingredients market, based on ingredient, pet, source, form, nature, and region.

Target Audience

• Pet food ingredients traders, retailers, and distributors
• Pet food ingredients manufacturers & suppliers
• Related government authorities, commercial research & development (R&D) institutions.
• Regulatory bodies, including government agencies and NGOs.
• Commercial research & development (R&D) institutions and financial institutions.
• Government and research organizations.
• Venture capitalists and investors.
• Technology providers to pet food ingredients and pet food ingredients companies.
• Associations and industry bodies. 

Pet Food Ingredients Market:

By Ingredient

• Meat & Meat Products
• Cereals
• Fruits & Vegetables
• Fats
• Additives

By Pet

• Dogs
• Cats
• Fish
• Other Pets

By Form

• Dry
• Wet

By Nature

• Organic
• Inorganic

By Source

• Taste Masking
• Animal-based
• Plant derivatives
• Synthetic

By Region:

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Recent Developments

• In June 2023, DSM has enhanced its premix capabilities in North America with the construction of a cutting-edge premix plant in Tonganoxie, Kansas. Positioned strategically in the central part of the U.S., near the core of pet food manufacturing in the country, this new plant is expected to commence operations in 2025.
• In May 2022, Darling Ingredients Inc has completed the acquisition of all shares of Valley Proteins, Inc. for an estimated USD 1.1 billion in cash. Valley Proteins oversees 18 significant rendering and used cooking oil facilities situated across the southern, southeast, and mid-Atlantic regions of the United States. With a workforce of 1,900 employees and a fleet of 550 vehicles, Valley Proteins is a notable player in the rendering and recycling industry.

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